DEPARTMENT
Infrastructure Division
AGENDA NO.
6a
MEETING DATE
February 28,2023
APPROVAL:
COMMISSION
SECRETARY
Donna Hood
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Construction Modification: Consent Calendar
Contract Manager: Judy Chin
Approve Modification No. 1 for Contract No. JOC-87, General Engineering (A License) Construction, San Joaquin, Stanislaus, and Tuolumne Counties, Hetch Hetchy
Summary of Proposed
Commission Action:
Approve Modification No. 1 to Job Order Contract, JOC-87, General Engineering (A License) Construction, San Joaquin, Stanislaus, and Tuolumne Counties, Hetch Hetchy, with Sinclair General Engineering Construction, Inc. , to complete ongoing facility and asset improvements, increasing the contract by $2,500,000, for a total not-to- exceed contract amount of $7,500,000, with no change to contract duration.
Background: A Job Order Contract (JOC) is an indefinite quantity contract for a fixed term or maximum dollar value, whichever occurs first. Contract award is based on the bid adjustment factor multiplied against “pre -priced” unit costs compiled in a project task catal og, which is part of the contract. The adjustment factor represents all of the contractor’s costs (indirect and direct) and profit not included in the pre-priced unit costs.
The SFPUC issues task orders for specific projects. The SFPUC has issued task orde
rs under JOCs for a wide range of construction
activities, including general construction and general engineering, specialized electrical work in power turbines and switchyards, spot sewer repair, marine related services, and lighting upgrades and HVAC (i.e., heating, ventilation, air conditioning) energy efficiency retrofits.
On February 22, 2022, by Resolution No. 22-0036, the Commission awarded Contract No. JOC-87, General Engineering (A License) Construction, San Joaquin, Stanislaus, and Tuolumne Counties, Hetch Hetchy to Sinclair General Engineering Construction, Inc. The original not-to-exceed contract amount was $5,000,000 and the original contract duration was two years.
Under San Francisco Administrative Code Chapter 6, section 6.62, the SFPUC may increase a JOC up to 50% of the original contract amount Contract: JOC-87, General Engineering (A License) Construction, San Joaquin, Stanislaus, and Tuolumne Counties, Hetch Hetchy
Commission Meeting Date: February 28,2023
and may extend the duration up to five years, including all modifications. The requested modification, if approved, would bring the JOC to the maximum amount allowed by law.
Description of Scope of
Work:
The contract work locations are San Joaquin, Stanislaus, and Tuolumne Counties, Hetch Hetchy. The contract work consists of:
• Building, Moving & Demolition
• Cathodic Protection
• Concrete
• Earthwork and Paving
• Electrical
• General Engineering
• Pipeline
• Reinforcing Steel
• Trucking and Hauling
Changes and
Modifications to the
Contract:
Modification No. 1 is requested to complete ongoing facility and asset improvements such as building, moving and demolition, cathodic protection, concrete, earthwork and paving , electrical, general engineering, pipeline, reinforcing steel, and trucking and hauling for the SFPUC Operations and Bureaus , increasing the contract amount by $2,500,000, for a total not-to-exceed contract amount of $7,500,000.
Funding, Budget, and
Costs:
Funding: Funds for each Task Order are encumbered upon issuance of Notice-to-Proceed. Funding is sourced from the SFPUC Enterprise Operations and Bureaus requesting work.
Original Award Amount: Not-to-exceed $5,000,000
Modification No. 1 Amount: $2,500,000
Total Revised Contract Amount: Not-to-exceed $7,500,000
Schedule: Certification Date: April 29, 2022
Original Duration: Two years
Compliance with
Chapter 14B: Local
Business Enterprise
Utilization and Non-
Discrimination In
Contracting Ordinance:
Set: The Contract Monitoring Division (CMD) established a 16% Local Business Enterprise (LBE) subcontracting goal for this contract.
The contractor committed to a 16.30% LBE subcontractor
participation in its bid submittal.
Recommendation: SFPUC staff recommends that the Commission adopt the attached resolution.
1. CMD Memo
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, The San Francisco Public Utilities Commission (SFPUC) uses indefinite quantity, as-needed construction for a wide range of construction activities to support its facilities, including general construction, moving and demolition, cathodic protection, concrete, earthwork and paving, electrical, general engineering, pipeline, reinforcing steel, and trucking and hauling. This work is typically performed on a task order basis through a Job Order Contract (JOC); and WHEREAS, On February 22, 2022, by Resolution No. 22-0036, this Commission awarded JOC No. JOC-87, General Engineering (A License) Construction, San Joaquin, Stanislaus, and Tuolumne Counties, Hetch Hetchy to Sinclair General Engineering Construction, Inc.; and WHEREAS, The contract certification date was April 29, 2022; and WHEREAS, The original contract was for an amount not-to-exceed $5,000,000 and the original contract duration was two years; and
WHEREAS, Modification No. 1 is being requested to increase the contract amount by $2,500,000, to complete ongoing facility and asset improvements such as building, moving and demolition, cathodic protection, concrete, earthwork and paving, e lectrical, general engineering, pipeline, reinforcing steel, and trucking and hauling for Operations and Bureaus within the San Francisco Public Utilities Commission, for a total not-to-exceed contract amount of $7,500,000, with no change to the contract duration; and
WHEREAS, The Contract Monitoring Division established a 16% Local Business Enterprise (LBE) subcontracting participation of for this contract, and the contractor committed to a 16.30% LBE subcontractor participation in its bid submittal; now, therefore, be it
RESOLVED, That this Commission hereby a pproves Modification No. 1 to Job Order Contract (JOC), JOC-87, General Engineering (A License) Construction, San Joaquin, Stanislaus, and Tuolumne Counties, Hetch Hetchy with Sinclair General Engineering Construction, Inc., increasing the contract by $2,500,000, for a total not-to-exceed contract amount of $7,500,000, with no change to contract duration.
I hereby certify that the foregoing resolution was adopted by the Public Utilities Commission at its meeting of February 28, 2023.
Secretary, Public Utilities Commission
1155 Market Street, 4th floor, San Francisco, CA 94103 Telephone (415) 581-2310; Fax (415) 581-2351
London N. Breed, Mayor
Carmen Chu, City Administrator
Stephanie Tang, Director
MEMORANDUM
Date: February 1, 2023
To: Judy Chin, JOC Manager, SFPUC
Jen Walker, JOC Analyst, SFPUC
From: Michelle Kassatly, Contract Compliance Officer, CMD
Subject: Modification No. 1 for JOC-87, General Engineering (A License) Construction, San Joaquin, Stanislaus, and Tuolumne Counties, Hetch Hetchy (PeopleSoft Contract ID: 1000025195)
SFPUC has requested to modify the above referenced contract by $2,500,000 for a total agreement amount of $7,500,000. Pursuant to communications with the SFPUC, the scope of work for Modification No.1 consists of completing ongoing facility and asset improvements such as building, moving and demolition, earthwork and paving, electrical, general engineering, Cathodic Protection, concrete, construction traffic control services, reinforcing steel, trucking and hauling, and pipeline for the SFPUC Operations and Bureaus.
LBE Subcontracting Participation
The Micro/Small-LBE subcontracting participation requirement established for this contract is 16%. An LBE subcontracting requirement of 16% was established for this project in consideration of the location of work which will be performed 70 miles beyond the SFPUC jurisdictional boundaries, exclusively in the Hetch Hetchy Region. Below is a summary of CMD’s review. The LBE subcontracting participation requirement applies to the entire contract including any modifications, change orders and amendments. The Micro/Small LBE participation reflected on the Prime Contractor’s, Sinclair General Engineering Construction, Inc. (“Sinclair’s”), Section 00 43 36 at the time of bid is as follows:
Subcontractor Scope of
Work
LBE
Status,
Type,
and Size
Listed
Participation
Credited
Participation
Participation
(based on
credited
amount)
Don Lawley
Company, Inc.
Building,
Moving,
Wrecking
PUC
LBE-OBE
(Micro)
$50,000.00 $50,000.00 1.00%
HVYW8, Inc. Trucking &
Hauling
SF LBE-
WBE
(Micro)
$50,000.00 $50,000.00 1.00%
CONTRACT MONITORING DIVISION
OFFICE OF THE CITY ADMINISTRATOR
Big Valley
Electric
General
Engineering,
Electrical,
Cathodic
Protection
SF LBE-
MBE
(Micro)
2,125,000.001 $615,000.00 12.30%
Mission City
Rebar, Inc.
Reinforcing
Steel
PUC
LBE-OBE
(Micro)
$100,000.00 $100,000.00 2.00%
Total $2,325,000.00 $815,000.00 16.30%
1 Firms that are not certified as a Micro or Small LBE are ineligible to receive LBE participation credit. At the time of bid, Big Valley Electric was not certified as a Small or Micro LBE in the C- 10 Electrical Contractor category. Per the SFPUC, the electrical scope of work requires a C-10 license. As a result, Big Valley Electric was not credited for the $1,500,000 of their listed electrical subcontract work. Per the SFPUC, a C-10 license is required to perform final energizing and code review for the Cathodic Protection scope of work. Big Valley Electric, as confirmed by Sinclair, will perform $10,000 worth of Cathodic Protection work that will require a C-10 license, which was not credited towards the LBE participation requirement.
As of February 1, 2023, Sinclair invoiced $625,508.36. The Micro/Small LBE participation achieved by Sinclair is as follows:
Subcontractor Scope of Work
LBE Status,
Type and
Size
Participation To-Date
(NOT including
Modification No. 1)
Invoiced Percentage
Don Lawley Company,
Inc.
Building, Moving,
Wrecking
PUC LBE-
OBE (Micro)
$0.00 0.00%
HVYW8, Inc. Trucking & Hauling SF LBE-WBE
(Micro)
$0.00 0.00%
Big Valley Electric General
Engineering,
Electrical, Cathodic
Protection
SF LBE-MBE
(Micro)
$0.00 0.00%
Mission City Rebar, Inc. Reinforcing Steel PUC LBE-
OBE (Micro)
$0.00 0.00%
TOTAL $0.00 0.00%
Pursuant to communications with Sinclair, and confirmed by the SFPUC, the SFPUC hasn’t given Sinclair work in which they could utilize their listed LBE’s. Specifically, Don Lawley Company, Inc., HVYW8, Inc., and Mission City Rebar, Inc. were not utilized because no scope has arisen for their listed trade. In the case of Big Valley Electric, Big Valley Electric declined Sinclair’s invitation to perform General Engineering work and no scope has arisen for their other listed trades.
Moreover, Sinclair confirmed that it will remain committed to assigning work that may arise from future task orders to its original listed LBE subcontractors. Sinclair informed the CMD that it anticipates meeting its 16.30% Micro/Small LBE subcontracting participation requirement, as follows:
Subcontractor Scope of Work
LBE Status,
Type and
Size
Projected Participation
(including Modification
No. 1)
Don Lawley Company,
Inc.
Building, Moving,
Wrecking
PUC LBE-
OBE (Micro)
$75,000.00 1.00%
HVYW8, Inc. Trucking & Hauling SF LBE-WBE
(Micro)
$75,000.00 1.00%
Big Valley Electric General Engineering,
Electrical, Cathodic
Protection
SF LBE-MBE
(Micro)
$937,500.00 12.50%
Mission City Rebar,
Inc.
Reinforcing Steel PUC LBE-
OBE (Micro)
$150,000.00 2.00%
TOTAL $1,237,500.00 16.50%
Going forward, in order to ensure compliance with the Chapter 14B post-award requirements, SFPUC staff and Sinclair will continue to notify and obtain CMD approval for any proposed subcontractor additions and/or substitutions throughout the term of this contract as well as any changes to the scope of work and the information provided to CMD. CMD will review this information to determine and facilitate progress towards the project’s LBE subcontracting requirement. Contingent upon the conditions set forth above, CMD approves this modification.
Should you have any questions and/or concerns regarding the above, I can be reached at [email protected]
.