VIA EMAIL – [email protected]
February 3, 2024
Robert Armijo
City of Richmond
450 Civic Center Plaza, 2nd Floor
Richmond, CA 94804
RE: BID ADVISORY
Low Bidder: Rapid Services LLC dba Rapid Grading Services Awarding Agency: City of Richmond
Project: 7th Street Bike Lane Improvement Project
FFC Case No.: 1172BA
Dear Mr. Armijo:
The Foundation for Fair Contracting (FFC) is a nonprofit organization serving the public interest since 1985. The objective of the FFC is to monitor compliance with prevailing wage laws pertaining to the construction industry, including informing and educating industry stakeholders.
Unbalanced bids raise questions in regard to performance and compliance with the rules and regulations for the payment of prevailing wages, and the safety and well-being of the workforce.
It further opens the question of excessive future change orders and the ultimate fairness to and rights of other bidders in the bidding process and the intent of the bidding process in general.
In deference to all bidders and in order for the public interest to best be served, please enter this formal bid advisory against the above-noted contractor as a matter of public record. We respectfully request that Rapid Services LLC dba Rapid Grading Services (Rapid) bid be rejected for the following reasons:
• FAILURE TO COMPLY WITH BID SPECIFICATIONS/UNFAIR COMPETITIVE
ADVANTAGE
Rapid’s bid is 20% - 55% lower than all other bidders on this project. A large bid variance commonly indicates a failure to bid in accordance with the plans and specifications and/or account for the proper prevailing wage rate – including travel and subsistence. If awarded the project, change orders would be inevitable to complete the project in accordance with the specifications and/or prevailing wage laws/standards. This gives Rapid an unfair advantage in its bidding practices against its competitors and puts the City of Richmond into a precarious legal position.
• ONGOING VIOLATIONS OF PREVAILING WAGE LAWS RESULTING IN WAGE THEFT
Rapid is currently under investigation by our offices and a complaint has been filed with the State of California, Division of Labor Standards Enforcement (DLSE), Labor Commissioner’s office in connection with the issues provided below. We have provided supporting documentation for your review.
▪ Misclassifications resulting in underpayments.
▪ Failure to comply with apprenticeship requirements.
Robert Armijo
City of Richmond
February 3, 2024
• FAILURE TO COMPLY WITH WORKFORCE DEVELOPMENT AND FORMAL
APPRENTICESHIP PROGRAMS
Rapid has not made a good faith effort to participate and invest in local workforce development, nor have they participated in local hiring of workers in the community through formal and recognized pre-apprenticeship programs and formal apprenticeship programs for specific apprenticeable crafts. They have failed to request, employ, train, and pay the proper prevailing wages to apprentices.
Please contact our office with questions, comments, or clarifications.
Sincerely,
Jesse Jimenez
Executive Director
Case: 1172BA
cc: City of Richmond – Mayor and Councilmembers
Eduardo Martinez - [email protected]
Soheila Bana - [email protected]
Claudia Jimenez - [email protected]
Cesar Zepeda - [email protected]
Doria Robinson - [email protected]
Sue Wilson - [email protected]
Jamelia Brown - [email protected]
City of Richmond – Director of Public Works
Daniel Chavarria - [email protected]
Showing 9 Bid Results
Rapid Services LLC
23842 Cabot Blvd
Hayward, California 94545
Contact: Yadwinder Singh
Phone: 650-281-5495
MBE, CADIR, DBE, OSB $269,000.00
fbd vanguard
550 Greenville Road
Livermore, California 94550
Contact: Nick Ratto
Phone: 925-245-1300
$337,481.00
W.R. Forde Associates, Inc
984 Hensley Street
Richmond, California 94801
Contact: David Voorhis
Phone: 510-215-9338
Local $353,475.00
Maggiora & Ghilotti Inc.
555 Du Bois Street
San Rafael, California 94901
Contact: Gary Ghilotti
Phone: 415-459-8640
$386,800.00
SPOSETO ENGINNERING INC.
4558 CONTRACTORS PLACE
LIVERMORE, California 95111
Contact: DUY TRUONG
Phone: 924-443-4200
OSB, CADIR $397,050.70
Ghilotti Bros., Inc. $429,989.00
Vendor Type Bid Amount Responsive
7TH STREET BIKE LANE IMPROVEMENT PROJECT CIP No. 23030
525 Jacoby Street
San Rafael, California 94901
Contact: David Cantor
Phone: 415-454-7011
California Constructores
1220 Marin Ave
san pablo, California 94806
Contact: CARLA DEL CARPIO
Phone: 510-932-9899
OSB $538,516.75
Buildcorp inc
666 Monterey Blvd
San Francisco, California 94127
Contact: Jay Zhong
Phone: 925-339-8607
$573,000.00
Kerex Engineering Inc
PO Box 23831
Pleasant Hill, California 94523
Contact: Patrick Madden
Phone: 925-457-7165
CADIR $597,350.00
Vendor Type Bid Amount Responsive
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Labor Commissioner, State of California
Department of Industrial Relations
Division of Labor Standards Enforcement
DIVISION USE ONLY:
TAKEN BY: CASE #
DATE TAKEN: ASSIGNED TO:
OFFICE: DATE RECEIVED:
DATE ASSIGNED:
PUBLIC WORKS – PUBLIC COMPLAINT
The following information is important and must be provided.
Complainant Information
1. FIRST NAME 2. LAST NAME 3. COMPANY NAME 4. WORK/CELLULAR NO
5. CONTACT ADDRESS 6. CITY 7. STATE / ZIP CODE 8. EMAIL ADDRESS Project Information
Note: A separate form must be completed for each project in which you are alleging a violation of prevailing wages.
9. PROJECT NAME (If known)
10. LIST ADDRESS(ES) OF PROJECT WHERE WORK WAS PERFORMED:
Complaint Against
11. NAME OF BUSINESS/CONTRACTOR/EMPLOYER 12. CONTRACTOR’S STATE LIC.
NO
13. ADDRESS OF BUSINESS/CONTRACTOR/EMPLOYER (Include Zip Code) 14. BUSINESS TEL. NO
15. EMAIL ADDRESS 16. NAME OF PERSON IN CHARGE 17. TITLE Awarding Body
18. NAME OF PUBLIC AGENCY/AWARDED CONTRACT ENTITY
19. ADDRESS OF AWARDING BODY 20. BUSINESS TEL. NO/
21. EMAIL ADDRESS 22. NAME OF PERSON IN CHARGE / TITLE 23. AMOUNT OF CONTRACT
24. FIRST BID AD DATE 25.DATE PROJECT BEGAN 26. PROPOSED FINISH DATE 27. DATE OF NOTICE OF COMPLETION General Contractor (Prime Contractor)
28. NAME OF GENERAL CONTRACTOR 29. CONTRACTOR’S STATE LIC.
30. ADDRESS 31. BUSINESS TEL. NO
32. EMAIL ADDRESS 33. NAME OF PERSON IN CHARGE 34. TITLE Prevailing Wage Issues (Attach statements substantiating the allegation)
35. BRIEF EXPLAINATION OF ISSUES: (Check all applicable boxes) Non-payment /Underpayment of wages Not paid travel and subsistence Under reporting of hours Unpaid overtime/Sat/Sun/Holiday rate Misclassification of worker Insufficient fund check Fringe benefits not paid Other
Apprentice Violations 1777.5 proceed to the next page
DLSEPW 1A (Rev 8.2012)
DIR #: FFC Case No.:
_______________________________________________________________________
______________________________________________ _________________________
_______________________________________________________________________________________________________________________ _______________________________________________________________________________________________________________________ _______________________________________________________________________________________________________________________ _______________________________________________________________________________________________________________________ _______________________________________________________________________________________________________________________ _______________________________________________________________________________________________________________________ Apprentice Occupation
36. Trades and Classifications: _______________________________________________ Apprentice Violations 1777.5
37. If the contractor is approved to train- Name of the Apprenticeship Committee:
38. Was there a LABOR COMPLIANCE PROGRAM on this project? Yes No If Yes, Name of the LCP: LCP Telephone Number:
Apprentice Issues
( List any documentation attached substantiating the allegation)
39. BRIEF EXPLAINATION OF ISSUES: (Check all applicable boxes) Failed to provide Contract award information (DAS 140). California Code of Regulations 230 Failed to request dispatch of apprentices (DAS 142). California Code of Regulations 230.1 Failed to employ registered apprentices in the correct ratio or not at all. California Code of Regulations 230.1 Failed to make apprenticeship training fund contributions. California Code of Regulations 230.2 Other (give clear concise statement of the facts constituting the basis of your complaint) Proof of Service
40. Check the box if Proof of Service upon affected contractor and the General Contractor is attached.
I hereby certify that this is a true statement to the best of my knowledge and belief.
MY NAME MAY BE USED IN THIS INVESTIGATION. Yes No
Signature Date
DLSE PW 1A (Rev 8. 2012)
CONTRACTOR REVIEWED FFC CASE #
BID ADVERTISEMENT DATE COMPLETION DATE
N/A = NOT APPLICABLE S/R = SEE REMARKS CPR = CERTIFIED PAYROLL REPORTS
ITEM ITEM
NO. ITEM NO. ITEM
A GENERAL YES NO N/A S/R F PROJECT SPECIFICATIONS YES NO N/A S/R A1 Contractor Registered with State of CA F1 Funding - State Monies A2 CSLB in Good Standing F2 Funding - Federal Monies
A3 Workers Compensation in Good Standing F3 Special Provisions A4 Secretary of State in Good Standing F4 Special Single Shift A5 F5 Notice of Completion Filed
B PAYROLLS YES NO N/A S/R G CONCLUSIONS YES NO N/A S/R
B1 CPRs A-1-131 Submitted G1 Reviewed CPRs Okay
B2 Daily Logs/CPR Agree G2 Discrepancies Intentional
B3 Time Cards/CPR Agree G3
B4 Canceled Checks/CPR Agree H RECOMMENDATIONS YES NO N/A S/R B5 Photographic Evidence/CPR Agree H1 Com plaint to Awarding Body/Contractor B6 Wages Paid at/above Prevailing Rates H2 Complaint to DLSE B7 Complied with All OT/Holiday Rqmts H3 Complaint to CSLB B8 Check #s/Direct Deposit Info Available H4 Complaint to EDD B9 Employee Questionnaires to Workers H5
B10 Employee Interviews on File ITEM # REMARKS
B11 Employee Interview Reflects Problems Scope
B12 eCPRs Submitted
C BENEFITS YES NO N/A S/R
C1 Statement of Employer Payments PW 26 Submitted
C2 Fringes Paid in Cash
C3 Fringes Paid to Plans/Funds
C4 Plans/Funds Approved
C5 Plans/Funds Documents Available
C6 Plans/Funds Statements Available
C7 Statement Hours Match CPR Hours
C8
Canceled Checks for Payments Available
C9 Canceled Checks Agree with Statements
C10 Annualization Necessary
C11 Annualization Amounts Correct
C12 Employee Interviews on File
C13 Employee Interview Reflects Problems
C14
D APPRENTICESHIP/TRAINING YES NO N/A S/R
D1 Form DAS 140 Available
D2 Form DAS 142 Available
D3 Training Fund Paid to JAC
D4 Training Fund Paid to CAC
D5 Hours on CPR Agree with JAC Stmt
D6 Hours on CPR Agree with CAC Stmt
D7
Verified JAC Pymt with Cancelled Checks
D8 Verified CAC Pymt with Cancelled Checks
D9 Apprentices Registered with State of CA
D10 Employed/Trained Apprentices @ Rqd Ratio
D11
E TRAVEL/SUBSISTENCE YES NO N/A S/R
E1 Complied with Travel/Subsistence Rqmts
NAME OF REVIEWER DATE
CHECKLIST
Source Document