Last updated: 05.03.2023
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
DEPARTMENT: Infrastructure Division
AGENDA NUMBER: 7c
MEETING DATE: June 23, 2026
Calendar: Consent Calendar
Project Manager: Jon Cantu
Award Contract No. WD-2780, 8-Inch Ductile Iron Water Main Replacement and Sewer Replacement on 21st St. from Eureka St. to Church St. and on Hill St. from Castro St. to Church St. and Various Side Streets
Summary of
Proposed
Commission
Action:
Award Contract No. WD-2780, 8 -Inch Ductile Iron Water Main Replacement and Sewer Replacement on 21 st St. from Eureka St. to Church St. and on Hill St. from Castro St. to Church St. and Various Side Streets, to the responsible bidder that submitted the lowest responsive bid, Michael O’Shaughnessy Construction, Inc ., in the amount of $6,301,257, and with a duration of 628 consecutive calendar days (approximately one year and nine months), to install water mains and sewer lines in the Eureka Valley Neighborhood of San Francisco.
The Planning Department has
determined that the Project is exempt from the California Environmental Quality Act (CEQA), and the Commission will rely on that determination to make its decision on this action. 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).
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. B etween 1891 and 1969, t
he City installed the
existing 2- to 8-inch diameter cast iron water mains scheduled to be replaced under this contract. Due to the advanced age of t he pipes (between 57 to 135 years), material, and history of repeated main breaks in the neighborhood, 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 Eureka Valley neighborhood in the City and County of San Francisco.
The contract work consists of:
• Installing 7,300 feet of 4 - to 8 -inch diameter ductile iron water conveyance pipe;
• Installing ancillary water service pipe;
• Installing 523 feet of sewer pipe;
• Landscape restoration work; and
• Curb ramps and pavement restoration.
Funding and
Costs:
Funding Source: Project No. 10015205, SFPUC Water Enterprise Local Conveyance/Distribution System Program, SFPUC Wastewater Renewal and Replacement Program
Engineer’s Estimate: $6,900,000
Award: $6,301,257
DEPARTMENT FUNDING SOURCE AMOUNT
SFPUC: Water
Enterprise Local Conveyance / Distribution System Program $5,725,023 SFPUC: Wastewater
Enterprise Renewal and Replacement $576,234
Schedule: Estimated Notice-to-Proceed Date: November 2026 Estimated End Date: August 2028
Contract Duration: 628 consecutive calendar days (583 consecutive calendar days to Substantial Completion and an additional 45 consecutive calendar days to Final Completion).
Bid History:
Advertised: February 13, 2026
Bids Received: On March 12, 2026, SFPUC received sealed bids from seven firms.
Bid Rank Bid Amount Bid
Preference
Adjusted Bid Final Rank
1. Michael
O’Shaughnessy
Construction, Inc.
$6,301,256.59 10% $5,671,130.93 1
2. A. Ruiz Construction
Co., & Assoc., Inc. $7,103,877.25 10% $6,393,489.53 2
3. Westland
Contractors, Inc. $7,413,279.80 10% $6,671,951.82 3
4. Basset Engineering $7,821,938.75 10% $7,039,744.88 4
5. Mitchell Engineering $9,417,951.50 10% $8,476,156.35 5
6. NTK Construction,
Inc. $9,576,664.00 10% $8,618,997.60 6
7. M Squared
Construction, Inc. $9,687,807.00 10% $8,719,026.30 7
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 June 11, 2026, the Planning Department determined the Project to be categorically exempt from environmental review under the CEQA Guidelines Section 15302, Class 2 (Replacement or Reconstruction) and Agenda Title: WD-2870, 8-Inch Ductile Iron Water Main Replacement and Sewer Replacement on 21st Street from Eureka St. to Church St. and on Hill St. from Castro St. to Church St. and Various Side Streets Commission Meeting Date: June 23, 2026
Section 15303, Class 3 (New Construction or Conversion of Small Structures) (Case No.2021-000629ENV). View the exemption determination.
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 20% Local Business Enterprise (LBE) subcontracting requirement for this contract. The contractor committed to a 23.35% LBE subcontractor participation with its bid submittal.
Attachment(s): 1. Contract Monitoring Division Memorandum
WD-2780 Vicinity Map
WD-2780 Detailed 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 distribution pipes that are at the end of their useful service life to ensure a reliable water delivery system within the City and County of San Francisco; and
WHEREAS, On February 13, 2026, SFPUC advertised Contract No. WD-2870, 8- Inch Ductile Iron Water Main Replacement and Sewer Replacement on 21 st St. from
Eureka St. to Church St. and on Hill St. from Castro St. to Church St. and Various Side Streets; and
WHEREAS, The Engineer’s Estimate is $6,9 00,000 for this construction work to install approximately 7,300 feet of ductile iron water conveyance pipe, 523 feet of sewer pipe, and ancillary water service pipe, and perform landscape work, including curb ramps and pavement restoration, in the Eureka Valley neighborhood in the City and County of San Francisco; and
WHEREAS, The contract duration is 628 consecutive calendar days; and
WHEREAS, On March 12, 2026, SFPUC received and publicly opened seven bids; and
WHEREAS, SFPUC staff and the Contract Monitoring Division (CMD) review ed the bids and the application of bid preferences and have determined that Michael O’Shaughnessy 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 the contractor committed to 23.35% LBE subcontractor participation in its bid submittal; and
WHEREAS, On June 11, 2026, the Planning Department determined the Project to be categorically exempt from environmental review under the California Environmental Quality Act Guidelines Section 15302, Class 2 (Replacement or Reconstruction) and Section 15303, Class 3 (New Construction or Conversion of Small Structures) (Case No. 2021-000629ENV); and
WHEREAS, Funds are available from Project No. 10015205, SFPUC Local Conveyance/Distribution System Program , Wastewater Enterprise Renewal and Replacement Program; now, therefore, be it
RESOLVED, That this Commission hereby awards Contract No. WD-2870, 8-Inch Ductile Iron Water Main Replacement and Sewer Replacement on 21 st St. from Eureka St. to Church St. and on Hill St. from Castro St. to Church St. and Various Side Streets, in the amount of $6,301,25 7, and with a duration of 628 consecutive calendar days , to the responsible bidder that submitted the lowest responsive bid, Michael O’Shaughnessy Construction, Inc.
I hereby certify that the foregoing resolution was adopted by the San Francisco Public Utilities Commission at its meeting of June 23, 2026.
__________________________________
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
Regina Chan, Director
MEMORANDUM
Date: April 22, 2026
To: Jon Cantu, SFPUC
Frank Gennaccaro, SFPUC
From: Jovi Cuntapay-Vitin on behalf of Adriana Duran, CMD
Subject: CMD Review of Bids Submitted on March 12, 2026 for 8-Inch Ductile Iron Water Main Replacement and Sewer Replacement on 21st St. from Eureka St. to Church St. and on Hill St. from Castro St. to Church St. and Various Side Streets
Michael O’Shaughnessy Construction, 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
Adjusted Bid
with
Bid Discount
Michael O'Shaughnessy
Construction, Inc.
SF LBE-WBE
(Micro) $6,301,256.59 10% $5,671,130.93
A. Ruiz Construction Co., &
Assoc., Inc.
SF LBE-MBE (Micro) 7,103,877.25 10% $6,393,489.53
Westland Contractors, Inc. SF LBE-OBE (Micro) 7,413,279.80 10% $6,671,951.82 Basset Engineering SF LBE-OBE (Micro) 7,821,938.75 10% $7,039,744.88 Mitchell Engineering SF LBE-OBE (Small) $9,417,951.50 10% $8,476,156.35 NTK Construction, Inc. SF LBE-MBE (Small) 9,576,664.00 10% $8,618,997.60 M Squared Construction,
Inc.
SF LBE-OBE (Small) 9,687,807.00 10% $8,719,026.30
Michael O’Shaughnessy Construction, 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. Michael O’Shaughnessy Construction, Inc.’s commitment for this contract:
Requirement % Commitment %
Micro/Small LBE 20% 23.35%
In their bid, Michael O’Shaughnessy Construction, Inc. listed the following subcontractors on this contract:
Supplier Name Scope of Work LBE LBE
Size
LBE
Percent
Percent of
Work
Credited
Amount
Sullivan's Concrete
Sawing Inc.
Sawcutting SF LBE-
OBE Micro 100%
1.59% $100,000.00
DR Traffic Control,
LLC
Traffic Control Plans SF LBE-
MBE Micro 100% 0.48% $30,000.00
Crana Trucking LLC Trucking (Partial) SF LBE-
OBE Micro 100% 5.55% $350,000.00
Ronan Construction
Inc
Mill and Fill SF LBE-
OBE Micro 100% 4.26% $268,206.75
Daly Pipelines Inc Partial Sewer
(Partial)
SF LBE-
OBE Micro 100% 3.97% $250,000.00
Bauman Landscape
and Construction Inc
Landscape and
Partial Concrete
SF LBE-
OBE Small 100% 5.24% $330,000.00
Martin M. Ron
Associates, Inc.
Surveying SF LBE-
OBE Small 100% 2.27% $143,000.00
Ronan Construction Inc.’s (“Ronan’s”) portion of work is credited at less than the listed amount ($283,206.75) because Ronan intends to further subcontract the drilling work to a subcontractor that has not yet been identified.
Michael O’Shaughnessy Construction, Inc. satisfied the “Good Faith Efforts” requirement.
Michael O’Shaughnessy Construction, Inc. utilized Approach A and exceeded the LBE subcontractor participation requirement by 35% through counting its own self-performed work.
CMD finds Michael O’Shaughnessy Construction, 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: 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.
[cco/JCV]