DEPARTMENT
Infrastructure
AGENDA NO.
6c
MEETING DATE
November 28, 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-104, General Engineering (A License) Construction, San Joaquin, Stanislaus, and Tuolumne Counties, Hetch Hetchy
Summary of
Proposed
Commission Action:
Award Job Order Contract No. JOC-104, General Engineering (A License) Construction, San Joaquin, Stanislaus, and Tuolumne Counties, Hetch Hetchy, in the amount not-to-exceed $5,000,000, with a guaranteed minimum task order opportunity amount of $50,000, and a duration of two years, to the responsible bidder that submitted a responsive bid, P eterson Excavation, Inc., to perform A-
licensed general engineering construction work on San Francisco Public Utilities Commission systems and operations around Hetch Hetchy.
Background: A Job Order Contract is an indefinite quantity contract that enables the San Francisco Public Utilities Commission ( SFPUC) to quickly and efficiently complete tasks on an as -needed basis under a single, competitively bid construction contract using published pre -set unit prices. The competitive process is based on Adjustment Factors, which are the contractor’s mark-ups (overhead and profit) for when and where the work will be performed (regular time, overtime, and county). For example, a bidder might bid a lower mark-up for regular hours in San Francisco than for counties further away that require additional travel time.
Staff then multiples the Adjustment Factors by each bid line item an d adds all the line items together to calculate the Award Criteria Figure. Upon review by the Contract Monitoring Division, the Award Criteria Figure may be modified by application of the Local Business Enterprise (LBE) bid discount.
SFPUC staff then uses the Award Criteria Figure, as may be adjusted by the LBE bid discount, to compare the bids and determine the apparent low bidder.
The SFPUC has used Job O rder 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.
The SFPUC will issue task orders to the selected contractor to perform specific scopes of work during the term of this contract. Each task order is priced based on pre-set unit prices, as published with the Advertisement For Bids, multiplied by the appropriate Adjustment Factor from the contractor’s bid.
Agenda Title: JOC-104, General Engineering (A License) Construction, San Joaquin, Stanislaus, and Tuolumne Counties, Hetch Hetchy
Commission Meeting Date: November 28, 2023
The not-to-exceed amount of this proposed Contract is $5,000,000. Under San Francisco Administrative Code section 6.62, the Commission may increase the maximum contract value by up to 150% of the orig inal contract value (an additional $2,500,000) for a total potential maximum contract amount of $7,500,000.
The duration of this proposed Contract is two years. Under San Francisco Administrative Code section 6.62, the Commission may extend the term up to five years. The SFPUC may not issue any new task orders under this C ontract after four years from the date the Controller certifies the availability of funds for this Contract.
Scope of Contract: The Contract work locations are in San Joaquin, Stanislaus, and Tuolumne Counties. The scope of work for potential task orders consists of:
• Building, Moving, and Demolition;
• Cathodic Protection;
• Concrete;
• Earthwork and Paving;
• Electrical;
• General Building Construction;
• General Engineering;
• Lenel Systems Integration;
• Marine Related Services;
• Pipeline;
• Reinforcing Steel; 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.
Funding: Funding for the contract will be available from various SFPUC Enterprise Funds when Staff issues task orders.
Schedule: Estimated Notice-to-Proceed Date: January 2024
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: January 2026
Bid History:
Advertised: July 27, 2023
Bids Received: On September 14, 2023, SFPUC received and publicly opened one bid, as follows:
Agenda Title: JOC-104, General Engineering (A License) Construction, San Joaquin, Stanislaus, and Tuolumne Counties, Hetch Hetchy
Commission Meeting Date: November 28, 2023
Bid Rank
Award
Criteria
Figure
LBE Bid
Discount
Adjusted
Award
Criteria
Figure
Final
Rank
1. Peterson Excavation,
Inc. 1.3500 10% 1.2150 1
In accordance with Chapter 14B of the San Francisco Administrative Code, Local Business Enterprise prime contractors that apply for the bid discount must be certified on the proposal due date. San Francisco Micro- LBE and Small LBE prime contractors receive a 10% bid discount and SBA -LBEs will receive a 5% bid discount. However, the SBA -LBE bid discount will not be applied in cases where the Micro- or Small-LBE is the apparent low bidder.
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.
Outreach: Staff extended the original bid due date by an additional month to conduct extensive outreach to all Contract Monitoring Division certified San Francisco Local Business Enterprise and SFPUC Local Business Enterprise firms with a General Engineering A -License in the C ontract Monitoring Division Directory. Despite the additional outreach, SFPUC received only one bid.
Under Administrative Code section 6.23(c) (2), w here SFPUC receives only one responsive bid from a responsible bidder and no other bid, this Commission may award to the sole bidder if the General Manager determines that: (A) further outreach efforts and (B) removal or modification of contract requirements, provided the requirements are not required by law and their removal would not compromise the interests of the SFPUC, would not result in more bids.
Staff performed outreach to potential bidders and determined that further outreach efforts or modification of the requirements would be unlikely to result in a larger bidding pool with substantially lower bids ..
Staff therefore
recommends award to the sole bidder, Peterson Excavation, Inc., a Micro-LBE contractor.
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 envir onment. The SFPUC will not authorize the contractor to commence any work under this contract until the proposed work Agenda Title: JOC-104, General Engineering (A License) Construction, San Joaquin, Stanislaus, and Tuolumne Counties, Hetch Hetchy
Commission Meeting Date: November 28, 2023
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 a 16% Local Business Enterprise subcontracting requirement for this contract. Peterson Excavation, Inc. committed to a 16% 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 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 July 27, 2023, the SFPUC advertised Job Order Contract No. JOC-104, General Engineering (A License) Construction, San Joaquin, Stanislaus, and Tuolumne Counties, Hetch Hetchy; and
WHEREAS, Staff extended t he original bid due date by an additional month to conduct extensive outreach to all Contract M onitoring Division certified San Francisco Local Business Enterprise and SFPUC Local Business Enterprise firms with a General Engineering A-License in the Contract Monitoring Division Directory; and
WHEREAS, On September 14, 2023, despite the additional outreach, the SFPUC received and publicly opened one bid in which the bidder submitted its 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 review ed the bidder and its bid for responsibility, responsiveness, and application of bid preferences, and determined Peterson Excavation, Inc. (Contractor) to be the sole responsible bidder that submitted a responsive bid; and WHEREAS, Under San Francisco Administrative Code section 6.23(c)(2) , this Commission may award to the sole responsible bidder that submitted a responsive bid if the General Manager determines that: (A) further outreach efforts; and (B) removal or modification of contract requirements, provided the requirements are not required by law and their removal would not compromise the interests of the SFPUC, would not result in more bids; and
WHEREAS, The General Manager has det ermined that, due to extensive additional outreach already conducted, further outreach efforts would be unlikely to result in more bids and removal or modification of contract requirements would be unlikely to result in more bidders; and WHEREAS, The Contr act Monitoring Division established a 16% Local Business Enterprise subcontracting requirement for this contract, and Peterson Excavation, Inc. committed to 16% 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 general engineering construction work on SFPUC systems in San Joaquin, Stanislaus, and Tuolumne 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; now, therefore, be it RESOLVED, That this Commission hereby awards Job Order Contract No. JOC-104, General Engineering (A License) Construction, San Joaquin, Stanislaus, and Tuolumne Counties, Hetch Hetchy, for a not-to-exceed amount of $5,000,000, and a duration of two years, to the sole responsible bidder that submitted a responsive bid, Peterson Excavation, Inc.
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
City & County of San Francisco
London N. Breed, Mayor
Office of the City Administrator
Carmen Chu, City Administrator
Stephanie Tang, Director
Contract Monitoring Division
1155 Market Street, 4th Floor, San Francisco, CA 94103 Telephone (415) 581-2310; Fax (415) 581-2351
MEMORANDUM
Date: October 19th, 2023
To: Judy Chin, Project Manager, SFPUC
Jennifer Walker, JOC Analyst, SFPUC
From: Michelle Kassatly, Contract Compliance Officer, CMD
Subject: JOC-104 Job Order Contract, General Engineering (A-License),
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 16% for this project. Below is a summary of CMD’s review.
Bid Discount
Bidder
LBE Status,
Type and
Size
Award
Criteria
Figure
LBE Bid
Discount
Adjusted ACF
with LBE
Bid Discount
Peterson Excavation,
Inc.
PUC LBE-
OBE (Micro)
1.3500 10% 1.2150
LBE Subcontracting Participation Requirement
Peterson Excavation, Inc. (“Peterson”) is the lowest responsive bidder. Peterson met the 16% 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
Njirich & Sons, Inc.
Full: Trucking & Hauling,
Earthwork & Paving,
Pipeline, Partial General
Engineering Construction
PUC LBE-
WBE (Micro) $500,000 $500,000 10%
Big Valley Electric General Engineering
Construction
PUC LBE-
OBE (Micro) $200,000 $200,000 4%
Canepa & Sons, Inc. Well Drilling PUC LBE-
OBE (Micro) $100,000 $100,000 2%
TOTAL $800,000 $800,000 16%
2 Peterson did not list any non-LBE subcontractor on Section 00 43 36.
Good Faith Efforts Requirements
Peterson utilized Approach A (35% Approach) on CMD Form 2B to meet the Good Faith Efforts (“GFE”) Requirements. Peterson demonstrated that it met the GFE requirements under Approach A by exceeding the sum of the LBE subcontracting participation requirement established for this project by at least 35%1.
Based on the foregoing, CMD has determined that Peterson 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].
1 Per CMD Attachment 6, “A Small or Micro-LBE Prime Bidder/Proposer may not count its own contract work toward the LBE sub participation requirement portion, but may count its own contract work for the portion that exceeds the LBE sub participation requirement (i.e., 35% good faith outreach exception portion).” As a result, as a PUC-LBE, Peterson may use its own contract work towards the 35% good faith outreach exception.