DEPARTMENT
Infrastructure Division
AGENDA NO.
10 MEETING DATE
May 28, 2024
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Calendar: Regular Calendar
Project Manager: Ming Yee
Award Contract No. WW-753, Hayes Valley Sewer Improvements
Summary of
Proposed
Commission
Action:
Award Contract No. WW-753, Hayes Valley Sewer Improvements , to the responsible bidder that submitted the lowest responsive bid, Precision Engineering, Inc., in the amount $10,842,325 and with a duration of 420 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 Admini strative 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 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) Wastewater Enterprise Condition Assessment Management Program. The project team confirmed the need for structural rehabilitation when it observed missing mortar and fallen bricks from televised videos of these sewers.
Scope of
Contract:
The contract work locations are on Franklin, Grove, Hayes, Laguna, McAllister, Oak, Page, Polk, Scott, and Sutter Streets in the City and County of San Francisco.
The contract work consists of:
• Replacing and rehabilitating approximately 5,100 linear feet of existing sewers using cured -in-place-liners, slip -lining or spray mortaring construction methods;
• Rehabilitating existing sewer manholes and installing new sewer manholes; • Replacing and rehabilitating laterals and associated appurtenance; and • Restoring roadway and other restoration- in-kind work associated with the sewer.
Funding and
Costs:
Funding Source: Project No. 10041074 - Hayes Valley Sewer Improvements Engineer’s Estimate: $11,600,000
Award: $10,842,325
Schedule: Estimated Notice-to-Proceed Date: September 2024 Agenda Title: WW-753, Hayes Valley Sewer Improvements
Commission Meeting Date: May 28, 2024
Estimated Completion Date: November 2025
Contract Duration: 420 consecutive calendar days (360 consecutive calendar days to Substantial Completion and an additional 60 consecutive calendar days to Final Completion)
Bid History:
Advertised: March 4, 2024
Bids Received: On April 4, 2024, SFPUC received and publicly opened the following four bids:
Bid Rank &
Firm
Base Bid
Amount
Compensable
Delay (60 days
duration)
LBE Bid
Discount Adjusted Bid
Final
Rank
1. Precision
Engineering,
Inc.
$10,842,325 $600 2% $10,626,066.50 1
2. Cratus, Inc. $11,322,470 $15,000 N/A $11,337,470.00 2
3. Mitchell
Engineering
$14,937,625 $30,000 2% $14,668,272.50 3
4. NTK
Construction,
Inc.
$15,872,250 $30,000 N/A $15,902,250.00 4
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 60 days to calculate the Compensable Delay bid adjustment amount. Staff used the daily rate in each bid to determine the total Compensable Delay value shown in the table above by multiplying the bidder’s daily rate times 6
0. The
Adjusted Bid value in the table above is the sum of the Base Bid and Compensable Delay less any applicable L ocal Business Enterprise bid discount. Staff used the Adjusted Bid value to compare and rank the bids to determine the lowest bidder.
However, the c ontract 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 December 5 , 2023, the San Francisco Planning Department determined the Project to be categorically exempt from environmental review under the CEQA Guidelines section 15302, Class 2 (Replacement or Reconstruction ) under Case Number 2023- 006572ENV. The exemption determination can be found here:
https://sfpuc.sharefile.com/public/share/web-
s90c5f09e19f84bf195672df9497ecb42
Agenda Title: WW-753, Hayes Valley Sewer Improvements
Commission Meeting Date: May 28, 2024
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
7.62% LBE subcontractor participation with its bid submittal.
Attachment: 1. Contract Monitoring Division Memorandum
Agenda Title: WW-753, Hayes Valley Sewer Improvements
Commission Meeting Date: May 28, 2024
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, The San Francisco Public Utilities Commission (SFPUC) Wastewater Enterprise Collection System Assessment Management Program identifies San Francisco sewers that are over 100 years old and at high-risk of failure; and WHEREAS, On March 4, 2024, SFPUC advertised Contract No. WW-753, Hayes Valley Sewer Improvements; and
WHEREAS, The Engineer’s Estimate is $ 11,600,000 for this construction work to rehabilitate and replace large diameter sewer s and laterals on Franklin, Grove, Hayes, Laguna, McAllister, Oak, Page, Polk, Scott, and Sutter Streets within the City and County of San Francisco; and
WHEREAS, The contract duration is 420 consecutive calendar days; and WHEREAS, On April 4, 2024, SFPUC received and publicly opened four bids; and WHEREAS, SFPUC staff and Contract Monitoring Division (CMD) reviewed the bids and the application of bid preferences and determined that Precision Engineering, Inc., is the responsible bidder that submitted the lowest responsive bid; and WHEREAS, CMD established a 6% Local Business Enterprise (LBE) subcontracting requirement for this contract, and Precision Engineering, Inc ., committed to 7.62% LBE subcontractor participation in its bid submittal; and
WHEREAS, On December 5 , 2023, the San Francisco Planning Departme nt determined the Project to be categorically exempt from environmental review under the California Environmental Quality Act Guidelines section 15302, Class 2 (Replacement or Reconstruction ) under Case Number 2023 006572ENV; and
WHEREAS, Funds are availa ble from Project No. 10041074, Hayes Valley Sewer Improvements; now, therefore, be it
RESOLVED, That this Commission hereby awards Contract No. WW-753, Hayes Valley Sewer Improvements, in an amount of $10,842,325, and a duration of 420 consecutive calendar days, to the responsible bidder that submitted the lowest responsive bid, Precision Engineering, 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: April 23, 2024
To: Ming Yee, SFPUC
Benny Ng, SFPUC
Frank Gennaccaro, SFPUC
From: Jovi Cuntapay-Vitin, CMD
Subject: WW-753 Hayes Valley Sewer Improvements
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 requireme nts. The Micro/Small -LBE subcontracting participation requirement is 6% for this project. The LBE sub participation requirement for this contract is below 20% because majority of the work is specialty work done by a specialty contractor such as the installation for cured-in-place liner where general subcontractors with LBE status cannot do the work. 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 LBE
Bid Discount
and
Compensable
Delay
Precision
Engineering, Inc.
SF LBE-OBE
(SBA) $10,842,325.00 $600.00 2% $10,626,066.50
Cratus, Inc. Non-LBE $11,322,470.00 $15,000.00 Not
eligible $11,337,470.00
Mitchell
Engineering
SF LBE-OBE
(SBA) $14,937,625.00 $30,000.00 2% $14,668,272.50
NTK
Construction,
Inc.
Non-LBE $15,872,250.00 $30,000.00 Not
eligible $15,902,250.00
LBE Subcontracting Participation Requirement
Precision Engineering, Inc. (“Precision”) is the lowest responsive bidder. Precision met the 6% Micro/Small LBE subcontracting requirement by listing the following Micro/Small LBE firm on Section 00 43 36 (Subcontractor List):
LBE
Subcontractor
Scope of
Work
LBE
Status,
Type and
Size
Listed Amount Credited
Amount
Credited
Participation
Camajani
Trucking Trucking SF LBE-MBE
(Micro) $25,000.00 $25,000.00 0.23%
DR Traffic Control Traffic
Control
SF LBE-MBE
(Micro) $100,000.00 $100,000.00 0.92%
R&S Construction
Management,
Inc.
Concrete
Manholes &
Soffit
SF LBE-MBE
(Micro) $416,000.00 $416,000.00 3.84%
Reliance
Engineering, Inc. OCS Support SF LBE-MBE
(Micro) $285,000.00 $285,000.00 2.63%
TOTAL $826,000.00 $826,000.00 7.62%
Precision also listed the following non-LBE subcontractor on Section 00 43 36.
Non-LBE Subcontractor Scope of Work Listed Amount Participation SAK Construction CIPL Main & Culverts $ 4,093,025.00 37.75% H&R Plumbing & Drain
Cleaning, inc. Spray Mortar $ 150,400.00 1.39%
Easy Flow LLC CIPL Laterals $ 130,000.00 1.20%
Summit Pipelines Clean & CCTV $ 60,000.00 0.55%
TOTAL $4,433,425.00 40.89%
Good Faith Efforts Requirements
Precision utilized Approach B (Inclusion of Micro-LBE) on CMD Form 2B to meet the Good Faith Efforts (“GFE”) Requirements. Precision 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 Precision 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].