DEPARTMENT
Infrastructure Division
AGENDA NO. 6g
MEETING DATE
November 14, 2023
Last updated: 05.03.2023
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Calendar: Consent Calendar
Project Manager: Ryan Freeborn
Award Contract No.WD-2874, 8-Inch & 16-Inch Ductile Iron Water Main Replacement on Joost Avenue from Ridgewood Avenue to Congo Street and Various Side Streets
Summary of
Proposed
Commission Action:
Award Contract No. WD-2874, 8-Inch & 16-Inch Ductile Iron Water Main Replacement on Joost Avenue from Ridgewood Avenue to Congo Street and Various Side Streets , to the responsible bidder that submitted the lowest responsive bid, M Squared Construction, Inc., in the amount of $7,077,800 and with a duration of 745 consecutive calendar days (approximately two years and one month), to install approximately 8,700 feet of ductile iron water conveyance pipe, ancill
ary water service pipe, curb ramps, and pavement
restoration. This action constitutes the Approval Action for the Project for the purposes of the California Environmental Quality Act (CEQA), pursuant to San Francisco Administrative Code section 31.04(h) . The Planning Department has determined that the Project is exempt from the CEQA. The Commission will rely on that determination to make its decision on this action.
Background: The water main replacement work under this Contract is part of the Water Enterprise Local Conveyance/Distribution System Program. The program includes the replacement of old water distribution pipes within the City and County of San Francisco (City) that have either been damaged or are at the end of their useful service life to ensure reliable water delivery within the City. The City installed the existing 8- to 16-inch diameter cast iron water mains scheduled to be replaced under this Contract between 1924 and 1935; due to the advanced age of the pipes (between 88 to 99 years), the SFPUC must replace them.
Scope of Contract: The Contract work location is in San Francisco's Glen Park residential district.
The Contract work includes installation of:
• 4,900 feet of 4- to 8-inch diameter ductile iron water conveyance pipe; • 3,800 feet of 16-inch diameter ductile iron water conveyance pipe; • Ancillary water service pipe; and
• Curb ramps, and pavement restoration.
Agenda Title: WD-2874, 8-Inch & 16-Inch Ductile Iron Water Main Replacement on Joost Avenue from Ridgewood Avenue to Congo Street and Various Side Streets
Commission Meeting Date: November 14, 2023
Funding and Costs: Funding Source: Project No. 10037406, 8 -Inch & 16 -Inch Ductile Iron Water Main Replacement on Joost Avenue f rom Ridgewood Avenue To Congo Street and Various Side Streets
Engineer’s Estimate: $7,500,000
Award: $7,077,800
Schedule: Estimated Notice-to-Proceed Date: February 2024 Estimated Completion Date: February 2026
Contract Duration: 745 consecutive calendar days (700 consecutive calendar days to Substantial Completion and an additional 45 consecutive calendar days to Final Completion)
Bid History:
Advertised: September 1, 2023
Bids Received: On October 5, 2023, SFPUC received and publicly opened five bids, as follows:
Bid Rank Bid Amount
LBE Bid
Discount
Adjusted
Bid
Final
Rank
M Squared
Construction, Inc.
$7,077,800 10% $6,370,020 1
Bassett
Engineering
$7,266,066 10% $6,539,459 2
Fontenoy
Engineering
$7,444,535 10% $6,700,081 3
Hernandez
Engineering
$8,994,450 10% $8,095,005 4
Mitchell
Engineering
$9,006,390 N/A $9,006,390 5
Application of Local Business Enterprise (LBE) bid preferences in accordance with Chapter 14B of the San Francisco Administrative Code did not change the final ranking of the low bidder.
Environmental
Review:
On June 27, 2023, the San Francisco Planning Department determined the Project to be categorically exempt from environmental review under California Environmental Quality Act (CEQA) Guidelines section 15302, Class 2 (Replacement or Reconstruction) under Case Number 2023- 004838ENV. The exemption determination can be found here:
https://sfpuc.sharefile.com/d-s332dd6eafd414b12995ab768e6c15015
Agenda Title: WD-2874, 8-Inch & 16-Inch Ductile Iron Water Main Replacement on Joost Avenue from Ridgewood Avenue to Congo Street and Various Side Streets
Commission Meeting Date: November 14, 2023
This action constitutes the Approval Action for the Project for the purposes of the California Environmental Quality Act (CEQA), pursuant to San Francisco Administrative Code section 31.04(h).
Local Business
Enterprise
Participation and
Non-Discrimination
In Contracting:
The Contract Monitoring Division established a 17% LBE subcontracting requirement for this contract. The contractor committed to 17.10% LBE participation with its bid submittal.
Attachment: 1. Contract Monitoring Division Memorandum
Agenda Title: WD-2874, 8-Inch & 16-Inch Ductile Iron Water Main Replacement on Joost Avenue from Ridgewood Avenue to Congo Street and Various Side Streets
Commission Meeting Date: November 14, 2023
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, The San Francisco Public Utilities Commission (SFPUC) Water Enterprise Local Conveyance/Distribution Program provide s for the replacement of old water distribution pipes that are at the end of their useful service life to ensure a reliable water delivery system; and WHEREAS, On September 1, 2023, the SFPUC advertised Contract No. WD-2874, 8-Inch & 16-Inch Ductile Iron Water Main Replacement on Joost Avenue from Ridgewood Avenue to Congo Street and Various Side Streets; and
WHEREAS, The Engineer’s Estimate is $ 7,500,000 for this construction work to install approximately 8,700 feet of ductile iron water conveyance pipe, ancillary water service pipe, curb ramps, and pavement restoration; and
WHEREAS, The contract duration is 745 consecutive calendar days; and WHEREAS, On October 5, 2023, the SFPUC received and publicly opened five bids; and WHEREAS, SFPUC staff and Contract Monitoring Division (CMD) reviewed the bids and the application of bid preferences and have determined that M Squared Construction, Inc., is the responsible bidder with the lowest responsive bid; and
WHEREAS, CMD established a 17% Local Business Enterprise (LBE) subcontracting requirement for this contract, and M Squared Construction, Inc., committed to 17.10% LBE participation in its bid submittal; and
WHEREAS, On June 27, 2023, the San Francisco Planning Department determined the Project to be categorically exempt from environmental review under California Environmental Quality Act (CEQA) Guidelines section 15302, Class 2 (Replacement or Reconstruction) under Case Number 2023-004838ENV; and
WHEREAS, Funds are available from Project No. 10037406, 8-Inch & 16-Inch Ductile Iron Water Main Replacement On Joost Avenue From Ridgewood Avenue To Congo Street and Various Side Streets; now, therefore, be it
RESOLVED, That this Commission hereby awards Contract No. WD-2874, 8-Inch & 16- Inch Ductile Iron Water Main Replacement on Joost Avenue from Ridgewood Avenue to Congo Street and Various Side Streets , in an amount of $7,077,800, and a duration of 745 consecutive calendar days , to the responsible bidder that submitted the lowest responsive bid, M Squared Construction, Inc.
I hereby certify that the foregoing resolution was adopted by the Public Utilities Commission at its meeting of November 14, 2023.
Secretary, Public Utilities Commission
City & County of San Francisco
London N. Breed, Mayor
Office of the City Administrator
Carmen Chu, City Administrator
Stephanie Tang, Director
Contract Monitoring Division
MEMORANDUM
Date: October 20, 2023
To: Ryan Freeborn, SFPUC
Jane Yu Wang, SFPUC
From: Jovi Cuntapay-Vitin, CMD
Subject: CMD Award Memo: WD-2874 - 8 & 16 Inch Ductile Iron Water Main Replacement on Joost Ave from Ridgewood Ave to Congo St and Various Side Streets
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 17% for this project. Below is a summary of CMD’s review.
Bid Discount
Bidder LBE Status, Type
and Size Base Bid LBE Bid
Discount
Adjusted Bid
with LBE
Bid Discount
Rank
M Squared Construction,
Inc.
SF LBE-OBE (Small) $ 7,077,800 10% $ 6,370,020.00 1
Bassett Engineering SF LBE-OBE (Micro) $ 7,266,066 10% $ 6,539,459.40 2 Fontenoy Engineering SF LBE-OBE (Small) $ 7,444,535 10% $ 6,700,081.50 3 Hernandez Engineering SF LBE-MBE (Micro) $ 8,994,450 10% $ 8,095,005.00 4 Mitchell Engineering Non-LBE $ 9,006,390 N/A $ 9,006,390.00 5
LBE Subcontracting Participation Requirement
M Squared Construction, Inc. (“MSCI”) is the lowest responsive bidder. MSCI met the 17% 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
Participation
Ronan Construction,
Inc.
Saw Cutting, AC
Paving, Concrete
Flatwork
SF LBE-OBE
(Micro) $ 1,040,000 $ 980,0001 13.85%
Crana Trucking Trucking SF LBE-OBE
(Micro) $ 230,000 $ 230,000 3.25%
TOTAL $ 1,270,000 $1,210,000 17.10%
1 Ronan Construction, Inc. (“RCI”) will subcontract out work to a non-LBE firm, Delta Grinding, amounting to $60,000. Only San Francisco Micro/Small LBE firms will get LBE credit. Hence, Delta Grinding’s participation will not receive LBE credit.
MSCI did not list any non-LBE subcontractor on Section 00 43 36.
City & County of San Francisco
London N. Breed, Mayor
Office of the City Administrator
Carmen Chu, City Administrator
Stephanie Tang, Director
Contract Monitoring Division
Good Faith Efforts Requirements
MSCI utilized Approach A (35% Approach) on CMD Form 2B to meet the Good Faith Efforts (“GFE”) Requirements. MSCI demonstrated that it met the GFE requirements under Approach A by listing LBE subcontractors on Section 00 43 36 to meet the established LBE sub participation requirements and relying on self-performed contract work to meet the 35% good faith outreach approach.
Based on the foregoing, CMD has determined that MSCI 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].