Attachment E - KASA Bid Protest — Newport Beach City Council, January 22, 2024

Building the Foundation for our Future
CA License No. 927544 | Classifications: A, B, C-27, C-10 ________________________________________________________________________________________________________________________ 15148 Sierra Bonita Lane, Chino, California 91710
Phone: (909) 457-8260 Fax: (909) 457-8261 | www.kasaconstruction.com September 29, 2023
City of Newport Beach
Public Works Department
100 Civic Center Drive
Newport Beach, CA 92660
Project: Newport Coast Pickleball Courts
Subject: BID PROTEST
Bid Date: September 28, 2023
This letter shall be construed as a Formal Bid Protest against the apparent three lowest bidders—Green Giant Landscape, Inc.; Klassic Engineering & Construction, Inc.; and JMJ Construction—for various reasons as explained below.

Green Giant Landscape, Inc.

Green Giant Landscape, Inc. (hereinafter referred to as “Green Giant”) failed to list the Title of the signer, Donald Luis Henderson, on the submitted Bidder’s Bond:

Per the instructions on page 17 of the proposal, if the bidder is a Corporation, the “legal name of corporation must be provided, followed by signatures of the corporation President or Vice President or President and Secretary or Assistant Secretary, and the corporate seal, or submit with evidence of authority to act on behalf of the corporation” (emphasis added). Green Giant’s President signed the page and the corporate seal was attached:
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ATTACHMENT E
Building the Foundation for our Future
CA License No. 927544 | Classifications: A, B, C-27, C-10 ________________________________________________________________________________________________________________________ 15148 Sierra Bonita Lane, Chino, California 91710
Phone: (909) 457-8260 Fax: (909) 457-8261 | www.kasaconstruction.com However, a second signature was not made as stated in the instructions, nor was a corporate resolution attached to the proposal as evidence of the signatory’s authority to act on behalf of the corporation. Green Giant is a corporate entity as shown on its DIR Registration page:

In addition, page 20 of the “Information Required of Bidder” document states, “For all arbitrations, lawsuits, settlements or the like (in or out of court) you have been involved in with public agencies in the past five years (Attach additional Sheets if necessary) provide.” Green Giant answered no to this question:

Yet, Green Giant is currently debarred from bidding on or accepting any public works contracts in the City of West Covina, as shown by the City’s debarment listing:
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Building the Foundation for our Future
CA License No. 927544 | Classifications: A, B, C-27, C-10 ________________________________________________________________________________________________________________________ 15148 Sierra Bonita Lane, Chino, California 91710
Phone: (909) 457-8260 Fax: (909) 457-8261 | www.kasaconstruction.com The debarment listing is attached and can be accessed by clicking the following link:
https://www.westcovina.org/departments/city-manager-s-office/transparency. Green Giant’s debarment is current and permanent, and it is clearly an arbitration, lawsuit, settlement or the like with a public agency in the past five years as stated on page 20 of the proposal. Page 21 states that “failure of the bidder to provide ALL requested information in a complete and accurate manner may be considered non-responsive.” Based on the above findings, it is without a doubt that Green Giant Landscape, Inc. is Non-Responsive and its Bid Proposal should not be considered for this project. It failed to follow the City’s instructions in completing its Proposal and it failed to answer all questions accurately and truthfully. Green Giant’s omissions and mistakes are far from being minor informalities and irregularities and should not be interpreted as such in the Bid Proposal submitted.

Green Giant Landscape & JML Construction are permanently debarred and cannot bid on Public Works Projects.

Klassic Engineering & Construction, Inc.

Klassic Engineering & Construction, Inc. (hereinafter referred to as “Klassic”) failed to list the Title of the signer, Keivan Shirali, on the submitted Bidder’s Bond page and other pages:
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Building the Foundation for our Future
CA License No. 927544 | Classifications: A, B, C-27, C-10 ________________________________________________________________________________________________________________________ 15148 Sierra Bonita Lane, Chino, California 91710
Phone: (909) 457-8260 Fax: (909) 457-8261 | www.kasaconstruction.com Per the instructions on page 17 of the proposal, if the bidder is a corporation, the “legal name of corporation must be provided, followed by signatures of the corporation President or Vice President or President and Secretary or Assistant Secretary, and the corporate seal, or submit with evidence of authority to act on behalf of the corporation” (emphasis added). Klassic’s President signed the page but a corporate seal does not appear to be attached:

In addition, Klassic only listed three references on the “Technical Ability and Experience References” pages.

All three references are tenant improvement projects with scopes minimally similar to the scope outlined in Newport Coast Pickleball Improvements. A park improvement project with extensive earthwork, drainage, and hardscape improvements requires an experienced contractor. References outlining HVAC work, framing repairs, or window replacements have no relevance to this project.

Lastly, Klassic has a history of not completing public works projects and not performing projects in accordance with all applicable state and federal laws. On August 17, 2021, the Long Beach City Council approved a takeover agreement with a new contractor to complete a project originally awarded to Klassic. According to an 7-24
Building the Foundation for our Future
CA License No. 927544 | Classifications: A, B, C-27, C-10 ________________________________________________________________________________________________________________________ 15148 Sierra Bonita Lane, Chino, California 91710
Phone: (909) 457-8260 Fax: (909) 457-8261 | www.kasaconstruction.com article in the Press-Telegram, Klassic was unable to meet the City’s deadlines and performance goals. The article is attached and can be accessed by clicking the following link:
https://www.presstelegram.com/2021/10/19/a-new-contractor-will-finish-long-beachs-alamitos-beach- concessions-
project/#:~:text=A%20new%20contractor%20will%20finish%20building%20the%20Alamitos%20Beach%20c oncession,to%20approve%20a%20takeover%20agreement. The 2021 takeover agreement clearly constitutes a contract termination, and Klassic was unable to complete the job. However, on page 20 of the “Information Required of Bidder” document, Klassic answered “N/A” to both questions about contract termination and project history:

Furthermore, Klassic recently was or still is involved in litigation with the City of Long Beach. Preliminary information about their lawsuit can be accessed by clicking the following link:
https://www.lacourt.org/casesummary/ui/casesummary.aspx?#CAS. Yet, on page 20 of the “Information Required of Bidder” document, Klassic answered “N/A” to the question about arbitrations and lawsuits:

Klassic has also allegedly not paid contributions to several labor union funds. A complaint was filed in US Federal Court on March 15, 2017 against Klassic by the Cement Masons Southern California Health and Welfare Fund. An article documenting the litigation is attached and can be accessed by clicking the following link: https://norcalrecord.com/stories/511096045-klassic-engineering-and-construction-inc-alleged-to-have-not- paid-contributions.

Based on the above findings, it is without a doubt that Klassic Engineering & Construction, Inc. is Non- Responsive and its Bid Proposal should not be considered for this project. It failed to follow the City’s instructions in completing its Proposal and it failed to answer all questions about its history accurately and truthfully. It has a poor track record performing and finishing public works projects meeting Client objectives 7-25
Building the Foundation for our Future
CA License No. 927544 | Classifications: A, B, C-27, C-10 ________________________________________________________________________________________________________________________ 15148 Sierra Bonita Lane, Chino, California 91710
Phone: (909) 457-8260 Fax: (909) 457-8261 | www.kasaconstruction.com and adhering to all applicable state and federal labor laws. As such, Klassic’s omissions and mistakes are far from being minor informalities and irregularities and should not be interpreted as such in the Bid Proposal submitted.

JMJ Construction
JMJ Construction (hereinafter referred to as “JMJ”) failed to sign the Bidder’s Bond, as shown on the submitted document:

Because JMJ did not sign on the specified line for the Contractor, JMJ also failed to get a notary acknowledgement for the Principal of the Bidder’s Bond, as instructed by the City. Which in turn voids this bid bond and makes it invalid, therefore makes this proposal non-responsive.

Page 12 ends

the bidder to provide all required information in a complete and accurate manner may be considered non- responsive.”
In addition, page 16 is not filled out completely:
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Building the Foundation for our Future
CA License No. 927544 | Classifications: A, B, C-27, C-10 ________________________________________________________________________________________________________________________ 15148 Sierra Bonita Lane, Chino, California 91710
Phone: (909) 457-8260 Fax: (909) 457-8261 | www.kasaconstruction.com Furthermore, page 20 of the “Information Required of Bidder” document states, “For all arbitrations, lawsuits, settlements or the like (in or out of court) you have been involved in with public agencies in the past five years (Attach additional Sheets if necessary) provide.” JMJ answered no to this question:

Yet, JMJ is currently debarred from bidding on or accepting any public works contracts in the City of West Covina, as shown by the City’s debarment listing:
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Building the Foundation for our Future
CA License No. 927544 | Classifications: A, B, C-27, C-10 ________________________________________________________________________________________________________________________ 15148 Sierra Bonita Lane, Chino, California 91710
Phone: (909) 457-8260 Fax: (909) 457-8261 | www.kasaconstruction.com The debarment listing is attached and can be accessed by clicking the following link:
https://www.westcovina.org/departments/city-manager-s-office/transparency. JMJ’s debarment is current and permanent, and it is clearly an arbitration, lawsuit, settlement or the like with a public agency in the past five years as stated on page 20 of the proposal. Page 21 states that “failure of the bidder to provide ALL requested information in a complete and accurate manner may be considered non-responsive.” Lastly, per the instructions on page 17 of the proposal, if the bidder is a corporation, the “legal name of corporation must be provided, followed by signatures of the corporation President or Vice President or President and Secretary or Assistant Secretary, and the corporate seal, or submit with evidence of authority to act on behalf of the corporation” (emphasis added). JMJ’s President signed the page but a corporate seal does not appear to be attached:

Furthermore, a second signature was not made as stated in the instructions, nor was a corporate resolution attached to the proposal as evidence of the signatory’s authority to act on behalf of the corporation. JMJ is a corporate entity as shown on its DIR Registration page:
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Building the Foundation for our Future
CA License No. 927544 | Classifications: A, B, C-27, C-10 ________________________________________________________________________________________________________________________ 15148 Sierra Bonita Lane, Chino, California 91710
Phone: (909) 457-8260 Fax: (909) 457-8261 | www.kasaconstruction.com Based on the above findings, it is without a doubt that JMJ Construction is Non-Responsive and its Bid Proposal should not be considered for this project. It failed to submit a signed Bidder’s Bond, it failed to follow the City’s instructions in completing its Proposal, and it failed to answer all questions about its history accurately and truthfully. As such, JMJ’s omissions and mistakes are far from being minor informalities and irregularities and should not be interpreted as such in the Bid Proposal submitted.

Summary
In order to be awarded the Newport Coast Pickleball Courts contract, the apparent lowest bidder must be both “Responsive” and “Responsible.” In reference to the California Department of General Services, these terms are defined as:

Responsive Bid: A bid is considered responsive if it indicates compliance without material deviation from the requirements of the solicitation and the terms and conditions of the proposed contract.

Responsible Bidder: A bidder is responsible if they possess the experience, facilities, reputation, financial resources and are fully capable of performing the contract.

Based on the above findings, it is without a doubt that Green Giant Landscape, Inc., Klassic Engineering & Construction, Inc., and JMJ Construction do not have the experience, facilities, and reputation to fully perform the contract in compliance with the law. Awarding the contract to any of the three contractors would not serve the public good when claims arise from their individual inability to meet the deadlines and demands of public agencies.

As stated several times in the proposal, the City reserves the right to disqualify any bidder who does not submit a complete and truthful Bid Package:

All three apparent low bidders submitted Bid Proposals with major inaccuracies, omissions, and even falsehoods. These mistakes, besides other things, are far from being minor informalities or irregularities and they should not be waived or overlooked by the City.

KASA Construction respectfully requests that the City of Newport Beach consider the above findings and make a fair and proper determination to deem the Bids by Green Giant Landscape, Inc., Klassic Engineering & Construction, Inc., and JMJ Construction NON-RESPONSIVE and Award the contract to KASA Construction, Inc.
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Building the Foundation for our Future
CA License No. 927544 | Classifications: A, B, C-27, C-10 ________________________________________________________________________________________________________________________ 15148 Sierra Bonita Lane, Chino, California 91710
Phone: (909) 457-8260 Fax: (909) 457-8261 | www.kasaconstruction.com If there is any additional information needed, please do not hesitate to call me at the number below.

Respectfully,
Hector Zavala
Estimator
KASA Construction, Inc.
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DEBARMENT LISTING
Donald Louis Henderson
Green Giant Landscape, Inc
941-A Macy Street
La Habra, CA 90631-3400
Permanent
Date Debarred October 30, 2017
Bob's Towing
15007 E. Salt Lake Avenue
La Puente, CA 91746
Mr. Al-Badawi
Permanent
Date Debarred November 23, 2018

The following contractors are currently barred from bidding on, accepting, or performing any public works contracts, either as a contractor or subcontractor, for the period set forth below Name of Contractor Period of Debarment
JMJ Construction
30724 Benton Road, Suite C302
Winchester, CA 92596
Permanent
Date Debarred June 27,2016
For questions regarding this list contact the Purchasing Manager 7-31
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Klassic Engineering and Construction Inc. alleged to have not paid contributions | Northern Californ... https://norcalrecord.com/stories/511096045-klassic-engineering-and-construction-inc-alleged-to-hav... 1 of 2 9/29/2023, 1:29 PM
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10/2/23, 2:50 PM City will seek new contractor for Alamitos Beach concession stand after previous one failed to complete work • Long Beach Post N… https://lbpost.com/news/city-will-seek-new-contractor-for-alamitos-beach-concession-stand-after-previous-one-failed-to-complete-work/ A concession stand at Alamitos Beach is almost complete as it's under construction in Long Beach Wednesday, August 11, 2021. Photo by Thomas R. Cordova.

MEMBER SUPPORTED
NEWS
City will seek new contractor for Alamitos Beach
concession stand after previous one failed to com-
plete work
by Jason Ruiz
Oct 14, 2021 Updated Oct 15, 2021
The city could be looking for a new contractor to complete the $9 million beach concession stand at Alamitos Beach after its current one failed to complete work on time, or at all, according to a city memo.

The Alamitos Beach concession stand project was part of an overhaul of the city’s beachfront concession areas. The stands at Junipero and Granada Beaches have already been completed and have food vendor 7-36
10/2/23, 2:50 PM City will seek new contractor for Alamitos Beach concession stand after previous one failed to complete work • Long Beach Post N… https://lbpost.com/news/city-will-seek-new-contractor-for-alamitos-beach-concession-stand-after-previous-one-failed-to-complete-work/ © 2023 Pacic Community Media.
contracts approved.

The City Council is expected to vote at its Oct. 19 meeting to approve a takeover agreement that would allow the city to demand that the bonding company for Klassic Engineering and Construction Inc., which was awarded the original deal, find a new contractor to complete the work.

Joshua Hickman, a manager in the Public Works business operations bureau, said that the concession stand is about 90% complete, but the construction firm showed an inability to complete the project.

Hickman said some of the bigger issues were the non-completion of the permanent electrical system of the stand as well as the contractor’s inability to get the elevator that will be used to transport guests up to its second floor signed off by inspectors.
“It’s less about three to four things not being done, than a whole bunch that are sitting at about 85% to 90%,” Hickman said of the incomplete work.

While it’s rare for the city to break contracts like this, Hickman said it has happened before, despite the city’s efforts to allow the contractor to complete the job.

The Alamitos Beach concession stand was originally projected to be done by October 2020 but a number of extensions were granted to the contractor before the city finally declared KEC in default of the contract after its inability to substantially complete the build out. Work started on the project in August 2019.
“Given the performance on the project we are not likely to work with them again,” Hickman said.

Breaking the contract is not expected to cost the city any additional money to complete the buildout, Hickman said. The city will work with Nationwide Mutual Insurance Company to find a new contractor for the site.

Hickman said the project could benefit from a number of subcontractors remaining on the job that could start work to complete the stand in as little as a few weeks. The project is now expected to be completed by early 2022
when the new tenant, Gaucho Grill, can start its tenant improvements.

The concession stand could open for business by summer 2022. 7-37

Newport Beach City CouncilJanuary 22, 2024

Newport Beach City Council
January 22, 2024