DEPARTMENT
Infrastructure Division
AGENDA NO. 7b
MEETING DATE
February 25, 2025
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Calendar: Consent Calendar
Project Manager: John Wong
Award Contract No. WW-727, Various Locations Sewer Replacement No. 16
Summary of Proposed
Commission Action:
Award Contract No. WW-727, Various Locations Sewer Replacement No. 16, to the responsible bidder that submitted the lowest responsive bid, Precision Engineering, Inc., in the amount of $8,702,449 and with a duration of 580 consecutive calendar days (approximately one year and seven months) to replace/line existing sewers on specified streets in the City and County 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 San Francisco Public Utilities Commission (SFPUC) Wastewater Enterprise inspected the existing sewers on the subject streets listed below within the City and County of San Francisco and determined they are at risk of failure and should be replaced or r ehabilitated. The City constructed the main sewers that will be replaced, lined, or mortared under this contract from 1840 to 1945.
Scope of Contract: The contract work location(s) to replace/line existing sewers includes:
• 36th Avenue, from Anza Street to Geary Boulevard;
• 17th Avenue, from Cabrillo Street to Fulton Street;
• 10th Avenue, from Cabrillo Street to Balboa Street;
• Clayton Street, from Grove Street to Fulton Street;
• Turk Boulevard, from Saint Joseph’s Avenue to Baker Street; • Pacific Avenue, from Scott Street to Divisadero Street; • Pierce Street, from Filbert Street to Union Street;
• Fillmore Street, from Pixley Street to Union Street;
• Fillmore Street, from Beach Street to North Point Street; • Fillmore Street, from Jefferson Street to Retiro Way; • Buchanan Street, from Beach Street to North Point Street; • Cedar Street, from Van Ness Avenue to Polk Street;
• Beaver Street, from Noe Street to Castro Street;
• Valencia Street, from 20th Street to Cunningham Place; • 19th Street, from York Street to Hampshire Street;
• Arkansas Street, from 16th Street to Mariposa Street; Agenda Title: WW-727, Various Locations Sewer Replacement No. 16 Commission Meeting Date: February 25, 2025
• Cortland Avenue, from Mission Street to Coleridge Street; • Bosworth Street, from Congo/Elk Street to Burnside Avenue; • Diamond Street, from 23rd Street to Alvarado Street;
• Parnassus Street, from Cole Street to Shrader Street; and • Buchanan Street, from Hickory Street to Fell Street.
The contract work consists of:
• Replacing existing sewers with approximately 7,000 linear feet of 12-inch, 15- inch, 18- inch, 21- inch, 24- inch and 27-inch diameter vitreous clay pipe; and
• Cured-in-place lining of approximately 1,200 linear feet of existing 8-inch, 10-inch, 12-inch and 15-inch diameter and 3'x5' brick sewers.
Funding and Costs: Funding Source: Project No. 10038003, Various Locations Sewer Replacement No. 16
• SFPUC Wastewater Renewal and Replacement Program :
$8,532,882.45
• SF Public Works Paving and Curb Ramp Programs: $169,566.05 Engineer’s Estimate: $9,900,000
Award Amount: $8,702,449
Schedule: Estimated Notice-to-Proceed Date: May 2025
Estimated Completion Date: December 2026
Original Contract Duration: 580 consecutive calendar days (approximately one year and seven months) (520 consecutive calendar days to Substantial Completion and an additional 60 consecutive calendar days to Final Completion)
Bid History:
Advertised: September 6, 2024
Bids Received: On October 10, 2024, the SFPUC received five sealed bids, ranked as follows:
Bid Rank Bid Amount Bid
Preference
Adjusted Bid Final Rank
Michael
O'Shaughnessy
Construction,
Inc.
$8,421,657.49 10% $7,579,491.74 Non-
responsive
Precision
Engineering,
Inc.
$8,702,448.50 10% $7,832,203.65 1
SubTerra
Construction,
Inc.
$9,317,690.00 10% $8,385,921.00 2
JDB & Sons
Construction
$9,525,151.00 10% $8,572,635.90 3
Basset
Engineering
$9,592,845.68 10% $8,633,561.11 4
Agenda Title: WW-727, Various Locations Sewer Replacement No. 16 Commission Meeting Date: February 25, 2025
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 May 30, 2024, the San Francisco Planning Department determined the Project to be categorically exempt from environmental review under the CEQA Guidelines section 15301, Class 1 ( Existing Facilities) under Case Number 2023-000379ENV . The exemption determination can be found here:
https://sfpuc.sharefile.com/public/share/web-
sacc3103016124b58ba8d52d325dd5e0c
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 (CMD) established a 15% Local Business Enterprise (LBE) subcontracting requirement for this contract. The contractor committed to a 15.17% LBE subcontractor participation with its bid submittal.
Attachment(s): 1. CMD Memorandum
Agenda Title: WW-727, Various Locations Sewer Replacement No. 16 Commission Meeting Date: February 25, 2025
WW-727 Project Location Map
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, The San Francisco Public Utilities Commission (SFPUC) inspected existing sewers in the City and County of San Francisco and determined that certain locations require replacement or rehabilitation; and
WHEREAS, On September 6 , 2024, the SFPUC advertised Contract No. WW-727, Various Locations Sewer Replacement No. 16; and
WHEREAS, The Engineer’s Estimate is $ 9,900,000 for this construction work to replace/line the existing sewers at various locations in the City and County of San Francisco; and
WHEREAS, The contract duration is 580 consecutive calendar days; and
WHEREAS, On October 10, 2024, the SFPUC received and publicly opened five bids; and
WHEREAS, SFPUC staff and the Contract Monitoring Division (CMD) reviewed the bids and the application of bid preferences and have determined that Precision Engineering, Inc., is the responsible bidder with the lowest responsive bid; and
WHEREAS, The CMD established a 15% Local Business Enterprise (LBE) subcontracting requirement for this contract, and Precision Engineering, Inc., committed to 15.17% LBE subcontractor participation in its bid submittal; and
WHEREAS, On May 30, 2024, the San Francisco Planning Department determined the Project to be categorically exempt from environmental review under the California Environmental Quality Act Guidelines section 15301, Class 1 (Existing Facilities) under Case Number 2023- 000379ENV; and
WHEREAS, Funds are available from Project No. 10038003, Various Locations Sewer Replacement No. 16; now, therefore, be it
RESOLVED, That this Commission hereby awards Contract No. WW-727, Various Locations Sewer Replacement No. 16, in the amount of $8,702,449, and with a duration of 580 consecutive days, to the responsible bidder that submitted the lowest responsive bid, Precision Engineering, Inc.
I hereby certify that the foregoing resolution was adopted by the San Francisco Public Utilities Commission at its meeting of February 25, 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
1455 Market Street, 16A Suite, San Francisco, CA 94103
Telephone (415) 581-2310 General Email [email protected]
MEMORANDUM
Date: January 29, 2025
To: Aileen Caylao, SFPUC
Johnny Wong, SFPUC
Jeremy Brooks, SFPUC
From: Jovi Cuntapay-Vitin, Contract Monitoring Division
Subject: CMD Review of Bids Submitted on October 10, 2024 for WW-727 Various Locations Sewer Replacement No. 16
Michael O'Shaughnessy Construction, Inc. (“MOSCI”) 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
Michael O'Shaughnessy
Construction, Inc.
SF LBE-WBE
(Small) $ 8,421,657.49 10% = $ 842,165.75 $ 7,579,491.74 Precision Engineering,
Inc.
SF LBE-OBE
(Small) $ 8,702,448.50 10% = $ 870,244.85 $ 7,832,203.65 SubTerra Construction,
Inc.
SF LBE-OBE
(Micro) $ 9,317,690.00 10% = $ 931,769.00 $ 8,385,921.00 JDB & Sons Construction,
Inc.
SF LBE-OBE
(Micro) $ 9,525,151.00 10% = $ 952,515.10 $ 8,572,635.90 Basset Engineering SF LBE-OBE
(Micro) $ 9,592,845.68 10% = $ 959,284.57 $ 8,633,561.11
Precision Engineering, Inc. is the lowest responsive and responsible bidder because MOSCI was found by the contract awarding authority, SFPUC, as non-responsible to the minimum qualifications.
Precision Engineering, Inc. 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. Precision Engineering, Inc.’s commitment for this contract:
Requirement % Commitment %
Micro/Small LBE 15.00% 15.17%
A combination of Micro-LBE and Small-LBE participation will count toward LBE subcontractor participation compliance with a distinct minimum requirement for Micro-LBEs. Precision Engineering, Inc.’s commitment for this contract:
In their bid, Precision Engineering, Inc. listed the following subcontractors on this contract.
Supplier Name Scope of Work
LBE
LBE
Size
LBE
Percent
Listed
Percent
of Work
Listed
Amount
R & S Construction
Management, Inc.
Concrete Manhole
(Full)
SF LBE -
MBE Micro 100% 0.27% $ 23,500.00
DR Traffic Control
LLC Traffic Control (Full) SF LBE -
MBE Micro 100% 0.23% $ 20,000.00
Crana Trucking Trucking (Full) SF LBE-
OBE Micro 100% 2.30% $ 200,000.00
Esquivel Grading &
Paving, Inc.
Grinding & Paving
(Full)
SF LBE -
MBE Small 100% 12.38% $ 1,077,035.00
SAK Construction CIPL Work (Full) 6.81% $ 592,696.00
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
R & S Construction
Management, Inc.
SF LBE-MBE
(Micro) $ 23,500.00 0.27%
DR Traffic Control LLC SF LBE-MBE
(Micro) $ 20,000.00 0.23%
Crana Trucking SF LBE-OBE
(Micro) $ 200,000.00 2.30%
Esquivel Grading & Paving,
Inc.
SF LBE-MBE
(Small) $ 1,077,035.00 12.38%
TOTAL $1,320,535.00 15.17%
Precision Engineering, Inc. satisfied the “Good Faith Efforts” requirement.
Precision Engineering, Inc. utilized Approach A and exceeded the LBE subcontractor participation requirement by 35% by relying on self-performed contract work as a Small-LBE Prime Bidder.
CMD finds Precision Engineering, Inc. 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: Jovi Cuntapay-Vitin, [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.
[JCV]