DEPARTMENT
Infrastructure
AGENDA NO.
7b
MEETING DATE
April 25, 2023
APPROVAL:
COMMISSION
SECRETARY
Donna Hood
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Construction Closeout with Modification: Consent
Project Manager: John Wong
Accept Closeout and Modification for Contract No. WW-695, As-Needed Sewer Cleaning and Inspection (FY20)
Summary of
Proposed
Commission Action:
Accept work performed by Pipe and Plant Solutions, Inc. for Contract No. WW-695, As -Needed Sewer Cleaning and Inspection (FY20) ; approve Modification No. 6 (Final), decreasing the contract amount by $42,889, for a total contract amount of $2,009,233, with no change to the contract duration; and authorize final payment to the contractor.
Background: The scope of work for this contract is performing main sewer cleaning and inspection work for the San Francisco Public Utilities Commission (SFPUC) Wastewater Enterprise (WWE). The cleaning and inspection of SFPUC sewers is an integral part of WWE’s comprehensive asset management program. This work helps to assure that the sewer system continues to operate efficiently and is in a good state of repair . The locations and extent of sewer cleaning and inspection work were determined by WWE Collection Division staff throughout the duration of the contract.
On July 23, 2019, by Resolution No. 19-0143, this Commission awarded C ontract No. WW-695, As -Needed Sewer Cleaning and Inspection (FY20), to Pipe and Plant Solutions, Inc. The original contract amount was $1,747,550 and the original contract duration was 570 consecutive calendar days.
Description of Scope
of Work:
The contractor completed the contract work at a total of 42 individual locations throughout the City and County of San Francisco and consisted of:
• cleaning and debris removal of 9,967 linear feet in sewers ranging from three feet to 12 feet wide;
• cleaning and debris removal of 1,596 linear feet in sewers greater than 12 feet wide;
Contract: WW-695, As-Needed Sewer Cleaning and Inspection (FY20) Commission Meeting Date: April 25, 2023
• handling, testing, transportation, and disposal of
collected/removed debris in the amount of 2,056.49 cubic yards to an approved landfill site; and
• television inspection of 42,642.10 linear feet of sewers up to 60 inches wide and 257.20 linear feet of sewers greater than 60 inches wide.
Changes to the
Contract under
Modification(s):
Modification No. 1 increased the contract amount by $32,885 , within the original contingency, to perform sewer lateral inspections in advance of an upcoming Sewer Systems Improvement Program (SSIP) Large Diameter Sewer Improvement contract, for a total contract amount of $1,780,435, with no change to the contract duration.
On May 26, 2020, by Resolution No. 20- 0097, this Commission approved an increase to the cost contingency in the amount of $174,740 for a total revised contract amount of up to $2,097,045, with no change to contract duration.
Modification Nos. 2 to
3 increased the contract amount by $235,550,
in accordance with Resolution 20-0097, to apply SewerAI proprietary Machine Learning and Computer Vision Technology to l ateral sewer video inspections, for a total contract amount of $2,015,985, with no change to the contract duration.
Modification No. 4 increased the contract amount by $36,137 , in accordance with Resolution 20-0097, to perform additional sewer lateral inspections in advance of an upcoming Sewer Systems Improvement Program (SSIP) Large Diameter Sewer Improvement contract and to adjust Modification No. 1 quantities to match actual quantities completed, for a total contract amount of $2,052,122, with no change to the contract duration.
On March 23, 2021, by Resolution No. 21- 0047, this Commission approved an increase to the duration contingency in the amount of 240 calendar days for a total revised contract duration of
up to 810
consecutive calendar days, with no change in the contract amount.
Modification No. 5 i
ncreased the contract duration by 240 consecutive
calendar days, in accordance with Resolution 21 -0047, to allow for additional time to complete contract work, for a total contract duration of 810 consecutive calendar days, with no change to the contract amount.
Proposed M
odification No. 6 (Final) is recommended by S taff to
decrease the contract value by $42,889, which adjusts final contract quantities to match actual contract quantities completed , for a total contract amount of $2,009,233, with no change to the contract duration.
Contract: WW-695, As-Needed Sewer Cleaning and Inspection (FY20) Commission Meeting Date: April 25, 2023
Due to the nature of this As-Needed contract, there is no accompanying Location Map.
Budget & Costs: Funding: Project No. 10034564, As-Needed Sewer Cleaning and Inspection (FY20)
Original Award Amount: $1,747,550
Modification Nos. 1 to 5 Amount: $304,572
Modification No. 6 (Final) Amount: -$42,889
Total Revised Contract Amount: $2,009,233
Schedule: Notice-to-Proceed Date: September 3, 2019
Original Duration: 570 consecutive calendar days
Modification Nos. 1 to 5 Duration: 240 consecutive calendar days Modification No. 6 (Final) Duration: 0 consecutive calendar days Total Revised Contract Duration: 810 consecutive calendar days
Compliance With
Chapter 14B: Local
Business Enterprise
Utilization And Non-
Discrimination In
Contracting
Ordinance:
The Contract Monitoring Division (CMD) established a Local Business Enterprise (LBE) goal of 10 % for this contract. The contractor committed to 13.56% LBE participation in its bid submittal. The CMD has determined that the contractor failed to substantially comply with its LBE subcontracting goal by achieving a final LBE participation of
9.54%. CMD concurs with the closeout of this contract.
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) Wastewater Enterprise (WWE) Collection System management identified critical needs for video inspection services and cleaning of existing sewers to supplement WWE Collection System staff’s on-going inspection and cleaning work of the sewer system to assist with the ongoing inspections/data gathering necessary for SFPUC WWE's Collection System Asset Management Program ; and
WHEREAS, Contractor Pipe and Plant Solutions, Inc. has completed its work for Contract No. WW-695, As-Needed Sewer Cleaning and Inspection (FY20); and WHEREAS, On July 23, 2019, by Resolution No. 19-0143, this Commission awarded Contract No. WW- 695, As -Needed Sewer Cleaning and Inspection (FY20) , in the amount of $1,747,550, to Pipe and Plant Solutions, Inc.; and
WHEREAS, The o riginal contract amount was for $1,747,550 and the original contract duration was 570 consecutive calendar days; and
WHEREAS, On September 3, 2019, the SFPUC issued the construction contract Notice To Proceed, with scheduled completion date of March 26, 2021; and WHEREAS, Modification No. 1 increased the contract amount by $32,885, within the original contingency, to perform sewer lateral inspections in advance of an upcoming Sewer Systems Improvement Program (SSIP) Large Diameter Sewer Improvement contract, for a total contract amount of $1,780,435, with no change to the contract duration; and WHEREAS, On May 26, 2020, by Resolution No. 20-0097, this Commission approved an increase to the cost contingency in the amount of $174,740 for a total revised contract amount of up to $2,097,045, with no change to contract duration; and WHEREAS, Modification Nos. 2 and 3 increased the contract amount by $235,550, in accordance w ith Resolution 20-0097, to apply SewerAI proprietary Machine Learning and Computer Vision Technology to l ateral sewer video inspections, for a total contract amount of $2.015,985, with no change to the contract duration; and WHEREAS, Modification No. 4 increased the contract amount by $36,137, in accordance with Resolution 20-0097, to perform additional sewer lateral inspections in advance of upcoming Sewer Systems Improvement Program (SSIP) Large Diameter Sewer Improvement contract and to adjust Modification No. 1 quantities to match actual quantities completed , for a total contract amount of $2,052,122, with no change to the contract duration; and WHEREAS, On March 23, 2021, by Resolution No. 21- 0047, this Commission approved an increase to the duration contingency in the amount of 240 calendar days for a total revised contract duration of up to 810 consecutive calendar days, with no change to contract amount; and
WHEREAS, Modification No. 5 increased the contract duration by 240 consecutive calendar days, in accordance with Resolution 21-0047, to allow for additional time to complete contract work, for a total contract duration of 810 consecutive calendar days, with no change to the contract amount; and
WHEREAS, The Contractor completed the contract work in 810 consecutive calendar days on November 20, 2021; and
WHEREAS, Staff recommends approval of Modification No. 6 (Final) to decrease the contract value by $42,889, which will adjust final contract quantities to match actual contract quantities completed, for a total contract amount of $2,009,233, with no change to the contract duration; and
WHEREAS, The Contract Monitoring Division established a 10% LBE participation requirement for the contract, the Contractor committed to 13.56% LBE participation in its bid submittal, the Contractor achieve d 9.54% LBE participation, CMD has determined that the contractor did not substantially comply with the committed Local Business Enterprise (LBE) subcontracting, and CMD concurs with the closeout of this contract; and WHEREAS, Funds are available from Project No. 10034564, As-Needed Sewer Cleaning and Inspection (FY20); now, therefore, be it
RESOLVED, That this Commission hereby accepts work performed by Pipe and Plant Solutions, Inc. for Contract No. WW-695, As-Needed Sewer Cleaning and Inspection (FY20) , approves Modification No. 6 (Final), for a $42,889 decrease to the contract amount, for a total contract amount of $2,009,233, with no change to the contract duration, for a total contract duration of 810 consecutive calendar days; and authorizes final payment to the contractor
I hereby certify that the foregoing resolution was adopted by the Public Utilities Commission at its meeting of April 25, 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
CONTRACT MONITORING DIVISION
OFFICE OF THE CITY ADMINISTRATOR
MEMORANDUM
Date: March 9, 2023
To:
Johnny Wong, Project Manager, SFPUC
Kam Hayden, SFPUC
Jordan Camacho, Pipe and Plant Solutions, Inc.
From: Jovi Cuntapay-Vitin, Contract Compliance Officer, CMD
Subject: WW-695 As-Needed Sewer Cleaning and Inspection (FY 20) CMD Closeout Memo with Formal Warning
____________________________________________________________________________
The Contract Monitoring Division (“CMD”) has determined that Pipe and Plant Solutions, Inc. (“PPSI”), the Prime Contractor for this project, failed to substantially comply with the provisions of Chapter 14B regarding LBE subcontracting requirements associated with this project.
At the time the project was advertised, an LBE subcontracting participation goal of 10% was established. PPSI’s Section 00 43 36 reflected an LBE subcontracting participation commitment of 13.56%. PPSI was awarded the contract in the amount of $1,747,550.00. The change orders/modifications/amendments amounted to $261,682.08, hence, the final contract amount is $2,009,232.08.
The LBE subcontracting participation is as follows:
Subcontractor Scope of
Work
LBE
Status,
Type and
Size
Listed and
Credited
Amount
Original
Listed and
Credited
Participation
Closeout
Amount
Closeout
Participation
Hernandez
Engineering
Traffic
Control
(Partial)
SF LBE-
MBE
(micro)
$175,000.00 10.01% $175,229.50 8.72%
Ace Drilling &
Excavation
Raise
Manholes to
Grade, Load
Class II into
trucks
SF LBE-
OBE
(micro)
$30,000.00 1.72% $0.00 0%
Cobra
Trucking
Trucking
Class II
Waste to
Landfill
SF LBE-
MBE
(small)
$32,000.00 1.83% $16,448.90 0.82%
TOTAL $237,000.00 13.56% $191,678.40 9.54%
Per PPSI, the significant shortfall was due to the unforeseen and unexpected conflict of a listed subcontractor, Ace Drilling & Excavation (“Ace”), with the yard owner, Tip Top Trucking (“Tip Top”) and affected the fulfillment of scope of work of the former. PPSI discovered the conflict sometime November-December 2020. This conflict between Ace and Tip Top also affected another listed subcontractor, Cobra Trucking (“Cobra”), whose participation was significantly reduced. See the below timeline of events as stated and confirmed by PPSI:
October 2019 Project started.
September 2020 Stockpiling of materials started.
November-December 2020 Materials were ready for loading and off- hauling. Ace and Cobra were supposed to perform these scopes of work.
However, Ace and Cobra were not allowed to enter Tip
Top’s yard - where the materials are stockpiled.
Tip Top called PPSI to inform them that they will not allow Ace and Cobra to enter their premises.
January 2021 PPSI released Ace from their scope of work.
After PPSI was notified of the conflict they learned that Tip Top is taking loads to the landfill.
PPSI then directed Tip Top to stop taking loads and checked if the work performed by Tip Top can be a credited
participation.
PPSI found out that Tip Top is no longer an LBE, hence, no participation can be credited.
The Prime then informed Cobra to finish the remaining off hauling.
September 2022 CMD was informed of the issue.
Formal Warning about LBE Subcontracting Participation Requirement:
Per Section 00 43 36 of PPSI, the LBE Subcontracting Participation Commitment is 13.56%.
However, PPSI only achieved 9.54% by contract closeout. This is 4.02% short of the commitment.
Also, PPSI failed to immediately notify CMD of the issue.
Pursuant to the provisions of Chapter 14B, the Prime’s LBE Subcontracting Participation Commitment must be met by contract closeout. Failure to do s o will result to material breach of contract and subject to sanctions, as stated in Section. 14B.7.H:
(2) If the Director finds that any Bidder, Subcontractor or Contractor fails to comply with any of the provisions of this Chapter 14B, rules and regulations implementing the Chapter, or Contract provisions pertaining to any LBE, LBE participation, or outreach, such Bidder, Subcontractor, or Contractor shall be liable for liquidated damages for each Contract in an amount up to 25% of the total amount of the Contract or subcontract, as applicable, or
$1,000, whichever is greatest, as determined by the Director. The liquidated damages assessed shall be payable to the City upon demand and may be set off against any monies due to the Bidder, Subcontractor, or Contractor from any Contract with the City. Such willful failure to comply with any provisions of this Chapter 14B and the subsequent penalty shall be included in the Contractor’s evaluation report upon completion of the project, if such evaluation is collected.
“(4) During the term of the Contract, Prime Contractors shall fulfill the LBE participation commitments stated in their Bids and memorialized in their Contracts. A Contractor’s failure to achieve the level of LBE subcontractor participation specified in the Contract shall be deemed a material breach of contract.”
(5) Prime Contractors shall include in all Subcontracts with a LBE a provision requiring the Prime Contractor to compensate the LBE Subcontractor for damages for breach of contract or liquidated damages equal to 5% of the Subcontract amount, whichever is greater, if the Prime Contractor fails to use the LBE Subcontractor as specified in the Bid and Contract unless the Director and the Contract Awarding Authority both give advance approval to the Prime Contractor to substitute the LBE Subcontractor or otherwise modify the LBE commitments in the Bid and Contract documents. It shall be a material breach of contract for a Prime Contractor to fail to include such clause in all Subcontracts with LBEs.
This provision shall also state that it is enforceable in a court of competent jurisdiction.
Hence, PPSI is hereby put on notice of non -compliance with the provisions of Chapter 14B for LBE Subcontracting Participation Requirement and is issued this formal warning. In the future, CMD may impose sanctions for failing to comply with the provisions of Chapter 14B of the San Francisco Administrative Code.
Based on the foregoing, CMD concurs with the closeout of this contract. Should you have questions, please do not hesitate to contact me via email at [email protected] or at (415) 554 3136 and (650) 273 6352.