DEPARTMENT Infrastructure AGENDA NO. 5a
MEETING DATE April 11, 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-93, General Engineering (A License) Construction, San Francisco, San Mateo, Santa Clara, and Alameda Counties Summary of
Proposed
Commission Action:
Award Job Order Contract No. JOC-93, General Engineering (A License) Construction, San Francisco, San Mateo, Santa Clara, and Alameda Counties , for an amount not-to-exceed $5,000,000 with a guaranteed minimum task-order opportunity amount of $50,000 and a duration of two years, to the responsible bidder that submitted the lowest responsive bid, M. Hernandez Construction, Inc. (dba) Hernandez Engineering, to perform general engineering work in San Francisco Public Utilities Commission systems and operations around the Bay Area.
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 selected contractor to perform specific scopes or work during the term of this contract.
The Commission may extend th e 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-93, General Engineering (A License) Construction, San Francisco, San Mateo, Santa Clara, and Alameda Counties
Commission Meeting Date: April 11, 2023
Description of
Scope of Work:
The contract work location s are San Francisco, San Mateo, Santa Clara , and Alameda counties. The scope of work for potential task orders consists of:
• Concrete
• Construction Traffic Control
• Earthwork and Paving
• Electrical
• General Engineering
• Landscape
• Lenel Systems Integration
• Pipeline
• Tree Service
• Well Drilling
• Well Pump Repair
Bid History: Advertised: February 8, 2023
Bids Received: On March 9, 2023, SFPUC received and publicly opened two bids, as follows:
Bid Rank ACF
Bid
Preference
Adjusted
ACF
Final
Rank
1. M. Hernandez
Construction, Inc. (dba)
Hernandez Engineering
1.2736 10% 1.1462 1
2. Cal State Constructors, Inc. 1.3055 10% 1.1750 2
Application of bid preferences in accordance with Chapter 14B of the San Francisco Administrative Code did not change the final ranking of the low bidder.
Protests: SFPUC did not receive any bid protests.
Budget and Costs: Award: Not-to-Exceed amount of $5,000,000 with a guaranteed minimum task order opportunity of $50,000. At a later date, the Commission may approve an option to increase the maximum contract value by 50% of the original contract value (an additional $2,500,000) for a total potential maximum contract amount of $7,500,000.
Award Criteria Figure (ACF) (multipl ier): Contractors’ bid Adjustment Factors are calculated as a percentage mark -up on pre-set unit prices. SFPUC staff derives t he 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 by application of Chapter 14B bid preferenc e 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 Contract: JOC-93, General Engineering (A License) Construction, San Francisco, San Mateo, Santa Clara, and Alameda Counties
Commission Meeting Date: April 11, 2023
order process, SFPUC will apply the appropriate Adjustment Factor to the pre- set construction prices listed in the Simple bid® Unit Price Book to determine the value of each task order.
Funding: Funding for the contract will be available from various S FPUC Enterprise Funds when SFPUC issues Task Orders.
Schedule: Estimated Notice-to-Proceed Date: June 2023
Duration: Two years. The Commission may approve additional time at a later date up to the five-year maximum duration allowed in the San Francisco Administrative Code for JOCs.
Estimated Completion Date: June 2025
Compliance with
Chapter 14B: Local
Business Enterprise
Utilization and
Non-Discrimination
in Contracting
Ordinance:
Set: The Contract Monitoring Division (CMD) established a Local Business Enterprise (LBE) subcontracting requirement of 16% for this contract.
Submitted: The contractor committed to 18% LBE subcontractor participation in its bid submittal.
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 c ontract until the proposed work is reviewed and any appropriate environmental review under the CEQA, if required, has been completed.
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, A Job Order Contract enables the San Francisco Public Utilities Commission (SFPUC) to complete unrelated tasks quickly and efficiently on an as-needed basis under a single, competitively bid, indefinite quantity contract for general engineering construction services; and WHEREAS, On February 8, 2023, the SFPUC advertised Job Order Contract (JOC) No.
JOC-93, General Engineering (A License) Construction, San Francisco, San Mateo, Santa Clara, and Alameda Counties, for work to be performed in these counties; and WHEREAS, On March 9, 2023, the SFPUC received and publicly opened t wo 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 M. Hernandez Construction, Inc. (dba) Hernandez Engineering, 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 in San Francisco, San Mateo, Santa Clara and Alameda Counties; and WHEREAS, The contract duration is two years; and
WHEREAS, Staff will issue task orders that identify the scope of work, cost, and duration for various discrete construction activities that the Contractor will perform under this JOC; and WHEREAS, The CMD established a 16% Local Business Enterprise (LBE) subcontracting participation requirement for this contract, and the Contractor committed to 18% 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 section 15378 because 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; and WHEREAS, Funding will be available from various SFPUC Enterprise Funds for SFPUC- issued task orders; now, therefore be it
RESOLVED, That this Commission hereby awards JOC No. JOC-93, General Engineering (A License) Construction, San Francisco, San Mateo, Santa Clara, and Alameda Counties , 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, M. Hernandez Construction, Inc. (dba) Hernandez Engineering.
I hereby certify that the foregoing resolution was adopted by the Public Utilities Commission at its meeting of April 11, 2023.
Secretary, Public Utilities Commission
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
OFFICE OF THE CITY ADMINISTRATOR
CONTRACT MONITORING DIVISION
MEMORDANDUM
Date: March 17, 2023
To: Judy Chin, SFPUC
Frank Gennaccaro, SFPUC
From: Kate Mundhenk, CMD
Subject: CMD Award Review: JOC-93 - General Engineering (A License) Construction, San Francisco, San Mateo, Santa Clara, and Alameda Counties
______________________________________________________________________________________ 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. An LBE subcontracting participation requirement of 16% was established for this project.
Below is a summary of CMD’s review:
Bid Di
scount
Bidder Status ACF LBE Bid
Discount
Adjusted Bid with LBE
Bid Discount
M. Hernandez Construction, Inc.
(dba) Hernandez Engineering SF LBE-MBE (Micro) 1.2736 10% 1.1462 Cal State Constructors, Inc. SF LBE-OBE (Micro) 1.3055 10% 1.1750
LBE S ubcontracting Participation Requirement
M. Hernandez Construction, Inc. (dba) Hernandez Engineering (“Hernandez”) is the lowest responsive bidder.
Hernandez met the 16% LBE subcontracting participation requirement by listing the following LBE firms on Document 00 43 36 (Proposed Subcontractors Form):
Hernandez also listed the following non-LBE subcontractors on Document 00 43 36 (Proposed Subcontractors Form):
LBE Subcontractor Scope of Work Status Listed
Amount
Amount
Credited
Participation
(based on
credited
amount)
Bay Tech
Engineering Electrical Work SF LBE-MBE
(Micro) $300,000.00 $300,000.00 6.00%
Arborist Now Inc Landscape Services;
Tree Services
SF LBE-OBE
(Micro) $600,000.00 $600,000.00 12.00%
TOTAL $900,000.00 $900,000.00 18.00%
Good Faith Efforts Requirement
Hernandez utilized Approach A (35% Approach) on CMD Form 2B to meet the Good Faith Efforts (“GFE”) Requirements.
Hernandez demonstrated that it met the GFE requirements under Approach A. As a Micro-LBE Prime Bidder, Hernandez is relying on self-performed contract work to meet the 35% good faith efforts approach (per Form 2B.)
Based on the foregoing, CMD has determined that Hernandez has complied with the Chapter 14B pre-award requirements. Should you have any questions, please contact me at 415-551-4335
Subcontractor Scope of Work Listed Amount
Pump Repair Services Well Pump Repair $150,000.00 3.00% TOTAL $150,000.00 3.00%