DEPARTMENT
Infrastructure Division
AGENDA NO.
6i
MEETING DATE
April 9, 2024
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Calendar: Consent Calendar
Project Manager: Carman Luk
Award Contract No. WW-738, East SOMA Sewer Improvements
Summary of
Proposed
Commission
Action:
Award Contract No. WW-738, East SOMA Sewer Improvements, to the responsible bidder that submitted the lowest responsive bid, NTK Construction, Inc., in the amount $10,802,800 with a duration of 425 consecutive calendar days (approximately one year and two months), to rehabilitate and replace large diameter sewers and laterals on specified streets within the City and County 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 purpose of this project is to rehabilitate and replace the existing sewers that are approximately 100 years old and identified to be at a high risk of failure based on data from the San Francisco Public Utilities Commission (SFPUC) Condition Assessment Management Program. The need for structural rehabilitation was further confirmed by the project team when it observed missing mortar and fallen bricks from televised videos of these sewers.
Scope of
Contract:
The contract work location(s) are on 7th, Mission, Howard, 3rd, and Bryant Streets in the City and County of San Francisco.
The contract work consists of:
• Replace and rehabilitate approximately 5,100 linear feet (LF) of existing sewers using cured -in-place-liners, slip -lining or spray mortaring construction methods;
• Rehabilitate existing sewer manholes and installation of new sewer manholes;
• Replace and rehabilitate laterals and associated appurtenance; and • Restore roadway and other restoration- in-kind work associated with the sewer.
Funding and
Costs:
Funding Source: Project No. 10034718-10, East SOMA Sewer Improvement Engineer’s Estimate: $12,000,000
Award: $10,802,800.00
Agenda Title: WW-738, East SOMA Sewer Improvements
Commission Meeting Date: April 9, 2024
Schedule: Estimated Notice-to-Proceed Date: August 2024 Estimated Completion Date: November 2025
Contract Duration: 425 consecutive calendar days (365 consecutive calendar days to Substantial Completion and an additional 60 consecutive calendar days to Final Completion)
Bid History:
Advertised: January 3, 2024
Bids Received: On February 8, 2024, SFPUC received and publicly opened five bids, as follows:
Bid Rank &
Firm
Base Bid
Amount
Compensable
Delay (60 days
duration)
LBE Bid
Discount Adjusted Bid
Final
Rank
1. NTK
Construction
Inc.
$10,802,800.00 $30,000 N/A $10,832,800.00 1
2. Cratus, Inc. $11,632,550.00 $30,000 N/A $11,662,550.00 2
3. Mitchell
Engineering
$11,964,341.00 $15,000 2% $11,739,754.18 3
4. Precision
Engineering
Inc.
$13,912,791.00 $600 2% $13,635,123.18 4
5. JMB
Construction,
Inc.
$14,352,220.00 $60,000 N/A $14,412,220.00 5
Because the SFPUC anticipates that potential unforeseen conditions or other factors outside of the contractor’s control may impact the schedule, Staff included a requirement in the Invitation for Bids for bidders to provide a daily compensable time extension rate. At the bid opening, Staff announced that SFPUC would use the value of a 6 0-day compensable delay to calculate the Compensable Delay amount bid adjustment. Staff used the daily rate in each bid to determine the total Compensable Delay value shown in the table by multiplying the bidder’s daily rate times 60. The Adjusted Bid value in the table is the sum of the Base Bid and Compensable Delay less any applicable LBE bid discount. Staff used the Adjusted Bid value to compare and rank the bids to det ermine the lowest bidder. However, the contract award amount is the Base Bid value (not the Adjusted Bid value) and, if the Commission awards the Contract, the bidder’s daily compensable delay rate will become a term of the Contract.
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 August 1, 2023, the San Francisco Planning Department determined the Project to be statutorily exempt from environmental review under the CEQA s ection 21080.21 and CEQA Guidelines section 15282(k) (Case No. 2023-006555ENV) Agenda Title: WW-738, East SOMA Sewer Improvements
Commission Meeting Date: April 9, 2024
because the proposed pipeline replacement will b e 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/public/share/web-
sc8a8dccdd5174e8e997d5093f3cb6b85
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 6% Local Business Enterprise (LBE) subcontracting requirement for this contract. The contractor committed to
7.42% LBE participation with its bid submittal.
Attachment: 1. Contract Monitoring Division Memorandum
Agenda Title: WW-738, East SOMA Sewer Improvements
Commission Meeting Date: April 9, 2024
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, The San Francisco Public Utilities Commission (SFPUC) Collection System Assessment Management Program identifies San Francisco sewers that are over 100-years old and pose a high-risk of failure; and
WHEREAS, On January 3, 2024, SFPUC advertised Contract No. WW-738, East SOMA Sewer Improvements; and
WHEREAS, The Engineer’s Estimate is $ 12,000,000 for this construction work to rehabilitate and replace large diameter sewer and laterals on 7th, Mission, Howard, 3rd, and Bryant streets within the City and County of San Francisco; and WHEREAS, The contract duration is 425 consecutive calendar days; and WHEREAS, On February 8, 2024, SFPUC received and publicly opened five bids; and WHEREAS, SFPUC staff and Contract Monitoring Division (CMD) reviewed the bids and the application of bid preferences and determined that NTK Construction, Inc., is the responsible bidder with the lowest responsive bid; and
WHEREAS, CMD established a 6 % Local Business Enterprise (LBE) subcontracting requirement for this contract, and NTK Construction, Inc. committed to 7.42% LBE participation in its bid submittal; and
WHEREAS, On August 1, 2023, the San Francisco Planning Department determined the Project to be statutorily exempt from environmental review under the CEQA section 21080.21 and CEQA Guidelines section 15282(k) (Case No. 2023-006555ENV) because the proposed pipeline replacement will be in the public right of way and does not exceed one mile in length; and WHEREAS, Funds are available from Project No. 10034718-10, East SOMA Sewer Improvements; now, therefore, be it
RESOLVED, That this Commission hereby awards Contract No. WW-738, East SOMA Sewer Improvements, in an amount of $10,802,800, and a duration of 425 consecutive calendar days, to the responsible bidder that submitted the lowest responsive bid, NTK 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
1155 Market Street, 4th Floor, San Francisco, CA 94103
Telephone (415) 581-2310 General Email [email protected]
MEMORANDUM
Date: February 28, 2024
To: Carman Luk, SFPUC
Benny Ng, SFPUC
Erica Liang, SFPUC
From: Jovi Cuntapay-Vitin, CMD
Subject: WW- 738 East SOMA Sewer Improvements – CMD Award Memo
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 6% for this project. The LBE sub requirement is less than 20% because the main purpose of the project is to rehabilitate existing sewer lines constructed of 3x5’ brick sewers, and some 6/8” VCP laterals. The CIPL rehabilitation method is a great option for areas where digging or trenching would be disruptive and impractical. The liner is inserted and using steam/water/UV, the liner is cured and forms a replacement pipe. This is specialty work that only specific Contractors with specific qualifying experiences can perform. In addition, the lining of the laterals requires a special subcontractor who can use this same technique but on a much smaller scale.
Below is a summary of CMD’s review.
Bid Discount
Bidder
LBE
Status,
Type and
Size
Base Bid
Compensable
Delay
(60 days)
LBE Bid
Discount
Adjusted Bid
with
Compensable
Delay and LBE
Bid Discount
NTK Construction,
Inc. Non-LBE $10,802,800.00 $ 30,000 Not
eligible $ 10,832,800.00
Cratus, Inc. Non-LBE $11,632,550.00 $ 30,000 Not
eligible $ 11,662,550.00
Mitchell
Engineering
SF LBE-OBE
(SBA) $11,964,341.00 $ 15,000 2% $ 11,739,754.18
Precision
Engineering Inc
SF LBE-OBE
(SBA) $13,912,791.00 $ 600 2% $ 13,635,123.18
JMB Construction,
Inc. Non-LBE $14,352,220.00 $ 60,000 Not
eligible $ 14,412,220.00
LBE Subcontracting Participation Requirement
NTK Construction, Inc. (“NTK”) is the lowest responsive bidder. NTK met the 6% Micro/Small LBE subcontracting requirement by listing the following Micro/Small LBE firm s on Section 00 43 36 (Subcontractor List):
Subcontractor Scope of
Work
LBE Status,
Type and
Size
Listed
Amount
Credited
Amount
Credited
Participation
Roadway
Construction, Inc. Paving SF LBE-MBE
(Small) $ 137,925 $ 137,9251 1.28%
DR Traffic Control,
LLC
Traffic
Control
SF LBE-MBE
(Micro) $ 100,000 $ 100,000 0.93%
Ronald R. Nelson
Contractor, Inc. Manhole SF LBE-OBE
(Micro) $ 564,000 $ 564,000 5.22%
TOTAL $ 801,925 $ 801,925 7.42%
1 Roadway Construction, Inc. will further sub out a portion of its traffic control scope of work to DR Traffic Control LLC (“DR Traffic Control”). DR Traffic Control is an SF-LBE (Micro) and is CMD-certified for Construction Zone Traffic Control. Hence, DR Traffic Control LLC will get LBE credit.
NTK also listed the following non-LBE subcontractors on Section 00 43 36.
Subcontractor Scope of Work Listed Amount Participation SAK Construction, LLC CIPP $ 3,744, 066 34.66%
Nor-Cal Pipeline Services Mortar Manhole & Pipe $ 1,380,950 12.78% TOTAL $ 5,125,016 47.44%
Good Faith Efforts Requirements
NTK utilized Approach B (Inclusion of Micro-LBE) on CMD Form 2B to meet the Good Faith Efforts (“GFE”) Requirements. NTK demonstrated that it met the GFE requirements under Approach B by listing the Micro-LBE firm: DR Traffic Control, LLC.
Based on the foregoing, CMD has determined that NTK 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] .