DEPARTMENT
Infrastructure
AGENDA NO.
6a
MEETING DATE
November 28, 2023
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Calendar: Consent Calendar
Contract/Project Manager: Ada Zhu
Accept Work, Approve Modification, and Authorize Final Payment for Contract No. DB- 129.2, Bay Corridor Transmission and Distribution – Phase 2 (2019) South
Summary of
Proposed
Commission Action:
Accept work performed by Anvil Builders, Inc. under Contract No. DB-129.2, Bay Corridor Transmission and Distribution – Phase 2 (2019) South; approve Modification No. 28 (Final) increasing the Contract duration by 575 calendar days (one year and seven months) , to complete closeout punch- list items including prepare reports and supporting documentation, procure and reinstall communication vault lids, and finalize grounding system equipment calibration and testing for continuity , for a total Contract amount of $32,198,777 and a total Contract duration of 1,080 consecutive calendar days (approximately three years); and authorize final payment to the contractor.
Background: The San Francisco Public Utilities Commission (SFPUC) is building a high voltage transmission and distribution system in the Southeast portion of the City and County of San Francisco to serve existing and future customers with large power needs. This is one of thr ee subprojects to complete the transmission and distribution system. Under this Contract , the Contractor
designed and installed electrical conduits, electrical vaults, and potable water supply pipelines along Illinois & Marin Streets to Davidson Avenue, extended the underground electrical duct banks and vaults south of the existing Islais Creek infrastructure along parts of 3rd Street, Arthur Avenue, Cargo Way, Davidson Avenue, Evans Avenue, Quint Street, and Rankin Street. The other subprojects to complete the transmission and distribution system include Contract Nos. DB-128R2 and DB-129.1.
On March 10, 2020, by Resolution No. 20- 0054, the Commission awarded Contract No. DB-129.2 Bay Corridor Transmission and Distribution – Phase 2 South to Anvil Builders, Inc. The original Contract amount was $29,280,870 and the original Contract duration was 396 consecutive calendar days.
On April 13, 2021, by Resolution No. 21-0051, the Commission approved an increase of 180 calendar days to the existing duration contingency for a total Contract duration contingency of 219 calendar days and a total Contract duration up to of 615 consecutive calendar days, with
no change to the
Contract amount.
Agenda Title: DB-129.2, Bay Corridor Transmission and Distribution – Phase 2 (2019) South Commission Meeting Date: November 28, 2023
On December 14, 2021, by Resolution No. 21 -0185, this Commission approved an increase of 180 calendar days to the existing duration contingency for a total Contract duration contingency of 399 consecutive calendar days and a total Contract duration up to 795 consecutive calendar days, with no change to the Contract amount.
Scope of Contract: The Contract work was located on Illinois & Marin Streets to Davidson Avenue in San Francisco , including south of the existing Islais Creek infrastructure along parts of 3rd Street, Arthur Avenue, Cargo Way, Davidson Avenue, Evans Avenue, Quint Street and Rankin Street.
The Contract work consisted of:
• Bay Corridor Transmission & Distribution (BCTD) conduits, vaults, and associated fittings installation on Illinois Street at Amador Street, Cargo Way from Illinois Street to Third Street, Arthur Avenue from Third Street to Quint Street, Third Street from C argo Way to Phelps Street, Phelps Street from Third Street to Davidson Avenue, Davidson Avenue from Phelps Street to Rankin Street, Rankin Street from Davidson Street to Evans Avenue, and Quint Street from Davidson Street to Evans Street;
• BCTD vault and conduit geotechnical stabilization on Islais Creek’s north and south banks; and
• Potable water pipe, hydrants, valves, and associated items installation on Evans Avenue.
Modifications to the
Contract:
Modification Nos. 1 to 27: The SFPUC modified the Contract within the approved cost contingency increasing the Contract amount by $2,917,907, and increased the C ontract duration by 109 calendar days, in accordance with Resolution 21-0185, to address unforeseen conditions, furnish and i nstall water and sewer infrastructure , improve grounding systems, implement ground improvements at Islais Creek, and reconcile actual material quantities, for a total Contract amount of $32,198,777, and a total Contract duration of 505 consecutive calendar days.
Modification No. 28 (Final): Staff recommends Commission authorization to increase the C ontract duration by 575 c onsecutive calendar days to complete closeout punch- list items including to prepar ing reports and supporting documentation, procur ing and reinstalling communication vault lids, and finaliz ing grounding system equipment calibration and testing for continuity, for a total C ontract duration of 1,080 consecutive calendar days (approximately three years), with no change to the Contract amount.
Funding and Costs: Funding Source: Hetchy Power Capital Fund, Wastewater Capital Fund, and Sewer System Improvement Program Project No. 10014227, Bay Corridor Transmission and Distribution (BCTD) Project
Original Contract Amount: $29,280,870
Modification Nos. 1 to 27: $2,917,907
Agenda Title: DB-129.2, Bay Corridor Transmission and Distribution – Phase 2 (2019) South Commission Meeting Date: November 28, 2023
Requested Modification No. 28 (Final): $0
Total Final Contract Amount: $32,198,777
Schedule: Notice-to-Proceed Date: June 10, 2020
Original Contract Duration: 396 consecutive calendar days Modification Nos. 1 to 27 Duration: 109 consecutive calendar days Recommended Modification No. 28 (Final): 575 consecutive calendar days Total Final Contract Duration: 1,080 consecutive calendar days
Local Business
Enterprise
Participation and
Non-Discrimination
In Contracting:
The Contract Monitoring Division established a Local Business Enterprise (LBE) subcontracting requirement for 8% design and 10% construction on this Contract. The contractor committed to an LBE participation of 12.94% for design and 10.31% for construction with its bid submittal. CMD has determined the contractor made a good faith effort to substantially compl y with the LBE subcontracting requirements by achieving a final LBE subcontracting participation of 15.01% for design and 11.44% for construction.
Attachment: 1. Contract Monitoring Division Memorandum
Agenda Title: DB-129.2, Bay Corridor Transmission and Distribution – Phase 2 (2019) South Commission Meeting Date: November 28, 2023
BCTD Project Overview Site Map
Agenda Title: DB-129.2, Bay Corridor Transmission and Distribution – Phase 2 (2019) South Commission Meeting Date: November 28, 2023
DB-129.2 Project Site Map
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, On March 10, 2020, by Resolution No. 20- 0054, the Commission awarded Contract No. DB-129.2, Bay Corridor Transmission and Distribution – Phase 2 (2019) South to Anvil Builders, Inc.; and
WHEREAS, The original Contract amount was for $29,280,870 and the original Contract duration was 396 consecutive calendar days; and
WHEREAS, The contract Notice-to-Proceed date was June 10, 2020; and WHEREAS, On April 13, 2021, by Resolution No. 21-0051, the Commission approved an increase of 180 calendar days to the existing Contract duration contingency for a revised Contract duration contingency of 219 calendar da ys and a total contract duration up to 615 consecutive calendar days, with no change to the Contract amount; and WHEREAS, On December 14, 2021, by Resolution No. 21- 0185, the Commission approved an increase of 180 calendar days to the existing Contract duration contingency for a total Contract duration contingency of 399 consecutive calendar days and a total Contract duration up to 795 consecutive calendar days, with no change to the Contract amount; and WHEREAS, Modification Nos. 1 through 27 increased the Contract amount by $2,917,907 and increased the Contract duration by 109 calendar days, in accordance with Resolution 21-0185, to address unforeseen conditions, furnish and install water and sewer infrastructure, improve grounding systems, implement ground improvements at Islais Creek, and reconcile actual material quantities, for a total C ontract amount of $32,198,777, and a total C ontract duration of 505 consecutive calendar days; and
WHEREAS, Contractor, Anvil Builders, Inc. completed its work scope under Contract No.
DB-129.2, Bay Corridor Transmission and Distribution – Phase 2 (2019) South; and WHEREAS, Staff recommends the Commission approve Modification No. 28 (Final) to increase the Contract duration by 575 consecutive calendar days to complete closeout punch -list items including preparing reports and supporting documentation, procur ing and reinstall communication vault lids, and finaliz ing grounding system equipment calibration and testing for continuity, for a total Contract duration of 1,080 consecutive calendar days (approximately three years), with no change to the Contract amount; and
WHEREAS, Contract Monitoring Division established a Local Business Enterprise (LBE) subcontracting participation requirement for 8% design and 10% construction for this C ontract, and the contractor committed to LBE participation of 12.94% for design and 10.31% for construction with its bid submittal and achieved a final LBE participation of 15.01% design and
11.44% construction; and
WHEREAS, Funds are available from Project No. 10014227, Bay Corridor Transmission and Distribution (BCTD) Project; now, therefore, be it
RESOLVED, That this Commission hereby accepts work performed by Anvil Builders, Inc. under Contract No. DB-129.2, Bay Corridor Transmission and Distribution – Phase 2 (2019) South; approves Modification No. 28 (Final) increasing the Contract duration by 575 consecutive calendar days, for a total Contract duration of 1,080 consecutive calendar days and for a total Contract amount of $32,198,777; and authorizes final payment to the contractor.
I hereby certify that the foregoing resolution was adopted by the Public Utilities Commission at its meeting of November 28, 2023.
Secretary, Public Utilities Commission
MEMORANDUM
Date: October 23rd, 2023
To: Ada Zhu, Project Manager, SFPUC
From: Michelle Kassatly, Contract Compliance Officer, CMD
Subject: Closeout for DB-129.2, Bay Corridor Transmission and Distribution – Phase 2 – South (PeopleSoft Contract ID: 1000017981)
The Contract Monitoring Division (“CMD”) has determined that Anvil Builders Inc. (“Anvil”), the prime contractor for this contract, has made a good faith effort to substantially comply with the LBE subconsulting requirements associated with this contract.
The LBE subconsulting and subcontracting participation requirement established for this Design Build (“DB”) project is 8% for the Design Phase and 10% for the Construction Phase. Anvil was awarded the contract in the amount of $29,280,870.00. The final contract amount is $32,198,776.64.
LBE Subconsulting Participation:
Design Phase:
For the Design phase of the project, at the time the project was advertised, a Micro/Small LBE subconsulting requirement of 8% was established. Anvil’s CMD Form 2A reflected a Micro/Small LBE subconsulting participation of 12.94%. Anvil was awarded the contract and after 6 (six) change orders, the final contract amount is $6,417,950.70. The Micro/Small LBE subconsulting participation is as follows:
Firm Status, Type
and Size Scope of Work
Original Credited
Contract
Participation
Final Credited
Contract Participation
AGS, Inc. SF LBE-MBE
(Small)
Geotechnical
Engineering 9.38% $707,370.50 11.02%
TransPac
Engineering
SF LBE-OBE
(Micro)
Civil Engineering
(Partial) 1.66% $89,125.00 1.39%
AEW Engineering SF LBE-MBE
(Micro)
Phase II ESA/Soil
Profiling 0.70% $76,377.81 1.19%
Total Traffic
Control
SF LBE-OBE
(Micro) Traffic Control 1.20% $90,530.00 1.41%
TOTAL 12.94% $963,402.81 15.01%
Per the Prime Contractor, and as confirmed by the SFPUC the final LBE percentage for Transpac Engineering was short of the Originally Credited Contract Participation because:
“The job was handed to [Anvil] for bid using a 35% complete design. As the actual design reached completion, the quantities for the restoration scope vastly decreased.” This is because “Design/Build is not like design-bid-build where the design-bid-build contracts where design is
100% complete and issued for construction. In [the SFPUC’s] case, it’s only 35% complete and thus allows for a lot of variances and value engineering/improvements.”
In a good faith effort to increase LBE participation, Anvil increased the scope of work for AGS, Inc., AEW Engineering, and Total Traffic Control, ultimately increasing their overall LBE commitment.
Construction Phase:
For the Construction phase of the project, at the time the project was advertised, a Micro/Small LBE subcontracting participation requirement of 10% was established. Anvil’s Section 00 43 36 reflected a Micro/Small LBE subcontracting participation of 10.31%. Anvil was awarded the contract and after seventeen (17) change orders, the final contract amount is $25,780,825.94. Anvil’s Micro/Small LBE subcontracting participation is as follows:
Firm
LBE Status,
Type and
Size
Scope of
Work
Original Credited
Contract Participation
Final Credited
Contract Participation
Bay Line Cutting &
Coring Inc.
SF LBE-MBE
(Micro) Sawcutting $80,000.00 0.34% $118,858.42 0.46%
Roadway
Construction Inc.
SF LBE-MBE
(Micro)
Asphalt,
Grinding, &
Paving
$1,100,000.00 4.73% $605,949.951 2.35%
R&S Construction
Management
SF LBE-MBE
(Micro)
Concrete
Flatwork
(Partial)
$447,000.000 1.92% $309,294.83 1.20%
Total Traffic
Control
SF LBE-OBE
(Micro)
Traffic
Control $770,000.00 3.31% $1,916,883.00 7.43%
TOTAL $2,397,000.00 10.31% $2,950,986.20 11.44%
Per Anvil, and as confirmed by the SFPUC, the final LBE percentage for Roadway Construction Inc. was short of the Originally Credited Contract Participation. Per the SFPUC/Prime explanation:
“The projects design was handed to Anvil for bid using a 35% complete design. Once the job was awarded to Anvil, the teams began diving into the project to provide the city with a complete design. Over time, certain design features needed more or less attention than others. As the design progresses, the required work and effort set forth either increased or decreased, in order to properly design the job to meet the cities approval. Same goes for the construction aspect. Once the design completed, the quantities of the certain scopes vastly changed upon city approval of the plans. This is why there are decreases in some of the contract values between bid time and final completion.”
Per the SFPUC, Anvil was short of its commitment to R&S Construction Management because:
“At the time of bid (35% design), the Design/Builder, Anvil Builders Inc (ABI), was given a best guess/estimate for quantity of concrete and pavement restoration work potentially needed.
1 There is an ongoing dispute between Anvil and the subcontractor, Roadway Construction Inc. (“Roadway”), that includes the remainder amount owed to Roadway and the performance of the agreement. The amount shown in the table is the undisputed amount that both Anvil and Roadway have confirmed.
Based upon the engineer’s estimate assuming a high quantity of concrete and road restoration, ABI split the scope with two LBE subcontractors, Roadway Construction and R&S Construction.
However, due to the nature of design/build contracts, the extent or level of concrete and pavement restoration was reduced during the design phase (between 35% design to 100% design). Hence, the subcontractors’ scopes were reduced. This is not abnormal as the final design is unknown at the time of bid.”
In good faith efforts to increase LBE percentage, Anvil increased LBE participation for Bay Line Cutting & Coring Inc. and Total Traffic Control. As a result, Anvil ultimately exceeded their overall LBE commitment.
Based on the foregoing, CMD concurs with the closeout of this contract. Should you have any questions, please do not hesitate to contact me at [email protected] .