DEPARTMENT
Infrastructure
AGENDA NO.
7a
MEETING DATE
April 23, 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-95, General Engineering (A License) Construction (Marine Emphasis), San Francisco, San Mateo, Santa Clara, and Alameda Counties
Summary of
Proposed
Commission Action:
Approve Modification No. 1 to Job Order Contract No. JOC-95, General Engineering (A License) Construction (Marine Emphasis), San Francisco, San Mateo, Santa Clara, and Alameda Counties with
Power Engineering
Construction Co. 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.
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. 23-0129, the Commission awarded Job Order Contract No. JOC- 95, General Engineering (A License) Construction (Marine Emphasis), San Francisco, San Mateo, Santa Clara, and Alameda Counties to Power Engineering Construction Co. , with an original not -to- Agenda Title: JOC-95, General Engineering (A License) Construction (Marine Emphasis), San Francisco, San Mateo, Santa Clara, and Alameda Counties
Commission Meeting Date: April 23, 2024
exceed contract amount of $5,000,000 and an original contract duration of two years.
Scope of Contract: The contract work locations are San Francisco, San Mateo, Santa Clara, and Alameda Counties. The contract work consists of General Engineering Construction (A License):
• Building / Moving / Demolition;
• Carpentry;
• Cathodic Protection;
• Concrete;
• Construction Traffic Control;
• Earthwork and Paving;
• Electrical;
• General Building Construction;
• General Engineering Construction;
• Hazardous Materials Removal;
• Heating, Ventilation, and Air Conditioning;
• Marine-Related Services;
• Painting and Waterproofing;
• Pipeline;
• Plumbing;
• Reinforcing Steel;
• Roofing;
• Sheet Metal;
• Structural Steel;
• Trucking and Hauling;
• Welding;
• Well Drilling; and
• Well Pump Repair.
Modifications to the
Contract:
Recommended Modification No. 1: Staff recommends Commission approval to extend 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; carpentry; cathodic protection; concrete; construction traffic control; earthwork and paving; electrical; general building construction ; general engineering construction; hazardous materials removal; hea ting, ventilation, and air conditioning; marine-related services; painting and waterproofing; pipeline; plumbing; reinforcing steel; roofing; sheet metal; structural steel; trucking and hauling; welding; well drilling; and well pump repair for the SFPUC Operations and Bureaus.
Funding and Costs: Funding: SFPUC will encumber funds for each Task Order upon issuance of a Notice-to-Proceed. The SFPUC Enterprise Operations and Bureaus requesting work will provide funding for the requested work.
Agenda Title: JOC-95, General Engineering (A License) Construction (Marine Emphasis), San Francisco, San Mateo, Santa Clara, and Alameda Counties
Commission Meeting Date: April 23, 2024
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: September 5, 2023
Original Duration: two years
Recommended Modification: three years
Total Revised Contract Duration: five years
Environmental
Review:
Approval of this contract modification 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. The SFPUC will not author ize the contractor to commence any work under this Contract until the proposed work 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 10% Local Business Enterprise subcontracting requirement for this Contract. Power Engineering Construction Co. committed to 14.4% 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. 23-0129, this Commission awarded Job Order Contract No. JOC-95, General Engineering (A License) Construction (Marine Emphasis), San Francisco, San Mateo, Santa Clara, and Alameda Counties to Power Engineering Construction Co.; and
WHEREAS, The contract certification date was September 5, 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 recommends Commission approval of proposed 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, to provide additional time and financial capacity for facility and asset improvements such as building, moving and demolition; carpentry; cathodic protection; concrete; construction traffic control; earthwork and paving; electrical; general building construction; general engineering construction; hazardous materials removal; heating, ventilation, and air conditioning; marine-related services; painting and waterproofing; pipeline; plumbing; reinforcing steel; roofing; sheet metal; structural steel; trucking and hauling; welding; well drilling; and well pump repair for Operations and Bureaus; and
WHEREAS, The Contract Monitoring Division established a 10% Local Business Enterprise subcontracting requirement for this Contract, and Power Engineering Construction Co. committed to 14.4% Local Business Enterprise subcontractor participation in its bid submittal; and WHEREAS, Approval of this contract modification does not constitute a “project” under the California Environmental Quality Act (CEQA) Guidelines section 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; and
WHEREAS, Funds will be available from various SFPUC Enterprise funds when SFPUC issues Task Orders; now, therefore, be it
2 RESOLVED, That this Commission hereby approves Modification No. 1 to Job Order Contract No. JOC- 95, General Engineering (A License) Construction (Marine Emphasis), San Francisco, San Mateo, Santa Clara, and Alameda Counties with Power Engineering Construction Co., increasing the contract duration by three years for a total contract duration 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 April 23, 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: March 4, 2024
To: Judy Chin, SFPUC
Jennifer Walker, SFPUC
From: Jovi Cuntapay-Vitin, CMD
Subject: CMD Modification No. 1 for JOC-95 General Engineering (A License) Construction (Marine Emphasis), San Francisco, San Mateo, Santa Clara, and Alameda Counties
SFPUC has requested to modify the above referenced contract by $2,500,000 for a total agreement amount of $7,500,000 and time extension of three (3) years for a total duration of five (5) years. Pursuant to communications with the SFPUC, the sco pe of work for Modification No.1 consists of the continuation of performing general engineering and construction work with marine emphasis.
The Micro/Small- LBE subcontracting participation requirement established for this contract is 10%. The LBE commitm ent by Power Engineering Construction Co. (“Power Engineering”) , according to their submitted Section 00 43 36, is 14.40%. 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, Power Engineering’s, Section 00 43 36 at the time of bid is as follows:
Subcontractor Scope of Work
LBE Status,
Type and
Size
Listed & Credited
Participation
Bay Line Cutting &
Coring, Inc. Saw Cutting (C-8) SF LBE-MBE
(Micro) $ 75,000 1.50%
Burch Engineering &
Construction, Inc.
Concrete Flatwork (C-8),
Partial Gen. Engineering
SF LBE-WBE
(Micro) $ 150,000 3.00%
Capax Group, Inc. Landscaping, Tree
Service
SF LBE-WBE
(Micro) $ 50,000 1.00%
GSW Construction, Inc. Earthwork and Paving
(C-12)
SF LBE-OBE
(Micro) $ 150,000 3.00%
M Hernandez
Construction DBA
Hernandez Engineering
Construction Traffic
Control (C-31)
SF LBE-MBE
(Small) $ 100,000 2.00%
Red Dipper, Inc Electrical (C-10) SF LBE-MBE
(Micro) $ 30,000 0.60%
Transpacific Steel, LLC Reinforcing Steel (C-50) SF LBE-MBE (Micro) $ 50,000 1.00%
Yerba Buena Engineering
& Construction, Inc.
Structural Concrete (C-
8)
SF LBE-MBE
(Micro) $ 115,000 2.30%
TOTAL $720,000 14.40%
As of March 4, 2024 , Power Engineering invoiced $0.00 and expended $0.00 to LBE firms. The Micro/Small LBE participation achieved by Power Engineering is as follows:
Subcontractor Scope of Work
LBE Status,
Type and
Size
Participation To-Date
(NOT including
Modification No. 1)
Invoiced Paid
Bay Line Cutting &
Coring, Inc. Saw Cutting (C-8) SF LBE-MBE
(Micro)
$0.00 $0.00
Burch Engineering &
Construction, Inc.
Concrete Flatwork
(C-8), Partial Gen.
Engineering
SF LBE-WBE
(Micro)
$0.00 $0.00
Capax Group, Inc. Landscaping, Tree
Service
SF LBE-WBE
(Micro)
$0.00 $0.00
GSW Construction, Inc. Earthwork and
Paving (C-12)
SF LBE-OBE
(Micro)
$0.00 $0.00
M Hernandez
Construction DBA
Hernandez Engineering
Construction Traffic
Control (C-31)
SF LBE-MBE
(Small)
$0.00 $0.00
Red Dipper, Inc Electrical (C-10) SF LBE-MBE
(Micro)
$0.00 $0.00
Transpacific Steel, LLC Reinforcing Steel
(C-50)
SF LBE-MBE
(Micro)
$0.00 $0.00
Yerba Buena
Engineering &
Construction, Inc.
Structural Concrete
(C-8)
SF LBE-MBE
(Micro)
$0.00 $0.00
TOTAL $0.00 $0.00
0.00% 0.00%
According to Power Engineering, GSW Construction, Inc. (“GSW”) is listed to work under Task Order No. 2 but have not performed the work yet. Hence, no work to be invoiced or billed by GSW yet. On the other hand, Red Dipper, Inc. (“Red Dipper”) was offered electrical work under Task Order No. 3. However, Red Dipper declined to perform this task order as this is outside of their service area. Power Engineering then assigned the electrical scope of work to Leyder Electric LLC, an SF-LBE C-10 firm, to maintain their LBE commitment.
Further, Power Engineering is working with Bay Line Cutting & Coring, Inc. (“Bay Line”), Yerba Buena Engineering & Construction, Inc. (“Yerba Buena”) and GSW to perform work under a pending task order, Task Order No. 4.
Furthermore, according to Power Engineering, some of its listed LBEs 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. Power Engineering 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.
Power Engineering confirmed that it will remain committed to assigning work that may arise from future task orders to its original listed LBE subcontractors. Power Engineering informed the CMD that it anticipates meeting its 14.40% Micro/Small LBE subcontracting participation requirement, as follows:
Subcontractor Scope of Work
LBE Status,
Type and
Size
Projected Participation
(including Modification No. 1)
Bay Line Cutting &
Coring, Inc. Saw Cutting (C-8) SF LBE-MBE
(Micro) $ 112,500.00 1.50%
Burch Engineering &
Construction, Inc.
Concrete Flatwork
(C-8), Partial Gen.
Engineering
SF LBE-WBE
(Micro) $ 225,000.00 3.00%
Capax Group, Inc. Landscaping, Tree
Service
SF LBE-WBE
(Micro) $ 75,000.00 1.00%
GSW Construction, Inc. Earthwork and
Paving (C-12)
SF LBE-OBE
(Micro) $ 225,000.00 3.00%
M Hernandez
Construction DBA
Hernandez Engineering
Construction Traffic
Control (C-31)
SF LBE-MBE
(Small)
$ 150,000.00 2.00%
Red Dipper, Inc Electrical (C-10) SF LBE-MBE
(Micro) $ 45,000.00 0.60%
Transpacific Steel, LLC Reinforcing Steel
(C-50)
SF LBE-MBE
(Micro) $ 75,000.00 1.00%
Yerba Buena Engineering
& Construction, Inc.
Structural Concrete
(C-8)
SF LBE-MBE
(Micro) $ 172,500.00 2.30%
TOTAL $ 1,080,000.00 14.40%
Going forward, in order to ensure compliance with the Chapter 14B post- award requirements, SFPUC staff and Power Engineering will continue to notify and obtain CMD approval for any proposed subcontractor additions and/or substitutions throughout the term o f 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]
.