DEPARTMENT
Infrastructure Division
AGENDA NO.
7a
MEETING DATE
May 14, 2024
Last updated: 05.03.2023
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Calendar: Consent Calendar
Project Manager: Ryan Freeborn
Accept Closeout and Authorize Final Payment for Contract No. WD-2718, 8-Inch Ductile Iron Pipe and 24-Inch Earthquake Resistant Ductile Iron Pipe Water Main Installation on Prospect, Fair and Coso Avenues and Coleridge Street
Summary of
Proposed
Commission Action:
Accept work performed by Cratus Inc., under Contract No. WD-2718, 8-Inch Ductile Iron Pipe and 24- Inch Earthquake Resistant Ductile Iron Pipe Water Main Installation on Prospect, Fair and Coso Avenues and Coleridge Street , for a total contract amount of $8,337,953 and a final contract duration of 690 consecutive calendar days (approximately one year and 11 months) ; and authorize final payment to the contractor.
Background: San Francisco Public Utilities Commission (SFPUC) is currently implementing a phased program to improve the reliability of the water distribution system from College Hill Reservoir to San Francisco Genera l Hospital to withstand a major seismic event. The earthquake resistant ductile iron water pipelines installed under this contract connect to the pipelines that SFPUC will install under Contract No. WD-2717, College Hill Reservoir and Outlet Pipeline.
On September 14, 2021, by Resolution No. 21- 0137, this Commission awarded WD-2718, 8- Inch Ductile Iron Pipe and 24- Inch Earthquake Resistant Ductile Iron Pipe Water Main Installation on Prospect, Fair and Coso Avenues and Coleridge Street , to Cratus Inc. T he original contract amount was $8,090,530 and the original contract duration was 690 consecutive calendar days.
Scope of Contract: The contract work location is in San Francisco's Bernal Heights residential district. The contract work installed approximately:
• 3,900 feet of 8-Inch ductile iron water conveyance pipe; • 3,300 feet of 24- Inch earthquake resistant ductile iron water conveyance pipe;
• 1,350 feet of sewer pipe; and
• Ancillary water service pipe, curb ramps, and pavement restoration.
Modifications to the
Contract:
Modifications Nos. 1 to 4 (Final): Staff issued Modifications Nos. 1 to 4 (Final), increasing the contract amount by $247,423, within the original cost contingency, for a total contract amount of $8,337,953, with no change to contract duration, to increase sewer quantities due to differing site conditions, Agenda Title: WD-2718, 8-Inch Ductile Iron Pipe and 24-Inch Earthquake Resistant Ductile Iron Pipe Water Main Installation on Prospect, Fair and Coso Avenues and Coleridge Street Commission Meeting Date: May 14, 2024
increase transportation and soil disposal quantities due to differing site conditions, procure air release valve enclosures, and adjust bid item quantities to reflect installed work.
Funding and Costs: Funding Source: Local Conveyance/Distribution System Program, Wastewater Enterprise, Renewal and Replacement Program, San Francisco Public Works Street Resurfacing Program -funded; Project No. 10032578, 8- Inch Ductile Iron Pipe and 24- Inch Earthquake Resistant Ductile Iron Pipe Water Main Installation on Prospect, Fair and Coso Avenues and Coleridge Street
Original Contract Amount: $8,090,530
Modification Nos. 1 to 4 (Final) Amount: $247,423
Total Final Contract Amount: $8,337,953
Schedule: Notice-to-Proceed Date: January 3, 2022
Original Contract Duration: 690 consecutive calendar days Modification Nos. 1 to 4 (Final) Duration: 0 calendar days Total Final Contract Duration: 690 consecutive calendar days
Local Business
Enterprise
Participation and
Non-Discrimination
in Contracting:
The Contract Monitoring Division established a 20% Local Business Enterprise (LBE) subcontracting requirement for this contract. Cratus Inc. committed to 21.04% LBE participation with its bid submittal.
Cratus Inc. achieved a final LBE subcontractor participation of 20.35% for this Contract, which was less that the original committed 21.04% due to actual work quantities being slightly less than contract bid quantities . CMD determined Cratus Inc. ma de a good faith effort in providing work to meet LBE subcontracting requirements and concurs with closeout of this contract.
Attachment: 1. Contract Monitoring Division Memorandum
Agenda Title: WD-2718, 8-Inch Ductile Iron Pipe and 24-Inch Earthquake Resistant Ductile Iron Pipe Water Main Installation on Prospect, Fair and Coso Avenues and Coleridge Street Commission Meeting Date: May 14, 2024
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, The San Francisco Public Utilities Commission (SFPUC) installed approximately 3,900 feet of ductile iron water conveyance pipe, 3,300 feet of earthquake resistant ductile iron water conveyance pipe, 1,350 feet of sewer pipe, ancillary water service pipe, curb ramps, and pavement restoration within the project limits to ensure reliable water delivery and sewer facilities within San Francisco; and
WHEREAS, On September 14, 2021, by Resolution No. 21- 0137, th e Commission awarded Contract No. WD-2718, 8- Inch Ductile Iron Pipe and 24- Inch Earthquake Resistant Ductile Iron Pipe Water Main Ins tallation on Prospect, Fair and Coso Avenues and Coleridge Street to Cratus Inc.; and
WHEREAS, The original contract amount was for $8,090,530 and the original contract duration was 690 consecutive calendar days; and
WHEREAS, The contract Notice-to-Proceed date was January 3, 2022; and WHEREAS, Modifications Nos. 1 to 4 (Final) increased the contract amount by $247,423, for a total contract amount of $8,337,953 with no change to the contract duration, to increase sewer quantities due to differing site conditions, increase transportation and soil disposal quantities due to differing site conditions, procure air release valve enclosures, and adjust bid item quantities to reflect installed work; and
WHEREAS, Contractor Cratus Inc. has completed its work under Contract No. WD-2718, 8-Inch Ductile Iron Pipe and 24- Inch Earthquake Resistant Ductile Iron Pipe Water Main Installation on Prospect, Fair and Coso Avenues and Coleridge Street; and WHEREAS, Contract Monitoring Division established a Local Business Enterprise (LBE) subcontracting participation of 20% for this contract, the contractor committed to 21.04% LBE participation with its bid submittal, and contractor achieved 20.35% final LBE participation due to actual work quantities being slightly less than contract bid quantities; now, therefore, be it RESOLVED, That this Commission hereby accepts work performed by Cratus Inc. under Contract No. WD-2718, 8-Inch Ductile Iron Pipe and 24-Inch Earthquake Resistant Ductile Iron Pipe Water Main Installation on Prospect, Fair and Coso Avenues and Coleridge Street, for a total contract amount of $8,337,953 and a total contract duration of 690 consecutive calendar days; and authorizes final payment to the contractor.
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
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: March 26, 2024
To: Ryan Freeborn, SFPUC
Curtis Hartdegen, SFPUC
From: Jovi Cuntapay-Vitin, CMD
Subject: CMD Closeout Memo: WD-2718 8-Inch Ductile Iron Pipe and 24-Inch Earthquake Resistant Ductile Iron Pipe Water Main Installation on Prospect, Fair and Coso Avenues and Coleridge Street
The Contract Monitoring Division (“CMD”) has determined that Cratus , Inc. (“ Cratus”), the LBE prime contractor, has made a good faith effort to materially comply with the LBE subcontracting requirements associated with this project.
At the time the project was advertised, an LBE subcontracting participation requirement of 20% was established. Cratus’ Section 00 43 36 reflected an LBE subcontracting participation commitment of 21.04%. Cratus was awarded the contract in the amount of $8,090,530.00 . After six (6) change orders, the final contract amount is $8,337,953.22. Cratus’s LBE subcontracting participation is as follows:
LBE
Subcontractor
Scope of
Work Status
Listed &
Credited
Participation
Closeout Participation
Amount Percentage
RK Engineering,
Inc.
Concrete
Work
SF LBE-OBE
(micro) 14.83% $ 1,233,029.00 14.79%
Total Traffic
Control, Inc.
Traffic
Control
SF LBE-OBE
(micro) 1.48% $ 135,129.00 1.62%
Roadway
Construction, Inc.
Asphalt
Concrete
Milling
SF LBE-MBE
(micro) 4.73% $ 328,325.72 3.94%
TOTAL 21.04% $ 1,696,483.72 20.35%
CMD communicated to Cratus and SFPUC about the shortfall on RK Engineering, Inc. ’s (“RK Engineering’s”) participation. According to Cratus and as confirmed SFPUC, RK Engineering’s scope of work was greatly reduced by SFPUC . Cratus reallocated its own scope of work to RK Engineering to make up for the reduction. Though there was still a slight short fall, Cratus’ good faith and commitment to comply is visible through these actions.
CMD also communicated to Cratus and SFPUC about the shortfall on Roadway Construction, Inc.’s (“Roadway’s”) participation. According to Cratus and as confirmed by SFPUC , the actual quantities installed are less than the original [expected] bid quantities. This is confirmed by Roadway through their concurrence in their CMD Form 8.
City & County of San Francisco
London N. Breed, Mayor
Office of the City Administrator
Carmen Chu, City Administrator
Contract Monitoring Division
Stephanie Tang, Director
Based on the foregoing, CMD concurs with the closeout of this contract.
Should you have any questions, please contact me at [email protected].