DEPARTMENT
Infrastructure
AGENDA NO.
6c
MEETING DATE
March 26, 2024
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Calendar: Consent Calendar
Contract Manager: Judy Chin
Approve Modification No. 1 to Job Order Contract No. JOC-96, General Engineering (A License) Construction, San Joaquin, Stanislaus, and Tuolumne Counties, Hetch Hetchy
Summary of
Proposed
Commission Action:
Approve Modification No. 1 to Job Order Contract No. JOC-96, General Engineering (A License) Construction, San Joaquin, Stanislaus, and Tuolumne Counties, Hetch Hetchy with Njirich & Sons, Inc. to increase the c ontract duration by three years for a total contract duration of five years and to increase the contract amount by $2,500,000 for a revised not-to-exceed contract amount of $ 7,500,000, for additional time and capacity for
facility and asset
improvements.
Background: A Job Order Contract is an indefinite quantity , task-order based 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 SFPUC has used Job Order 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 not-to-exceed amount of this 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 original contract value (an additional $2,500,000) for a total potential maximum contract amount of $7,500,000.
The duration of this 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 Contract after four years from the date the Controller certifies the availability of funds for this Contract.
On June 27, 2023, by Resolution No. 23- 0130, the Commission awarded Job Order Contract No. JOC -96, General Engineering (A License) Construction, San Joaquin, Stanislaus, and Tuolumne Counties, Hetch Hetc hy to Njirich & Sons, Inc., with an original not -to-exceed contract amount of $ 5,000,000 and an original contract duration of two years.
Agenda Title: JOC-96, General Engineering (A License) Construction, San Joaquin, Stanislaus, and Tuolumne Counties, Hetch Hetchy
Commission Meeting Date: March 26, 2024
Scope of Contract: The contract work locations are San Joaquin, Stanislaus, and Tuolumne Counties. The contract work consists of General Engineering Construction (A License):
• Building, Moving & Demolition;
• Concrete;
• Earthwork & Paving;
• Electrical;
• General Building Construction;
• General Engineering Construction;
• Lenel Systems Integration;
• Pipeline;
• Reinforcing Steel; and
• Trucking and Hauling.
Modifications to the
Contract:
Recommended Modification No. 1: Staff recommends Commission approval to extend the c ontract duration by three years for a total contract duration of five years and to increase the contract amount by $2,500,000 for a revised not- to-exceed contract amount of $7,500,000, for additional time and capacity for facility and asset improvements such as building, moving and demolition, concrete, earthwork and paving, electrical, general building construction, general engineering construction, Lenel systems integration, pipeline, reinforcing steel, and trucking and hauling for the SFPUC Operations and Bureaus.
Funding and Costs: Funding: 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 Not-to-Exceed Award Amount: $5,000,000
Recommended Modification Amount: $2,500,000
Total Not-to-Exceed Contract Amount: $7,500,000
Schedule: Certification Date: August 21, 2023
Original Duration: two years
Recommended Modification: three years
Total Revised Contract Duration: five years
Local Business
Enterprise
Participation and
Non-Discrimination
In Contracting:
The Contract Monitoring Division established a 16% Local Business Enterprise subcontracting requirement for this Contract . Njirich & Sons, Inc. committed to a 22% 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, The San Francisco Public Utilities Commission (SFPUC) requires as-needed construction for a wide range of construction activities to support its facilities, 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. This work is typically performed on a task order basis through a Job Order Contract; and WHEREAS, On June 27, 2023, by Resolution No. 23-0130, this Commission awarded Job Order Contract No. JOC-96, General Engineering (A License) Construction, San Joaquin, Stanislaus, and Tuolumne Counties, Hetch Hetchy to Njirich & Sons, Inc.; and WHEREAS, The contract certification date was August 21, 2023; and WHEREAS, The original contract amount was for an amount not -to-exceed $5,000,000 and the original contract duration was two years; and
WHEREAS, Staff requests Modification No. 1 to increase the contract duration by three years for a total contract duration of five years and to increase the contract amount by $2,500,000 for a revised not -to-exceed contract amount of $ 7,500,000, for additional time and capacity for facility and asset improvements such as building, moving and demolition, concrete, earthwork and paving, electrical, general building construction, general engineering construction, Lenel systems integration, pipeline, reinforcing steel, and trucking and hauling for Operations and Bureaus; and
WHEREAS, The Contract Monitoring Division established a 16% Local Business Enterprise subcontracting requirement for this Contract , and Njirich & Sons, Inc. committed to 22% Local Business Enterprise subcontractor participation in its bid submittal; and WHEREAS, Funds will be available from various SFPUC Enterprise funds when Task Orders are issued; now, therefore, be it
RESOLVED, That this Commission hereby approves Modifica tion No. 1 to Job Order Contract No. JOC -96, General Engineering (A License) Construction, San Joaquin, Stanislaus, and Tuolumne Counties, Hetch Hetchy with Njirich & Sons, Inc., increasing the contract duration by three years for a total contract du ration of five years and increasing the contract amount by $2,500,000 for a revised not-to-exceed contract amount of $7,500,000.
I hereby certify that the foregoing resolution was adopted by the Public Utilities Commission at its meeting of March 26, 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
1155 Market Street, 4th Floor, San Francisco, CA 94103
Telephone (415) 581-2310 General Email [email protected]
MEMORANDUM
Date: January 30th, 2024
To: Judy Chin, Project Manager, SFPUC
Jennifer Walker, JOC Analyst, SFPUC
From: Michelle Kassatly, Contract Compliance Officer, CMD
Subject: Modification No. 1 for JOC-96 Job Order Contract, General Engineering (A- License), San Joaquin, Stanislaus, and Tuolumne Counties (Hetch Hetchy) (PeopleSoft Contract ID: 1000030246)
SFPUC has requested to modify the above referenced contract by $2,500,000 for a total agreement amount of $7,500,000, and with a time extension of three years, for a total contract duration of five years. Pursuant to communications with the SFPUC, the scope work to be performed under this Modification 1 includes the following types of work: general engineering, building moving/demolition, concrete, earthwork and paving, electrical, general building construction, general engineering construction (A) (Prime GC), Lenel Systems Integration, Pipeling, reinforcing steel, and trucking and hauling.
The Micro/Small-LBE subcontracting participation requirement established for this contract is 16%. 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’s, Njirich & Sons, Inc. (“Njirich”), Section 00 43 36 at the time of bid is as follows:
Subcontractor Scope of
Work
LBE Status,
Type and
Size
Listed
Amount
Credited
Amount
Credited
Participation
Don Lawley
Company, Inc.
Building
Moving/
Demolition
PUC LBE-OBE
(Micro) $50,000 $50,000 1%
Big Valley
Electric
Partial General
Engineering
PUC LBE OBE
(Micro) $950,000 $950,000 19%
Mission City
Rebar Inc.
Reinforcing
Steel
PUC LBE OBE
(Small) $100,000 $100,000 2%
TOTAL $1,100,000 $1,100,000 22%
As of January 22
nd, 2024, Njirich invoiced $0. The Micro/Small LBE participation achieved by Njirich is as follows:
Subcontractor Scope of Work LBE Status,
Type and Size
Participation To-Date
(NOT including
Modification No. 1)
Don Lawley Company, Inc. Building Moving/
Demolition
PUC LBE-OBE
(Micro)
$0 0%
Big Valley Electric Partial General
Engineering
PUC LBE OBE
(Micro)
$0 0%
Mission City Rebar Inc. Reinforcing Steel PUC LBE OBE
(Small)
$0 0%
TOTAL $0 0%
Pursuant to communications and documents provided by Njirich, and as confirmed by the SFPUC, Don Lawley Company, Inc. and Mission City Rebar Inc. have not yet been utilized because the task orders issued to-date did not require a scope of work that the LBEs at issue were listed to perform. There has been no building/demolition work at this time yet. Neither has there been concrete work needed at this time yet. Moreover, Njirich has recently listed Big Valley Electric on a task order and will thus be utilizing them. Njirich is required to make good faith efforts to utilize LBEs for any scopes of work, or portions thereof, which can reasonably be subcontracted throughout the life of the agreement.
Furthermore, Njirich confirmed that it will remain committed to assigning work that may arise from future task orders to its original listed LBE subcontractors. Njirich informed the CMD that it anticipates meeting its 22% Micro/Small-LBE subcontracting participation requirement, as follows:
Subcontractor Scope of Work LBE Status,
Type and Size
Projected Participation
(including Modification
No. 1)
Don Lawley Company, Inc. Building Moving/
Demolition
PUC LBE-OBE
(Micro)
$75,000 1.00%
Big Valley Electric Partial General
Engineering
PUC LBE OBE
(Micro)
$1,425,000 19.00%
Mission City Rebar Inc. Reinforcing Steel PUC LBE OBE
(Small)
$150,000 2.00%
TOTAL $1,650,000 22%
Going forward, in order to ensure compliance with the Chapter 14B post-award requirements, SFPUC staff and Njirich 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].