DEPARTMENT
Infrastructure Division
AGENDA NO. 7a
MEETING DATE
May 13, 2025
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Calendar: Consent Calendar
Project Manager: Carman Luk
Award Contract No. WW-754, West SOMA, Panhandle, and Inner Sunset Sewer Improvements
Summary of Proposed
Commission Action:
Award Contract No. WW-754, West SOMA, Panhandle, and Inner Sunset Sewer Improvements , to responsible bidder that submitted the lowest responsive bid, Precision Engineering, Inc., in the amount $17,912,054 and with a duration of 480 consecutive calendar days (approximately one year and four months), to rehabilitate and replace large diameter sewer s and laterals on specified streets within the City and County of San Francisco. This action constitutes the Approval Action for the West SOMA Sewer Improvement work 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 purpose of this project is to rehabilitate and replace the existing San Francisco Public Utilities Commission (SFPUC) Wastewater Enterprise sewers that are 100 -years old and identified to be at a high- risk of failure based on data from the SFPUC Condition Assessment Management Program.
The SFPUC project team confirmed the need for structural rehabilitation when televised videos of these sewers allowed observation of missing mortar and fallen bricks.
Scope of Contract: The contract work locations are on Mission Street, 9 th Street, Howard Street, Natoma Street, 8th Street, 7th Avenue, Stanyan Street, Fell Street , Cole Street, and Divisadero Street, all within the City and County of San Francisco.
The contract work consists of:
• Replacing and rehabilitating approximately 6,354 linear feet (LF) of existing sewers using cured- in-place-liners, slip -lining, or spray mortaring construction methods;
• Replacing approximately 500 LF of existing sewers by open -cut excavation;
• Rehabilitating existing sewer manholes and constructing new sewer manholes;
• Replacing and rehabilitat ing laterals and associated appurtenances ; and
Agenda Title: WW-754, West SOMA, Panhandle, and Inner Sunset Sewer Improvements Commission Meeting Date: May 13, 2025
• Restoring roadway and other associated sewer-related work.
Funding and Costs: Funding Source: Project No. 10041076, West SOMA Sewer Improvement, and 10034718, Panhandle and Inner Sunset Improvement
Engineer’s Estimate: $18,000,000
Award: $17,912,054
Schedule: Estimated Notice-to-Proceed Date: August 2025 Estimated Completion Date: November 2026
Contract Duration : 480 consecutive calendar days ( 420 consecutive calendar days to Substantial Completion and an additional 60 consecutive calendar days to Final Completion)
Bid History:
Advertised: January 31, 2025
Bids Received: On February 27, 2025, SFPUC received and publicly opened four bids, as follows:
Bid Rank &
Firm
Base Bid
Amount
Compensable
Delay
(60 days
duration)
LBE Bid
Discount Adjusted Bid
Final
Rank
1. Precision
Engineering,
Inc.
$17,912,054 $600 2% $17,554,400.92 1
2. JMB
Construction,
Inc.
$19,429,030 $60,000 N/A $19,489,030.00 2
3. M Squared
Construction,
Inc.
$21,779,920 $30,000 2% $21,373,721.60 3
4. Cratus, Inc. $22,756,220 $30,000 N/A $22,786,220.00 4
Because the SFPUC anticipates that potential unforeseen conditions or other factors outside the contractor’s control may impact the schedule, Staff included a requirement in the Invitation for Bids for bidders to provide a daily compensable time extension rate. At the bid opening, Staff announced that SFPUC would use the value of 60 -days to calculate the c ompensable delay bid adjustment amount. Staff used the daily rate in each bid to determine the total Compensable D elay value shown in the table above by multiplying the bidder’s daily rate time s 60. The Adjusted Bid value in the table above is the sum of the Base Bid Amount and Compensable Delay less any applicable bid discount. Staff used the Adjusted Bid value to compare and rank the bids to determine the lowest bidder. However, the contract award amount is the Base Bid value (not the Adjusted Bid value) and, if the Commission awards the contract, the bidder’s daily compensable delay rate will become a term of the contract.
Agenda Title: WW-754, West SOMA, Panhandle, and Inner Sunset Sewer Improvements Commission Meeting Date: May 13, 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 July 13, 2022, the San Francisco Planning Department determined the Panhandle and Inner Sunset Improvement project to be categorically exempt from environmental review under the CEQA Guidelines section 15302, Class 2 (Replacement or Reconstruction) under Case No. 2021-006343ENV.
On February 1, 2024, the San Francisco Planning Department determined the West SOMA Sewer Improvement
project to be statutorily exempt from
environmental review under the CEQA section 21080.21 and CEQA Guidelines section 15282(k) (Case No. 2024- 000830ENV), because the proposed pipeline replacement will be in the public right -of-way and does not exceed one mile in length.
The Panhandle and Inner Sunset Improvement work was added to this contract for contracting convenience and has independent utility from the West SOMA Sewer Improvement work under the CEQA.
The exemption determinations can be found here:
https://sfpuc.sharefile.com/public/share/web-
s65be0ac765e44cdeae77902fe51f2afb
This action constitutes the Approval Action for the West SOMA Sewer Improvement work 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 n 8% Local Business Enterprise (LBE) subcontracting requirement for this contract. The contractor committed to an 8.2% LBE subcontractor participation with its bid submittal.
Attachment(s): 1. Contract Monitoring Division Memorandum Agenda Title: WW-754, West SOMA, Panhandle, and Inner Sunset Sewer Improvements Commission Meeting Date: May 13, 2025
LOCATION MAP
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, The San Francisco Public Utilities Commission (SFPUC) Wastewater Enterprise Collection System Assessment Management Program identifies San Francisco sewers that are over 100-years old and pose a high-risk of failure; and
WHEREAS, On January 31, 2025, SFPUC advertised Contract No. WW-754, West SOMA, Panhandle, and Inner Sunset Sewer Improvements , to rehabilitate and replace large diameter sewer and laterals on Mission Street, 9 th Street, Howard Street, Natoma Street, 8 th Street, 7th Avenue, Stanyan Street, Fell Street, Cole Street, and Divisadero Street, within the City and County of San Francisco, as identified through the Collection System Assessment Management Program; and
WHEREAS, The Engineer’s Estimate is $18,000,000 for this construction work; and
WHEREAS, The contract duration is 480 consecutive calendar days; and
WHEREAS, On February 27, 2025, SFPUC received and publicly opened four bids; and
WHEREAS, SFPUC staff and Contract Monitoring Division (CMD) review ed 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, CMD established an 8% Local Business Enterprise (LBE) subcontracting requirement for this contract, and Precision Engineering, Inc., committed to 8.2% LBE subcontractor participation in its bid submittal; and
WHEREAS, On July 13, 2022, the San Francisco Planning Department determined the Panhandle and Inner Sunset Improvement project to be categorically exempt from environmental review under the CEQA Guidelines section 15302, Class 2 (Replacement or Reconstruction) under Case No. 2021-006343ENV; and
WHEREAS, On February 1, 2024, the San Francisco Planning Department determined the West SOMA Sewer Improvement project to be statutorily exempt from environmental review under the CEQA section 21080.21 and CEQA Guidelines section 15282(k) (Case No. 2024- 000830ENV), because the proposed pipeline replacement will be in the public right -of-way and does not exceed one mile in length; and
WHEREAS, The Panhandle and Inner Sunset Improvement work was added to this contract for contracting convenience and has independent utility from the West SOMA Sewer Improvement work under the CEQA; and
WHEREAS, Funds are available from Project No. 10041076, West SOMA Sewer Improvements, and 10034718, Panhandle and Inner Sunset Sewer Improvements; now, therefore, be it
RESOLVED, That this Commission hereby awards Contract No. WW-754, West SOMA, Panhandle, and Inner Sunset Sewer Improvements , in an amount of $17,912,054, and for a duration of 480 consecutive calendar 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 May 13, 2025.
Director of Commission Affairs
San Francisco Public Utilities Commission
City & County of San Francisco
Daniel Lurie, 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: March 31, 2025
To: Carman Luk, Project Manager, SFPUC
Frank Gennaccaro, Contract Administration, SFPUC
From: Jovi Cuntapay-Vitin, Contract Monitoring Division
Subject: CMD Review of Bids Submitted on February 27, 2025 WW-754: West SOMA, Panhandle, and Inner Sunset Sewer Improvements
Precision Engineering, Inc. 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
Compensable
Delay
(60 days)
Adjusted Bid
with
Bid Discount
Precision Engineering,
Inc.
SF LBE-OBE
(Small)
$17,912,054.00 2% $600.00
$17,554,400.92
JMB Construction, Inc. Non-LBE $19,429,030.00 Not eligible $60,000.00 $19,489,030.00 M Squared
Construction, Inc.
SF LBE-OBE
(Small)
$21,779,920.00 2% $30,000.00
$21,373,721.60
Cratus, Inc. Non-LBE $22,756,220.00 Not eligible $30,000.00 $22,786,220.00
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 8.00% 8.20%
In their bid, Precision Engineering, Inc. listed the following subcontractors on this contract.
Supplier Name Scope of Work
LBE
LBE Size
LBE
Percent
Percent
Of
Work
Amount
Camajani Trucking Trucking LBE MICRO 100% 1.95% $350,000.00 DR Traffic Control, LLC Traffic Control LBE MICRO 100% 3.63% $650,000.00
R&S Construction
Management, Inc.
Concrete Manholes &
Soffit LBE MICRO 100% 2.51% $449,000.00
Reliance Engineering,
Inc.
OCS Work LBE MICRO 100% 0.11% $20,000.00
SAK Construction, LLC CIPL Main 43.52% $7,795,000
H&R Plumbing & Drain
Cleaning, Inc. Spray Mortar 1.25% $224,400
Easy Flow, LLC CIPL Laterals 0.56% $100,000
Summit Pipelines Clean & CCTV 0.47% $85,000
SFPUC utilizes the SOLIS system. For ease of entry, included here are the figures captured by SOLIS:
LBE Subcontractor LBE Category, Type
and Economic
Threshold
Listed Original
Participation
Amount
Participation
Amount Subject
to LBE Goal
CMD
Awarded LBE
Goal %
Camajani Trucking SF LBE-MBE (Micro) $350,000.00 $350,000.00 1.95% DR Traffic Control, LLC SF LBE-MBE (Micro) $650,000.00 $650,000.00 3.63% R&S Construction
Management, Inc.
SF LBE-MBE (Micro) $449,000.00 $449,000.00
2.51%
Reliance Engineering, Inc. SF LBE-MBE (Micro) $20,000.00 $20,000.00 0.11% TOTAL $1,469,000.00 $1,469,000.00 8.20%
Precision Engineering, Inc. satisfied the “Good Faith Efforts” requirement.
Precision Engineering, Inc. utilized Approach A and exceed the LBE subcontractor participation requirement by 35%.
CMD finds Precision Engineering, Inc. as 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.
[cco/JCV]