DEPARTMENT
Infrastructure
AGENDA NO.
6i
MEETING DATE
January 9, 2024
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Calendar: Consent Calendar
Project Manager: Jon Cantu
Award Contract No. WD-2896, 12-Inch Ductile Iron Water Main Installation on Webster Street from Grove Street to Eddy Street
Summary of
Proposed
Commission Action:
Award Contract No. WD-2896, 12-Inch Ductile Iron Water Main Installation on Webster Street from Grove Street to Eddy Street , to the responsible bidder that submitted the lowest responsive bid, M. Squared Construction, Inc., in the amount of $1,468,962 and with a duration of 286 consecutive calendar days (approximately 10 months). 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 San Francisco Public Utilities Commission (SFPUC) Water Enterprise Local Conveyance/Distribution System Program. The program includes the replacement of pipes that have either been damaged or are at the end of their useful service life to ensure reliable water delivery within the City.
The contractor will replace the existing 12-inch cast iron water pipes, currently located within the Buchanan Street Mall, with 12-inch ductile iron pipes on Webster Street from Grove to Eddy Streets and on Eddy Street from Webster to Buchanan Streets. The City installed the existing cast iron pipes in 1936; due to their material, age of 87 years, and history of repeated main breaks in the neighborhood, they need to be replaced. Replacement of these pipelines at a new location allows for the same operational redundancy in the system while also eliminating potential conflicts with the City’s upcoming Buchanan Street Mall Renovation Project.
Scope of Contract: The contract work location is in San Francisco's Fillmore district. The contract work includes installation of:
• 200 feet of 4-inch to 8-inch diameter ductile iron water conveyance pipe;
• 2,200 feet of 12-inch diameter ductile iron water conveyance pipe; and • Curb ramps, and pavement restoration.
Funding and Costs: Funding Source: Project Number 10039033, WD-2896 Webster Street Agenda Title: WD-2896, 12-Inch Ductile Iron Water Main Installation on Webster Street from Grove Street to Eddy Street Commission Meeting Date: January 9, 2024
Engineer’s Estimate: $2,400,000*
Award: $1,468,962
*Prior to advertisement, S taff made changes to the contract documents that significantly reduced the project cost, including that the City would furnish ductile iron pipe and materials, but the estimate was not updated due to time constraints.
Schedule: Estimated Notice-to-Proceed Date: June 2024
Estimated Completion Date: March 2025
Contract Duration: 286 consecutive calendar days (241 consecutive calendar days to Substantial Completion and an additional 45 consecutive calendar days to Final Completion).
Bid History: Advertised: October 25, 2023
Bids Received: On November 16, 2023, SFPUC received and publicly opened five bids, as follows:
Bid Rank Bid Amount Bid
Preference
Adjusted
Bid
Final
Rank
1. M. Squared
Construction,
Inc.
$1,468,961.20 10% $1,322,065.08 1
2. Basset
Engineering
$1,649,381.00 10% $1,484,442.90 2
3. Fontenoy
Engineering
$1,969,883.00 10% $1,772,894.70 3
4. A. Ruiz
Construction
Co. & Assoc.
Inc.
$2,137,815.20 10% $1,924,033.68 4
5. Mitchell
Engineering
$2,526,445.00 N/A $2,526,445.00 5
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.
Environmental
Review:
On May 23, 2023 , the San Francisco Planning Department determined the Project to be statutorily exempt from environmental review under California Environmental Quality Act (CEQA) Guidelines section 15282(k) (Case Agenda Title: WD-2896, 12-Inch Ductile Iron Water Main Installation on Webster Street from Grove Street to Eddy Street Commission Meeting Date: January 9, 2024
Number 2023-004517ENV) because the proposed pipeline will be in the public right of way and does not exceed one mile in length.
The exemption determination can be found here:
https://sfpuc.sharefile.com/d-s81ab7ab73a9b495db7a4193d4e45bf5d This action constitutes the Approval Action for the Project for the purposes of the 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 12% Local Business Enterprise subcontracting requirement for this C ontract. The contractor committed to
11.81% Local Business Enterprise participation with its bid submittal. Despite the 11.81% LBE credit participation, CMD still requires the contractor to meet the 12% LBE subcontracting requirement.
Attachment: Contract Monitoring Division Memorandum
Agenda Title: WD-2896, 12-Inch Ductile Iron Water Main Installation on Webster Street from Grove Street to Eddy Street Commission Meeting Date: January 9, 2024
WD-2896, LOCATION MAP
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 provides for the replacement of water pipelines that have either been damaged or are at the end of their useful service life to ensure reliable water delivery within the City; and
WHEREAS, SFPUC staff has identified cast iron water main pipes that were installed in 1936 and now require replacement due to their material, age of 87 years, and history of repeated main breaks in the Fillmore district; and
WHEREAS, On October 25, 2023, the SFPUC advertised Contract No. WD-2896, 12-Inch Ductile Iron Water Main Installation on Webster Street from Grove Street to Eddy Street; and WHEREAS, The Engineer’s Estimate is $ 2,400,000 for this construction work but, prior to advertisement, Staff made changes to the contract documents that significantly reduced the project cost, including that the City would furnish ductile iron pipe and materials, and the estimate was not updated due to time constraints; and
WHEREAS, The Contract duration is 286 consecutive calendar days; and WHEREAS, On November 16, 2023, SFPUC received and publicly opened five bids; and WHEREAS, SFPUC staff and Contract Monitoring Division review ed the bids and the application of bid preferences and determined that M. Squared Construction, Inc. is the responsible bidder with the lowest responsive bid; and
WHEREAS, Contract Monitoring Division established a 12% Local Business Enterprise subcontracting requirement for this C ontract, and M. Squared Construction, Inc., committed to
11.81% Local Business Enterprise participation in its bid submittal, but CMD will require the contractor to meet the 12% LBE subcontracting requirement; and WHEREAS, On May 23, 2023, the San Francisco Planning Department determined the Project to be statutorily exempt from environmental review under California Environmental Quality Act (CEQA) Guidelines section 15282(k) (Case Number 2023-004517ENV) because the proposed pipeline will be in the public right of way and does not exceed one mile in length; and WHEREAS, Funds are available from Project No. 10039033, WD-2896 Webster Street ; now, therefore, be it
RESOLVED, That this Commission hereby awards Contract No. WD -2896, 12- Inch Ductile Iron Water Main Installation on Webster Street from Grove Street to Eddy Street, in the amount of $1,468,962, for a duration of 286 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 January 9, 2024.
Secretary, Public Utilities Commission
City & County of San Francisco
London N. Breed, Mayor
Office of the City Administrator
Carmen Chu, City Administrator
Contract Monitoring Division
Stephanie Tang, Director
MEMORANDUM
Date: December 6th, 2023
To: Jonathan Cantu, Project Manager, SFPUC
Gary Hom, Contract Analyst, SFPUC
From: Michelle Kassatly, Contract Compliance Officer, CMD
Subject: WD-2896 Buchanan Mall Main Replacement
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 12% 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
M Squared Construction
Inc
SF LBE-OBE
(Small)
$1,468,961.20 10% = $146,896.12 $1,322,065.08
Basset Engineering SF LBE-OBE
(Micro)
$1,649,381.00 10% = $164,938.10 $1,484,442.90
Fontenoy Engineering SF LBE-OBE
(Small)
$1,969,883.00 10% = $196,988.30 $1,772,894.70
A. Ruiz Construction
Company & Assoc. Inc
SF LBE-MBE
(Small)
$2,137,815.20 10% = $213,781.52 $1,924,033.68
Mitchell Engineering N/A $2,526,445.00 Not Eligible $2,526,445.00
LBE Subcontracting Participation Requirement
M Squared Construction Inc (“M Squared”) is the lowest responsive bidder. M Squared met the 12% Micro/Small-LBE subcontracting requirement by listing the following Micro/Small-LBE firm on Section 00 43 36 (Subcontractor List):
Subcontractor Scope of Work
LBE Status,
Type and Size
Listed
Amount
Credited
Amount
Credited
Participation
Ronan
Construction
AC Paving and
Sawcutting
SF LBE-OBE
(Micro) $180,000 $173,5001 11.81%
TOTAL $180,000 $173,500 11.81%2
1 Ronan Construction further subcontracted out to a non-LBE on Form 6. 2 Despite the 11.81% LBE credit participation, M Squared is still required to meet the 12% LBE subcontracting requirement.
M Squared did not list any non-LBE subcontractor on Section 00 43 36.
Good Faith Efforts Requirements
M Squared utilized Approach A (35% Approach) on CMD Form 2B to meet the Good Faith Efforts (“GFE”) Requirements. M Squared 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%.3
Based on the foregoing, CMD has determined that M Squared 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].
3 Per Form 2B, “A Small or Micro-LBE Prime Bidder/Proposer may not count its own contract work toward the LBE subparticipation requirement portion, but may count its own contract work for the portion that exceeds the LBE subparticipation requirement (i.e., 35% good faith outreach exception portion).” As M Squared is a Small-LBE Prime Bidder, it may count its own contract work for the portion that exceeds the LBE subparticipation requirement (i.e., 35% good faith outreach exception portion).