DEPARTMENT Infrastructure Division AGENDA NO. 7c
MEETING DATE December 10, 2024
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Calendar: Consent Calendar
Project Manager: Ryan Freeborn
Award Contract No. WD -2875, 8-Inch and 12 -Inch Ductile Iron Water Main and Sewer Replacement on Grand View Avenue from Clipper Street to Romain Street, and Various Area Streets
Summary of
Proposed
Commission Action:
Award Contract No. WD-2875, 8-Inch and 12-Inch Ductile Iron Water Main and Sewer Replacement on Grand View Avenue from Clipper Street to Romain Street, and Various Area Streets , to the responsible bidder that submitted the lowest responsive bid, Basset Engineering Inc., in the amount of $10,145,959 and with a duration of 640 consecutive calendar days (approximately one year and nine months), to install water mains in the Noe Valley District 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 exempt 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 2- to 8-inch diameter cast iron water mains scheduled to be replaced under this c ontract between 1896 and 1953. D ue to the advanced age of the pipes (between 71 to 128 years), material, and history of repeated main breaks in the neighborhood, the SFPUC has prioritized their replacement.
Scope of Contract: The contract work location is in the Noe Valley District of the City and County of San Francisco.
T
he contract work includes installation of:
• 9,300 feet of 8-inch diameter ductile iron water conveyance pipe; • 700 feet of 12-inch diameter ductile iron water conveyance pipe; • 1,200 feet of sewer pipe;
• Ancillary water service pipe; and
• curb ramps and pavement restoration.
Agenda Title: Contract No. WD-2875, 8-Inch and 12-Inch Ductile Iron Water Main and Sewer Replacement on Grand View Avenue from Clipper Street to Romain Street, and Various Area Streets Commission Meeting Date: December 10, 2024
Funding and Costs: Funding Source: Project No. 10036589, SFPUC Local Conveyance/Distribution System Program and Wastewater Enterprise Renewal and Replacement Program
Engineer’s Estimate: $10,800,000
Award: $10,145,959
Funding between SFPUC Local Conveyance/Distribution System Program and Wastewater Enterprise Renewal and Replacement Program as follows:
DEPARTMENT FUNDING SOURCE AMOUNT
SFPUC: Water
Enterprise
Local
Conveyance/Distribution
System Program
$8,325,937
SFPUC:
Wastewater
Enterprise
Renewal and Replacement
Program $1,820,022
CONTRACT TOTAL $10,145,959
Schedule: Estimated Notice-to-Proceed Date: April 2025
Estimated Completion Date: January 2027
Contract Duration: 640 consecutive calendar days (595 consecutive calendar days to Substantial Completion and an additional 45 consecutive calendar days to Final Completion)
Bid History:
Advertised: August 30, 2024
Bids Received: On October 10, 2024, the SFPUC received six sealed bids:
Bid Rank Bid Amount LBE
Discount
Bid
Adjusted
Bid
Final
Rank
1. Basset
Engineering
$10,145,959 2% $9,943,040 1
2. M Squared
Construction,
Inc.
$10,600,000 2% $10,388,000 2
3. A. Ruiz
Construction Co.
& Assoc., Inc.
$11,176,575 2% $10,953,044 3
4. JMB
Construction,
Inc.
$11,464,182 N/A $11,464,182 4
Agenda Title: Contract No. WD-2875, 8-Inch and 12-Inch Ductile Iron Water Main and Sewer Replacement on Grand View Avenue from Clipper Street to Romain Street, and Various Area Streets Commission Meeting Date: December 10, 2024
5. Mitchell
Engineering
$12,977,619 2% $12,718,067 5
6. NTK
Construction,
Inc.
$13,190,363 N/A $13,190,363 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 November 25, 2024, the San Francisco Planning Department determined the water replacement component of the Project to be categorically exempt from environmental review under the CEQA Guidelines section 15302, Class 2 (Replacement or Reconstruction) under Case Number 2021- 009298ENV. The exemption determination can be found here:
https://sfpuc.sharefile.com/public/share/web-
s0e561140150e4c34bdce4727c8387645
On September 9, 2021, the San Francisco Planning Department determined the sewer replacement component of the Project to be statutorily exempt from environmental review under the CEQA section 21080.21 and the CEQA Guidelines section 15282(k) because the proposed pipeline replacement will be in the public right -of-way and does not exceed one mile in length under Case Number 2021-009064ENV. The exemption determination can be found here: https://sfpuc.sharefile.com/public/share/web-
s8bb865d4083d46f3b36566e63c06c540
The water and sewer replacement components of the Project were combined under this contract for contracting convenience but have independent utility under the CEQA.
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 (LBE) subcontracting requirement for this contract. The contractor committed to a 16.24% LBE subcontractor participation with its bid submittal.
Attachment(s): 1. Contract Monitoring Division Memorandum Agenda Title: Contract No. WD-2875, 8-Inch and 12-Inch Ductile Iron Water Main and Sewer Replacement on Grand View Avenue from Clipper Street to Romain Street, and Various Area Streets Commission Meeting Date: December 10, 2024
LOCATION PLAN
Agenda Title: Contract No. WD-2875, 8-Inch and 12-Inch Ductile Iron Water Main and Sewer Replacement on Grand View Avenue from Clipper Street to Romain Street, and Various Area Streets Commission Meeting Date: December 10, 2024
WD-2875, LOCATION MAP
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 water pipelines that have either been damaged or are at the end of their useful service life to ensure reliable water delivery within the City; and
WHEREAS, On August 30, 2024, the SFPUC advertised Contract No. WD-2875, 8-Inch and 12- Inch Ductile Iron Water Main and Sewer Replacement on Grand View Avenue from Clipper Street to Romain Street, and Various Area Streets; and
WHEREAS, The Engineer’s Estimate is $10,800,000 for this construction work to install approximately 10,000 feet of ductile iron water conveyance pipe, 1,200 feet of sewer pipe, ancillary water service pipe, curb ramps, and pavement restoration in the Noe Valley District of San Francisco; and
WHEREAS, The contract duration is 640 consecutive calendar days; and
WHEREAS, On October 10, 2024, SFPUC received and publicly opened six bids; and
WHEREAS, SFPUC staff and Contract Monitoring Division (CMD) reviewed the bids and the application of bid preferences and determined that Basset Engineering Inc., is the responsible bidder that submitted the lowest responsive bid; and
WHEREAS, The CMD established a 15% Local Business Enterprise (LBE) subcontracting requirement for this contract, and Basset Engineering Inc., committed to 16.24% LBE subcontractor participation in its bid submittal; and
WHEREAS, On November 25, 2024, the San Francisco Planning Department determined the water replacement component of the Project to be categorically exempt from environmental review under the California Environmental Quality Act (CEQA) Guidelines section 15302, Class 2 (Replacement or Reconstruction) under Case Number 2021-009298ENV; and
WHEREAS, On September 9, 2021, the San Francisco Planning Department determined the sewer replacement component of the Project to be s tatutorily exempt from environmental review under the CEQA section 21080.21 and the CEQA Guidelines section 15282(k) because the proposed pipeline replacement will be in the public right-of-way and does not exceed one mile in length under Case Number 2021-009064ENV; and
WHEREAS, The water and sewer replacement components of the Project were combined under this contract for contracting convenience but have independent utility under the CEQA; and
WHEREAS, Funds are available from Project No. 10036589, SFPUC Local Conveyance/Distribution System Program and Wastewater Enterprise Renewal and Replacement Program; now, therefore, be it
RESOLVED, That this Commission hereby awards Contract No. WD -2875, 8-Inch and 12-Inch Ductile Iron Water Main and Sewer Replacement on Grand View Avenue from Clipper Street to Romain Street, and Various Area Streets , in the amount of $10,145,959, and with a duration of 640 consecutive calendar days , to the responsible bidder that submitted the lowest responsive bid, Basset Engineering Inc.
I hereby certify that the foregoing resolution was adopted by the Public Utilities Commission at its meeting of December 10, 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: November 11, 2024
To:
Jonathan Cantu, Project Manager, SFPUC
Ryan Freeborn, Project Manager, SFPUC
Erica Liang, Contract Administration Bureau, SFPUC
From: Adriana Duran, Contract Monitoring Division
Subject:
CMD Review of Bids Submitted on 10/10/2024 for WD-2875- 8-inch and 12-inch Ductile Iron Water Main and Sewer Replacement on Grand View Avenue from Clipper Street to Romain Street, and Various
Basset Engineering is the apparent low bidder after the bid discount.
The bid discount was applied to bidders who are certified by the Contract Monitoring Division, (“CMD”) as an LBE in the type of work that is specified for the bidder by the Contract Awarding Authority. [Sec. 14B.7(D)]
Bidder
LBE Status,
Type and
Size
Base Bid
Bid Discount
Adjusted Bid
with
Bid Discount
Basset Engineering
SF LBE-OBE
(Micro) $10,145,959.00 2%= $202,919.18 $9,943,039.82
M Squared
Construction, Inc.
SF LBE-OBE
(Small) $10,600,000.00 2%=$212,000.00 $10,388,000.00
A. Ruiz Construction Co.
& Assoc., Inc.
SF LBE-MBE
(Small) $11,176,575.00 2%=$223,531.50 $10,953,043.50
JMB Construction, Inc. Non-LBE $11,464,182.00 Not eligible $11,464,182.00 Mitchell Engineering SBA-LBE
(OBE) $12,977,619.00 2%=$259,552.38 $12,718,066.62
NTK Construction, Inc. Non-LBE $13,190,363.00 Not eligible $13,190,363.00
Basset Engineering satisfactorily demonstrated how they will meet the LBE subcontractor participation requirement.
A combination of Micro-LBE and Small-LBE participation will count toward LBE subcontractor participation compliance. Basset Engineering’s commitment for this contract:
Requirement % Commitment %
Micro/Small LBE 15% 16.24%
In their bid, Basset Engineering listed the following subcontractors on this contract.
Supplier Name Scope of Work
LBE
LBE
Size
LBE
Percent
Percent
Of
Work
Listed Amount
Ronan Construction Grind and Pave, Saw
cutting LBE Micro 100% 8.36% $873,140.00
Crana Trucking Trucking LBE Micro 100% 7.88% $800,000.00
Basset Engineering did not list any non-LBE subcontractors.
Ronan Construction’s portion of work is credited for less than the listed amount because Ronan Construction further subcontracted out to Non-LBE Delta Grinding.
SFPUC utilizes SOLIS system. For SOLIS, the LBE credited percentages are listed below:
LBE Subcontractor LBE Status LBE Credited Participation Amount
LBE Credited
Participation
Percentage
Ronan Construction SF LBE-OBE (Micro) $848,140.00 8.36% Crana Trucking SF LBE-OBE (Micro) $800,000.00 7.88%
TOTAL $1,648,140.00 16.24%
Delta Grinding is considered a non-LBE for their portion of work because they are not certified for their listed scope.
Basset Engineering satisfied the “Good Faith Efforts” requirement.
Basset Engineering utilized Approach A and exceeded the LBE subcontractor participation requirement by 35%.
CMD finds Basset Engineering is responsive to pre-award requirements of Chapter 14B. Once awarded, the contract will be monitored for compliance with the LBE subcontractor participation commitment, as well as other 14B requirements.
Primary CMD contact for the contract: Adriana Duran, [email protected]
CMD must be contacted immediately for:
- Subcontractor addition/substitution;
- Contract modification that cumulatively increases the original contract value by 20%; - Prompt payment issues;
- Any other issues pertaining to LBE subcontractor participation
Noncompliance may result in penalties, including monetary fines. Please communicate with CMD early.
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