DEPARTMENT Power Enterprise
AGENDA NO.
10 MEETING DATE
May 14, 2024
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Calendar: Regular Calendar
Project Manager: Danny Phung
Approve Increase to Cost and Duration Contingencies for Contract No. PW-009R, As- Needed Electrical Distribution Installation & Construction Support
Summary of
Proposed
Commission Action:
Approve an increase of $ 4,600,000 to the cost contingency and an increase of 1,022 calendar days (two years 10 months) to the duration contingency for Contract No. PW-009R, As-Needed Electrical Distribution Installation & Construction Support , with VIP Powerline Corp., for a new contract amount of up to $17,250,000 and contract duration of up to 1,825 consecutive calendar days (five years) to avoid a gap in supplemental support to the Power Enterprise’s Utility Field Services group.
Background: The San Francisco Public Utilities Commission (SFPUC) Power Enterprise requires as -need construction services on its electrical distribution system and assets.
On November 8, 2022, by Resolution 22- 0197, the Commission awarded Contract No. PW-009R, As-Needed Electrical Distribution Installation & C onstruction Support, to VIP Powerline Corp. The original contract amount was $11,500,000 and original contract duration was 730 consecutive calendar days. The contract established a start date of January 13, 2023, and an end date of January 08, 2025.
This is an as -needed construction contract under San Francisco Administrative Code section 6.64.
The contract augments the existing Power Enterprise Field Services staff to provide service s to SFPUC customers, respond to emergency outages, improve system reliability , and connect new customers. A shortage of skilled and available employees necessitates seeking support on an as-needed basis from an outside contractor.
As of March 4, 2024, the SFPUC has paid $6.01 M under the contract, which is 52% of the maximum contract amount. Under Administrative Code section 6.64, as -needed construction contracts may be increased up to 150% of the original contract amount. The maximum duration of a secti on 6.64 contract is five years including all modifications. The proposed modification would provide for the maximum amount and time allowed under the Administrative Code.
Agenda Title: Approve Increase to Construction Contract Cost and Duration Contingencies for Contract No. PW-009R, As-Needed Electrical Distribution Installation & Construction Support Commission Meeting Date: May 14, 2024
Scope of Contract: The contract work location(s) include residences and businesses of Hetch Hetchy Power customers throughout the service territory as shown in the location map.
The contract work var ies. SFPUC issue s Contract Service Orders specifying the customer site and t he detailed scope of work to provide customer electrical connections. From time -to-time, the contractor provides staff to join u tility field services crews as they respond to emergency outages and help with outage recoveries. The work includes:
• Electrical Distribution Work
o Install primary and secondary services;
o Install Intervening Facilities (transformers, switches, fault interrupters);
o Perform testing, commissioning, and energization of
customer power; and
o Respond to outage events to isolate faulted system,
restore services, and perform replacement work.
• Substation Work
o Inspect and test electric substations and intervening facilities;
o Respond to outage events including downloading
relaying and metering infor mation and replace failed
equipment;
o Perform relay testing and adjust settings to improve
coordination of protective devices to eliminate
unnecessary outage events; and
o Prepare switching orders to safely isolate equipment to replace affected equipment.
• Metering Installations, Troubleshooting, and Calibration o Metering Installations, Troubleshooting, and
Calibration;
o Install and troubleshoot revenue meters;
o Install and troubleshoot Data Collector Units;
o Perform meter upgrades including meter socket
replacement; and
o Program meters to integrate with the AMI system.
Modifications to the
Contract:
Proposed Modification No. 1: Staff recommends the Commission approve an increase of $4,600,000 to the existing contract cost contingency and an increase of 1,022 calendar days to the existing contract duration contingency t
o continue to augment Power
Enterprise’s UFS staff for providing services to SFPUC customers, responding to emergency outages, improving system reliability, and connecting new customers , for a total Contract amount limit of up to $17,250,000 and total Contract duration limit up to 1,825 consecutive calendar days.
Agenda Title: Approve Increase to Construction Contract Cost and Duration Contingencies for Contract No. PW-009R, As-Needed Electrical Distribution Installation & Construction Support Commission Meeting Date: May 14, 2024
Funding and Costs: Funding Source : Funds are available from Operating project fund 10029985 for As-Needed Electrical Distribution Installation and Construction Support.
Original Contract Amount: $11,500,000
Original 10% Cost Contingency: $1,150,000
Requested Additional Cost Contingency: $4,600,000
Total Revised Contract Cost Limit: $17,250,000
Schedule: Notice-to-Proceed Date: January 13, 2023
Original Contract Duration: 730 consecutive calendar days Original 10% Duration Contingency: 73 calendar days
Requested Additional Duration Contingency: 1,022 calendar days Total Revised Contract Duration Limit: 1,825 consecutive calendar days
Agenda Title: Approve Increase to Construction Contract Cost and Duration Contingencies for Contract No. PW-009R, As-Needed Electrical Distribution Installation & Construction Support Commission Meeting Date: May 14, 2024
Location Map
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, The San Francisco Public Utilities Commission (SFPUC) Power Enterprise Utility Field Services s taff responds to emergencies, troubleshoots complex electrical outages, and connects new customers. Additionally, the Power Enterprise is about to complete an electrical distribution system in the City and County of San Francisco and needs to be able to connect customers, restore service, operate substations, and provide system reliability. A shortage of skilled and available employees necessitates seeking support on an as -needed basis from an outside contractor; and
WHEREAS, On November 8, 2022, by Resolution No. 22- 0197, this Commission awarded Contract No. PW -009R, As-Needed Electrical Distribution Installation & Construction Support, to VIP Powerline Corp.; and
WHEREAS, The original contract amount was for $11,500,000 and the original contract duration was 730 consecutive calendar days; and
WHEREAS, The contract Notice-to-Proceed date was January 13, 2023; and WHEREAS, Staff recommends an increase of $4,600,000 to the cost contingency and an increase of 1,022 calendar days to the duration contingency to provide time and funding necessary for the contractor to continue to augment Power Enterprise’s Utility Field Service staff’s provision of services to SFPUC customers, responding to emergency outages, improving system reliability, and connecting new customers; and
WHEREAS, Contract Monitoring Division established a Local Business Enterprise (LBE) subcontracting participation of 5% for this contract, and the contractor committed to
6.05% LBE participation in its negotiated proposal; and WHEREAS, Funds are available from Operating project fund 10029985 for As -Needed Electrical Distribution Installation and Construction Support; now, therefore, be it RESOLVED, That this Commission hereby approves an increase of $4,600,000 to the cost contingency and an increase of 1,022 calendar days to the duration contingency for Contract No. PW-009R, As-Needed Electrical Distribution Installation & Construction Support, for a total cost contingency amount limit of up to $5,750,000 and a total duration contingency limit of up to 1,095 calendar days , for a total contract amount of up to $17,250,000, and a total contract duration of up to 1,825 consecutive calendar days.
I hereby certify that the foregoing resolution was adopted by the Public Utilities Commission at its meeting of May 14, 2024.
Secretary, Public Utilities Commission