DEPARTMENT CDD (Water Enterprise) AGENDA NO. 8a
MEETING DATE January 24, 2023
APPROVAL:
COMMISSION
SECRETARY Donna Hood
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Construction Award: Consent Calendar
Contract Manager: Lynn Fong
Award Contract No. WD-2889, As-Needed Water Service Line Replacements Summary of
Proposed
Commission
Action:
Award Contract No. WD-2889, As-Needed Water Service Line Replacements , in the amount of $ 26,663,850, and with a duration of 1,096 consecutive calendar days (approximately three years), to the responsible bidder that submitted the lowest responsive bid, JMB Co nstruction, Inc. , to provide as -needed traffic control, permitting, pavement excavation and restoration on streets within the City and County of San Francisco. Contractor will support 2- inch and smaller as - needed galvanized service lines renewals for the Lead Service Lead Replacement Program.
Background: The Purpose of this contract is to meet the State and Federal guidelines surrounding lead in service lines including Environmental Protection Agency’s Lead and Copper Rule Revisions, California Health Safety Code, Section 116885, and Senate Bill 1398 (2016), amended by Senate Bill 427 (2017). The work under this contract will support San Francisco Public Utilities Commission (SFPUC) in removing all the lead components from water service lines by replacing approximately 1,400 2-inch and smaller galvanized water service lines.
Description of
Scope of Work:
The contract work is at various locations within the City and County of San Francisco.
The
contract work consists of:
• Providing ancillary support work to support SFPUC’s Lead Service Line Replacement program;
• Securing applicable permits;
• Providing traffic control at construction sites;
• Saw cutting and trench excavation;
• Furnishing and placing clean sand backfill;
• Performing all soil compaction and soil compaction testing; and • Performing pavement restoration.
Contract: WD-2889, As-Needed Water Service Line Replacements Commission Meeting Date: January 24, 2023
Funding, Budget
& Costs:
Funding: Project No. 100369 16 , Local Water – Lead Component Service Program
Engineer’s Estimate: $27,000,000
Award: $26,663,850
Schedule: Estimated Notice-to-Proceed Date: March 2023
Estimated Completion Date: March 2026
Contract Duration: 1,096) consecutive calendar days (approximately three years)
Compliance with
Chapter 14B:
Local Business
Enterprise
Utilization and
Non-
Discrimination in
Contracting
Ordinance:
Set: The Contract Monitoring Division (CMD) established a 5% Local Business Enterprise (LBE) subcontracting requirement for this contract.
Submitted: The contractor committed to 8.07% LBE subcontractor participation in its bid submittal.
Environmental
Review:
Award of this as -needed contract does not constitute a “project” under the California Environmental Quality Act (CEQA) Guidelines Section 15378 because it does not involve any commitment to any specific project that may result in a physical change in the environment.
The SFPUC will not issue any task orders for work to be performed under this contract until the proposed work is reviewed and any appropriate environmental review under CEQA, if required, has been completed.
Bid History: Advertised: September 27, 2022
Bids Received: SFPUC received sealed bids from five (5) firms on December 1, 2022.
Bid Rank Bid Amount Bid
Preference
Adjusted
Bid
Final
Rank
1. JMB
Construction, Inc.
$26,663,850 N/A N/A 1
2. M Squared
Construction, Inc.
$26,792,000 N/A N/A 2
3. Hernandez
Engineering
$26,979,500 N/A N/A 3
4. Mitchell
Engineering
$29,585,656 N/A N/A 4
5. A. Ruiz
Construction Co.
$32,483,250 N/A N/A 5
Contract: WD-2889, As-Needed Water Service Line Replacements Commission Meeting Date: January 24, 2023
& Assoc., Inc.
Application of bid preferences do not apply to this contract as the engineer’s estimate is in excess of $20,000,000.
Result of Inaction: A delay or denial awarding this contract will delay SFPUC in meeting the Federal and State regulations and deadlines to remove all lead components in service lines within the water system.
Recommendation: SFPUC staff recommends that the Commission adopt the attached resolution.
Attachments: 1. CMD Memorandum
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, The San Francisco Public Utilities Commission (SFPUC) is required to meet State and Federal guidelines surrounding lead in service lines including Environmental Protection Agency’s Lead and Copper Rule Revisions, California Health Safety Code, Section 116885, and Senate Bill 1398 (2016), amended by Senate Bill 427 (2017). To meet these guidelines, SFPUC is utilizing a contractor to provide SFPUC all ancillary work associated with replacing water service such as permitting, earthwork, excavation, street restoration and traffic control; and WHEREAS, On September 27, 2022, SFPUC staff advertised Contract No. WD-2889, As- Needed Water Service Line Replacements; and
WHEREAS, The Engineer’s Estimate is $ 27,000,000 for this construction contract work to provide as-needed traffic control, permitting, pavement excavation and restoration on streets within the City and County of San Francisco. Contractor will support 2-inch and smaller as-needed galvanized service lines renewals for the Lead Service Lead Replacement Program; and WHEREAS, The contract duration is 1,096 consecutive calendar days; and WHEREAS, On December 1, 2022, SFPUC staff received and publicly opened five bids for this contract; and
WHEREAS, SFPUC staff and Contract Monitoring Division (CMD) review of the bids for qualifications, responsibility, responsiveness and application of bid preferences resulted in the establishment of JMB Construction, Inc. as the responsible bidder with the lowest responsive bid; and
WHEREAS, CMD established a 5% Local Business Enterprise ( LBE) subcontracting requirement for this contract , and the contractor committed to 8.07% LBE subcontractor participation in its bid submittal; and
WHEREAS, Award of this as -needed contract does not constitute a “project” under the California Environmental Quality Act (CEQA) Guidelines Section 15378 because it does not involve any commitment to any specific project that may result in a physical change in the environment; and
WHEREAS, The SFPUC will not issue any task order s for work to be performed under this contract until the proposed work is reviewed and any appropriate environmental review under CEQA, if required, has been completed; now, therefore, be it
RESOLVED, That this Commission hereby awards Contract No. WD-2889, As-Needed Water Service Line Replacements , in the amount of $ 26,663,850, for a duration of 1,096 consecutive calendar days, to the responsible bidder that submitted the lowest responsive bid, JMB Construction, Inc.
I hereby certify that the foregoing resolution was adopted by the Public Utilities Commission at its meeting of January 24, 2023.
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
GENERAL SERVICES AGENCY
CONTRACT MONITORING DIVISION
MEMORANDUM
Date: December 12, 2022
To: Lynn Fong, Project Manager, SFPUC
Rahul Shah, Project Engineer, SFPUC
Derek Wong, Contract Analyst, SFPUC
From: Jovi Cuntapay-Vitin, Contract Compliance Officer, CMD
Subject: WD-2889 As-Needed Water Service Line Replacements at Various Locations
The Contract Monitoring Division (“CMD”) has reviewed the bids submitted for the above referenced project, applied the appropriate bid discounts, and determined responsiveness to the Chapter 14B pre-award requirements. The Micro/Small-LBE subcontracting participation requirement is 5% for this project. Below is a summary of CMD’s review.
Bid Discount
Bidder LBE Status,
Type and Size Base Bid
LBE Bid
Discoun
t
Adjusted Bid
with LBE
Bid Discount
JMB Construction, Inc. Non-LBE $ 26,663,850 N/A $ 26,663,850 M Squared
Construction, Inc.
SBA LBE (OBE) $ 26,792,000 N/A $ 26,792,000
Hernandez Engineering SF LBE-MBE
(Micro)
$ 26,979,500 N/A $ 26,979,500
Mitchell Engineering SF LBE-OBE
(Small)
$ 29,585,656 N/A $ 29,585,656
A. Ruiz Construction
Co. & Assoc., Inc.
SF LBE-MBE
(Small)
$ 32,483,250 N/A $ 32,483,250
LBE Subcontracting Participation Requirement
JMB Construction, Inc. (“JCI”) is the lowest responsive bidder. JCI met the 5% Micro/Small LBE subcontracting requirement by listing the following Micro/Small LBE firm(s) on Section 00 43 36 (Subcontractor List):
Subcontractor Scope of
Work
LBE
Status,
Type and
Size
Listed
Amount
Credited
Amount
Credited
Participati
on
RK Engineering
Inc
Flatwork
Concrete
SF LBE-
OBE
(Micro)
$
2,150,500 $ 2,150,500 $ 2,150,500
CMC Traffic
Control
Specialists1
Traffic Control
Services
(Partial)
SF LBE-
WBE
(Small)
$ 714,020 - -
Reliance
Engineering, Inc.2 OCS
SF LBE-
MBE
(Micro)
$ 20,000
TBD (As-
needed)
- -
TOTAL $
2,884,520
$
2,150,500 8.07%
1 CMC Traffic Control was listed to perform traffic control services scope of work. CMC Traffic Control is not CMD certified as a Small or Micro-LBE in the C-31 Construction Zone Traffic Control category and thus will not receive LBE credit for this scope of work.
2 Scope of works labelled as TBD or As-needed cannot receive LBE credit.
JCI did not list any non-LBE subcontractor on Section 00 43 36.
Good Faith Efforts Requirements
JCI utilized Approach A (35% Approach) on CMD Form 2B to meet the Good Faith Efforts (“GFE”) Requirements. JCI demonstrated that it met the GFE requirements under Approach A by exceeding the sum of the LBE subcontracting participation requirement(s) established for this project by at least 35%.
Based on the foregoing, CMD has determined that JCI has complied with the pre-award Chapter 14B requirements. Should you have any questions, or if I can be of further assistance, please