CITY OF COMMERCE
AGENDA REPORT
TO: Honorable City Council
FROM: City Manager
SUBJECT: Award Contract for the Deconstruction of Commerce Refuse-to-Energy Facility (CREA) Project MEETING DATE: June 23, 2026
RECOMMENDATION:
Staff recommend that the City Council consider adopting a resolution:
Finding that Precision Works, Inc. dba Precision Environmental ("Precision Works") is the lowest responsible and responsive bidder for the Project pursuant to Public Contract Code §20162, and denies the bid protest submitted by Resource Environmental, Inc. ("REI"); and Awarding a contract to Precision Works, as the lowest responsive and responsible bidder for the Deconstruction of Commerce Refuse-to-Energy Facility (CREA) Project, in the amount of $1,362,000 for the total base bid schedule; and Authorizing up to 15% of the contract for deconstruction contingency for unforeseen conditions; and Authorizing up to 15% of the total deconstruction contract and contingencies for deconstruction management and inspection services; and Authorizing Deconstruction Management and Inspection Services pursuant to City’s on-call professional consulting services agreements.
BACKGROUND
The CREA facility, located at 5926 Sheila Street in Commerce, California, is a decommissioned industrial refuse-to-energy facility. The project involves the full deconstruction of the facility, including all mechanical, electrical, and plumbing (MEP) systems, structural steel, foundations and footings, as well as hazardous-materials abatement. The project is federally funded with Federal Transit Administration (FTA) grant.
ANALYSIS
On April 7, 2026, staff advertised the project for deconstruction bids. The following bids were received on May 5, 2026.
BID RANKING
BIDDER
BASE BID SCHEDULE
ADDITIVE BID SCHEDULE
Lowest Bidder
Precision Works, Inc. DBA Precision Environmental
$1,362,000.00
$70,000.00
2nd Lowest Bidder
R & R Demo and Grading Corp.
$1,575,000.00
$800,000.00
3rd Bidder
Resource Environmental, Inc.
$1,737,000.00
$200,000.00
4th Bidder
Interior Demolition, Inc.
$2,195,168.00
$60,000.00
5th Bidder
Standard Demolition, Inc.
$2,394,721.00
$4,000.00
6th Bidder
Integrated Demolition and Remediation Inc.
$2,997,800.00
$80,000.00
7th Bidder
Force Demolition, Inc.
$3,977,700.00
$40,000.00
8th Bidder
Bowen Engineering and Environmental
$5,995,000.00
$40,000.00
On May 12, 2026, Resource Environmental, Inc. (REI) filed a bid protest challenging the bids of Precision Works and R&R Demo and Grading Corp; the lowest and second lowest bidder respectively, requesting award to REI as the third-lowest bidder on following three grounds:
Precision Works could not lawfully self-perform 51% of the work because its Department of Industrial Relations (DIR) registration does not cover demolition; That neither Precision Works nor R&R listed a C-57 Water Well Contractor for the additive bid schedule related to monitoring-well removal; and That Precision Works lacked comparable industrial deconstruction experience.
Based on review of bid protest staff, with concurrence from the City Attorney, recommend denial of the bid protest on all grounds:
Precision Works holds a C-21 (Building Moving, Demolition) CSLB license authorizing it to self-perform the remaining demolition balance not assigned to subcontractor JDK Demo, satisfying the 51% work requirement by prime contractor; The additive bid schedule is expressly excluded from the award determination, and any C-57 requirement would be addressed as a contract condition if the additive bid schedule is later exercised; and Reference verification, together with Precision Works' supplemental reference package reflecting completed demolition and abatement projects for multiple public agencies, supports a finding that Precision Works is a responsible bidder under Public Contract Code § 20162.
In accordance with the California Public Contract Code, public works contracts must be awarded to the lowest responsive and responsible bidder. Following staff’s review, including verification of the contractor’s California license, DIR registration, state and federal debarment status, and references, Precision Works has been confirmed as the lowest responsive and responsible bidder. A detailed bid analysis is attached for reference.
Therefore, staff recommend adoption of the attached resolution.
FISCAL IMPACT
The total estimated cost of this project including deconstruction contract, contingencies, deconstruction management, and inspection services, is $1,801,245 which will be covered by reimbursable FTA grant funds and are available in Account # 57-8338-60090.14151.
The following is a summary of the project cost:
Bid amount to be awarded
$1,362,000
Deconstruction contingencies (15%)
$204,300
Subtotal
$1,566,300
Deconstruction management, inspection, material testing (15%) $234,945
Total Project Cost
$1,801,245
ALTERNATIVES:
Approve recommendation
Reject recommendation
Provide staff with further direction
RELATIONSHIP TO STRATEGIC GOALS:
This agenda item relates to the 2016 Strategic Plan, Infrastructure and Facilities:
Guiding Principle 4: Develop and invest in infrastructure and beautification projects that support economic growth Approved and recommended by: Shahid Abbas, Director of Public Works Claude McFerguson, Director of Transportation
Fiscal Impact reviewed by: Alvaro Castellon, Director of Finance Approved as to form by: Noel Tapia, City Attorney
Respectfully submitted: Ernie Hernandez, City Manager ATTACHMENTS:
Bid Analysis
Construction Contract- Precision Works, Inc.