City of Richmond Rapid Grading Services
450 Civic Center Plaza, 2nd FL, 23842 Cabot Blvd
Richmond, CA 94804 Hayward, CA 94545
FFC Bid Advisory Response February 18, 2025
Dear City of Richmond Mayor, Council Members, and Public Works Department, We appreciate the opportunity to respond to the Bid Advisory filed by the Foundation for Fair Contracting (FFC). We would respectfully ask the City of Richmond to consider our response to the FFC and continue to move forward the a favorable recommendation and approval of the Rapid Grading Services (RGS) bid submitted for the 7t St Bike Lane Improvement Project.
The FFC alleges the following:
• 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.
RGS Response:
Our estimating department bid this project based on the scope of work and quantities listed in the plans and specifications with the use of prevailing wage when determining labor costs. We do not anticipate the need for change orders for any of the scope and/or quantities listed in the bid documentation. Should a need for a change order arise, it would be for any additional work requested by the City of Richmond.
The FFC alleges the following:
• 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.
RAPID GRADING SERVICES
EARTHWORK | GRADING | PAVING
23842 Cabot Blvd, Hayward, CA 94545 | Phone (510) 789-8807 CSLB No. 1101213 | DIR 1001011090
• Misclassifications resulting in underpayments.
• Failure to comply with apprenticeship requirements.
• 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.
RGS Response:
Our firm has received a Notice of Investigation from the Division of Labor Standards Enforcement (DLSE). Please see the attached DSLE complaint along with supporting documents sent by RGS in response.
• DLSE, Notice of Investigation, Case No. 40-84003-692
• Case No. 40-84003-692 - CPR- MT. DIABLO BLVD BASE FAILURE REPAIR • Re_Follow Up - Case No. 40-84003-692 - Email Response "The Mt. Diablo Bld Base Failure project was one of our first public works projects and ran from September 15 to September 18th. Paving operations started Sunday night and concluded Monday morning. We had a subcontractor do the striping on this project on the 18th, which concluded the project. It was our understanding that this project did not have any apprenticeship requirements based on the bid documents which is why we failed to provide the Apprenticeship Committees with notice, failed at properly requesting dispatch of apprentices, and failed to properly employ apprentices.
We understand that the above errors made us non-compliant [with the Division of Apprenticeship Standards] and we would like to rectify these errors to prevent any future noncompliance with future public works projects. Our team does not take the non-compliance complaint lightly and would very much appreciate any further guidance [from the DLSE] moving forward. We have now been instructed as to when and where to submit the DAS140/142 for any upcoming public works projects to prevent any future complaints with apprenticeship compliance."
RAPID GRADING SERVICES
EARTHWORK | GRADING | PAVING
23842 Cabot Blvd, Hayward, CA 94545 | Phone (510) 789-8807 CSLB No. 1101213 | DIR 1001011090
RGS Summary:
Our firm provided a responsive bid based on the provided plans and specifications for the 7* Street Bike Lane Improvement Project which included the proper prevailing wage rates in our estimate. We do not anticipate any change orders for the scope of work detailed in the plans and specifications. Should a potential change order arise, it will be solely on any additional work for the City of Richmond. Our company has cooperated with the DLSE Investigation and provided the requested documentation for the Mt. Diablo Boulevard Base Failure Repair Project. To date, no decision has been made by the DSLE regarding the investigation. However, in my phone conversations (as recently as this afternoon) with Deputy Labor Commissioner Susan Babirye, she informed me that RGS will have to pay a small fine but is not at risk of losing its ability to be bid on or be awarded public projects.
We kindly request that the City of Richmond continue to accept our bid for the 7t Street Bike Lane Improvement Project.
Please let us know if we can offer any further information. We look forward to working with the City of Richmond on this, and future public works projects.
Sincerely
) GRADING SERVICES
Efrain Hinojosa ORK
Project Manager
Rapid Grading Services
RAPID GRADING SERVICES
EARTHWORK | GRADING | PAVING
23842 Cabot Blvd, Hayward, CA 94545 | Phone (510) 789-8807 CSLB No. 1101213 | DIR 1001011090