DEPARTMENT
Infrastructure
AGENDA NO.
6e
MEETING DATE
April 9, 2024
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Calendar: Consent Calendar
Project Manager: Jon Cantu
Award Contract No. WD-2765, 8-Inch and 16-Inch Ductile Iron Water Main Replacement on Jersey Street from Douglass Street to Church Street and Various Street Locations
Summary of
Proposed
Commission Action:
Award Contract No. WD-2765, 8-Inch and 16-Inch Ductile Iron Water Main Replacement on Jersey Street from Douglass Street to Church Street and Various Street Locations , to the responsible bidder tha t submitted the lowest responsive bid, M. Squared Construction, Inc., in the amount of $10,202,490 and with a duration of 731 consecutive calendar days (approximately two years), to replace existing water mains in the Noe Valley neighborhood of San Francisco. 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 City installed the existing 4-inch to 12-inch diameter cast iron water mains scheduled to be replaced under this Contract in 1886. Due to their material , age, and history of repeated main breaks in the neighborhood, they need to be replaced.
Scope of Contract: The contract work location is in the City and County of San Francisco Noe Valley neighborhood. The contract work includes installation of:
• 9,000 feet of 4-inch to 8-inch diameter ductile iron water conveyance pipe;
• 2,900 feet of 16-inch diameter ductile iron water conveyance pipe; and • Ancillary water service pipe; and
• Curb ramps, and pavement restoration.
Funding and Costs: Funding Source: Project Number 10015191, WD-2765 Jersey/Douglass to Church
Engineer’s Estimate: $11,100,000
Agenda Title: WD-2765, 8-Inch and 16-Inch Ductile Iron Water Main Replacement on Jersey Street from Douglass Street to Church Street and Various Street Locations
Commission Meeting Date: April 9, 2024
Award: $10,202,490
Schedule: Estimated Notice-to-Proceed Date: August 2024 Estimated Completion Date: August 2026
Contract Duration: 731 consecutive calendar days (686 consecutive calendar days to Substantial Completion and an additional 45 consecutive calendar days to Final Completion).
Bid History: Advertised: December 21, 2023
Bids Received: On January 18, 2024, SFPUC received and publicly opened four bids, as follows:
Bid Rank Bid
Amount
Bid
Preference Adjusted Bid Final
Rank
1. M. Squared
Construction,
Inc.
$10,202,490 2% $9,998,440.20 1
2. JMB
Construction,
Inc.
$11,659,903 N/A $11,659,903.00 2
3. Mitchell
Engineering
$12,892,669 2% $12,634,815.62 3
4. NTK
Construction
$16,610,610 N/A $16,610,610.00 4
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 June 4, 202 0, the San Francisco Planning Department determined the Project to be categorically exempt from environmental review under the CEQA Guidelines section 15302, Class 2 (Replacement or Reconstruction) under Case Number 2017-015503ENV.
On March 28, 2024, the San Francisco Planning Department concurred that minor project revisions
resulting in a change in pipeline length by
approximately 500 feet do not change the conclusions of the categorical exemption.
The exemption determination and Planning Department concurrence can be found here:
Agenda Title: WD-2765, 8-Inch and 16-Inch Ductile Iron Water Main Replacement on Jersey Street from Douglass Street to Church Street and Various Street Locations
Commission Meeting Date: April 9, 2024
https://sfpuc.sharefile.com/public/share/web-
s9f0ba92f58fd40869735dde2eb5dd990
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 14% Local Business Enterprise subcontracting requirement for this C ontract. The contractor committed to
13.87% Local Business Enterprise participation with its bid submittal. Despite the 13.87% LBE credit participation, CMD still requires the contractor to meet the 14% LBE subcontracting requirement.
Attachment: 1. Contract Monitoring Division Memorandum
Agenda Title: WD-2765, 8-Inch and 16-Inch Ductile Iron Water Main Replacement on Jersey Street from Douglass Street to Church Street and Various Street Locations
Commission Meeting Date: April 9, 2024
WD-2765, 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 1886 and now require replacement due to their material, age , and history of repeated main breaks in the Noe Valley neighborhood; and
WHEREAS, On December 21, 2023, the SFPUC advertised Contract No. WD-2765, 8-Inch and 16- Inch Ductile Iron Water Main Replacement on Jersey Street from Douglass Street to Church Street and Various Street Locations; and
WHEREAS, The Engineer’s Estimate is $11,100,000 for this construction work; and WHEREAS, The Contract duration is 731 consecutive calendar days; and WHEREAS, On January 18, 2024, SFPUC received and publicly opened four 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 14% Local Business Enterprise subcontracting requirement for this Contract, and M. Squared Construction, Inc., committed to 13.87% Local Business Enterprise participation in its bid submittal, but CMD will require the contractor to meet the 14% LBE subcontracting requirement; and
WHEREAS, On June 4, 2020, the San Francisco Planning Department determined the Project to be categorically exempt from environmental review under the CEQA Guidelines section 15302, Class 2 (Replacement or Reconstruction) under Case Number 2017-015503ENV; and WHEREAS, On March 28, 2024, the San Francisco Planning Department concurred that minor project revisions resulting in a change in pipeline length by approximately 500 feet do not change the conclusions of the categorical exemption; and
WHEREAS, Funds are available from Project No. 10015191, WD-2765 Jersey/Douglass to Church; now, therefore, be it
RESOLVED, That this Commission hereby awards Contract No. WD -2765, 8- Inch and 16- Inch Ductile Iron Water Main Replacement on Jersey Street from Douglass Street to Church Street and Various Street Locations, in the amount of $10,202,490, for a duration of 731 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 April 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: February 12th, 2024
To: Jonathan Cantu, Project Manager, SFPUC
Han Chen, Project Engineer, SFPUC
From: Michelle Kassatly, Contract Compliance Officer, CMD
Subject: WD-2765 8-Inch and 16-Inch Ductile Iron Water Main Replacement on Jersey Street from Douglass Street to Church Street and Various Street Locations
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 14% 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) $10,202,490.00 2% $9,998,440.20
JMB Construction, Inc N/A $11,659,903.00 N/A $11,659,903.00 Mitchell Engineering SF LBE-OBE (SBA) $12,892,669.00 2% $12,634,815.62 NTK Construction N/A $16,610,610.00 N/A $16,610,610.00
LBE Subcontracting Participation Requirement
M Squared Construction Inc. (“M Squared”) is the lowest responsive bidder. M Squared substantially met the 14% 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,
Inc.
AC Paving –
Sawcutting –
Concrete
Flatwork
SF LBE-OBE
(Micro) $1,450,000 $1,415,0001 13.87%
TOTAL $1,450,000 $1,415,000 13.87%2
M Squared did not list any non-LBE subcontractor on Section 00 43 36.
1 Ronan Construction, Inc. further subcontracted out to a non-LBE. 2 M Squared’s shortfall falls under excusable error. However, M Squared is still required to meet the 14% LBE subcontracting participation requirement.
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 CMD Form 2B, “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 M Squared is an LBE, it falls under this approach.