SEWER SYSTEM IMPROVEMENT PROGRAM | Grey. Green. Clean.
DB-132 New Treasure Island Wastewater Treatment
Plant
Jignesh Desai, P.E., Senior Project Manager
Presentation to: SFPUC
10/24/2022
SEWER SYSTEM IMPROVEMENT PROGRAM | Grey. Green. Clean. 2 • Provide the wastewater treatment and recycled water
treatment requirements of the new TI/YBI development
in compliance with performance and design criteria as
outlined in RFP
• Design, Construct and Commission the new facility for operation by 2026 within awarded price
• Maximize control of odors to the fence line
• Optimize life-cycle costs
• Produce Title 22-compliant water for reuse
• Provide flexibility to comply with future regulations DB-132 New Treasure Island Wastewater Treatment Plant
Objectives
SEWER SYSTEM IMPROVEMENT PROGRAM | Grey. Green. Clean.
DB-132 New Treasure Island Wastewater Treatment Plant
Background
3 SEWER SYSTEM IMPROVEMENT PROGRAM | Grey. Green. Clean.
DB-132 New Treasure Island Wastewater Treatment Plant
Procurement Overview
4 SEWER SYSTEM IMPROVEMENT PROGRAM | Grey. Green. Clean. • Two Phase Negotiation Approach:
• Validate Proposer’s Original Cost proposal with its compliance to br
idging documents
• Tiered alternatives to bridge difference between fixed budget l
imit and original proposal.
• The SFPUC Contract Administration Bureau facilitated 3 f
ull-day workshops between the project team, the
proposer, and other major SFPUC stakeholders
• Value engineering focused workshops resulted in cost reduction of
approximately 46% of the gap without impacting the desired performance and level of service of the wastewater treatment plant.
DB-132 New Treasure Island Wastewater Treatment Plant
Negotiations Approach
5 SEWER SYSTEM IMPROVEMENT PROGRAM | Grey. Green. Clean.
DB-132 New Treasure Island Wastewater Treatment Plant
Negotiations Summary
6 Item Description Cost
Adjustment
1 Treatment Process Related Scope of Work -$1,327,600
2 Non-Treatment Process Related Scope of Work -$4,049,182 3 Enhancements -$257,364
Total -$5,634,146
SEWER SYSTEM IMPROVEMENT PROGRAM | Grey. Green. Clean. • SFPUC staff recommends award of Contract No. DB-132, New Treasure Island Wastewater Treatment Plant to the sole qualified, responsible and responsive bidder, PCL Construction & Stantec Consulting Services Joint Venture
• Negotiated Fixed-Budget Limit = $165,032,269
• Negotiated Contract Duration = 1,095 consecutive calendar day DB-132 New Treasure Island Wastewater Treatment Plant
Award Recommendation
7 SEWER SYSTEM IMPROVEMENT PROGRAM | Grey. Green. Clean. 8 Questions
DEPARTMENT
Infrastructure
AGENDA NO.
18 MEETING DATE
October 24, 2022
APPROVAL:
COMMISSION
SECRETARY
Donna Hood
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Construction Award: Regular Calendar
Contract Manager: Jignesh Desai
Award Contract No. DB-132, New Treasure Island Wastewater Treatment Plant
Summary of
Proposed
Commission Action:
Approve the plans and specifications, and award Contract No. DB-132, New Treasure Island Wastewater Treatment Plant, in the amount of $165,032,269, and with a duration of 1,095 consecutive calendar days (approximately three years), to the sole , qualified, responsible , and responsive bidder, PCL Construction & Stantec Consulting Services Joint Venture, in accordance with San Francisco Administrative Code Section 6.23(c) (3), to design and construct the new Treasure Island Wastewater Treatment Plant.
Background: The Naval Station Treasure Island is a former United States Navy (Navy) base located in San Francisco that consists of two islands, Treasure Island (TI) and Yerba Buena Island (YBI), connected by a causeway. Based on the Memorandum of Understanding between T reasure Island Development Authority and the San Francisco Public U tilities Commission ( SFPUC), the SFPUC has been operating and maintaining TI and YBI existing utility systems.
The overall scope of this complex development program phased over 15 to 20 years includes: demolition of existing buildings and utilitie s, ge otechnical improvements, construction of 8,000 new homes, and construction of new wastewater and stormwater infrastructure. The SFPUC is responsible for the planning, design, and construction of the new Treasure Island Wastewater Treatment Plant.
The objective of the DB -132 project is to build a new wastewater treatment plant that will meet regulatory requirements and will provide reliable service for the Treasure Island residents and meet the recycled water demands of the future redevelopment on the island. The existing plant was built by the Navy over 50 years ago and is past its useful life and no longer reliable. The existing plant is also not capable of providing recycled water and meeting the needs of the residents on the redeveloped island. The new w astewater treatment plant would be constructed immediately adjacent and to the south of Contract: DB-132, New Treasure Island Wastewater Treatment Plant Commission Meeting Date: October 24, 2022
the existing plant site consistent with the location identified in the Final Environmental Impact Report (https://sftreasureisland.org/FinalEIR).
The new plant would have the capacity to treat an estimated 1.3 Million Gallons a Day (MGD) average dry-weather flow and a peak wet-weather flow of 3.9 MGD. The preliminary treatment would use screens to r emove objects such as rags, paper, plastics, and metals to prevent damage and clogging of downstream equipment, piping, and appurtenances. The secondary treatment process would use a membrane bioreactor that allows for improved treatment performance in a smaller spac e than a conventional design, i.e., a plant using secondary clarifiers. The membrane bioreactor is a combination of suspended growth biological treatment system (activated sludge) in combination with membrane filtration equipment which is used to perform s olid-liquid separation. The membrane bioreactor system provides better effluent quality by removing ba cteria, biochemical oxygen de mand, indication of dissolved oxygen requirement for biological degradation of organic constitute s) and total suspended soli ds, consis tent with National Poll utant Discharge Elimination System permit requirements . Disinfected secondary -treated effluent would pass through wastewater wetlands to further reduce pollutants, and then be discharged into the adjacent stormwater outfall pipe for discharge to San Franci sco Bay. Solids generated in the treatment processes would be thickened and hauled to the SFPUC’s O ceanside Water Pollution Control Plant for digestion. The resulting biosolids would be trucked to an off -site landfill or suitable location for land application. In addition, the new plant will provide Title 22 (State Water Resource Control Board Regulatio n related to recycled water) disinfected tertiary recycled water to serve the planned Treasure Island/Yerba Buena Island (TI/YBI) rede velopment for re -use.
About 0.43 to 0.98 MGD of the Title 22 effluent would be diverted from the treatment plant for lands cape irrigation, urban farming, and toilet flushing.
The remainder of the disinfected effluent from the treatment plant woul d be directed to the wetlands.
On April 23, 2019, by Resolution 19- 0082, the Commission approved the project delivery method of Des ign-Build-Operate for Project No. CWP11001, New Treasure Island Wastewater Treatment Plant. Subsequently, after collaboration with Operating Engineers and various stakeholders, the General Manager and Assistant General Manager of Wastewater requested remov al of the Operation component and requested to solicit proposals as Design- Build delivery method.
On March 8, 2022, by Resolution 22-0052, the Commission approved the sole source designation of Emerson Process Management DCS equipment in DB - 132 New Treasure Island Treatment Plant contract documents, in order to match existing products in use across WWE facilities, pursuant to S an Francisco Administrative Code Section 6.73(e) and California Public Contract Code Sections 3400(c)(2).
On May 24, 2022, SFPUC received two proposals and determined only one w as responsive.
Contract: DB-132, New Treasure Island Wastewater Treatment Plant Commission Meeting Date: October 24, 2022
On August 23, 2022, by Resolution 22-0147, the Commission app roved the General Manager’s determination under Section 6.23(c )(3) of the San Francisco Administrative Code as set forth in his memorandum dated July 27, 2022 that (1) qualifications for bidders were not too onerous ; (2) the non - responsive bid cannot be ea sily cured; and (3) rebidding the contract would likely not result in more than one responsive bid by responsible bidders at bid prices substantially lower than the bid price received for Contract No. DB- 132, New Treasu re Island Wastewater Treatment Plant a nd that doing so would not be in the City’s best interest and authorizes the General Manager to negotiate with the responsible bidder that submitted the sole responsive bid and any other qualified contractor, and if ne gotiations are successful, to return to this Commission for award of such contract.
Overview of Negotiations:
The main obj ective of the negotiations was t o reduce the delta between the proposer’s cost and the established fixed-budget limit outlined in the Request for Proposal (RFP). Staff a pproached the objective in two-step process as outlined below:
• Validate Proposer’s Original Cost proposal with its compliance to bridging documents; and
• Tiered alternatives to bridge difference between fixed budget limit and original proposal.
The staff me ticulously conducted review of the sole proposal against t he design intent and bridging documents out lined in the RFP. The compliance check was done in the areas of each treatment process es and various mechanical, electrical and control systems.
To achieve the cost alignment with fixed budget , the Project Team conducted detailed value engineering e xercises t hat resulted in a cost reduction of approximately 46% of the gap without impacting the desired performance and level of service of the wastewater trea tment plant. Various concepts to bridge 100% of the cost gap between fixed budget and the propos er price were also evaluated but that would have compromised performance and were not acceptable to SFPUC.
The SFPUC C ontract Administration Bureau facilitated three full -day workshops between the project team, the proposer, and other major SFPUC stakeholders (Wastewater Enterprise , E ngineering Management Bureau , and Construction Management B ureau). This collaborative and multidisciplinary review workshops included areas of wastewater treatment processes and non- process scope items for optimization.
Description of Scope
of Work:
The c ontract wo rk loc ation is at T reasure Island , San Francisco, CA . The contract work consists of:
• Provide the wastewater treat ment and recyc led water treatment requirements of the new TI/YBI development in complia nce w ith performance and design criteria as outlined in RFP;
Contract: DB-132, New Treasure Island Wastewater Treatment Plant Commission Meeting Date: October 24, 2022
• Design, Construct and Commission the new facility for operation by 2026 within awarded price;
• Maximize control of odors to the fence line;
• Optimize life-cycle costs;
• Produce Title 22-compliant water for reuse; and
• Provide flexibility to comply with future regulations.
Budget & Costs: Funding: Project No. CWP11001, New Treasure Island Wast ewater Treatment
Engineer’s Estimate: $158,500,000
Original Bid Proposal: $170,666,415
Negotiated Fixed-Budget Award Amount: $165,032,269
Schedule: Estimated Notice-to-Proceed Date: November 25, 2022 Estimated Completion Date: November 24, 2025
Original Duration: 1,065 consecutive calendar days (94 5 consecutive calendar d ays to Substantial Completion and an additio nal 120 consecutive calendar days to Final Completion)
Negotiated Contract Duration: 1,095 consecutive calendar days (975 consecutive calen dar days to Substant ial Completion and an additional 120 consecutive calendar days to Final Completion)
Compliance with
Chapter 14B: Local
Business Enterprise
and Non-
Discrimination in
Contracting
Ordinance:
Set: The Contract Monitoring Division (CM D) established a Local Business Enterprise ( LBE) subcontracting requirement of 13% and 15% for the respective design and construction phases for this contract.
Submitted: The contractor committed to a LBE pa rticipation of 17.9% and
15.18% for the respective des ign and constr uction phase s for t his contract with its bid submittal.
Environmental
Review:
On April 21, 2011, the Planning Commission, and the T reasure Island Redevelopment Authority (TIDA) certified the Final Envi ronmental Impact Report (FEIR) for the Treasure Isl and/Yerba Buena Island Redevelopment Project, including the new wastewater treat ment plant , (Case N o. 2007.0903E) prepared pursuant to the California Environmental Quality Act (CEQA) by Motion No. 18325 and by Resolution No. 11-14-04/21, respectively.
On April 18, 2019 the Planning Department reevaluated the updated wastewater treatment plant project design and concluded that there we re no substantial changes to the project or circumstances under which the project would be undertaken, and no new informatio n which was not known at the time of the Final EIR, that would require subsequent or supplemental environmental review.
On April 23, 2019, by Resolution No. 19-0082, this Commission approved the Project Delivery Method for Project No. CWP11001, New Treasur e Islan d Wastewater Treatment Pla nt and adopted the CEQA Findings and Mitigation Contract: DB-132, New Treasure Island Wastewater Treatment Plant Commission Meeting Date: October 24, 2022
Monitoring and Reporting Program (MMRP) as required by CEQA.
The Final EIR can be found here: https://sftreasureisland.org/finaleir The CEQA Findings, memo t o the Planning Commission , Planning Commission Environmental Impact R eport certification, Resolution No. 19- 0082, the MMRP and the CEQA Note to File can be found here:
https://sfpuc.sharefile.com/d-s508038b136024157af8172c012c56274
Bid History: Advertised: December 27, 2021
Bids Received: The SFPUC received sealed bids from two (2) firms on May 24, 2022, as follows:
Bid Rank Design
Cost
Construction
Cost
Total Design-Build
Fixed Price
1. PCL/Stantec $13,734,965 $156,931,450 $170,666,415
2. MWH/Webcor $17,911,826 $279,310,698 $297,222,524
Application of bid preferences do not apply to this contract as the engin eer’s estimate is in excess of $10,000,000.
One Responsive Bid/One Non -Responsive Bid: On June 14, 2022, SFPUC issued Preliminary Notice of Proposal Rejection to MWH/Webcor finding its proposal non-responsive due to a material deviation greater than 110% of the fixed budget limit.
In conformance with S an Francisco Administrative Code Section 6.23(c)(3), the General Manager has determined that qualifications for bidders were not too onerous, that the non- responsive bid c annot be easily cured, and that rebidding the contract would likely not result in more than one responsive bid by res ponsible bidder s at b id prices substantially lower than the bid pri ce received.
On August 23, 2022, by Resolution 22-0147, t he SFPUC Comm ission authorized the General Manager to negotiate with the re sponsible bidder that submitted the sole responsive bid.
Negotiations with the
Sole Bidder:
Value Engineering Cost Saving Scope Items:
The following is the summary of the negotiation with the sole bidder:
Item Description Cost
Adjustment
1 Treatment Process Related Scope of Work -$1,327,600
2 Non-Treatment Process Related Scope of Work -$4,049,182 3 Enhancements (Warranties/Training/etc.) -$257,364
Total -$5,634,146
Contract: DB-132, New Treasure Island Wastewater Treatment Plant Commission Meeting Date: October 24, 2022
The SFPUC Team is also recommending acceptance of following risk sharing and contractual terms part of negotiations with sole proposer:
• Optimization of revi ew of deliverables durations and number of meetings/workshops to streamline appr ovals in alignment wi th Design-Build delivery best practices;
• Adjustments on partial payment terms for specified long lead major equipment; and
• Increase of the duration of D-B contract by 30-days and adjustments in schedule specification aligned with Design-Build best practices.
Recommendation: San Francisco Public Utilities Com mission staff recommends that the Commission adopt the attached resolution.
Attachments: 1. CMD Memorandum
2. Admin code 6.32(c)(3) Justification memo
Contract: DB-132, New Treasure Island Wastewater Treatment Plant Commission Meeting Date: October 24, 2022
Treasure Island Wastewater Treatment Plant (Existing and Planned)
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, The San Francisco Public Utilities Commission (SFPUC) is responsible for the planning, design, and const ruction of the new Treasu re Island wastewater treat ment plant; and
WHEREAS, On December 27, 2021, SFPUC adver tised a request fo r proposals for Contract No. DB-132, New Treasure Island Wastewater Treatment Plant; and WHEREAS, The Engineer’s Estimate is $158,500,000 for this construction contract work to design and construct a new wastewater treatment and recycled water facility; and WHEREAS, The contract duration is 1,095 consecutive calendar days; and WHEREAS, On May 24, 2022, SFPUC received and publicly opened two proposals; and WHEREAS, On June 14, 2022, SFPUC issued Preliminary Notice of Proposal Rejection to MWH/Webcor to finding its proposal non-responsive due to a material dev iation greater than 110% of the fixed budget limit; and
WHEREAS, In conformance with San Francisco Administrative Code Section 6.23(c)(3), the General Manager has determined that qualifications for bidders were not too onerous, that the non-responsive bid cannot be easily cured, and that rebidding the contract would likely not result in more than one responsive bid by respons ible bidders at bid prices substantially lower than th e bid price received; and
WHEREAS, On August 23, 2022, by Resolution 22-0147, the S FPUC Commission approved the General M anager’s determination under Section 6.23(c)(3) of the San Francisco Administrative Code as set forth in his memorandum dated July 27, 2022 that (1) qualifications for bidders were not too onerous; (2) the non-responsi ve bid cannot be ea sily cured; and (3) rebidding the contract would likely not result in more than one responsive bid by re sponsible bidders a t bid prices substantially lower than the bid price received for Contract No. DB-132, New Treasure Island Wastewater Treatment Plant and that doing so would not be in the City’s best interest, and authorized the General Manager to negotiate with the responsib le bidder that submitted the sole responsive bid and any other qualified contractor, and if negotiations are successful, to return to this Commission for award of such contract; and
WHEREAS, SFPUC staff and Contract Moni toring Division (CMD) review of t he bids for qualifications, responsibility, responsiveness, and application of bid preferences resulted in the establishment of PCL Construction & Stante c Consulting Services Joint Venture as the sole qualified, responsible bidder with the lowest responsive bid; and WHEREAS, CMD established a Local B usiness En terprise ( LBE) subcontracting participation of 13% and 15% for the respective design and construction phases for this contract, and the c ontractor committed to LBE par ticipation of 17.90% and 15.18% for the respective design and construction phases with its bid submittal; and
WHEREAS, Funds are available f rom Project No. CWP11001, New Treasure Island Wastewater Treatment; and
WHEREAS, On April 21, 2011, the Planning Commission, and the T reasure Island Redevelopment Authority (TIDA) certified the Final Environmental Impact Report (FEIR) for the Treasure Island/Yerba Buena Island Redevelopment Project, including the new wastewater treatment plant , (Case N o. 2007.0903E) prepared p ursuant to the California Environmental Quality Act (CEQA) by Motion No. 18325 and by Resolution No. 11-14-04/21, respectively; and WHEREAS, On April 18, 2019 the Plann ing Department reevaluated the updated wastewater treatment plant project design and concluded that there we re no substantial changes to the project or circumstances under which the project would be undertaken, and no new information which was not known at the time of the Final EIR, that would require subsequent or supplemental environmental review; and
WHEREAS, On April 23, 2019, by Res olution No. 19-0082, this Commission approved the Project Delivery Method for Project No. CWP11001, New Treasure Island Wastewater Treatment Plant a nd adopted the CEQA Findings and Mitigation Monitoring and Re porting Program (MMRP) as required by CEQA; and
WHEREAS, The work under Contract No. DB -132, New Treasure Island Wastewater Treatment Plant is within the scope of the project analyzed under the FEIR and CEQA Note to File; and
WHEREAS, The Planning Department is the custodian of records, located in File No . 2007.0903E at 49 South Van Ness Avenue, Suite 1400, San Francisco, California; and WHEREAS, The Project files, including the FEIR, CEQA Note to F ile, Resolution No. 19-0082, CEQA Findings and the MMRP have been made available for review by this Commission and the public, and those files are part of the record before this Commission; and WHEREAS, This Commission has reviewed and considered the information contained in the FEIR, the CEQA Findings contained in Resolution Number 19-0082, the CEQA Note to File, and all written and oral information provided by the Planning Department, the publi c, relevant public agencies, SFPUC staff and other experts and the administrative files f or the Project; now, therefore, be it
RESOLVED, This Commission has reviewed and considered the FEIR and the CEQA Note to File and the record as a whole, finds that the FEIR is adequate for its use as the decision– making body for the Project , and incorporates the CEQA findings contained in Resolution Number 19-0082 by this reference thereto as though set forth in this Resolution; and, be it FURTHER RESOLVED, This Comm ission further finds that s ince the FEIR and CEQA Note to File were finalized, there have been no substantial project changes and no substantial changes in projec t circums tances that would require major revisions to the FEIR due to the involvement of new significant environmental effects or an increase in the severity of previously identified significant impacts, and the re is n o new information of substantial impor tance that would change the conclusions set forth in the FEIR and CEQA Note to File; and, be it
FURTHER RESOLVED, That this Commission here by approves the plans and specifications and, as permitted under San Franc isco Admini strative Cod e section 6.23( c)(3), awards Contract No. DB -132, New Treasure Island Wastewater Tr eatment Plant, in the amount of $165,032,269, for a duration of 1,095 consecutive ca lendar days, to the sole qualified, responsible, and responsive bidder, PCL Co nstruction & Stantec Con sulting Se rvices Joint Venture.
I hereby certify that the foregoing resolution was adopted by the Public Utilities Commission at its meeting of October 24, 2022.
.
Secretary, Public Utilities Commission
London N. Breed, Mayor
Carmen Chu, City Administrator
Romulus Asenloo, Director
1155 Market Street, 4th Floor, San Francisco, CA 94103 Telephone (415) 581-2310 Fax (415) 581-2351
CONTRACT MONITORING DIVISION
CITY ADMINISTRATOR’S OFFICE
MEMORDANDUM
Date: October 4, 2022
To: Jignesh Desai, Senior Project Manager, SFPUC
Calvin Huey, Civil Design Section Manager, SFPUC
From: Linda Rainaldi, Contract Compliance Officer, CMD
Subject: CMD Award Review for DB-132 New Treasure Island Wastewater Treatment Plant
T
he Contract Monitoring Division (“CMD”) has reviewed the bids submitted for the above referenced project and determined responsiveness to the Chapter 14B pre-award requirements.
Below is a summary of CMD’s review.
Bidder Status LBE Bid
Discount
Design Cost
(Bid Item 3
and WF-1)
Construction
Cost
Total
Proposed
Design-Build
Fixed Price
PCL Construction,
Inc. (“PCL”)
Non-
LBE
Not
Applicable $13,734,965.00 $156,931,450.00 $170,666,415.00 MWH
Constructors &
Webcor Builders,
A Construction JV
(“MWH/Webcor
JV”)
Non-
LBE
Not
Applicable $17,911,826.00 $279,310,698.00 $297,222,524.00
The San Francisco Public Utilities Commission (“SFPUC”) deemed the MWH/Webcor JV non- responsive due to a material deviation from the Fixed Budget Limit of $158,500,000. As a result, PCL became the sole responsive proposer. PCL met both the Design and Construction LBE sub participation requirements (13% and 15% respectively), as well as the Good Faith Outreach Requirement, at the time of bid.
In addition, the SFPUC Commission approved the request made by the SFPUC to directly negotiate a revised contract amount with PCL. As a result, the following information reflects PCL’s newly negotiated contract amount and subcontractor participation.
Revised Contrac
t Amount:
Bidder Status LBE Bid
Discount
Design Cost
(Bid Item 3
and WF-1)
Construction
Cost
Total
Proposed
Design-Build
Fixed Price
PCL Construction,
Inc. (“PCL”)
Non-
LBE
Not
Applicabl
e
$13,517,065 $151,515,204 $165,032,269
Des i gn Phase:
The LBE subconsultant participation requirement for the Design phase is 13%. PCL met the LBE subconsultant participation requirement by listing the following LBE subconsultants on its CMD Form 2A (CMD Contract Participation Form):
Subconsultant Scope of Work Status
Listed
Participati
on
Credited
Participation
AEW Engineering, Inc. Haz Waste &
Remediation
SF LBE-
MBE
(micro)
0.50% 0.50%
McGovern McDonald
Engineers
Water Resources
Engineering
SF LBE-
WBE
(micro)
12.10% 12.10%
Merrill Morris Partners Landscape
Architecture
SF LBE-
WBE
(micro)
2.50% 2.50%
Tuan & Robinson
Structural Engineers, Inc.
Structural
Engineering
SF LBE-
MBE
(micro)
2.80% 2.80%
TOTAL 17.90% 17.90%
PCL also listed the following non-LBE subconsultants on its CMD Form 2A:
Subconsultant Scope of Work Status Listed Participation
Stantec (SCSI) Process, Civil
Engineering Non-LBE 79.60%
Fugro Geotechnical
Engineering Non-LBE 2.50%
TOTAL 82.10%
Construction Phase:
The LBE subcontracting participation requirement for the Construction phase is 15%. PCL met the LBE subconsultant participation requirement by listing the following LBE firms on the Section 00 43 36 (Subcontractor List):
Subcontractor Scope of Work Status Listed Amount Amount Credited
Participatio
n (based on
credited
amount)
Picture
Painting &
Decorating,
Inc.
Painting
SF LBE-
WBE
(micro)
$800,000.00 $800,000.00 0.53%
Anco Iron &
Construction,
Inc.
Fabrication and
Installation of
Structural Steel
Only
SF LBE-
MBE
(micro)
$1,822,176.00 $1,822,176.00 1.20%
Anderson
Roofing &
Sheet Metal
Co., Inc.
Roofing
SF LBE-
OBE
(micro)
$1,481,861.00 $1,481,861.00 0.98%
Majestic
Construction
Plaster & Gypsum
Board
SF LBE-
MBE
(micro)
$520,580.00 $520,580.00 0.34%
Power
Construction,
Inc.
Concrete
SF LBE-
OBE
(small)
$8,047,282.00 $8,047,282.00 5.31%
Larratt Bros
Plumbing Inc. Plumbing
SF LBE-
OBE
(small)
$1,060,200.00 $1,060,200.00 0.70%
Hoseley
Corporation
Earthwork, Wet
Utilities, Grading,
Paving
SF LBE-
OBE
(small)
$8,209,880.30 $8,209,880.301 5.42%
Pine Pacific
Services;
Multivista
Photographic
Documentation
Services;
Webcams, Laser
Scanning; Drone
SF LBE-
OBE
(micro)
$211,800.00 $211,800.00 0.14%
JRM
Equipment Equipment Rental
SF LBE-
WBE
(small)
$833,500.00 $500,100.002 0.33%
Mike O'Dell
Surveys Land Surveyor
SF LBE-
OBE
(micro)
$104,000.00 $104,000.00 0.07%
RES Engineers
Special Inspection
& Materials
Testing
SF LBE-
MBE
(small)
$180,000.00 $180,000.00 0.12%
A1 Protective
Services, Inc. Security
SF LBE-
WBE
(micro)
$58,000.00 $58,000.00 0.04%
TOTAL $23,329,279.30 $22,995,879.30 15.18%
1 Hoseley Corporation indicated on its Form 6 that it will further subcontract out $66,200.00 to HVYW8 Trucking (SF micro LBE-WBE).
2 JRM Equipment is an equipment rental firm and will receive 60% LBE credit for providing PCL rental equipment owned by JRM Equipment.
PCL also listed the following non-LBE subcontractors on its Section 00 43 36:
Subcontractor Scope of Work Status Listed Participation
Con J Franke Electric,
Inc.
Electrical Power,
Controls, Lighting,
Security
Non-LBE $19,272,500.00
Tesco Controls, LLC Process Control Systems
Integrator Non-LBE $10,097,000.00
Emerson Process
Management Power &
Water Solutions, Inc.
SCADA System Non-LBE $1,590,000.00
Blocka Construction, Inc. HVAC Non-LBE $1,200,000.00
Cosco Fire Protection 21 13 00 Fire Protection Non-LBE $770,000.00 TOTAL $32,929,500.00
Based on the foregoing, CMD has determined that PCL has complied with the Chapter 14B pre- award requirements. Should you have any questions, please contact me at [email protected].
OUR MISSION: To provide our customers with high-quality, efficient and reliable water, power and sewer services in a manner that values environmental and community interests and sustains the resources entrusted to our care.
525 Golden Gate Avenue, 9th Floor
San Francisco, CA 94102
T 415.554.3155
F 415.554.3161
TTY 415.554.3488
Date: July 27, 2022
To: Dennis J. Herrera, General Manager
Through: Stephen Robinson, AGM Infrastructure
Howard Fung, PMB Manager
From: Jignesh Desai, Senior Project Manager
Calvin Huey, Project Engineer
Subject: DB-132 New Treasure Island Wastewater Treatment Plant – SF Administrative Code Sec. 6.23(c)(3) Justification to Negotiate Fixed-Budget Design-Build Contract
The Contracts Administration Bureau (CAB) advertised Fixed -Budget Design- Build Contract No. DB-132, New Treasure Island Wastewater Treatment Plant , on December 27, 2021 , and received two (2) bids on May 24, 2022 from prequalified contractors : (1) MWH Constructors & Webcor Builders (MWH/Webcor); and (2) PCL Construction & Stantec Consulting Services (PCL/Stantec). MWH/Webcor’s bid was ~88% above the engineer’s estimate ; PCL/Stantec’s bid was ~7% above the engineer’s estimate.
Staff anticipated that recent escalations in material and labor rates might yield proposals modestly above the engineer’s estimate. San Francisco’s general policy, as reflected in the Administrative Code section 6.22.(h)(1) requirement that the Commission must approv e any increase in construction contract amounts that exceed 10% , is that a cost overrun of over 10% constitutes a material change. Therefore, bids that exceed 110% of the Fixed Budget Limit are materially nonresponsive to this Request for Proposals (“RFP”).
Accordingly, the SFPUC has determined t hat MWH/Webcor submitted a materially nonresponsive bid at 188% of the Fixed Budget Limit , which leaves PCL/Stantec as the sole responsive bidder.
San Francisco Administrative Code Section 6.23(c)(3) provides that when the SFPUC receives both one responsive bid and at least one nonresponsive bid, staff may negotiate with qualified contractors if the General Manager make s certain findings specified below. The project team recommends adoption of these findings and entering into negoti ations for Contract DB-132 with PCL/Stantec and any other qualified contractors.
Administrative Code:
Administrative Code 6.23(c)(3) [One Responsive Bid Received; Other Nonresponsive Bids Received] provides the requirements for contract award under the bid results described above:
If only one Responsive Bid is received from a Responsible Bidder and other, nonresponsive Bids and/or Bids by nonresponsible Bidders are submitted for the same work, the Department Head may recommend the Award of a Contract to the sole Responsive, Responsible Bidder at the bid price received, provided that the bid price does not exceed the engineer's estimate for the work. If the Responsive bid price received exceeds the engineer's
estimate, the Department Head shall determine (A) whether the qualifications for Bidders were too onerous and not necessary for the work and/or (B) whether one or more of the nonresponsive Bids could be easily cured and whether the Bidders that submitted such Bids are still interested in bidding on t he work. If the Department Head determines that steps (A) and/or (B), above, would likely result in more than one Responsive Bid by Responsible Bidders, at bid prices
substantially lower than the bid price received, then the Department Head shall re- bid the work . If the Department Head determines that neither step (A) nor (B), above, would result in more than one Responsive Bid by Responsible Bidders at bid prices substantially lower than the bid price received, then the Department Head, with the approval of the Mayor or the board or commission concerned, as appropriate, may
negotiate with the sole Responsible Bidder or any qualified Contractor, or may order the work to be executed by the City.
The cost of negotiated work or the cost of work executed by the City shall not exceed any bid price received for the same work. (Emphasis added.)
The three questions derived from Section 6.23(c)(3) and corresponding responses are:
1. Were “the qualifications for Bidders …. too onerous and not necessary for the work"?
Response: No. The design and construction of New Treasure Island Wastewater Treatment plant requires specialized skills, and there is a very limited number of qualified firms . T herefore, SFPUC conducted extensive outreach and implemented a two-step procurement by issuing a RFQ/SRFQ and a RFP. The RFQ/SRFQ process resulted in only two pre-qualified teams.
2. Can “one or more of the nonresponsive Bids … be easily cured and [are] the Bidders that submitted such Bids… still interested in bidding on the work"?
Response: No. The nonresponsive bid amount of $297,222,524 received from MHW/Stantec is a substantially higher than the Fixed-Budget Limit of $158,500,000. This substantial amount above the Fixed -Budget-Limit cannot be easily cured. Because the nonresponsi ve bidder was almost $127 million above the low bidder, it will likely not be able to reduce its bid below the lowest bidder. Notably, MWH/Webcor did not protest the SFPUC’s Preliminary Notice of Proposal Rejection dated June 14, 2022.
3. Would changing the qualifications or rebidding to allow a bidder to cure “result in more than one Responsive Bid by Responsible Bidders at bid prices substantially lower than the bid price received”?
Response: No. The qualifications identified in the contract are required for performance of the specialized work required for the new wastewater treatment facility . Staff engaged in extensive outreach efforts to secure the interest of the two pre -qualified bidders. Based on those efforts, staff finds it to be extremely unlikely that it would be possible to secure additional bids from qualified firms, and even less likely that any such bids would be lower than the bid submitted by PCL/Stantec.
Proposed Findings:
In the procurement for Contract DB-132, for the reasons dis cussed above, I find:
1. The qualifications for bidders were not too onerous;
2. The nonresponsive bid received cannot be easily cured; and
3. Rebidding the contract would likely not result in more than one responsive bid by responsible bidders at bid prices subs tantially lower than the bid price received from PCL/Stantec.
The project team recommends the General Manager’s adoption of the foregoing proposed findings and seeking Commission approval of the findings and Commission authorization to engage in neg otiations for Contract DB-132 with PCL/Stantec and any other qualified contractor.
I adopt the proposed findings set forth above.
----------------------------------------------- -------------------------- Dennis J. Herrera Date
SFPUC, General Manager
August 1, 2022