DEPARTMENT
Infrastructure
AGENDA NO.
6h
MEETING DATE
June 25, 2024
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Calendar: Consent Calendar
Project Manager: Ada Zhu
Accept Work, Approve Modification, and Authorize Final Payment for Contract No. DB- 128R2, Bay Corridor Transmission and Distribution – Phase 1
Summary of
Proposed
Commission Action:
Accept work performed by A&B Construction , under Contract No. DB- 128R2, Bay Corridor Transmission and Distribution – Phase 1 ; approve Modification No. 19 (Final) increasing the contract amount by $516,446 (within the approved contingency amount) for a total contract amount of $20,915,514, and increasing the contract duration by 1,132 calendar days (which includes 65 days from the duration contingency that the Commission approved in April of 2019) for a total contract duration of 2,103 consecutive calendar days ( approximately five years and nine months), to cover an extended claims resolution process and additional work contractor agreed to perform as part of the claims resolution process, and contractor’s completion of closeout punch- list items and documentation; and authorize final payment to the contractor.
Background: The San Francisco Public Utilities Commission (SFPUC) is building a high voltage transmission and distribution system i n the Southeast portion of the City of San Francisco to serve existing and future customers with significant power needs.
On April 25, 2017, by Resolution No. 17- 0092, the Commission award ed Contract No. DB-128R2, Bay Corridor Transmission and Distribution – Phase 1 to A&B Construction . The original contract amount was $15,283,930 and the original contract duration was 458 consecutive calendar days.
On January 9, 2018, by Resolution No. 18- 0008, the Commission approved an increase of $7,653,800 to the existing contract cost contingency, for a revised contract cost contingency of $9,182,193 and a total contract amount up to $24,466,123, and an increase of 168 consecutive calendar days to the existing contract duration contingency, for a revised contract duration contingency of 213 calendar days, and a total contract duration up to 672 consecutive calendar days.
On April 9, 2019, by Resolution No. 19-0063, the Commission approved an increase of 365 calendar days to the duration contingenc y, for a revised contract duration contingency of 578 calendar days, and a total contract Agenda Title: DB-128R2, Bay Corridor Transmission and Distribution – Phase 1 Commission Meeting Date: June 25, 2024
duration up to 1,036 consecutive calendar days, with no change to the contract amount.
PROJECT TIMELINE
• July 27, 2017 – Construction Notice To Proceed
• January 24, 2020 – Substantial completion
• April 2020 – Contractor’s notice of potential claim (NOPC) • May 2020 – City responded to Contractor’s request for compensable time and agreed to meet with Contractor to
discuss once Contractor provided an approved as-built
schedule
• July 2021 – City denial of the NOPC
• August 2021 – Dispute Resolution Advisor (DRA) process start
• October 2021 – DRA Hearing #1
• January 2022 – DRA Hearing #2
• February 2022 – Contractor submitted vault lid replacement proposal. Parties agreed to include this as part of the negotiation for compensable time
• June 2022 – AGM Alan Johanson reached agreement in
principle and amount with contractor, ended DRA process. • November 2022 – Proposed final change order #34 for
$516,445.10, 1,132 days, and contractor to replace lids and frames ($200,000), to cover claimed inefficiencies from schedule disruption ($300,000), and DRA services
($16,445.10). Parties agreed other delays resolved by non- compensable time extension with no assessment of liquidated damages
• February 16, 2023 – Contractor & SFPUC signed the final change order #34
• March 23, 2023 – Contractor began work on comm vault lid replacement.
• March 31, 2023 – Comm vault lid replacement completed. • April 30, 2023 – Final Completion
• February 2024 – CMD Final Review Memo
• June 2024 – Commission Agenda for Closeout
Scope of Contract: The contract work was located on Terry A. Francois Boulevard from Warriors Way to 16th Street; 16th Street from 3rd Street to Terry A.
Francois Boulevard; Illinois Street from 16th Street to 18th Street, and from 19th Street to 23rd Street ; and portions of 20th, 22nd, and 23rd Streets east of Illinois Street in San Francisco, California.
The contract work consisted of:
• Bay Corridor Transmission & Distribution (BCTD) electrical duct bank installation in the aforementioned streets;
• Mariposa dry -weather force main replacement and gravity sewer improvements on Illinois Street from Mariposa Stree t to 18th Street, Agenda Title: DB-128R2, Bay Corridor Transmission and Distribution – Phase 1 Commission Meeting Date: June 25, 2024
and from 19th Street to 22nd Street; and
• Auxiliary Water Supply System (AWSS) pipeline from Terry A.
Francois Boulevard/Warriors Way to Mariposa Street/3rd Street via Mariposa Street and Terry A. Francois Boulevard.
Modifications to t he
Contract:
Modifications Nos. 1 to 18: Staff issued Modification Nos. 1-18, increasing the contract amount by $5,115,138 for a total contract amount of $20,399,068 and increasing the contract duration by 513 calendar days for a total contract duration of 971 consecutive calendar days, in accordance with Resolution Nos. 18-0008 and 19-0063, to address additional AWSS pipeline design and construction services scope, installation of additional electrical duct bank and vaults to faci litate power connections, unforeseen subsurface conditions and schedule delays to electrical duct bank work on Illinois Street, additional soil disposal, additional potholing, unanticipated repairs to sanitary sewer and storm drain laterals , and to reconci le actual material quantities.
Proposed Modification No. 19 (Final): Staff recommends Commission authorization to increase the contract amount by $516,446 (within approved contingency) for a total contract amount of $20,915,514 and to increase the contract duration by 1,132 consecutive calendar days for a total contract duration of 2,103 consecutive calendar days ( approximately five years and nine months), to cover an extended claims resolution process (26 months) through which SFPUC reached agreement with A&B Construction on a lump-sum amount and extended duration as compensation for claimed loss of productivity due to resequencing of work for the electrical d uct bank along Illinois Street, and additional work contractor agreed to perform as part of the dispute resolution process (redesign, procurement and reinstallation of replacement communication vault lids and frames , which took 10 months), and to complete closeout punch- list items, including preparation of as -built drawings, reports and supporting documentation, and 11 months for contractor to complete its process with the Contract Monitoring Division (CMD) and for CMD to issue its closeout review memo. The CMD closeout review involved extensive communications between CMD and the Prime Contractor, during which the Contractor was required to provide the necessary and supplemental information regarding the Prime’s compliance with individual LBE subcontracting commitments and the overall LBE sub commitment, in accordance with the Chapter 14B Local Business Enterprise Ordinance.
Through the DRA review process, SFPUC and A&B Construction agreed upon a lump- sum amount of $300,000 as compensation for loss of productivity due to resequencing of the as-planned schedule for the electrical duct bank work along Illinois Street. The planned sequences of work were also disrupted by restrict ed access to work areas around the Chase Center , San Francisco Port Lands, and tie -in connections with other 3rd party contractors, which were not defined at bid time ; $200,000 for the replacement of vault lids and frame s, and $16,446 for the cost share port ion of the DRA services, for a total final change order amount of $516,446.
Agenda Title: DB-128R2, Bay Corridor Transmission and Distribution – Phase 1 Commission Meeting Date: June 25, 2024
Funding and Costs: Funding Source: Hetchy Power Capital Fund, Wastewater Capital Fund, Sewer System Improvement Program, Water Capital Fund, and Earthquake Safety & Emergency Response (ESER) Bond
Project No. 10014227, Bay Corridor Transmission and Distribution (BCTD) Project
Original Contract Amount: $15,283,930
Modification Nos. 1 to 18: $5,115,138
Recommended Modification No. 19 (Final): $516,446
Total Final Contract Amount: $20,915,514
Schedule: Notice-to-Proceed Date: July 27, 2017
Original Contract Duration: 458 consecutive calendar days Modification Nos. 1 to 18: 513 consecutive calendar days Recommended Modification No. 19 (Final): 1,132 consecutive calendar days
Total Final Contract Duration: 2,103 consecutive calendar days
Local Business
Enterprise
Participation and
Non-Discrimination
In Contracting:
The Contract Monitoring Division established a Local Business Enterprise (LBE) subcontracting requirement for 20% design and 15% construction for this contract. The contractor committed to LBE subcontractor participation of 100% for design and 21.5% for construction with its bid submittal. CMD has determined the contractor made a good faith effort to substantially comply with the LBE subcontracting requirements by achieving a final LBE subcontractor participation of 100% for design and 18.20% for construction.
Attachment: 1. Contract Monitoring Division Memorandum
Agenda Title: DB-128R2, Bay Corridor Transmission and Distribution – Phase 1 Commission Meeting Date: June 25, 2024
BCTD Project Overview Site Map
DB-128R2 Duct Bank Alignment Map
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, On April 25, 2017, by Resolution No. 17-0092, the Commission awarded Contract No. DB -128R2, Bay Corridor Transmission and Distribution – Phase 1 , to A&B Construction; and
WHEREAS, The original contract amount was for $15,283,930 and the original contract duration was 458 consecutive calendar days; and
WHEREAS, The contract Notice-to-Proceed date was July 27, 2017; and WHEREAS, On January 9, 2018, by Resolution No. 18-0008, the Commission approved an increase of $7,653,800 to the existing contract cost contingency, for a revised contract cost contingency of $9,182,193 and a total contract amount up to $24,466,123, and an increase of 168 consecutive calendar days to the existing contract duration contingency, for a revised contract duration contingency of 213 calendar days, and a total contract duration up to 672 consecutive calendar days; and
WHEREAS, On April 9, 2019, by Resolution No. 19-0063, the Commission approved an increase of 365 calendar days to the existing contract duration contingency, for a revised duration contingency of 578 calendar days, allowing for modification of the total contract duration up to 1,036 consecutive calendar days, with no change to the contract amount; and WHEREAS, Modification Nos. 1 through 1 8 increased the contract amount by $5,115,138 for a total contract amount of $20,399,068 and increased the contract duration by 513 calendar days for a total contract duration of 971 consecutive calendar days, in accordance with Resolution Nos. 18-0008 and 19- 0063, to address the additional AWSS pipeline design and construction services scope, installation of additional electrical duct bank and vaults to facilitate power connections, unforeseen subsurface conditions and schedule delays to electrical duct bank work on Illinois Street, additional soil disposal, additional potholing, unanticipated repairs to sanitary sewer and storm drain laterals, and to reconcile actual material quantities; and WHEREAS, Contractor A&B Construction completed its work scope for Contract No.
DB-128R2, Bay Corridor Transmission and Distribution – Phase 1; and WHEREAS, Staff recommends the Commission approve Modification No. 19 (Final) to increase the contract amount by $516,446 for a total contract amount of $20,915,514; and increase the contract duration by 1,132 consecutive calendar days for a total contract duration of 2,103 consecutive calendar days (approximately five years and nine months), to cover an extended claims resolution process under which SFPUC reached agreement with A&B Construction on a lump- sum amount and extended duration as compensation for claimed loss of productivity due to resequencing of work for the electrical duct bank along Illinois Street, and additional work contractor agreed to perform as part of the dispute resolution process (redesign, procurement and reinstall ation of replacement communication va ult lids and frames ), and to complete closeout punch- list items, including preparation of as -built drawings, reports and supporting documentation; and
WHEREAS, C ontract Monitoring Division established a Local Business Enterprise (LBE) subcontracting parti cipation requirement for 20% design and 15% construction for this contract, and the contractor committed to LBE subcontractor participation of 100% for design and 21.5% for construction with its bid submittal and has made a good faith effort to substantially comply with the LBE subcontracting requirements with a final LBE subcontractor participation of 100% for design and 18.20% for construction; and
WHEREAS, Funds are available from Project No. Project No. 10014227, Bay Corridor Transmission and Distribution (BCTD) Project; now, therefore, be it RESOLVED, That this Commission hereby accepts work performed by A&B Construction under Contract No. DB -128R2, Bay Corridor Transmission and Distribution – Phase 1; approves Modification No. 19 (Final) increasing the contract amount by $516,446 and increasing the contract duration by 1,132 consecutive calendar days, for a final contract amount of $20,915,514 and a final contract duration of 2,103 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 June 25, 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: February 28, 2024
To: Ada Zhu, SFPUC
From: Jason Chow, CMD
Subject: Review for DB-128R2 Bay Corridor Transmission and Distribution– PHASE 1 CMD’s Closeout Review
The Contract Monitoring Division (“CMD”) has determined that A & B Construction (“A&B”), the prime contractor for this contract, has made a good faith effort to substantially comply with the LBE subconsulting requirements associated with this contract.
The LBE subconsulting and subcontracting participation requirement established for this Design Build (“DB”) project is 20% for the Design Phase and 15% for the Construction Phase. A&B was awarded the contract in the amount of $15,283,930.00. The final contract amount is $20,915,513.39.
Design Phase:
For the Design Phase, at the time the project was advertised, a Micro/Small LBE subconsulting requirement of 20% was established. A&B’s CMD Form 2A reflected a Micro/Small LBE subconsulting participation of 100.00%. The final amount of the Design Phase is $563,694.00. The Micro/Small LBE subconsulting participation is as follows:
Firm Status Scope of Work Original Credited
Contract Participation
Final Credited
Contract Participation
Telamon Engineering
Consultants, Inc.
SF LBE-WBE
(Micro)
Civil
Engineering 100% $563,694.00 100.00%
TOTAL 100% $563,694.00 100.00%
Construction Phase:
For the Construction Phase, at the time the project was advertised, a Micro/Small LBE subcontracting participation requirement of 15% was established. A&B’s Section 00 43 36 reflected a Micro/Small LBE subcontracting participation of 21.50% and the total Construction Phase amount is $14,915,000. After 34 change orders, the final amount of the Construction Phase is $20,351,819.39. A&B’s Micro/Small LBE subcontracting participation is as follows:
Firm Status Scope of Work
Original Credited
Contract
Participation
Final Credited
Contract Participation
Telamon
Engineering
Consultants,
Inc.
SF LBE-WBE
(Micro)
Civil Engineering,
Land Surveying $293,383 1.97% $17,488.75 0.09%
Marinship
Development
Interest LLC
SF LBE-MBE
(Micro)
Sewer, Partial
Concrete, Traffic
Control Partial
$2,421,920 16.23% $2,845,804.01 13.98%
Costello
Trucking1
SF LBE-OBE
(Micro) Trucking $350,000 2.35% $0 0%
Team North
Construction
Services Inc.
SF LBE-WBE
(Small)
Street Sweeping,
and Equip Rental $86,000 0.58% $28,425.002 0.14%
Bay Line
Cutting &
Coring Inc.
SF LBE-MBE
(Micro) Sawcutting $55,000 0.37% $60,867.10 0.30%
Walter J
Transportation3 Trucking -- -- $751,337.90 3.69%
TOTAL $3,206,303 21.50% $3,703,922.76 18.20%
Based on Telamon’s expertise, this firm was only intended to be utilized for the Design Phase. The reason why Telamon had some participation at the onset of the Construction Phase is because of the overflow of its Design participation. As for Marinship, Team North, and Bay Line Cutting not receiving its listed percentage from the time of bid, A&B provided supporting documentation that provides the following:
Marinship:
One of its listed scopes of service is Concrete. However (per the sole discretion of the SFPUC), a significant portion of the concrete work was deleted from this contract.
Team North:
Its listed scope of services is Street Sweeping and Water truck. However, the actual work performed was less than originally anticipated—the direct correlation is due to the deletion of significant concrete scope.
Bay Line Cutting:
Its listed scope of service is Saw cut. However, the actual work performed was less than originally anticipated—the direct correlation is due to the deletion of significant concrete scope.
1 Costello Trucking did not perform any work and withdrew from this contract. 2 Team North’s final subcontract amount is $37,565. Of this total amount, $14,715.00 is for street sweeping and $22,850.00 is for equipment rental. The equipment rental portion is only eligible for 60% LBE credit. Therefore, 60% of $22,850.00 is $13,710.00. As such, Team North’s final LBE credited participation is $28,425.00. 3 Walter J Transportation (LBE firm) was added on to A&B’s team to replace Costello Trucking.
A&B did utilized CMD certified LBE firms to the full extent possible. Further, A&B did exceed its listed Trucking percentage from the time of bid. Also, A&B made an effort and did replace Costello Trucking with Walter J. Transportation (another certified LBE Trucking firm).
Based on the foregoing, CMD concurs with the closeout of this contract.