DEPARTMENT
Infrastructure
AGENDA NO.
5a
MEETING DATE
March 14, 2023
APPROVAL:
COMMISSION
SECRETARY
Donna Hood
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Construction Award: Consent Calendar
Contract Manager: Judy Chin
Award Job Order Contract No. JOC-92, General Engineering (A License) Construction, San Joaquin, Stanislaus, and Tuolumne Counties, Hetch Hetchy
Summary of
Proposed
Commission Action:
Award Job Order Contract No. JOC-92, General Engineering (A License) Construction, San Joaquin, Stanislaus, and Tuolumne Counties, Hetch Hetchy, for a total contract amount not-to-exceed $5,000,000 with a minimu m guaranteed opportunity amount of $50,000 and a duration of two years, to the responsible bidder that submitted the lowest responsive bid, Sierra Mountain
Construction, Inc., to perform general engineering work in San Francisco Public Utilities Commission systems and operations around Hetch Hetchy.
Background: A Job Order Contract (JOC) is an indefinite quantity contract that enables the San Francisco Public Utilities Commission (SFPUC) to quickly and efficiently complete unrelated tasks on an as -needed basis under a single, competitively bid construction contract. The competitive process is based on c ontractor bid Adjustment Factors, which are a percentage mark-up on pre-set unit prices. The SFPUC determines the low bid based on specified weighting of the Adjustment Factors to calculate the Award Criteria Figures (ACF), as they may be modified by Local Business Enterprise (LBE) preference adjustments.
The SFPUC has used 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, lighting upgrades, repair of heating, ventilation, and air conditioning systems, and energy efficiency retrofits.
This contract duration is two years. SFPUC will issue task orders to the contractor to perform specific scopes of work during the term of this contract.
The Commission may extend the term for up to a total term of five years.
SFPUC may not issue any new task orders under this contract after four years from the date the Controller certifies the Contract.
Contract: JOC-92, General Engineering (A License) Construction, San Joaquin, Stanislaus, and Tuolumne Counties, Hetch Hetchy
Commission Meeting Date: March 14, 2023
Description of
Scope of Work:
The c ontract work locations are San Joaquin, Stanislaus, and Tuolumne Counties. The scope of work for potential task orders consists of:
• Building, Moving, & Demolition
• Cathodic Protection
• Concrete
• Earthwork and Paving
• Electrical
• General Engineering
• Lenel Systems Integration
• Pipeline
• Trucking and Hauling
Bid History: Advertised: December 20, 2022
Bids Received: On January 26, 2023, SFPUC received and publicly opened five bids, as follows:
Bid Rank ACF Bid
Preference
Adjusted
ACF
Final
Rank
1. Sierra Mountain
Construction, Inc. 1.2500 N/A 1.2500 1
2. K.W. Emerson, Inc. 1.3784 N/A 1.3784 3
3. R&S Construction
Management, Inc.
1.3800 10% 1.2420 Not
eligible
4. Robert E. Boyer
Construction, Inc. 1.4125 N/A 1.4125 4
5. Njirich & Sons, Inc. 1.4750 10% 1.3275 2
Application of bid preferences in accordance with Chapter 14B of the San Francisco Administrative Code changed the final ranking to make R&S Construction Management, Inc., (R&S) the apparent low bidder. However, R&S already holds SFPUC Contract No. JOC-091, and San Francisco Administrative Code section 6.62(j) provides that a contractor that enters into a JOC Contract with a particular City department is not eligible during the term of such JOC Contract to submit a Bid on a subsequent JOC Contract advertised by the same contracting department, except in the following circumstances: (1) the Contractor's existing JOC Contract will expire in 120 days or fewer; (2) the contracting department has issued task orders valued by the City in an amount equal to or exceeding 90% of the maximum dollar amount of the existing JOC Contract; or (3) the subsequent JOC Contract is funded by a different source of government funds (e.g., Federal, State, Local) than the funding source used for the existing JOC Contract; none of the exceptions applies to R&S’ bid on Contract No. JOC-092.
Contract: JOC-92, General Engineering (A License) Construction, San Joaquin, Stanislaus, and Tuolumne Counties, Hetch Hetchy
Commission Meeting Date: March 14, 2023
Eligibility: R&S simultaneously submitted bids for Contract No. JOC-91 and Contract No. JOC-92. This Commission awarded Contract No. JOC-091 to R&S at its February 28, 2023, meeting. When the Commission awarded Contract No. JOC-91 to R&S, it became ineligible for award of Contract No.
JOC-92. For this reason, Sierra Mountain Construction, Inc. became the responsible bidder that submitted the lowest responsive bid for Contract No.
JOC-92.
Protest: The SFPUC did not receive any bid protests for Contract No.
JOC-092.
Budget and Costs: Award: The Contract amount for Contract No. JOC -092 is a not-to-exceed amount of $5,000,000 with a guaranteed minimum opportunity amount of $50,000. At a later date, the Commission may approve an option to increase the maximum contract value by 50% of the origi nal contract value (an additional $2,500,000) for a total potential maximum contract amount of $7,500,000.
Award Criteria Figure (ACF) (multiplier) : Staff calculates contractors bid Adjustment Factors as a percentage mark-up on pre-set unit prices. Staff derives the ACF from the weighted computation of the Contractor’s Adjustment Factor for work performed under normal working hours and other working conditions.
The bidder that submits the lowest ACF, as it may be adjusted b y application of Chapter 14B bid preference adjustments, is the low bidder. The Adjustment Factors account for the Contractor’s overhead, profit, estimating, project management, bonding, insurance, supervision, submittals, record drawings, closeout documents, and other indirect costs. During the task order process, SFPUC will apply the appropriate Adjustment Factor to the pre-set construction prices listed in the Simplebid® Unit Price Book to determine the value of each task order.
Funding: Funding for the contract will be available from various SFPUC Enterprise Funds when Staff issues task orders.
Schedule: Estimated Notice-to-Proceed Date: May 2023
Duration: Two years. The Commission may approve additional time at a later date up to the five-year maximum duration allowed by the San Francisco Administrative Code for JOCs.
Estimated Completion Date: May 2025
Compliance with
Chapter 14B: Local
Business Enterprise
Utilization and
Non-Discrimination
in Contracting
Ordinance:
Set: The Contract Monitoring Division (CMD) established a 15% Local Business Enterprise (LBE) subcontracting requirement.
Submitted: The contractor committed to 15% LBE subcontractor participation in its bid submittal.
Contract: JOC-92, General Engineering (A License) Construction, San Joaquin, Stanislaus, and Tuolumne Counties, Hetch Hetchy
Commission Meeting Date: March 14, 2023
Environmental
Review:
Award of this JOC does not constitute a “project” under the California Environmental Quality Act (CEQA) Guidelines section 15378 because it does not involve commitment to any specific project that may result in a physical change in the environment. No work will commence under this contract until the proposed work is reviewed and any appropriate environmental review under the CEQA, if required, has been completed.
Recommendation: 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, A Job Order Contract (JOC) enables the San Francisco Public Utilities Commission (SFPUC) to quickly and efficiently complete unrelated tasks on an as-needed basis under a single, competitively bid, indefinite quantity contract for general engineering construction in and around Hetch Hetchy; and
WHEREAS, On December 20, 2022, th e SFPUC advertised JOC No. JOC-92, General Engineering (A License) Constr uction, San Joaquin, Stanislaus, and Tuolumne Counties, Hetch Hetchy for work to be performed in these counties; and
WHEREAS, On January 26, 2023, the SFPUC received and publicly opened five bids in which the bidders submitted their profit and overhead percentage markups on specified unit prices for work to be specified under task orders; and
WHEREAS, SFPUC staff and Contract Monitoring Division (CMD) review ed the bidder and their bids for responsibility, responsiveness, and application of bid preferences and determined Sierra Mountain Construction, Inc., to be the responsible bidder that submitted the lowest responsive bid; and
WHEREAS, The contract not-to-exceed amount is $ 5,000,000, with a guaranteed minimum task order opportunity of $50,000, to perform general engineering construction work in SFPUC systems and operations around Hetch Hetchy; and
WHEREAS, The contract duration is two years; and
WHEREAS, Staff will issue task orders that identify the scope of work, cost, and duration of various discrete construction activities that the Contractor will perform under this JOC; and WHEREAS, The CMD established a 15% Local Business Enterprise (LBE) subcontracting participation requireme nt for this contract, and the Contractor committed to 15% LBE subcontractor participation in its bid submittal; and
WHEREAS, Award of this JOC does not constitute a “project” under the California Environmental Quality Act (CEQA) Guidelines s ection 15378 be cause it does not involve commitment to any specific project that may result in a physical change in the environment and no work will commence under this contract until the proposed work is reviewed and any appropriate environmental review under the CEQA, if required, has been completed ; now, therefore be it
RESOLVED, That this Commission hereby awards JOC No. JOC-92, General Engineering (A License) Construction, San Joaquin, Stanislaus, and Tuolumne Counties, Hetch Hetchy, for a not-to-exceed amount of $5,000,000, and a duration of two years, to the responsible bidder that submitted the lowest responsive bid, Sierra Mountain Construction, Inc.
I hereby certify that the foregoing resolution was adopted by the Public Utilities Commission at its meeting of March 14, 2023.
Secretary, Public Utilities Commission
CONTRACT MONITORING DIVISION
OFFICE OF THE CITY ADMINISTRATOR
London N. Breed, Mayor
Carmen Chu, City Administrator
Stephanie Tang, Director
1155 Market Street, 4th Floor, San Francisco, CA 94103 Telephone (415) 581-2310; Fax (415) 581-2351
MEMORANDUM
Date: February 10, 2023
To: Judy Chin, JOC Manager, SFPUC
Jen Walker, JOC Analyst, SFPUC
From: Michelle Kassatly, Contract Compliance Officer, CMD
Subject: JOC-92 General Engineering (A License) Construction, San Joaquin, Stainislaus and Tuolumne Counties, Hetch Hetchy
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 15% for this project. The 15.00% LBE subcontracting participation requirement is established in consideration of the location of scope work, which will be performed 70 miles beyond the SFPUC jurisdictional boundaries, exclusively in the Hetch Hetchy area, and a significant portion of the work is allocated to security system improvements, which will require Lenel certified system integrators. Below is a summary of CMD’s review.
Five (5) firms submitted bids as follows:
Bidder
(PeopleSoft:
Supplier/Supplier ID)
LBE Status,
Type and
Size
(PS: LBE
and LBE
Size)
ACF LBE Bid
Discount
Adjusted Bid
with LBE
Bid Discount
Sierra Mountain
Construction, Inc.
Non-LBE 1.2500 Not Eligible 1.2500
K.W. Emerson, Inc. Non-LBE 1.3784 Not eligible 1.3784
R&S Construction
Management, Inc.
SF LBE-MBE
(Micro)
1.3800 10% = 0.138 1.2420
Robert E. Boyer
Construction, Inc.
Non-LBE 1.4125 Not Eligible 1.4125
Njirich & Sons, Inc. PUC LBE-
WBE (Micro)
1.4750 10% = 0.1475 1.3275
Pursuant to the San Francisco Administrative Code, Chapter 6, Section 6.62 (j),
Contract: JOC-92, General Engineering (A License) Construction, San Joaquin, Stanislaus, and Tuolumne Counties, Hetch Hetchy
Commission Meeting Date: March 14, 2023
2 A Contractor who enters into a JOC Contract with a particular City department is not eligible during the term of such JOC Contract to submit a Bid on a subsequent JOC Contract advertised by the same contracting department, except in the following circumstances: (1) the Contractor's existing JOC Contract will expire in 120 days or fewer; (2) the contracting department has issued task orders valued by the City in an amount equal to or exceeding 90% of the maximum dollar amount of the existing JOC Contract; or (3) the subsequent JOC Contract is funded by a different source of government funds (e.g., Federal, State, Local) than the funding source used for the existing JOC Contract. Nothing in this section shall preclude a Contractor from simultaneously bidding on multiple JOC Contracts advertised by one City department prior to Award of a JOC Contract by that department.
Based on the above provision, although R&S Construction Management, Inc., the apparent low bidder, simultaneously submitted bids to multiple JOC Contracts advertised by SFPUC (i.e., JOC- 91 and JOC-92), it can only enter into a contract agreement with SFPUC under one JOC Contract at a time. Accordingly, SFPUC notified CMD that R&S Construction Management, Inc. is also responsive to and will be awarded JOC-91. Consequently, Sierra Mountain Construction, Inc. became the lowest responsive and responsible bidder for this contract.
LBE Subcontracting Participation Requirement
Sierra Mountain Construction (“Sierra”) is the lowest responsive bidder. Sierra met the 15% Micro/Small LBE subcontracting requirement by listing the following Micro LBE firms on Section 00 43 36 (Subcontractor List):
Subcontractor Scope of Work
LBE
Status,
Type and
Size
Listed
Amount
(PS:
Amount
($)/Respo
nsible for)
Credited
Amount
Credited
Participat
ion
(PS:
Percent
LBE (%))
C&N Reinforcing, Inc. Furnish and Install
Reinforcing Steel
SF LBE-MBE
(Micro) $100,000 $100,000 2%
Pacific Engineering &
Construction, Inc.
Partial General
Engineering
SF LBE-OBE
(Micro) $650,000 $650,000 13%
TOTAL $750,000 $750,000 15%
Sierra also listed the following non-LBE subcontractor(s) on Section 00 43 36.
Subcontractor Scope of Work
Listed
Amount
(PS: Amount
($)/Responsible
for)
Participation
3 Gold Electric, Inc. Electrical Contracting --1 --2
Netronix Integration Inc. Lenel Systems Integration --3 --4 TOTAL --5 --6
Good Faith Efforts Requirements
Sierra utilized Approach B (Inclusion of Micro-LBE) on CMD Form 2B to meet the Good Faith Efforts (“GFE”) Requirements.
Sierra demonstrated that it met the GFE requirements under Approach B by listing the Micro- LBE firm: C&N Reinforcing, Inc.
Based on the foregoing, CMD has determined that Sierra has complied with the pre-award Chapter 14B requirements. Should you have any questions, or if I can be of further assistance, please do not hesitate to contact me at [email protected].
1 Sierra elected not to complete this section on their Section 00 43 36. CAB has confirmed that “as long as the listed sub is performing 100% of the listed scope, we can waive 00 43 36 Box 10 missing dollar values as minor irregularities.” Sierra has confirmed that they intended to check “Full” in Box 4 Portion of Work (Scope) for Gold Electric, Inc. 2 Sierra elected not to complete this section on their Section 00 43 36. CAB has confirmed that “as long as the listed sub is performing 100% of the listed scope, we can waive 00 43 36 Box 10 missing dollar values as minor irregularities.” Sierra has confirmed that they intended to check “Full” in Box 4 Portion of Work (Scope) for Gold Electric, Inc. 3 Sierra elected not to complete this section on their Section 00 43 36. CAB has confirmed that “as long as the listed sub is performing 100% of the listed scope, we can waive 00 43 36 Box 10 missing dollar values as minor irregularities.” Sierra has confirmed that they intended to check “Full” in Box 4 Portion of Work (Scope) for Netronix Integration Inc. 4 Sierra elected not to complete this section on their Section 00 43 36. CAB has confirmed that “as long as the listed sub is performing 100% of the listed scope, we can waive 00 43 36 Box 10 missing dollar values as minor irregularities.” Sierra has confirmed that they intended to check “Full” in Box 4 Portion of Work (Scope) for Netronix Integration Inc. 5 Sierra elected not to complete this section on their Section 00 43 36. CAB has confirmed that “as long as the listed sub is performing 100% of the listed scope, we can waive 00 43 36 Box 10 missing dollar values as minor irregularities.” Sierra has confirmed that they intended to check “Full” in Box 4 Portion of Work (Scope) for Gold Electric, Inc. and Netronix Integration Inc. 6 Sierra elected not to complete this section on their Section 00 43 36. CAB has confirmed that “as long as the listed sub is performing 100% of the listed scope, we can waive 00 43 36 Box 10 missing dollar values as minor irregularities.” Sierra has confirmed that they intended to check “Full” in Box 4 Portion of Work (Scope) for Gold Electric, Inc. and Netronix Integration Inc.