DEPARTMENT Infrastructure AGENDA NO. 6h
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: Mary Tienken
Award Contract No. WW-736, Castro and Mission Districts Sewer Improvements Summary of
Proposed
Commission
Action:
Award Contract No. WW-736, Castro and Mission Districts Sewer Improvements, in the amount of $7,272,320, and with a duration of 425 consecutive calendar days (approximately one year and two months), to the responsible bidder submitting the lowest responsive bid , Precision Engineering, Inc., to rehabilitate large diameter sewers and rehabilitate or replace sewer laterals on specific streets within the City and County of San Francisco. This action constitutes the Approval Action for the Project for the purposes of the Cal ifornia Environmental Quality Act (CEQA) , pursuant to San Francisco Administrative Code section 31.04(h).
The Planning
Department has determined that this action is exempt from the CEQA. If the item is approved, the Commission will rely on that determination to make its decision.
Background: The purpose of this project is to rehabilitate existing sewers that are over 100 years old and identified to be at a high- risk of failure based on data in the San Francisco Public Utilities Commission (SFPUC) Condition Assessment Management Program. The project team further confirmed the need for structural rehabilitation when videos of the sewers showed missing mortar and fallen bricks.
Description of
Scope of Work:
The contract work location is within San Francisco at various locations including 18th Street, 17th Street, Guerrero Street, South Van Ness Avenue between 20 th and 23rd Streets, and Folsom Street.
The contract work consists of:
• Rehabilitation of approximately 3,900 linear feet of existing sewers using cured-in-place-liners, slip-lining or spray mortaring construction methods; • Rehabilitation of existing sewer manholes and installation of new sewer manholes;
• Replacement and rehabilitation of laterals and associated appurtenance; and • Restoration of roadway and other restoration-in-kind work associated with the sewer work.
Budget & Costs: Funding: Project No. 10034718, Castro and Mission Districts Sewer Contract: WW-736, Castro and Mission Districts Sewer Improvements Commission Meeting Date: May 9, 2023
Improvements
Engineer’s Estimate: $7,500,000
Award: $7,272,320
Schedule: Estimated Notice-to-Proceed Date: August 7, 2023 Estimated Completion Date: October 5, 2024
Contract Duration: 425 consecutive calendar days ( approximately one year and two months) (365 consecutive calendar days to Substantial Completion and an additional 60 consecutive calendar days to Final Completion)
Compliance with
Chapter 14B:
Local Business
Enterprise
Utilization and
Non-
Discrimination in
Contracting
Ordinance:
The Contract Monitoring Division (CMD) established a 6% Local Business Enterprise (LBE) subcontracting requirement for this contract.
The contractor committed to 6.18% LBE participation with its bid submittal.
Environmental
Review:
On June 29, 2022 the San Francisco Planning Department determined the Project to be statutorily exempt from environmental review under the CEQA section 21080.21 and CEQA Gui delines section 15282(k) (Case No. 2022- 005580ENV), because the proposed pipeline replacement will be i n the public right of way and does not exceed one mile in length. The exemption can be found here:
https://sfpuc.sharefile.com/d-s6df096d1bbe04e749516bd0a998f77fe
This action constitutes the Approval Action for the Project for the purposes of the CEQA, pursuant to San Francisco Administrative Code section 31.04(h).
Bid History: Advertised: January 31, 2023
Bids Received: On March 24, 2023, SFPUC received sealed bids from three firms, as follows:
Bid Rank & Firm Base Bid Compensable
Delay
Total Bid
Discount1
Adjusted Bid
(with Bid
Discount
applied)
Final
Rank
1. Precision
Engineering $7,272,320.00 $300.00 5.0% =
$363,631.00 $6,908,989.00 1
2. D'Arcy & Harty
Construction
Inc.
$8,636,260.00 $7,500.00 10.0% =
$864,376.00 $7,779,384.00 2
3. Cratus, Inc. $8,984,260.00 $15,000.00 10.0% =
$899,926.00 $8,099,334.00 3
1 Including Standard, Prime and Sub Neighborhood/Zip Code Discounts
Contract: WW-736, Castro and Mission Districts Sewer Improvements Commission Meeting Date: May 9, 2023
Application of bid preferences including the pilot neighborhood preference program did not change the final ranking of the low bidder.
Attachment: 1. CMD Memorandum
LOCATION MAP
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, The San Francisco Public Utilities Commission (SFPUC) Collection System Assessment Management Program identified San Francisco sewers that are over 100 years old and pose a high-risk of failure; and
WHEREAS, The SFPUC project team confirmed the need for rehabilit ation of existing brick sewers based on missing mortar and fallen bricks observed from televised videos. The identified sewers in need of rehabilitation are located on 18th Street, 17th Street, Guerrero Street, Folsom Street and South Van Ness Avenue; and
WHEREAS, On January 31, 2023, the SFPUC advertised Contract No. WW -736, Castro and Mission Districts Sewer Improvements; and
WHEREAS, The Engineer’s Estimate is $ 7,500,000 for this construction contract work to rehabilitate large diameter sewers and rehabilitate or replace sewer laterals on specific streets within the City and County of San Francisco; and
WHEREAS, The contract duration is 425 consecutive calendar days; and WHEREAS, On March 24, 2023, SFPUC received and publicly opened three bids; and WHEREAS, SFPUC staff and Contract Monitoring Division (CMD) reviewed the bids for responsibility, responsiveness and application of bid preferences and determined that Precision Engineering, Inc. is the responsible bidder that submitted the lowest responsive bid; and WHEREAS, CMD established a 6% Local Business Enterprise ( LBE) subcontracting requirement for this contract, and the contractor committed to 6.18% LBE participation in its bid submittal; and
WHEREAS, Funds are available from Project No. 10034718, Castro and Mission Districts Sewer Improvements; and
WHEREAS, On June 29, 2022 the San Francisco Planning Department determined the Project to be statutorily exempt from environmental review under the California Environmental Quality Act (CEQA) section 21080.21 and CEQA Gui delines section 15282(k) (Case No. 2022- 005580ENV), because the proposed pipeline replacement will be in the public right of way a nd does not exceed one mile in length; now, therefore, be it
RESOLVED, That this Commission hereby awards Contract No. WW-736, Castro and Mission Districts Sewer Improvements , in the amount of $7,272,320, for a duration of 425 consecutive calendar days, to the responsible bidder submitting the lowest responsive bid, Precision Engineering, Inc.
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
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: April 13, 2023
To: Mary Tienken, SFPUC
Gary Hom, SFPUC
From: Kate Mundhenk, CMD
Subject: WW-736 -- Castro and Mission Districts Sewer Improvements -- LBE Subcontracting Requirement – REVISED CMD Bid Review
2 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. A Local Business Enterprise (LBE) subcontracting requirement of 6% was established for this project.
The LBE subcontracting requirement is below 20%, as the project involves a large amount of specialty work in the form of cured in-place liner (CIPL) that only contractors with specific qualifying experiences can perform for this project. The main purpose of this project is to rehabilitate 3,900 LF of sewer mains along Castro, 17th, Guerrero, South Van Ness, Folsom Streets and various other locations in the Mission and Castro Districts using cured in-place liner (CIPL) as the main method of rehabilitation. The existing sewer lines are constructed of 3x5’ brick sewers. The CIPL rehabilitation method is a great option for areas where digging/trenching would be disruptive and impractical. The liner is inserted and cured using water and forms a replacement pipe.
Below is a summary of CMD’s review:
Firm LBE
Status Base Bid Compensable
Delay
Total Bid
Discount3
Adjusted Bid with
Compensable Delay
(with Bid Discount
applied)
Precision
Engineering
SBA LBE-
OBE $7,272,320.00 $300.00 5.0% =
$363,631.00 $6,908,989.00
D'Arcy & Harty
Construction Inc.
SF LBE-
OBE
(Small)
$8,636,260.00 $7,500.00 10.0% =
$864,376.00 $7,779,384.00
Cratus, Inc.
SF LBE-
OBE
(Small)
$8,984,260.00 $15,000.00 10.0% =
$899,926.00 $8,099,334.00
2 The revision includes the compensable delay for a 30-day period. 3 Including Standard, Prime and Sub Neighborhood/Zip Code Discounts
6 Precision Engineering is the lowest responsive bidder. Precision Engineering met the 6% LBE subcontracting requirement by listing the following LBE firms on Section 00 43 36 (Proposed Subcontractors Form):
LBE
Subcontractor
Scope of
Work LBE Status Listed Amount Amount Credited
Participation
(based on
credited
amount)
Ronald R.
Nelson
Contractor, Inc.
Concrete
Manholes
SF LBE OBE-
(Micro) $184,500.00 $184,500.00 2.54%
Camajani
Trucking Trucking SF LBE MBE
(Micro) $100,000.00 $100,000.00 1.38%
Roadway
Construction,
Inc.
Excavation,
Street
Base, and
Temporary
Asphalt
SF LBE MBE
(Micro) $65,000.00 $65,000.00 0.89%
Hernandez
Engineering
Traffic
Control
SF LBE-MBE
(Small) $100,000.00 $100,000.00 1.38%
TOTAL LBE Subcontracting Participation $449,500.00 $449,500.00 6.18%
Precision Engineering also listed the following non-LBE subcontractors on Section 00 43 36:
Firm Scope of Work Status Listed Amount
Nor-Cal Pipeline Services Mortaring Work & CIPL
Laterals Non-LBE $1,082,400.00
SAK Construction CIPL Main Sewer Non-LBE $1,811,320.00
Robotic Sewer Solutions, Inc. UV Top Hats Non-LBE $285,000.00 TOTAL $3,178,720.00
Good Faith Efforts Requirements
Precision Engineering utilized Approach B (Inclusion of Micro-LBE) on CMD Form 2B to meet the Good Faith Efforts (“GFE”) Requirements.
Precision Engineering demonstrated that it met the GFE requirements under Approach B by listing the Micro-LBE firm: Ronald R. Nelson Contractor, Inc.
Based on the foregoing, CMD has determined that Precision Engineering 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 (415) 551-4335.