DEPARTMENT Infrastructure Division AGENDA NO. 6g
MEETING DATE May 9, 2023
APPROVAL:
COMMISSION
SECRETARY Donna Hood
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Construction Award: Consent Calendar
Contract Manager: Derek Adams
Award Contract No. WW-719A, Folsom Area Stormwater Improvements – SOMA and Mission Districts Sewer Replacement
Summary of
Proposed
Commission Action:
Award Contract No. WW-719A, Folsom Area Stormwater Improvements – SOMA and Mission Districts Sewer Replacement , to the responsible bidder that submitted the lowest responsive bid, Mitchell Engineering, in the amount of $7,522,041, and with a term of 365 consecutive calendar days, to upsize existing sewers and associated appurtenances on various streets in the SOMA and Mission neighborhoods of San Francisco, including Folsom, 11th, Harrison, Alabama, and Mistral Streets.
Background: The low-lying Inner Mission neighborhood surrounding 17th, 18th and Folsom Streets historically has been subject to flooding during moderate to heavy storms. The Folsom Area Stormwater Improvements Project will increase collection system capacity and reduce the risk of flooding by constructing and upsizing sewer pipes and boxes, as well as constructing a new stormwater tunnel. The San Francisco Public Utilities Commission
(SFPUC) will
implement the project through four separate contracts, the first of which is Contract No. WW-719A, Folsom Area Stormwater Improvements – SOMA and Mission Districts Sewer Replacement.
In November 2021, the Folsom Area Stormwater Improvement s Project became subject to Clean -Up and Abatement Order R2-2021- 0021, issued by the Regional Water Quality Control Board. Under the Order, the SFPUC must complete the project by June 30, 2027, including Contract No. WW-719A, Folsom Area Stormwater Improvements – SOMA and Mission Districts Sewer Replacement.
Scope of Contract: The contract work consists of:
• Upsizing existing sewers;
• Replacing sewer laterals and associated appurtenances; • Replacing existing sewer manholes; and
• Installing new sewer manholes.
Agenda Title: WW-719A, Folsom Area Stormwater Improvements – SOMA and Mission Districts Sewer Replacement Commission Meeting Date: May 9, 2023
Funding & Costs: Funding Source: Project No. 10038471, Folsom Area Stormwater Phase 2 Engineer’s Estimate: $8,200,000
Award: $7,522,041
Schedule: Estimated Notice-to-Proceed Date: July 2023
Estimated Final Completion Date: July 2024
Contract Duration: 365 consecutive calendar days (approximately one year) (305 consecutive calendar days to Substantial Completion and 60 consecutive calendar days to Final Completion)
Local Business
Enterprise
Participation and
Non-Discrimination
in Contracting:
The Contract Monitoring Division (CMD) established a 20.00% Local Business Enterprise (LBE) subcontracting requirement for this contract. The contractor committed to 21.39% LBE participation in its bid submittal.
Environmental
Review:
On September 23, 2021, the San Francisco Planning Department determined the Project to be categorically exempt from environmental review under California Environmental Quality Act (CEQA) Guidelines s ection 15302, Class 2 (Replacement or Reconstruction) and CEQA Guidelines secti on 15303, Class 3 (New Construction or Conversion of Small Structures) under Case Number 2021- 002217ENV. The exemption can be found here:
https://sfpuc.sharefile.com/d-sd04ea7539dd74e55b6dd63cf36b964c6
Bid History: Advertised: November 17, 2022
Bids Received: On March 2, 2023, the SFPUC received and publicly opened three bids as follows:
Bid Rank Bid Amount Bid
Preference
Compensable
Delay Adjusted Bid Final
Rank
(1) Mitchell
Engineering $7,522,040.25 N/A $15,000 $7,537,040.25 1
(2) JMB
Constructio
n, Inc.
$7,574,988.65 N/A $15,000 $7,589,988.65 2
(3)
Precision
Engineering
, Inc.
$8,112,941.50 5% $300 $7,707,579.43 3
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.
On March 9, 2023, the SFPUC received two protest letters from Precision Engineering, Inc. (PE) against Mitchell Engineering (ME) and JMB Agenda Title: WW-719A, Folsom Area Stormwater Improvements – SOMA and Mission Districts Sewer Replacement Commission Meeting Date: May 9, 2023
Construction, Inc. (JMB), respectively . As a result of the bid protest investigation, the SFPUC issued a Determination Letter on March 28, 2023 denying PE’s protest of JMB’s bid and confirming that JMB is a responsible bidder. Also on March 28, 2023, the SFPUC issue d a Not Qualified Determination Letter to ME f or failing to meet the minimum qualifications requirement.
On March 31 , 2023, ME protested the Not Qualified Determination and submitted additional information. The Construction Management Bureau (CMB) Manager reviewed the totality of the ME experience as part of a due diligence rev iew and determined that ME was a responsible contracto r qualified to perform the work under this contract.
On April 17, 2023, SFPUC issued Determination letters denying PE’s protest of ME’s bid and confirming that ME is a responsible bidder.
The responsible bidder that submitted the lowest responsive bid is Mitchell Engineering.
Recommendation: SFPUC staff recommends that the Commission adopt the attached resolution.
Attachments: 1. CMD Memorandum
2. Not Qualified Letter of April 17, 2023
Agenda Title: WW-719A, Folsom Area Stormwater Improvements – SOMA and Mission Districts Sewer Replacement Commission Meeting Date: May 9, 2023
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, The San Francisco Public Utilities Commission (SFPUC) is undertaking the Folsom Area Stormwater Improvements Project to increase collection system capacity and reduce the risk of flooding in the low -lying Inner Mission neighborhood surrounding the 17th, 18th, and Folsom Streets historically subject to flooding, by constructing and upsizing sewer pipes and boxes, and constructing a new stormwater tunnel. Contract No. WW -719A is the first of four construction contracts necessary to complete the Project; and WHEREAS, On November 17, 2022, the SFPUC advertised Contract No. WW-719A, Folsom Area Stormwater Improvements – SOMA and Mission Districts Sewer Replacement, the first of four; and
WHEREAS, The Engineer’s Estimate is $8,200,000 for this construction contract work to upsize existing sewers and associated appurtenances on various streets in the SOMA and Mission neighborhoods of San Francisco, including Folsom, 11th, Harrison, Alabama, and Mistral Streets; and
WHEREAS, The contract duration is 365 consecutive calendar days; and WHEREAS, On March 2, 2023, SFPUC received and publicly opened three bids; and WHEREAS, SFPUC staff and Contract Monitoring Division (CMD) review of the bids for responsibility, responsiveness, and application of bid preferences resulted in the determination that Mitchell Engineering is the responsible bidder that submitted the lowest responsive bid; and WHEREAS, CMD established a 20.00% Local Business Enterprise (LBE) subcontracting requirement for this contract, and Mitchell Engineering committed to 21.39% LBE participation in its bid submittal; and
WHEREAS, Funds are available from Project No. 10038471, Folsom Area Stormwater Phase 2; and
WHEREAS, On September 23, 2021, the San Francisco Planning Department determined the Project to be categorically exempt from environmental review under California Environmental Quality Act (CEQA) Guidelines s ection 15302, Class 2 (Replacement or Reconstruction) and CEQA Guidelines section 15303, Class 3 (New Construction or Conversion of Small Structures) under Case Number 2021-002217ENV; now, therefore, be it RESOLVED, That this Commission hereby awards Contract No. WW-719A, Folsom Area Stormwater Improvements – SOMA and Mission Districts Sewer Replacement, in the amount of $7,522,041, and for a duration of 365 consecutive calendar days, to the responsible bidder that submitted the lowest responsive bid, Mitchell Engineering.
I hereby certify that the foregoing resolution was adopted by the Public Utilities Commission at its meeting of May 9, 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: April 17, 2023
To: Frank Gennaccaro, Contract Analyst, SFPUC
From: Michelle Kassatly, Contract Compliance Officer, CMD
Subject: WW-719A Folsom Area Stormwater Improvements – SOMA and Mission Districts Sewer Replacement
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 20% for this project. Below is a summary of CMD’s review.
Bid Discount
Bidder
(PeopleSoft:
Supplier/Supplier
ID)
LBE Status,
Type and
Size
(PS: LBE and
LBE Size)
Base Bid
(PS:
Maximum
Amount)
Daily Rate
for
Compensable
Delay
LBE Bid
Discount1
Adjusted Bid
with LBE
Bid Discount
Mitchell
Engineering
Non-LBE $7,522,040.25 $500.00 Not eligible $7,537,040.25 JMB Construction,
Inc.
Non-LBE $7,574,988.65 $500.00 Not eligible $7,589,988.65 Precision
Engineering, Inc.
CMD SBA
LBE
$8,112,941.50 $10.00 5% =
$405,647.07
$7,707,579.43
LBE Subcontracting Participation Requirement
Mitchell Engineering (“Mitchell”) is the lowest responsive bidder. Mitchell met the 20% LBE subcontracting requirement by listing the following Micro/Small LBE firm(s) on Section 00 43 36 (Subcontractor List):
1 None of the firms were given the Prime Neighborhood/Zip Code LBE bid discount or the Subcontracting Neighborhood/Zip Code LBE bid discount.
2 Subcontractor Scope of
Work
LBE
Status,
Type and
Size
Listed Amount
(PS: Amount
($)/Responsible
for)
Credited
Amount
Credited
Participation
(PS: Percent
LBE (%))
Roadway
Construction,
Inc.
Paving
(Partial)
SF LBE-
MBE
(Micro)
$448,883.50 $448,883.50 5.97%
Ronald R Nelson
Contractor, Inc.
SW-4 and
SW-5
(Partial)
SF LBE-
OBE
(Micro)
$210,500.00 $210,500.00 2.80%
Total Traffic
Control, Inc.
Traffic
Control
(Partial)
SF LBE-
OBE
(Small)
$100,000.00 $100,000.00 1.33%
Camajani
Trucking
Trucking
(Partial)
SF LBE-
MBE
(Micro)
$100,000.00 $100,000.00 1.33%
RES Engineers,
Inc.
Testing
(Partial)
SF LBE-
MBE
(Small)
$50,000.00 $50,000.00 0.66%
RTI
Environmental,
LLC (Rogers
Trucks)
Trucking
(Partial)
SF LBE-
OBE
(Micro)
$422,156.25 $422,156.25 5.61%
R&S
Construction
Management,
Inc.
Concrete
(Partial)
SF LBE-
MBE
(Micro)
$277,541.75 $277,541.75 3.69%
TOTAL $1,609,081.50 $1,609,081.50 21.39%
Mitchell did not list any non-LBE subcontractor on Section 00 43 36.
Good Faith Efforts Requirements
Mitchell utilized Approach C (Good Faith Negotiations) on CMD Form 2B to meet the Good Faith Efforts (“GFE”) Requirements. Mitchell demonstrated that it met the GFE requirements under Approach C by achieving at least 50 points.
Based on the foregoing, CMD has determined that Mitchell 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].