AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
DEPARTMENT: Infrastructure Division
AGENDA NUMBER: 6d
MEETING DATE: October 27, 2026
Calendar: Consent Calendar
Project Manager: Ryan Freeborn
Award Contract No. WD-2922A, 8-Inch Ductile Iron Water Main Replacement on Lincoln Way and Irving St. from Sunset Blvd. to 19th Ave. and on Various Side Streets
Summary of
Proposed
Commission
Action:
Award Contract No. WD-2922A, 8 -Inch Ductile Iron Water Main Replacement on Lincoln Way and Irving St. from Sunset Blvd. to 19th Ave. and on Various Side Streets , to the responsible bidder that submitted the lowest responsive bid, M Squared Construction, Inc. , in the amount of $17,266,695, and with a duration of 765 consecutive calendar days (approximately two years and one month), to replace aging water main pipelines that are over 100 years old at various street locations in the Sunset District 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 replacement 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. The City installed the existing 4-inch and 8-inch diameter cast iron pipes from 1903 to 1936. Due to the advanced age of the pipes (some over 100 years), material, and the importance of improving distribution and firefighting flow capacity within the project area, SFPUC has prioritized rehabilitating these pipelines.
Scope of
Contract:
The contract work location is in the Sunset District of the City and County of San Francisco.
The contract work consists of:
• 23,700 linear feet of 4-, 6-, 8-inch ductile iron pipe; • Ancillary water service pipe;
• 240 feet of sewer pipe;
• Tree protection;
• Construct up to 19 curb ramps; and,
• Pavement restoration.
Agenda Title: WD-2922A, 8-Inch Ductile Iron Water Main Replacement on Lincoln Way and Irving St. from Sunset Blvd. to 19th Ave. and on Various Side Streets
Commission Meeting Date: October 27, 2026
Funding and
Costs:
Funding Source: Project No. 10041305, SFPUC Local
Conveyance/Distribution System Program , SFPUC Renewal and Replacement Program, and San Francisco Public Works Street Resurfacing Program
DEPARTMENT FUNDING SOURCE AMOUNT
SFPUC: Water Enterprise
Local Conveyance/Distribution
System Program $15,037,946
SFPUC: Wastewater Enterprise Renewal and Replacement $256,780 San Francisco Public Works:
Roadway
Street Resurfacing Program $1,971,969
CONTRACT TOTAL: $ 17,266,695
Engineer’s Estimate: $19,500,000
Award: $17,266,695
Schedule: Advertised: July 6, 2026
Estimated Notice-to-Proceed Date: February 2027
Estimated End Date: March 2029
Duration: 765 consecutive calendar days (720 consecutive calendar days to Substantial Completion and an additive 45 consecutive calendar days to Final Completion)
Bid History: Advertised: July 6, 2026
Bids Received: On August 6, 2026, the SFPUC received five sealed bids, as follows:
Bid Rank Bid Amount Bid Preference Adjusted Bid Final
Rank
1. K.J. Woods
Construction, Inc.
$16,478,000.00 N/A $16,478,000.00 NR
2. M Squared
Construction, Inc.
$17,266,694.50 2% $16,921,360.61 1
3. Koios Engineering,
Inc.
$18,330,085.50 2% $17,963,483.79 2
4. Cratus Inc. $19,008,409.00 N/A $19,008,409.00 3
5. Basset Engineering $19,471,329.00 2% $19,081,902.42 4 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.
The apparent low bidder, K.J. Woods Construction, Inc., was deemed non- responsive (NR) for failing to identify the scope of work for several subcontractors, resulting in those subcontractors being considered unlisted.
This omission constitutes non -compliance with both the procurement specifications and the California Public Contract Code.
Agenda Title: WD-2922A, 8-Inch Ductile Iron Water Main Replacement on Lincoln Way and Irving St. from Sunset Blvd. to 19th Ave. and on Various Side Streets
Commission Meeting Date: October 27, 2026
Environmental
Review:
On February 17, 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), Section 15303, Class 3 (New Construction or Conversion of Small Structures), and Section 15306, Case 6 (Information Collection) (Case No. 2025-009876ENV). View the exemption.
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 27% LBE subcontractor participation with its bid submittal.
Attachment(s): Contract Monitoring Division Memorandum
Agenda Title: WD-2922A, 8-Inch Ductile Iron Water Main Replacement on Lincoln Way and Irving St. from Sunset Blvd. to 19th Ave. and on Various Side Streets
Commission Meeting Date: October 27, 2026
Figure 1. Location Plan
Map of San Francisco, California with an outlined area of the Project Area. The Project Area is located on Lincoln Way and Irving St. from Sunset Blvd. to 19th Ave. including the side streets.
Figure 2. WD-2922A 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 repairs and /or replaces 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 July 6, 2026, SFPUC advertised Contract No. WD-2922A, 8-Inch Ductile Iron Water Main Replacement on Lincoln Way and Irving St. from Sunset Blvd. to 19th Ave. and on Various Side Streets; and
WHEREAS, The Engineer’s Estimate is $19,500,000 for this construction work to install approximately 23,700 linear feet of ductile iron water conveyance pipe; 238 linear feet of sewer pipe; ancillary water service pipe; curb ramps; pavement restoration along Lincoln Way and Irving St. from Sunset Blvd. to 19th Ave. and on Various Side Streets ; and
WHEREAS, The contract duration is 765 consecutive calendar days; and
WHEREAS, On August 6, 2026, SFPUC received and publicly opened five 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 M Squared Construction, Inc. (M Squared) 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 committed to 27% LBE subcontractor participation in its bid submittal; and
WHEREAS, On February 17, 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), Section 15303, Class 3 (New Construction or Conversion of Small Structures), and Section 15306, Case 6 (Information Collection) (Case No. 2025 - 009876ENV); and
WHEREAS, Funds are available from Project No. 10041305, SFPUC Local Conveyance/Distribution System Program , Wastewater Enterprise Renewal and Replacement Program, and San Francisco Public Works Street Resurfacing Program ; now, therefore, be it,
RESOLVED, That this Commission hereby awards Contract No. WD-2922A, 8- Inch Ductile Iron Water Main Replacement on Lincoln Way and Irving St. from Sunset Blvd. to 19th Ave. and on Various Side Streets, in the amount of $17,266,695, and with a duration of 765 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 October 27, 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: September 25, 2026
To: Ryan Freeborn, SFPUC
Venessa Arif, SFPUC
From: Helen Smolinski, Contract Monitoring Division
Subject: CMD Review of Bids Submitted on August 6, 2026 for WD-2922A 8-inch Ductile Iron Water Main Replacement on Lincoln Way and Irving St. from Sunset Blvd. to 19th Ave. and on Various Side Streets
Bids and Bid Discount
K.J. Woods Construction, Inc. is the apparent low bidder but the Contract Awarding Authority (SFPUC) found them nonresponsive to bid requirements, per SFPUC’s Determination of Protest of Non- Responsiveness Determination, dated September 24, 2026. Therefore, M Squared Construction Inc (“M Squared”) is the next apparent low bidder.
Bidder LBE Status, Type and
Size Base Bid Bid Discount Adjusted Bid with Bid
Discount
K.J. Woods Construction,
Inc Non-LBE $16,478,000.00 Not eligible $16,478,000.00
M Squared Construction
Inc SF LBE-OBE (Small) $17,266,694.50 2% = $345,333.89 $16,921,360.61 Koios Engineering Inc. SF LBE-MBE (Micro) $18,330,085.50 2% = $366,601.71 $17,963,483.79 Cratus Inc. Non-LBE $19,008,409.00 Not eligible $19,008,409.00 Basset Engineering SF LBE-OBE (Micro) $19,471,329.00 2% = $389,426.58 $19,081,902.42
LBE Subcontracting Participation Requirement
M Squared 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. M Squared’s commitment for this contract:
Requirement % Commitment %
Micro/Small LBE 20% 26.64%
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
Crana Trucking Trucking SF LBE-OBE MICR 100% 0.58% $100,000.00 Esquivel Grading &
Paving Inc
AC Paving and
Concrete Flatwork SF LBE-MBE SML 100% 14.48% $2,499,726.00* DR Traffic Control Traffic Control SF LBE-MBE MICR 100% 11.58% $2,000,000.00 SAK Pipeline
Infrastructure CIPL N/A N/A N/A 0.68% $116,940.00
*Esquivel Grading & Paving Inc’s portion of work is credited for less than the listed amount ($2,720,656.00) because Esquivel included conditional bid items in its bid quote.
“Good Faith Efforts” Requirement
M Squared satisfied the “Good Faith Efforts” requirement.
M Squared utilized Approach A by relying on self-performed contract work to meet the 35% good faith efforts requirement.
CMD Determination
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.
Primary CMD contact for the contract: Helen Smolinski, [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/HS