CITY OF
LAKE OLSINORE
DREAM EXTREME
July 7, 2025
E2 Contracting, Inc.
Attention Steve Arthur
306 W. Katella Ave. Suite B
Orange CA 92867
Subject: Notice Inviting Bid City Parking Lot and Access Project Z40037 E2 Contracting, Inc.,
This letter serves as the formal response to your bid protest dated June 24, 2025, concerning the award of the above-referenced contract to Van Engineering Inc.
Specifically, your protest contends that the low bidder failed to list subcontractors for several major scopes of work that exceed one-half of one percent of the total bid.
After careful review and consultation with legal and licensing authorities, the City has determined that the protest lacks merit and is hereby denied for the following reasons:
The low bid contractor holds a valid and active Class "A" General Engineering Contractor license issued by the State Licensing Board. This license classification is appropriate for the nature and scope of work required under this project scope of work.
Within this license the contractor provided a low bid fully in the purview of the Class "A" license and furthermore the contractor will self-perform the scope of work identified in the notice inviting bids less the stripping portion as indicated in the bid submittal.
The City has conducted its due diligence and has reached a responsible determination that Van Engineering Inc, is both a responsible and responsive bidder. All required licensing and certification requirements were met in accordance with the notice inviting bid documents and applicable regulations. As such there is no indication that an issue materially affected the outcome of the bid or resulted in unfair prejudice against other bidders. In accordance with the applicable procurement procedures and state laws, the contract award will proceed without delay.
Sincerely,
Jason Simpson
City Manager
E2 Contracting, Inc.
E2 306 W Katella Suite B, Orange, CA 92867 Tel: 949-247-3478 June 24, 2025
To: Administrative Services
130 S. Main Street
Lake Elsinore, California. 92530
BID Protest Letter
Via email & CC Certified Mail
Subj: NIB-City Parking Lot & Access Z40037
City of Lake Elsinore
Public Works Department
Attn: Procurement Officer or Project Manager
130 S. Main Street
Lake Elsinore, CA 92530
RE: Formal Bid Protest - Bid No. Z40037 - NIB: City Parking Lot & Access To Whom It May Concern:
This letter constitutes a formal bid protest submitted by E2 Contracting, Inc., a responsive and responsible bidder on the above-referenced project. We are protesting the City's apparent low bidder, Van Engineering, based on reasons listed below. In addition, we are protesting three other bidders as listed below.
1. Identification of Solicitation:
Project: NIB - City Parking Lot & Access
Bid Number: Z40037
Bid Opening Date: 6/18/2025 @ 2:00 p.m.
E2 Contracting, Inc.
$941,698.64
2. Grounds for Protest:
Van Engineering
a. Failure to List Required Subcontractors.
The apparent low bidder holds a valid California "A" General Engineering license but appears to have failed to list subcontractors for several major and clearly distinct scopes of work that exceed one-half of one percent of the total bid, in violation of Public Contract Code 4104:
- Landscaping (C-27)
- Fencing (C-13)
- Asphalt Paving (C-12)
- Concrete Flatwork (C-8)
- Underground utilities (sewer/water/storm drain (C-34) DVEE
- Electrical (C-10)
b. Improper and Unsupported Claims of Self-Performance - Business & Professions Code 7059(a).
Although the bidder holds an "A" General Engineering license, it does not appear that the bidder holds the required specialty classifications to self-perform the above-listed scopes which limits general contractors from performing work outside their licensed classification unless it is "incidental and supplemental" to the primary work. The above trades are neither incidental nor minor in scope.
c. Bidders 2-4
Bidders 2-4 include similar irregularities within their proposed offering with blatant errors.
Metrocell Construction:
a. Bid Item 1, Mobilization and Demobilization including Construction Schedules (Not To Exceed 3% of total Bid.
i. Actual Mobilization Percentage: 11.13%
Roadway Engineering & Construction Corp:
a. Bid Item 1, Mobilization and Demobilization including Construction Schedules (Not To Exceed 3% of total Bid.
i. Actual Mobilization Percentage: 25.06%
b. No Subcontractors Listed per submission requirements.
Deark E&C, Inc
a. Bid Item 1, Mobilization and Demobilization including Construction Schedules (Not To Exceed 3% of total Bid.
i. Actual Mobilization Percentage: 5.46%
b. No Subcontractors Listed per submission requirements.
3. Relief Requested:
We respectfully request that the City of Lake Elsinore:
1. Investigate and determine whether Van Engineering lacks the subcontractors, personnel, licenses, and equipment necessary to perform the work they claim will self-perform.
2. If upon review of the bidders aforementioned submissions, deficiencies are found as suggested, then, declare the bid: non-responsive due to violations including but not limited to: PCC 4104, 1103, and B&P Code 7059.
3. Award the contract to the next lowest responsive and responsible bidder which in this case would be E2 contracting Inc.
We appreciate your prompt attention to this matter and respectfully request a written response in accordance with the City's protest procedures. Please contact me at 714-457-5416 or [email protected] for any questions or clarifications.
Sincerely,
Steve Arthur
Vice President - Business Operations
E2 Contracting
306 W. Katella Ave. Suite B
714-457-5416
[email protected]
DUEE