DEPARTMENT
Infrastructure Division
AGENDA NO.
7c
MEETING DATE
January 14, 2025
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Calendar: Regular Calendar
Contract Manager: Judy Chin
Approve Modification No. 1 to Job Order Contract No. JOC-93, General Engineering (A License) Construction, San Francisco, San Mateo, Santa Clara, and Alameda Counties
Summary of Proposed
Commission Action:
Approve Modification No. 1 to Job Order Contract No. JOC-93, General Engineering (A License) Construction, San Francisco, San Mateo, Santa Clara, and Alameda Counties, with M. Hernandez Construction, Inc., (dba) Hernandez Engineering , to increase the contract not -to-exceed amount by $2,500,000, for a revised contract not-to-exceed amount of $7,500,000, and to increase the contract duration by three years, for a total contract duration of five years, to provide additional time and capacity for facility and asset improvements.
Background: A Job Order Contract is an indefinite quantity, task-order based contract that enables the San Francisco Public Utilities Commission (SFPUC) to complete construction tasks quickly and efficiently on an as -needed basis under a single, competitively bid construction contract using published pre -set unit prices.
The SFPUC has used Job Order Contracts for a wide range of construction activities including general building construction and general engineering construction, specialized electrical work in power turbines and switchyards, spot sewer repair, marine related services, lighting upgrades, repair of heating, ventilation, and air conditioning systems, and energy efficiency retrofits.
The not -to-exceed amount of this c ontract is $ 5,000,000. Under San Francisco Administrative Code Section 6.62, the Commission may increase the maximum contract value by up to 150% of the original contract value (an additional $2,500,000) for a total potential maximum contract amount of $7,500,000.
The duration of this C ontract is two years . Under San Francisco Administrative Code Section 6.62, the Commission may extend the term to a maximum duration of five years. The SFPUC may not issue any new task Agenda Title: JOC-93, General Engineering (A License) Construction, San Francisco, San Mateo, Santa Clara, and Alameda Counties
Commission Meeting Date: January 14, 2025
orders under this Contract after four years from the date the Controller certifies the availability of funds for this Contract.
On April 11, 2023, by Resolution No. 23-0066, the Commission awarded Job Order Contract No. JOC-93, General Engineering (A License) Construction, San Francisco, San Mateo, Santa Clara, and Alameda Counties to M.
Hernandez Construction, Inc., (dba) Hernandez Engineering, with an original contract not-to-exceed amount of $5,000,000 and an original contract duration of two years.
Scope of Contract: The contract work locations are San Francisco, San Mateo, Santa Clara, and Alameda Counties. The scope of work for potential task orders consists of:
• Concrete;
• Construction Traffic Control;
• Earthwork and Paving;
• Electrical;
• General Engineering Construction;
• Landscape;
• Lenel Systems Integration;
• Pipeline;
• Tree Service;
• Well Drilling; and
• Well Pump Repair.
Modifications to the
Contract:
Recommended Modification No. 1: Staff recommends Commission approval to increase the contract not-to-exceed amount by $2,500,000, for a revised contract not-to-exceed amount of $7,500,000, and to i ncrease the contract duration by three years, for a total contract duration of five years, to provide additional time and capacity for facility and asset improvements such as concrete, construction traffic control, earthwork and p aving, electrical, general engineering construction, landscape, Lenel s ystems integration, pipeline, tree service, well drilling, and well pump repair for the SFPUC Operations and Bureaus.
Funding and Costs: Funding: Staff encumbers funds for each task o rder concurrently with issuance of a Notice -to-Proceed. The SFPUC Operations and Bureaus requesting work provide the funding for each task order.
Original Not-to-Exceed Award Amount: $5,000,000
Recommended Modification Amount: $2,500,000
Total Not-to-Exceed Contract Amount: $7,500,000
Schedule: Certification Date: May 3, 2023
Original Duration: Two years
Agenda Title: JOC-93, General Engineering (A License) Construction, San Francisco, San Mateo, Santa Clara, and Alameda Counties
Commission Meeting Date: January 14, 2025
Recommended Modification: Three years
Total Revised Contract Duration: Five years
Local Business
Enterprise Utilization
and Non-
Discrimination in
Contracting:
The Contract Monitoring Division established a 16% Local Business Enterprise (LBE) subcontracting requirement for this contract. M. Hernandez Construction, Inc., (dba) Hernandez Engineering, committed to an 18% LBE subcontractor participation with its bid submittal , and this amount remains unchanged.
Attachment: 1. Contract Monitoring Division Memorandum
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, The San Francisco Public Utilities Commission (SFPUC) requires as-needed construction for a wide range of construction activities to support its facilities , including general building construction and general engineering construction, specialized electrical work in power turbines and switchyards, spot sewer repair, marine related services, lighting upgrades, repair of heating, ventilation, and air conditioning systems, and energy efficiency retrofits, and the SFPUC typically utilizes a Job Order Contract (JOC) to perform this work; and
WHEREAS, On April 11, 2023, by Resolution No. 23-0066, this Commission awarded Job Order Contract No. JOC-93, General Engineering (A License) Construction, San Francisco, San Mateo, Santa Clara, and Alameda Counties to M. Hernandez Construction, Inc., (dba) Hernandez Engineering; and
WHEREAS, The contract certification date was May 3, 2023; and
WHEREAS, The original contract amount was for an amount not to exceed $5,000,000, and the original contract duration was two years; and
WHEREAS, Staff recommends approval of Modification No. 1 to increase the contract not-to-exceed amount by $2,500,000, for a revised contract not-to-exceed amount of $7,500,000, and to increase the contract duration by three years , for a total contract duration of five years, to provide additional time and capacity for facility and asset improvement s such as concrete, construction traffic control, earthwork and paving, electrical, general engineering construction, landscape, Lenel systems integration, pipeline, tree service, well drilling, and well pump repair for Operations and Bureaus; and
WHEREAS, The Contract Monitoring Division established a Local Business Enterprise (LBE) subcontracting requirement of 16% for this c ontract, M. Hernandez Construction, Inc., (dba) Hernandez Engineering, committed to 18% LBE subcontractor participation with its bid submittal, and this amount remains unchanged; and
WHEREAS, Funds will be available from various SFPUC Enterprise funds when Task Orders are issued; now, therefore, be it
2 RESOLVED, That this Commission hereby approves Modification No. 1 to Job Order Contract No. JOC-93, General Engineering (A License) Construction, San Francisco, San Mateo, Santa Clara, and Alameda Counties with M. Hernandez Construction, Inc., (dba) Hernandez Engineering, increasing the contract not-to-exceed amount by $2,500,000, for a revised contract not-to-exceed amount of $7,500,000, and increasing the contract duration by three years, for a total contract duration of five years.
I hereby certify that the foregoing resolution was adopted by the Public Utilities Commission at its meeting of January 14, 2025.
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
1155 Market Street, 4th Floor, San Francisco, CA 94103
Telephone (415) 581-2310 General Email [email protected]
MEMORANDUM
Date: December 11, 2024
To: Judy Chin, SFPUC
Jennifer Walker, SFPUC
From: Adriana Duran, CMD
Subject: CMD Modification No. 1 for JOC-93 General Engineering (A License) Construction, San Francisco, San Mateo, Santa Clara, and Alameda Counties
SFPUC has requested to modify the above referenced contract by $2,500,000 for a total agreement amount of $7,500,000, and with a time extension of three (3) years, for a total contract duration of not -to-exceed five (5) years. According to recent communications with the SFPUC, the scope of work for CMD Modification No.1 consists of additional time and capacity for facility and asset improvements such as: Concrete, Construction Traffic Control Services, Earthwork and Paving, Electrical, General Eng ineering, Landscape, Lenel Systems Integration, Pipeline, Tree Service, Well Drilling and Well Pump Repair.
The LBE subcontracting participation requirement established for this contract is 16%. The LBE subcontracting participation requirement applies to the entire contract including any modifications, change orders and amendments.
The LBE participation reflected on the Prime Contractor’s, M. Hernandez Construction, Inc. (dba) Hernandez Engineering (“Hernandez”), Section 00 43 36 at the time of bid is as follows:
Subcontractor Scope of Work
LBE Status,
Type and
Size
Listed & Credited
Participation
Bay Tech Engineering Electrical Work SF LBE-MBE
(Micro)
$300,000 6.00%
Arborist Now Inc. Landscape Services;
Tree Services
SF LBE-OBE
(Micro)
$600,000 12.00%
TOTAL $900,000 18.00%
As of December 6, 2024, Hernandez invoiced $827,893.45 per SOLIS. The Micro/Small LBE participation achieved by Hernandez is as follows:
Subcontractor Scope of
Work
LBE Status,
Type and Size
Participation To-Date
(NOT including Modification No. 1)
Invoiced Paid
Bay Tech Engineering Electrical Work SF LBE-MBE
(Micro)
$0.00 $0.00
Arborist Now Inc. Landscape
Services; Tree
Services
SF LBE-OBE
(Micro)
$0.00 $0.00
GSW Construction
Inc.
Culvert Work SF LBE-OBE
(Micro)
$452,780 $452,780
TOTAL $452,780 $452,780
According to Hernandez and confirmed by SFPUC, Bay Tech Engineering and Arborist Now Inc. have not been utilized as of today. Due to the task orders issued to-date do not include landscape and/or tree work as well as electrical work that LBE subcontractors are listed to perform.
Hernandez confirmed that Arborist Now Inc. may have an opportunity to perform work under Task Order No. 4 and 5. Therefore, there are no invoices submitted and reflected in SOLIS yet – see table above. However, Hernandez is required to make good faith efforts to utilize LBEs for any scopes of work, or portions thereof, which can reasonably be subcontracted throughout the life of the agreement. Upcoming Task Orders No. 04 and No.5 have approved proposal for potential landscape work th at may require tree pruning to decommission for the Golden Gate Park wells. This is an allowance and if needed and directed by SFPUC the work is scheduled to be performed by LBE Arborist Now in upcoming months.
Based on the projected work requested by SFPUC, Hernandez has added two additional LBE firms, GSW Construction Inc., and Watertight Restoration Inc. to maximize LBE participation.
Hernandez confirmed that it will remain committed to meet their 18% LBE commitment .
Hernandez anticipates meeting its commitment, as follows:
Subcontractor Scope of Work
LBE Status,
Type and
Size
Projected Participation
(including Modification
No. 1)
Bay Tech Engineering Electrical Work SF LBE-MBE
(Micro)
$300,000 4%
Arborist Now Inc. Landscape
Services; Tree
Services
PUC LBE-OBE
(Micro)
$447,220 6%
GSW Construction Inc. Culvert Work SF LBE-OBE
(Micro)
$452,780 6%
Watertight Restoration
Inc.
Pipe Cleaning and
Corrosion Repairs
SF LBE-OBE
(Micro)
$150,000 2%
TOTAL $1,350,000 18%
Going forward, to ensure compliance with the Chapter 14B post-award requirements, SFPUC and Hernandez will continue to notify and obtain CMD approval for any proposed subcontractor
additions and/or substitutions throughout the term of this contract as well as any changes to the scope of work and the information provided to CMD. CMD will review this information to determine and facilitate progress towards the project’s LBE subcontracting requirement. Contingent upon the conditions set forth above, CMD approves this modification. Should you have any questions and/or concerns regarding the above, I can be reached at [email protected].