DEPARTMENT
Infrastructure
AGENDA NO.
7 MEETING DATE
June 11, 2024
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Calendar: Regular Calendar
Project Manager: Mazin Hijazi
Award Contract No. WW-742, Southeast Water Pollution Control Plant 040/041/043 Health & Safety Improvements
Summary of
Proposed
Commission Action:
Award Contract No. WW-742, Southeast Water Pollution Control Plant 040/041/043 Health & Safety Improvements , to the responsible bidder that submitted the lowest responsive bid, Anvil Builders , Inc., in the amount of $18,700,490, and with a duration of 940 consecutive calendar days (approximately two years and seven months), to provide health and safety improvements addressing structural, mechanical, instrumentation , controls, and electrical reliability, to the Southeast Water Pollution Control Plant wet weather primary sedimentation buildings. This action constitutes the Approval Action for the Project for the purposes of the California Environmental Quality Act (CEQA), pursuant to San Francisco Administrative 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 San Francisco Public Utilities Commission Wastewater Enterprise Southeast Water Pollution Control Plant (SEP) primary wet weather sedimentation facility is in need of significant improvement. Buildings (SEP 040/041) were built in the 1950s and serve d as SEP's only primary treatment facility until a newer primary treatment facility (SEP 042) was constructed in the 1980s. SEP 040/041 provide s capacity to SEP 042 tanks to handle wet weather flows and serves as backup primary treatment facility during dry
weather conditions when some or all tanks at SEP 042 need to be taken offline.
SEP 043 functions as the electrical control room for the sedimentation buildings, and most of the associated electrical infrastructure is past its useful life. Much of the existing equipment and infrastructure in SEP 040/041/043 is deteriorated and the facility requires
structural, mechanical, and electrical
improvements to meet Wastewater Enterprise’s O perational Reliability and Health, Safety & Security Level of Service goals.
Scope of Contract: The contract work is located in side the Southeast Water Pollution Control Plant within the City and County of San Francisco and consists of the following:
• Upgrades to the existing ventilation system.
• Repair of concrete cracks/deficiencies and rebar exposure.
Agenda Title: WW-742, Southeast Water Pollution Control Plant 040/041/043 Health & Safety Improvements Commission Meeting Date: June 11, 2024
• Replacement of two deteriorating dilution fans.
• Interior/exterior lighting upgrades.
• Replacement of selected guardrails.
• Consolidation of electrical motor control center equipment (MCC). • Installation of conduit and conductors for new and existing equipment from the equipment to the new MCC.
• Switchboard replacement.
• Installation of induction mixers.
• Miscellaneous piping relocation.
• Removal of abandoned assets.
• Miscellaneous instrumentation and control improvements.
Funding and Costs: Funding Source: Wastewater Enterprise Sewer System Improvement Program, Project No. 10037330, Primary Treatment (SEP 040/041) Health & Safety Improvements
Engineer’s Estimate: $20,000,000
Award: $18,700,490
Schedule: Estimated Notice-to-Proceed Date: August 2024 Estimated Completion Date: February 2027
Contract Duration: 940 consecutive calendar days (850 consecutive calendar days to Substantial Completion and an additional 90 consecutive calendar days to Final Completion)
Bid History:
Advertised: March 5, 2024
Bids Received: On April 18, 2024, the SFPUC received and publicly opened two bids, as follows:
Bid Rank Bid Base
Amount
Compensable
Delay (80
days
duration)
Adjusted
Bid
Final
Rank
1. Anvil Builders
Inc. $18,700,490 $80,000 $18,780,490 1
2. Western Water
Constructors, Inc. $23,553,715 $40,000 $23,593,715 2
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 an 80-day compensable delay to calculate the Compensable Delay amount bid adjustment. Staff used the daily rate in each bid to determine the total Compen sable Delay value shown in the table by multiplying the bidder’s daily rate times 80. The Adjusted Bid value in the Agenda Title: WW-742, Southeast Water Pollution Control Plant 040/041/043 Health & Safety Improvements Commission Meeting Date: June 11, 2024
table is the sum of the Base Bid and Compensable Delay less any applicable Local Business Enterprise bid discount. Staff used the Adjusted B id value to compare and rank the bids to determine the lowest bidder. However, the contract 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 do not apply to this contract as the engineer’s estimate is in excess of $10,000,000.
Environmental
Review:
On February 13, 2024, the San Francisco Planning Department determined the Project to be exempt from environmental review under the CEQA Guidelines section 15061(b)(3) (Common Sense Exemption) under Case Number 2022 - 011482ENV. The exemption determination can be found here:
link.
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
Utilization and Non-
Discrimination in
Contracting:
The Contract Monitoring Division established a 15% Local Business Enterprise subcontracting requirement for this contract. The contractor committed to 17.61% Local Business Enterprise participation with its bid submittal.
Attachment: 1. Contract Monitoring Division Memorandum
Agenda Title: WW-742, Southeast Water Pollution Control Plant 040/041/043 Health & Safety Improvements Commission Meeting Date: June 11, 2024
Location Map:
Southeast Water Pollution Control Plant
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, The San Francisco Public Utilities Commission (SFPUC) Wastewater Enterprise Southeast Water Pollution Control Plant (SEP) wet weather p rimary sedimentation buildings require structural, mechanical, and electrical improvements to maintain the facility in a safe and operable condition; and
WHEREAS, On March 5 , 2024, SFPUC advertised Contract No. WW-742, Southeast Water Pollution Control Plant 040/041/043 Health & Safety Improvements; and WHEREAS, The Engineer’s Estimate is $20,000,000 for this construction work to provide structural, mechanical, instrumentation and controls improvements, as well as electrical reliability, to the SEP wet weather primary sedimentation buildings; and WHEREAS, The contract duration is 940 consecutive calendar days; and WHEREAS, On April 18, 2024, the SFPUC received and publicly opened two bids; and WHEREAS, SFPUC staff and the Contract Monitoring Division (CMD) reviewed the bids and the application of bid preferences and determined that Anvil Builders , Inc. is the responsible bidder with the lowest responsive bid; and
WHEREAS, CMD established a 15% Local Business Enterprise (LBE) subcontracting requirement for this contract, and Anvil Builders Inc. committed to 17.61% LBE participation in its bid submittal; and
WHEREAS, On February 13, 2024, the San Francisco Planning Department determined the Project to be exempt from environmental review under the CEQA Guidelines section 15061(b)(3) (Common Sense Exemption) under Case Number 2022-011482ENV; and WHEREAS, Funds are available from Project No. 10037330, Primary Treatment (SEP 040/041) Health & Safety Improvements; now, therefore, be it RESOLVED, That t his Commission hereby awards Contract No. WW -742, Southeast Water Pollution Control Plant 040/041/043 Health & Safety I mprovements, in the amount of $18,700,490, and a duration of 940 consecutive calendar days , to the responsible bidder that submitted the lowest responsive bid, Anvil Builders, Inc.
I hereby certify that the foregoing resolution was adopted by the Public Utilities Commission at its meeting of June 11, 2024.
Acting Commission 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: May 15, 2024
To: Mazin Hijazi, SFPUC
Jignesh Desai, SFPUC
Derek Wong, SFPUC
From: Adriana Duran, CMD
Subject: WW-742 SEP 040/041/043 H&S Improvements – CMD Award Memo
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 requirements. The Micro/Small-LBE subcontracting participation requirement is 15%
1 for this project. Below is a summary of CMD’s review.
Bid Discount
Bidder
LBE
Status,
Type and
Size
Base Bid
Compensable
Delay
LBE Bid
Discount
Adjusted Bid
with
Compensable
Delay and LBE
Bid Discount
Anvil Builders Inc. Non-LBE $18,700,490.00 $ 80,000.00 Not eligible $ 18,780,490.00
Western Water
Constructors, Inc. Non-LBE $23,553,715.00 $ 40,000.00 Not eligible $ 23,593,715.00
LBE Subcontracting Participation Requirement
Anvil Builders, Inc. (“Anvil”) is the lowest responsive bidder. Anvil met the 15% Micro/Small LBE subcontracting requirement by listing the following Micro/Small LBE firm s on Section 00 43 36 (Subcontractor List):
1 The LBE sub requirement is less than 20% due to the high level of complexity when it comes to the scope of work, primarily the electrical work. The contractor will be installing provisions to run SEP 040/041 during a power shut down to allow both maintenance and connections to an existing substation. This critical load system is comprised of a manual transfer switch, portable generator connection and a portable generator. The contractor will be required to install the critical load test the critical load equipment in a short window that is critical to WWE operation of the facility. During construction, the contractor will be required to coordinate and switch between permanent and temporary power, potentially more than once. Failure to properly transfer between temporary and permanent power can have severe operational consequences. This project also has many weather constraints. Since Southeast Plant (SEP) will be in operation during construction, work will have to be tailored to the dry and wet weather seasons and ensure the building is operational when required by WWE. Lastly, SEP has multiple projects occurring at the same time. This adds an even higher level of complexity since the contractor will have to coordinate with several different projects.
Subcontractor Scope of
Work
LBE Status,
Type and
Size
Listed Amount Credited
Amount
Credited
Participation
Watertight
Restoration, Inc.
Concrete/
Crack
Repairs
SF LBE-OBE
(Micro) $ 983,000.00 $ 983,000.00 5.26%
Montez Group
Incorporated
Inspections
(Partial)
SF LBE-MBE
(Micro) $ 98,040.00 $ 50,292.30 0.27%*
Bullard’s Heating &Air
Inc. HVAC SF LBE-OBE
(Micro) $ 2,151,000.00 $ 2,097,568.00 11.22%**
R&S Construction
Management Inc. Guardrail SF LBE-MBE
(Micro) $ 162,750.00 $ 162,750.00 0.87%
TOTAL $ 3,394,790.00 $ 3,293,610.30 17.61%
*Per CMD Form 6 submitted, Montez Group Inc. (“Montez”) Indicated that it will further subcontract out to a non-LBE firm: Construction Testing Services (“CTS”), in the amount of $47,747.70 which this dollar amount will be deducted from the total amount of $98,040.00. Per Advertisement and Section 00 43 36, only CMD Certified San Francisco Micro and/or Small LBEs can be utilized to meet the LBE subcontracting participation requirement. Hence, CTS’ participation will not receive LBE credit. As a result, Montez’s LBE credited amount is $50,292.30. ** Per CMD Form 6 submitted, Bullard’s Heating & Air Inc. (“Bullard”) Indicated that it will be further subcontracting out to two (2) non-LBE firms:
Carter Heating & Air Balance (“Carter”) and Mason West (“Mason West”), with participation amounts of $40,232.00 and $13,200.00, respectively. Per Advertisement and Section 00 43 36, only CMD Certified San Francisco Micro and/or Small LBEs can be utilized to meet the LBE subcontracting participation requirement. Hence, Carter’s and Mason West’s participation will both not receive LBE credit. As a result, Bullard’s LBE credited amount is $2,097,568.00.
Anvil also listed the following non-LBE subcontractors on Section 00 43 36.
Subcontractor Scope of Work Listed Amount Participation Anvil Power, Inc. Electrical $ 5,980,700 31.98%
Redwood Painting Co. Mortar Manhole & Pipe $ 424,834 2.27% TOTAL $ 6,405,534 34.25%
Good Faith Efforts Requirements
Anvil utilized Approach B (Inclusion of Micro-LBE) on CMD Form 2B to meet the Good Faith Efforts (“GFE”) Requirements. Anvil demonstrated that it met the GFE requirements under Approach B by listing the Micro-LBE firm: Montez Group Incorporated.
Based on the foregoing, CMD has determined that Anvil 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].