DEPARTMENT
Infrastructure Division
AGENDA NO.
7c
MEETING DATE
November 12, 2024
Last updated: 05.03.2023
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Calendar: Consent Calendar
Contract/Project Manager: Ryan Freeborn
Award Contract No. WD-2876, 8-Inch Ductile Iron Water Main Replacement and 16-Inch Ductile Iron Water Main Installation
Summary of
Proposed
Commission Action:
Award Contract No. WD-2876, 8-Inch Ductile Iron Water Main Replacement and 16-Inch Ductile Iron Water Main Installation on San Bruno Ave. from Campbell Ave. t o Paul Ave. and on Blanken Ave. from Bayshore Blvd. to Executive Park Blvd., to the responsible bidder that submitted the lowest responsive bid, Cratus, Inc., in the amount of $11,474,011 with a duration of 634 consecutive calendar days (approximately one year and nine months), to install water mains in the Portola and Visitacion Valley Districts 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 Administrative Code section 31.04(h). The Planning Department has determined that the Project is exem pt from the CEQA. The Commission will rely on that determination to make its decision on this action.
Background: The water main installation work under this contract is part of the San Francisco Public Utilities Commission (SFPUC) Water Enterprise Local Conveyance/Distribution System Program. The program includes the replacement of pipes that have either been damaged or are at the end of their useful service life, to ensure reliable water delivery within the City and County of San Francisco. The City installed the existing 8 - to 16-inch diameter cast iron water mains scheduled to be replaced under this c ontract between 1896 and 1954. D ue to the advanced age of t he pipes (between 58 to 128 years), material, and history of repeated main breaks in the neighborhood, SFPUC has prioritized their replacement.
Scope of Contract: The contract work locations are in the Portola and Visitacion Valley Districts of the City and County of San Francisco.
The contract work includes installation of:
• 7,300 feet of 4-inch to 8-inch diameter ductile iron water conveyance pipe;
• 100 feet of 12-inch diameter ductile iron water conveyance pipe; • 5,700 feet of 16-inch diameter ductile iron water conveyance pipe; • Ancillary pipe for replacement of water service lines; and • Curb ramps along with pavement restoration.
Agenda Title: Award Contract No. WD-2876, 8-Inch Ductile Iron Water Main Replacement and 16-Inch Ductile Iron Water Main Installation.
Commission Meeting Date: November 12, 2024
Funding and Costs: Funding Source: Project No. 10036588, 8-Inch Ductile Iron Water Main Replacement and 16-Inch Ductile Iron Water Main Installation on San Bruno Ave. from Campbell Ave. t o Paul Ave. and on Blanken Ave. from Bayshore Blvd. to Executive Park Blvd.
Engineer’s Estimate: $11,800,000
Award: $11,474,011
Schedule: Estimated Notice-to-Proceed Date: March 2025
Estimated End Date: December 2026
Contract Duration: 634 consecutive calendar days (589 consecutive calendar days to Substantial Completion and an additional 45 consecutive calendar days to Final Completion)
Bid History:
Advertised: August 9, 2024
Bids Received: On September 12, 2024, SFPUC received and publicly opened six bids as follows:
Bid Rank Bid Amount Bid
Preference
Adjusted Bid Final
Rank
1. Cratus, Inc. $11,474,011.00 N/A $11,474,011.00 1
2. M Squared
Construction,
Inc.
$11,870,227.00 2% $11,632,822.46 2
3. A. Ruiz
Construction
Co. & Assoc.,
Inc.
$12,400,688.50 2% $12,152,674.73 3
4. Mitchell
Engineering
$12,798,519.00 2% $12,542,548.62 4
5. Basset
Engineering
$13,056,371.00 2% $12,795,243.58 5
6. NTK
Construction,
Inc.
$14,469,850.10 N/A $14,469,850.10
6 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 October 24, 2024, 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) and section 15303, Class 3 (New Construction or Conversion of Small Agenda Title: Award Contract No. WD-2876, 8-Inch Ductile Iron Water Main Replacement and 16-Inch Ductile Iron Water Main Installation.
Commission Meeting Date: November 12, 2024
Structures) under Case Number 2021 -000634ENV. The exemption determination can be found here:
https://sfpuc.sharefile.com/public/share/web-
s330f3dcd3cbc4673a4d6a0b0d553272d
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 14% Local Business Enterprise (LBE) subcontracting requirement for this contract. The contractor’s bid committed to 14.32% LBE participation.
Attachment: 1. Contract Monitoring Division Memorandum
Agenda Title: Award Contract No. WD-2876, 8-Inch Ductile Iron Water Main Replacement and 16-Inch Ductile Iron Water Main Installation.
Commission Meeting Date: November 12, 2024
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, The San Francisco Public Utilities Commission (SFPUC) Water Enterprise Local Conveyance/Distribution Program provides for the replacement of old water distribution pipes that are at the end of their useful service life to ensure a reliable water delivery system; and
WHEREAS, On August 9, 2024, SFPUC advertis ed Contract No. WD-2876, 8- Inch Ductile Iron Water Main Replacement and 16 -Inch Ductile Iron Water Main Installation on San Bruno Ave. from Campbell Ave. t o Paul Ave. a nd on Blanken Ave. from Bayshore Blvd. to Executive Park Blvd.; and
WHEREAS, The Engineer’s Estimate is $ 11,800,000 for this construction work to install approximately 13,100 feet of ductile iron water conveyance pipe, ancillary water service pipe, and curb ramps including pavement restoration in the Portola and Visitacion Valley Districts of the City and County of San Francisco; and
WHEREAS, The contract duration is 634 consecutive calendar days; and
WHEREAS, On September 12, 2024, SFPUC received and publicly opened six bids; and
WHEREAS, SFPUC S taff and Contract Monitoring Divisi on reviewed the bids and the application of bid preferences and determined that Cratus, Inc., is the responsible bidder that submitted the lowest responsive bid; and
WHEREAS, CMD established a 14% Local Business Enterprise subcontracting requirement for this contract, and Cratus, Inc., committed to 14.32% LBE participation in its bid submittal; and
WHEREAS, On October 24, 2024, the San Francisco Planning Department determined the Project to be categorically exempt from environmental review under the California Environmental Quality Act Guidelines section 15302, Class 2 (Replacement or Reconstruction) and section 15303, Class 3 (New Construction or Conversion of Small Structures) under Case Number 2021- 000634ENV; and
WHEREAS, Funds are available from Project No. 10036588, 8-Inch Ductile Iron Water Main Replacement and 16 -Inch Ductile Iron Water Main Installation on San Bruno Ave. from Campbell Ave. to Paul Ave. and on Blanken Ave. from Bayshore Blvd. to Executive Park Blvd.; now, therefore, be it
RESOLVED, That this Commission hereby awards Contract No. WD-2876, 8-Inch Ductile Iron Water Main Replacement and 16 -Inch Ductile Iron Water Main Installation on San Bruno Ave. from Campbell Ave. t o Paul Ave. a nd on Blanken Ave. from Bayshore Blvd. to Executive Park Blvd., in the amount of $11,474,011, and a duration of 634 consecutive calendar days to the responsible bidder that submitted the lowest responsive bid, Cratus, Inc.
I hereby certify that the foregoing resolution was adopted by the Public Utilities Commission at its meeting of November 12, 2024.
Director of Commission Affairs
San Francisco 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
1455 Market Street, Suite 16A, San Francisco, CA 94103 Telephone (415) 554-0630
MEMORANDUM
Date: September 30, 2024
To: Ryan Freeborn, SFPUC
From: Katherine Mundhenk, on behalf of Jason Chow, CMD
Subject: CMD Review – WD-2876 -- 8-Inch Ductile Iron Water Main Replacement and 16-Inch Ductile Iron Water Main Installation on San Bruno Ave. from Campbell Ave. to Paul Ave. and on Blanken Ave. from Bayshore Blvd. to Executive Park Blvd.
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 14% 1 for this
project. Below is a summary of CMD’s review.
Bid Discount
Firm LBE
Status
Base
Bid
Bid
Discount
Adjusted Bid
(with Bid Discount applied)
Cratus, Inc. Non-LBE $11,474,011.00 Not Applicable $11,474,011.00 M Squared Construction,
Inc.
SF LBE-OBE
(Small) $11,870,227.00 2% =
$237,404.54 $11,632,822.46
A. Ruiz Construction Co. &
Assoc., Inc.
SF LBE-MBE
(Small) $12,400,688.50 2% =
$248,013.77 $12,152,674.73
Mitchell Engineering SBA-LBE (OBE) $12,798,519.00 2% =
$255,970.38 $12,542,548.62
Basset Engineering SF LBE-OBE
(Micro) $13,056,371.00 2% =
$261,127.42 $12,795,243.58
NTK Construction, Inc. Non-LBE $14,469,850.10 Not Applicable $14,469,850.10
1 The LBE subcontracting requirement is below 20% for the following reason: the contract includes Contractor procurement of pipeline materials to be installed within the project limits. Pipeline procurement is through a non-LBE supplier and therefore reduces the overall LBE availability on this contract.
LBE Subcontracting Participation Requirement
Cratus, Inc. (“Cratus”) is the lowest responsive bidder. Cratus met the 14% Micro/Small-LBE subcontracting requirement by listing the following Micro/Small-LBE firms on Section 00 43 36 (Subcontractor List):
LBE
Subcontractor Scope of Work LBE Status,
Type and Size Listed Amount LBE-Credited
Amount
Credited
Participation
RK Engineering,
Inc. Flat Work SF LBE-OBE
(Micro) $485,440.00 $ 485,440.00 4.23%
Devaney
Engineering Sewer Items SF LBE-OBE
(Micro) $200,000.00 $ 200,000.00 1.74%
Ronan
Construction,
Inc.
Grinding &
Paving
SF LBE-OBE
(Micro) $607,360.00 $ 607,360.00 5.29%
Crana Trucking
LLC
Trucking
(Partial)
SF LBE-OBE
(Micro) $100,000.00 $ 100,000.00 0.87%
Total Traffic
Control, Inc. Traffic Control SF LBE-OBE
(Small) $250,000.00 $ 250,000.00 2.18%
TOTAL $1,642,800.00 $1,642,800.00 14.32%
Cratus did not list any non-LBE subcontractor on Section 00 43 36.
Good Faith Efforts Requirements
Cratus met the Good Faith Efforts (“GFE”) Requirements through Approach C (50 points) on CMD Form 2B.
Based on the foregoing, CMD has determined that Cratus 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 415-551-4335.