DEPARTMENT
Infrastructure Division
AGENDA NO.
7a
MEETING DATE
January 13, 2026
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Calendar: Consent Calendar
Project Manager: Ryan Freeborn
Award Contract No. WD -2921, Water Main and Sewer Replacement on Palou, Quesada, and Revere Avenues from 3rd Street to Griffith Street
Summary of Proposed
Commission Action:
Award Contract No. WD -2921, Water Main and Sewer Replacement on Palou, Quesada, and Revere Avenues from 3rd Street to Griffith Street, to the responsible bidder that submitted the lowest responsive bid, M Squared Construction, Inc., in the amount of $12,681,070 and with a duration of 775 consecutive calendar days (approximately two years and two months), to install water mains and sewer lines in the Bay View District of San Francisco.
This action constitutes the Approval Action for the Project for the purposes of the California Environmental Quality Act, pursuant to San Francisco Administrative Code section 31.04(h). The Planning Department has determined that the Project is exempt from the California Environmental Quality Act. 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 (City). The City installed the existing six - to 12- inch diameter cast iron water mains scheduled to be replaced under this contract between 1904 and 1966 . Due to the advanced age of the pipes (between 59 to 121 years), material, and history of repeated main breaks in the neighborhood, the SFPUC has prioritized their replacement. This contract also includes a sewer line replacement component in the same work area.
Scope of Contract: The contract work location is in the Hunters Point District of the City and County of San Francisco.
The contract work includes installation of:
• 15,300 feet of four-, six-inch and eight-inch diameter ductile iron water conveyance pipe;
• 1,400 feet of 12-inch diameter ductile iron water conveyance pipe; • 1,113 feet of sewer pipe;
• Ancillary water service pipe; and
• Pavement restoration.
Agenda Title: Contract No. WD-2921, Water Main and Sewer Replacement on Palou, Quesada, and Revere Avenues from 3rd St. to Griffith St.
Commission Meeting Date: January 13, 2026
Funding and Costs: Funding Source: Project No. 10041308 , SFPUC Local Conveyance/Distribution System Program and Wastewater Enterprise Renewal and Replacement Program.
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
$11,953,570
SFPUC: Wastewater
Enterprise
Renewal and Replacement $727,500
CONTRACT TOTAL $12,681,070
Engineer’s Estimate: $15,000,000
Award: $12,681,070
Schedule: Estimated Notice-to-Proceed Date: April to June 2026 Estimated End Date: May to July 2028
Duration: 775 consecutive calendar days (730 consecutive calendar days to Substantial Completion and an additional 45 consecutive calendar days to Final Completion)
Bid History:
Advertised: October 9, 2025
Bids Received: On November 6, 2025, the SFPUC received and publicly opened nine sealed bids, as follows:
Bid Rank Bid Amount LBE
Discount
Adjusted
Bid
Final
Rank
1. M Squared
Construction,
Inc.
$12,681,070 2% $12,427,449 1
2. Mitchell
Engineering $13,882,420 0% $13,882,420 2
3. KOIOS
Engineering $14,259,240 2% $13,974,055 3
4. A. Ruiz $14,388,371 2% $14,100,603 4
5. Basset
Engineering $14,572,206 2% $14,280,762 5
6. Precision
Engineering,
Inc.
$15,785,915 2% $15,470,197 6
Agenda Title: Contract No. WD-2921, Water Main and Sewer Replacement on Palou, Quesada, and Revere Avenues from 3rd St. to Griffith St.
Commission Meeting Date: January 13, 2026
7. Cratus Inc. $15,869,615 0% $15,869,615 7
8. NTK
Construction $16,022,905 2% $15,702,447 8
9. KJ Woods $17,238,000 0% $17,238,000 9
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 2, 2025, the San Francisco Planning Department determined the Project to be exempt from environmental review under the California Environmental Quality Act (CEQA) Guidelines section 15061(b)(3) (Common Sense Exemption) under Case No. 2025- 002120ENV. The exemption determination can be found here:
https://sfpuc.sharefile.com/public/share/web-
s38e79a24f9ee4daa84f991f4a10c2e72
Local Business
Enterprise Utilization
and Non-
Discrimination in
Contracting:
The Contract Monitoring Division established a 20% Local Business Enterprise (LBE) subcontracting requirement for this contract. The contractor committed to a 21.22 % LBE subcontractor participation with its bid submittal.
Attachment(s): 1. Contract Monitoring Division Memorandum Agenda Title: Contract No. WD-2921, Water Main and Sewer Replacement on Palou, Quesada, and Revere Avenues from 3rd St. to Griffith St.
Commission Meeting Date: January 13, 2026
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 County of San Francisco; and
WHEREAS, On October 10, 2025, SFPUC advertised Contract No. WD-2921, Water Main and Sewer Replacement on Palou, Quesada, and Revere Avenues from 3rd Street to Griffith Street; and
WHEREAS, The Engineer’s Estimate is $15,000,000 for this construction work to install approximately 16,700 feet of ductile iron water conveyance pipe, 1,113 feet of sewer pipe, ancillary water service pipe, and pavement restoration along Palou, Quesada, and Revere Avenues, from 3rd Street to Griffith Street within the City and County of San Francisco; and
WHEREAS, The contract duration is 775 consecutive calendar days; and
WHEREAS, On November 6, 2025, SFPUC received and publicly opened nine bids; and
WHEREAS, SFPUC staff and the Contract Monitoring Division (CMD) reviewed the bids and the application of bid preferences and have determined that M Squared Construction, Inc., is the responsible bidder with the lowest responsive bid; and
WHEREAS, The CMD established a 20% Local Business Enterprise (LBE) subcontracting requirement for this contract, and M Squared Construction, Inc., committed to 21.22% LBE participation in its bid submittal; and
WHEREAS, On October 2, 2025, the San Francisco Planning Department determined the Project to be exempt from environmental review under the California Environmental Quality Act Guidelines section 15061(b)(3) (Common Sense Exemption) under Case No. 2025-002120ENV; and
WHEREAS, Funds are available from Project No. 10041308, 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-2921, Water Main and Sewer Replacement on Palou, Quesada, and Revere Avenues from 3rd Street to Griffith Street, in the amount of $12,681,070, and with a duration of 775 consecutive calendar days , to the responsible bidder that submitted the lowest responsive bid, M Squared Construction, Inc.
I hereby certify that the foregoing resolution was adopted by the San Francisco Public Utilities Commission at its meeting of January 13, 2026.
Director of Commission Affairs
San Francisco Public Utilities Commission
MEMORANDUM
Date: November 26, 2025
To: Ryan Freeborn, SFPUC
From: Jason Chow, CMD
Subject: CMD Review of Bids Submitted on 11/6/2025 for WD-2921 Water Main and Sewer Replacement on Palou, Quesada, and Revere from 3rd St. to Griffith St
M Squared Construction, Inc. is the apparent low bidder.
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
LBE Bid Discount
Adjusted Total Bid
with Bid Discount
M Squared Construction
Inc
SF LBE-OBE
(Small)
$12,681,070.00
2% $12,427,448.60
Mitchell Engineering
Non-LBE $13,882,420.00 0% $13,882,420.00
KOIOS Engineering
SF LBE-MBE
(Micro) $14,259,240.00 2% $13,974,055.20
A Ruiz Construction
SF LBE-MBE
(Micro) $14,388,370.85 2% $14,100,603.43
Basset Engineering
SF LBE-OBE
(Micro) $14,572,206.00 2% $14,280,761.88
Precision Engineering Inc
SF LBE-OBE
(Small) $15,785,915.00 2% $15,470,196.70
Cratus Inc
Non-LBE $15,869,615.00 0% $15,869,615.00
NTK Construction
SF LBE-MBE
(Small) $16,022,905.00 2% $15,702,446.90
KJ Woods
Non-LBE $17,238,000.00 0% $17,238,000.00
M Squared Construction, Inc. (“M Squared”) satisfactorily demonstrated how they will meet the LBE subcontractor participation requirement.
A combination of SF Micro/Small-LBE participation will count toward LBE subcontractor participation compliance. M Squared commitment for this contract:
Requirement % Commitment %
Micro/Small LBE 20.00% 21.22%
In their bid, M Squared listed the following subcontractors on this contract.
Supplier Name Scope of Work
LBE
LBE
Size
LBE
Percent
Percent
Of
Work
Amount
Ronan Construction (Full) AC Paving & Saw
cutting SF-LBE Micro 100%
13.68% $1,734,750.00
Basset Engineering (Full) Ductile Iron Pipe SF-LBE Micro 100% 5.57% $706,500.00 Crana Trucking (Full) Trucking SF-LBE Micro 100% 2.37% $300,000.00
Robotic Sewer
Solutions (Full) SW 7,8,9
0.43%
$54,400.00
SAK Pipline
Infrastructure solved (Full) CIPC 1.08% $136,870.00
SFPUC utilizes SOLIS system. For SOLIS, the LBE credited percentages are listed below:
LBE Subcontractor LBE Status Listed Amount LBE Credited Participation Amount
LBE Credited
Participation
Percentage
Ronan Construction SF LBE-OBE
(Micro) $1,734,750.00 $1,684,750.001 13.28%
Basset Engineering SF LBE-OBE
(Micro) $706,500.00 $706,500.00 5.57%
Crana Trucking SF LBE-OBE
(Micro) $300,000.00 $300,000.00 2.37%
TOTAL $2,741,250.00 $2,691,250.00 21.22%
M Squared satisfied the “Good Faith Efforts” requirement.
M Squared used Approach A on Form 2B by utilizing its own performance as an LBE for the 35% exemption.
CMD finds M Squared 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.
1 Per Ronan’s CMD Form 6, they will further subcontract out $50,000.00 to Delta Grinding (Non-LBE firm)—LBE credit was reduced accordingly.
Primary CMD contact for the contract: Jason Chow, [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.
[JC]