DEPARTMENT
Infrastructure
AGENDA NO.
5a
MEETING DATE
September 26, 2023
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Calendar: Consent Calendar
Contract Manager: Judy Chin
Approve modification of Job Order Contract No. JOC-92, General Engineering (A License) Construction, San Joaquin, Stanislaus, and Tuolumne Counties, Hetch Hetchy
Summary of
Proposed
Commission Action:
Approve modification of Job Order Contract No. JOC-92, General Engineering (A License) Construction, San Joaquin, Stanislaus, and Tuolumne Counties, Hetch Hetchy with Sierra Mountain Construction, Inc., to increase the Contract amount by $2,500,000 for a new total not -to-exceed Contract amount of $7,500,000 with no increase to the contract duration, to complete ongoing facility and asset improvements.
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 contractor 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 Job Order Contracts for a wide range of construction activities including general building construction and general engineering construction, specialized electric al 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.
In accordance with San Francisco Administrative Code section 6.62, Job Order Contracts can be issued to a maximum dollar amount of $5,000,000 and the contract may be increased to a maximum value of up to 50% of the original contract value. For a contract with an original dollar amount of $5,000,000, the maximum dollar amount the contract may increase is 50% of the original contract value (an additional $2,500,000), for a total potential maximum contract amount of $7,500,000. Additionally, th e Administrative Code stipulates the contract expiration term to be not more than five years and that new task orders may not be issued after four years from the date the Controller certifies the Contract.
Agenda Title: JOC-92, General Engineering (A License) Construction, San Joaquin, Stanislaus, and Tuolumne Counties, Hetch Hetchy
Commission Meeting Date: September 26, 2023
On March 14, 2023, by Resolution No. 23-0053, the Commission awarded Job Order Contract No. JOC -92, General Engineering (A License) Construction, San Joaquin, Stanislaus, and Tuolumne Counties, Hetch Hetchy to Sierra Mountain Construction, Inc. The original not-to-exceed contract amount was $5,000,000 and the original contract duration was two years.
Scope of Contract: The Contract work locations are San Joaquin, Stanislaus, and Tuolumne counties. The scope of work for potential task orders consists of:
• Building, Moving, & Demolition;
• Cathodic Protection;
• Concrete;
• Earthwork and Paving;
• Electrical;
• General Engineering Construction;
• Lenel Systems Integration;
• Pipeline; and
• Trucking and Hauling.
Modifications to the
Contract:
Proposed Modification No. 1: Staff is seeking Commission approval to increase the Contract amount by $2,500,000, to complete ongoing facility and asset improvements , such as building, moving, and demolition; cathodic protection; concrete; earthwork and paving; electrical; general engineering construction; Lenel systems integration; pipeline; and trucking and hauling for the SFPUC Operations and Bureaus, increasing the total not-to-exceed contract amount of the Contract to $7,500,000, with no change to the Contract term of two years.
Funding and Costs: Funding Source: Funds for each task order are encumbered upon issuance of Notice-to-Proceed. Funding is sourced from the SFPUC Enterprise Operations and Bureaus requesting work.
Original Award Amount: Not-to-exceed $5,000,000
Proposed Modification No. 1: $2,500,000
Total Revised Contract Amount: Not-to-exceed $7,500,000
Schedule: Certification Date: April 3, 2023
Duration: two years
Original Completion Date: April 2, 2025
Environmental
Review:
Approval of this Job Order Contract modification 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 t he environment. 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.
Agenda Title: JOC-92, General Engineering (A License) Construction, San Joaquin, Stanislaus, and Tuolumne Counties, Hetch Hetchy
Commission Meeting Date: September 26, 2023
Local Business
Enterprise
Participation and
Non-Discrimination
In Contracting:
The Contract Monitoring Division established a 15% Local Business Enterprise subcontracting requirement for this contract. The contractor committed to a 15% Local Business Enterprise subcontractor participation with 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 quickly and efficiently complete unrelated tasks on an as-needed basis under a single, competitively bid, indefinite quantity contract for general engineering construction services; and WHEREAS, On March 14, 2023, by Resolution No. 22- 0053, the Commission awarded Job Order Contr act No. JOC-92, General Engineering (A License) Construction, San Joaquin, Stanislaus, and Tuolumne Counties, Hetch Hetchy to Sierra Mountain Construction, Inc.; and WHEREAS, The original contract was for an amount not -to-exceed $5,000,000, with a guaranteed minimum task order opportunity of $50,000, and the original contract duration was two years; and
WHEREAS, The contract Certification date was April 3, 2023; and WHEREAS, Staff seeks an increase of $ 2,500,000 to the contract amount to complete ongoing facility and asset improvements , such as building, moving, and demolition; cathodic protection; concrete; earthwork and paving; electrical; general engineering construction; Lenel systems integration; pipeline; an d trucking and hauling for the San Francisco Public Utilities Commission systems and operations around Hetch Hetchy; 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, The Contract Monitoring Division established a 15% Local Business Enterprise subcontracting requirement for this contract, and the contractor committed to a 15% Local Business Enterprise subcontractor participation with its bid submittal; and WHEREAS, Approval of this Job Order Contract modification 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; now, therefore, be it RESOLVED, That this Commission hereby approves Modification No. 1 to Job Order Contract No. JOC -92, General Engineering (A License) Construction, San Joaquin, Stanislaus, and Tuolumne Counties, Hetch Hetchy, with Sierra Mountain Construction, Inc., increasing the Contract amount by $2,500,000 for a total not-to-exceed amount of $7,500,000, with no change to the contract duration.
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
Jennifer Walker, JOC Analyst, SFPUC
From: Michelle Kassatly, Contract Compliance Officer, CMD
Subject: Modification No. 1 for JOC-92 General Engineering (A License) Construction, San Joaquin, Stainislaus and Tuolumne Counties, Hetch Hetchy] (PeopleSoft Contract ID: 1000028626)
SFPUC has requested to modify the above referenced contract by $2,500,000 for a total agreement amount of $7,500,000. Pursuant to communications with the SFPUC, the scope of work for Modification No.1 consists of QA/QC, Engineering Services, and Materials.
The Micro/Small-LBE subcontracting participation requirement established for this contract is 15%. The LBE subcontracting participation requirement applies to the entire contract including any modifications, change orders and amendments.
The Micro/Small-LBE participation reflected on the Prime Contractor, Sierra Mountain Construction Inc’s (“Sierra”), Section 00 43 36 at the time of bid is as follows:
Subcontractor Scope of Work
LBE Status,
Type and
Size
Listed & Credited
Participation
C&N Reinforcing, Inc. Furnish and Install
Reinforcing Steel
SF LBE-MBE
(Micro) $100,000 2%
Pacific Engineering &
Construction, Inc.
Partial General
Engineering
SF LBE-OBE
(Micro) $650,000 13%
TOTAL $750,000 15%
As of August 22,2023, Sierra invoiced $3,991,923.84. The Micro/Small-LBE participation achieved by Sierra is as follows:
Subcontractor Scope of Work LBE Status,
Type and Size
Invoiced Participation To-
Date
(NOT including
Modification No. 1)
C&N Reinforcing, Inc. Furnish and Install
Reinforcing Steel
SF LBE-MBE
(Micro)
$0 0%
Pacific Engineering &
Construction, Inc.
Partial General
Engineering
SF LBE-OBE
(Micro)
$42,050 1.05%
TOTAL $42,050 1.05%
2 Pursuant to communications with Sierra, and as confirmed by the SFPUC, C&N Reinforcing has been underutilized to date as the emergency work performed to date did not require concrete reinforcement. Rather, “the scopes of work were Soldier pile walls, gabion walls, excavation and rock slope protection that did not align with C&N Reinforcing scope or capabilities.”
Moreover, Sierra confirmed that it will remain committed to assigning work that may arise from future task orders to its original listed LBE subcontractors. Sierra informed the CMD that it anticipates meeting its 15% Micro/Small-LBE subcontracting participation requirement, as follows:
Subcontractor Scope of Work LBE Status,
Type and Size
Projected Participation
(including Modification No.
1)
C&N Reinforcing, Inc. Furnish and Install
Reinforcing Steel
SF LBE-MBE
(Micro)
$1,025,000 13.7%
Pacific Engineering &
Construction, Inc.
Partial General
Engineering
SF LBE-OBE
(Micro)
$100,000 1.3%
TOTAL $1,125,000 15%
Going forward, in order to ensure compliance with the Chapter 14B post-award requirements, SFPUC staff and Sierra will continue to notify and obtain CMD approval for any proposed subcontractor additions and/or substitutions throughout the term of this contract as well as any changes to the scope of work and the information provided to CMD. CMD will review this information to determine and facilitate progress towards the project’s LBE subcontracting requirement. Contingent upon the conditions set forth above, CMD approves this modification.
Should you have any questions and/or concerns regarding the above, I can be reached at [email protected].