DEPARTMENT
Infrastructure
AGENDA NO. 7b
MEETING DATE
May 28, 2024
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Calendar: Consent Calendar
Project Manager: John Wong
Award Contract No. WW-751, As-Needed Sewer Inspection (FY24)
Summary of
Proposed
Commission
Action:
Award Contract No. WW-751, As-Needed Sewer Inspection (FY24) to the sole responsible bidder that subm itted a responsive bid, Pipe and Plant Solutions, Inc., in the amount of $2,972,000 and with a duration of 380 consecutive calendar days (approximately one year and one month), in accordance with San Francisco Administrative Code section 6.23(c)(2), to inspect existing sewers on an as -needed basis , at locations to be determined by Was tewater Enterprise, throughout the City and County of San Francisco.
Background: San Franci sco Public Utilities Commission (SFPUC) Wastewater Enterprise (WWE) Collection System management has identified additional critical needs for video inspection services of existing sewers to supplement WWE Collection System staff’s on -going inspection work. The inspection work under this
contract will assist with the ongoing inspections/data gathering necessary for SFPUC WWE’s Collection System Asset Management Program.
Scope of Contract: WWE Collection Division staff will determine contract work locations on an as- needed basis.
The Contract work consists of:
• Automated camera inspection of approximately 74,000 linear feet of existing main sewers up to and including 36 inches wide; • Camera inspection of approximately 56,000 linear feet of existing sewer laterals; and
• Camera inspection of approximately 12,000 linear feet of existing culvert pipelines.
Funding and
Costs:
Funding Source: 10040188, As-Needed Sewer Inspection (FY24) Engineer’s Estimate: $2,100,000
Award: $2,972,000
Schedule: Estimated Notice-to-Proceed Date: August 2024 Estimated Completion Date: September 2025
Contract Duration: 380 consecutive calendar days (approximately one year and one month).
Agenda Title: WW-751, As-Needed Sewer Inspection (FY24) Commission Meeting Date: May 28, 2024
Bid History: Advertised: February 16, 2024
Bids Received: SFPUC received one sealed bid on March 21, 2024.
Bid Rank Bid Amount Bid
Preference
Adjusted Bid Final
Rank
1. Pipe and Plant
Solutions, Inc.
$2,972,000.00 N/A $2,972,000.00 1
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.
Outreach: SFPUC staff conducted extensive outreach during the contract advertisement period and after the bid date. Based on the results , neither additional outreach efforts nor modification of requirements in the c ontract would likely result in more than one bid a t bid prices substantially lower than the bid price received if the SFPUC were to re-advertise this contract.
Negotiations with
the Sole Bidder:
Post-Bid Survey and Reasons for Negotiations:
Under San Francisco Administrative Code section 6.23(c)(2), when the SFPUC advertises a public work project in accordance with the required procedures and receives only one responsive bid, and the bid exceeds the Engineer’s Estimate, the Department shall determine:
1. Whether outreach efforts would result in more than one bid; and
2. Whether removal or modification of certain requirements in the contract would result in more than one bid.
If the SFPUC concludes that neither step is likely to result in more than one bid at prices substantially lower than the bid price received, then the Commission may authorize the General Manager to negotiate with the sole bidder or any qualified contractor.
SFPUC staff conducted the following reviews to determine whether the analysis would likely result in more tha n one bid at prices substantially lower than the bid price received:
1. Whether outreach efforts would result in more than one bid Staff sent email notifications to 120 individual cont ractors and advertised the contract as an upcoming contract on the SFPUC Contractors Assistance Center’s website during the contract advertisement period. Additionally , staff contacted all firms that attended the Pre -Bid and Contractor Networking Conference and 22 firms on the interested parties list. Two of the firms that responded stated to staff that the bid bond amount was beyond their bonding capacity. Post bid, staff Agenda Title: WW-751, As-Needed Sewer Inspection (FY24) Commission Meeting Date: May 28, 2024
Due to the nature of this As-Needed contract, there is no accompanying Location Map.
outreached to additional potential bidders and none expressed interest in bidding.
2. Whether removal or modification of certain requirements in the cont ract would result in more than one bid
The contract requirements are needed in order to perform and complete the sewer inspection work in compliance with the Wastewater Enterprise’s requirements. Also, the SFPUC has no authority to waive or reduce the bid bond amount. San Francisco Administrative Code Section 6.21 requires a bid bond in the amount of 10% of the total bid price; this is a standard and long-standing requirement that indicates a bidder’s financial capability.
Under th ese circumstances, SFPUC staff concluded that re -advertising the contract would not result in more than one bid at a substantially lower price than the bid received.
Environmental
Review:
Award of this as-needed contract 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. 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.
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 8.21% LBE participation with its bid submittal.
Attachment: 1. Contract Monitoring Division Memorandum
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, San Francisco Public Utilities Commission (SFPUC) Wastewater Enterprise (WWE) Collection System management has identified additional critical needs for video inspection services of existing sewers to supplement WWE Collection System staff’s on -going inspection work of the sewer system to assist with the ongoing inspections/data gathering necessary for SFPUC WWE's Collection System Asset Management Program; and WHEREAS, On February 16, 2024, SFPUC advertised Contract No. WW-751, As-Needed Sewer Inspection (FY24); and
WHEREAS, The Engineer’s Estimate is $ 2,100,000 for this con tract work to inspect existing sewer pipelines, on an as-needed basis, at locations to be determined throughout the City and County of San Francisco; and
WHEREAS, The contract duration is 380 consecutive calendar days; and WHEREAS, On March 21, 2024, SFPUC received and publicly opened one bid; and WHEREAS, In accordance with San Francisco Administrative Code section 6.23(c)(2), SFPUC Staff conducted extensive outreach during the contract advertisement period and after the bid date. Based on the results , neither outreach efforts nor modification of requirements in the Contract would likely result in more than one bid at bid prices substantially lower than the bid price received if the SFPUC were to re-advertise this contract; and WHEREAS, SFPUC staff and Contract Monitoring Division (CMD) reviewed the bids and the application of bid preferences and have determined that Pipe and Plant Solutions, 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 the contractor committed to 8.21% LBE participation in its bid submittal; and
WHEREAS, Award of this as -needed contract 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 are available from Project No. 10040188, As-Needed Sewer Inspection (FY24); now, therefore, be it
RESOLVED, That this Commission hereby awards Contract No. WW-751, As-Needed Sewer Inspection (FY24), in an amount of $2,972,000, and a duration of 380 consecutive calendar days, to the sole responsible bidder that submitt ed the lowest responsive bid, Pipe and Plant Solutions, Inc.
I hereby certify that the foregoing resolution was adopted by the Public Utilities Commission at its meeting of May 28, 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 29, 2024
To: John Wong, SFPUC
Aileen Caylao, SFPUC
Erica Liang, SFPUC
From: Adriana Duran, CMD
Subject: WW-751 As-Needed Sewer Inspection (FY24) – CMD Award Memo
The Contract Monitoring Division (“CMD”) has reviewed the bid submitted for the above referenced project, applied the appropriate bid discounts, and determined responsiveness to the Chapter 14B p re-award requirements. The Micro/Small -LBE subcontracting participation requirement is 6% for this project. The LBE sub requirement is less than 20%, due to the consideration of the specialized automated camera inspection scope of work, in addition to the specialized nature of the equipment and experience, qualifications and certifications as required in the bid documents. 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
Pipe and Plant
Solutions, Inc. Non-LBE $2,972,000 Not
eligible $2,972,000
LBE Subcontracting Participation Requirement
Pipe and Plant Solutions, Inc. (“PPSI”) is the sole responsive bidder. PPSI met the 6% Micro/Small LBE subcontracting requirement by listing the following Micro/Small LBE firms on Section 00 43 36 (Subcontractor List):
Subcontractor Scope of
Work
LBE Status,
Type and
Size
Listed
Amount
Credited
Amount
Credited
Participation
DR Traffic Control Traffic
Control
SF LBE-MBE
(Micro) $180,000 $180,000 6.06%
Ace Drilling and
Excavation
Expose
buried
manholes
SF LBE-OBE
(Micro) $64,000 $64,000 2.15%
TOTAL $244,000 $244,000 8.21%
PPSI did not list any non-LBE subcontractors on Section 00 43 36.
Good Faith Efforts Requirements
PPSI utilized Approach A (35% Approach) on CMD Form 2B to meet the Good Faith Efforts (“GFE”) Requirements. PPSI 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%.
Based on the foregoing, CMD has determined that PPSI 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].