DEPARTMENT
Infrastructure
AGENDA NO.
5b
MEETING DATE
September 26, 2023
Last updated: 05.03.2023
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Calendar: Consent Calendar
Contract Manager: Judy Chin
Award Job Order Contract No. JOC-100, HVAC Energy Efficiency (C-20 License), San Francisco, San Mateo, Santa Clara, and Alameda Counties
Summary of
Proposed
Commission Action:
Award Job Order Contract No. JOC-100, HVAC Energy Efficiency (C -20 License), San Francisco, San Mateo, Santa Clara, and Alameda Counties, in the amount not-to-exceed $5,000,000, with a guaranteed minimum task order opportunity amount of $50,000, and with a duration of two years , to the responsible bidder that submitted the lowest responsive bid, Mesa Energy Systems, Inc., to perform C -20 licensed heating, ventilation, and air conditioning energy effici ency construction work on San Francisco Public Utilities Commission systems and operations around the Bay Area.
Background: A Job Order Contract 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, as they may be modified by Local Business Enterprise preference adjustments.
The SFPUC has used J ob Order Contracts for a wide range of construction activities including general building construction and general engineering construction, 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 of work during the term of this contract.
The Commission may extend the term for up to a total 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.
Scope of Contract: The Contract work locations are San Francisco, San Mateo, Santa Clara, and Alameda counties. The scope of work for potential task orders consists of:
• Boiler/Hot Water/Steam Fitting Construction;
Agenda Title: JOC-100, HVAC Energy Efficiency (C-20 License), San Francisco, San Mateo, Santa Clara, and Alameda Counties
Commission Meeting Date: September 26, 2023
• Boiler/Hot Water/Steam Fitting Equipment and Supplies; • Electrical Construction;
• General Engineering Construction;
• Hazardous Materials Removal;
• Heating, Ventilation, and Air Conditioning Construction; • Heating, Ventilation, and Air Conditioning Proprietary Equipment and Special Materials;
• Insulation/Acoustical Contracting; and
• Trucking and Hauling.
Funding 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 exercise its option to increase the maximum contract value by up to 50% of the original contract value (an additional $2,500,000) for a total potenti al maximum
contract amount of $7,500,000.
Award Criteria Figure (multiplier): Staff calculated bidders’ bid adjustment factors as a percentage mark-up on pre-set unit prices. Staff derived the award criteria figure from the weighted computation of the bidder’s adjustment factor for work performed under normal working hours and other working conditions.
The bidder that submi tted the lowest award criteria figure, as adjusted by application of Chapter 14B bid preference adjustments , is the low bidder. The adjustment factors account for the c ontractor’s overhead, profit, estimating, project management, bonding, insurance, supervision, submittals, record drawings, closeout documents, and other indirec t costs. During the task order process, SFPUC will apply th e 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: November 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 Job Order Contracts.
Estimated Completion Date: November 2025
Bid History:
Advertised: June 27, 2023
Bids Received: On July 27, 2023, SFPUC received and publicly opened two bids, as follows:
Agenda Title: JOC-100, HVAC Energy Efficiency (C-20 License), San Francisco, San Mateo, Santa Clara, and Alameda Counties
Commission Meeting Date: September 26, 2023
Bid Rank
Award
Criteria
Figure
Bid
Preference
Adjusted
Award
Criteria
Figure
Final
Rank
1. Mesa Energy Systems,
Inc. 1.3329 Not
Eligible 1.3329 1
2. American Mechanical,
Inc. 1.4431 Not
Eligible 1.4431 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.
Protest: The SFPUC did not receive any bid protests for Contract No. JOC- 100.
Environmental
Review:
Award of this Job Order Contract does not constitute a “project” under the California Environmental Quality Act (CEQA) Guidelines s ection 15378 because it does not involve commitment to any specific project that may result in a physical change in the envi ronment. The SFPUC will not authorize the contractor to commence any work under this contract until the proposed work is reviewed and any appropriate en vironmental review under the CEQA, if required, has been completed.
Local Business
Enterprise
Participation and
Non-Discrimination
In Contracting:
The Contract Monitoring Division established an 8% Local Business Enterprise subcontracting requirement for this contract. Mesa Energy Systems, Inc. committed to 8% Local Business Enterprise subcontractor participation in its bid submittal.
Attachment: 1. Contract Monitoring Division 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 June 27, 2023, the SFPUC advertised Job Order Contract No. JOC-100, HVAC Energy Efficiency (C-20 License), San Francisco, San Mateo, Santa Clara, and Alameda Counties; and
WHEREAS, On July 27, 2023, the SFPUC received and publicly opened two bids in which the bidders submitted their proposed 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 reviewed the bidders and their bids for responsibility, responsiveness, and application of bid prefe rences and determined Mesa Energy Systems, Inc. (Contractor) to be the responsible bidder that submitted the lowest responsive bid; and
WHEREAS, The Contract Monitoring Division established an 8% Local Business Enterprise subcontracting requirement for this contract, and Mesa Energy Systems, Inc. committed to 8% Local Business Enterprise subcontractor participation in its bid submittal; and WHEREAS, The contract not -to-exceed amount is $5,000,000, with a guaranteed minimum task order opportunity of $50,000, to perform heating, ventilation, and air conditioning energy efficiency construction work on 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 Job Order Contract; and
WHEREAS, Award of this Job Order Contract does not constitute a “project” under the California Environmental Quality Act (CEQA) Guidelines s ection 15378 because it does not involve commitment to any specific project that may result in a physical change in the environment; and the SFPUC will not authorize the contractor to commence any work under this contract until the proposed work is reviewed and any appropriate environmental review under the CEQA, if required, has been completed; and
WHEREAS, Funds will be available from various SFPUC Enterprise Funds for SFPUC issued task orders; now, therefore, be it
RESOLVED, That this Commission hereby awards Job Order Contract No. JOC-100, HVAC Energy Efficiency (C-20 License), 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, Mesa Energy Systems, Inc.
I hereby certify that the foregoing resolution was adopted by the Public Utilities Commission at its meeting of September 26, 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: August 24, 2023
To: Judy Chin, JOC Manager, SFPUC
Frank Gennaccaro, CAB, SFPUC
From: Michelle Kassatly, Contract Compliance Officer, CMD
Subject: JOC-100 HVAC Energy Efficiency (C-20 License), 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. The Micro/Small-LBE subcontracting participation requirement is 8% for this project. Below is a summary of CMD’s review.
Bid Discount
Bidder
LBE Status,
Type and
Size
ACF LBE Bid Discount
Adjusted ACF
with LBE Bid
Discount
Mesa Energy Systems,
Inc.
Non-LBE 1.3329 Not eligible 1.3329
American Mechanical,
Inc.
Non-LBE 1.4431 Not eligible 1.4431
LBE Subcontracting Participation Requirement
Mesa Energy Systems, Inc. (“Mesa”) is the lowest responsive bidder. Mesa met the 8% Micro/Small-LBE subcontracting requirement by listing the following Micro/Small-LBE firms on Section 00 43 36 (Subcontractor List):
Subcontractor Scope of Work
LBE Status,
Type and
Size
Listed
Amount
Credited
Amount
Credited
Participati
on
Temper Insulation Co.,
Inc. Thermal Insulation SF LBE-MBE
(Small) $150,000 $150,000 3.00%
SCA Environmental Inc Hazardous Material
Testing and Handling
SF LBE-WBE
(Micro) $125,000 $125,000 2.50%
2 KM 106 Construction
Inc.
General Engineering A
and General
Engineering B
SF LBE-MBE
(Micro) $125,000 $125,000 2.50%
TOTAL $400,000 $400,000 8.00%
Mesa did not list any non-LBE subcontractor on Section 00 43 36.
Good Faith Efforts Requirements
Mesa utilized Approach C (Good Faith Negotiations) on CMD Form 2B to meet the Good Faith Efforts (“GFE”) Requirements. Mesa demonstrated that it met the GFE requirements under Approach C by achieving at least 50 points.
Based on the foregoing, CMD has determined that Mesa 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].