TO: HONORABLE MAYOR FROM: Matt Loesch
AND CITY COUNCIL John Ristow
SUBJECT: See Below DATE: May 27, 2025
Approved Date
6/5/25
COUNCIL DISTRICT: 3
SUBJECT: Report on Bids and Award of Contract for the 10026 – Downtown Better Bikeways Hardscape Conversion) Project
RECOMMENDATION
(a) Report on bids and award of a contract for the construction of 10026 – Downtown Better Bikeways Hardscape Conversion Project to the lowest responsive, responsible bidder, Redgwick Construction Company, for the base bid and Bid Alternate No. 2 in the amount of $3,844,097; and
(b) Approve a 10% contingency in the amount of $384,410.
SUMMARY AND OUTCOME
Award of the contract to Redgwick Construction Company enables the construction of the 10026 – Downtown Better Bikeways Hardscape Conversion Project (Project), which will provide enhanced Class III and Class IV bikeways along portions of Second Street, Third Street, Fourth Street, San Salvador Street, and Taylor/Mabury Street. (Attachment A – Project Location Map-10026 Downtown Better Bikeways Hardscape Conversion).
Approval of the 10% contingency will provide funding for any unanticipated work necessary for the proper completion or construction of the Project.
BACKGROUND
The Project is federally funded by the Safe and Seamless Mobility Quick Strike Grant as part of the One Bay Area Grant 3 program (Federal Project Number STPL-5005(169).
The Department of Transportation managed the design phase of the Project, and the Public Works Department will manage the construction phase of the Project.
COUNCIL AGENDA: 6/17/25
FILE: 25-709
ITEM: 2.41
HONORABLE MAYOR AND CITY COUNCIL
May 27, 2025
Subject: Report on Bids and Award of Contract for the 10026 – Downtown Better Bikeways Hardscape Conversion Project
The Project implements new traffic islands, landscaping, irrigation, pavement surface treatment, and traffic striping to protect an all ages and abilities bicycle route through downtown San José.
The Project’s base bid includes installation of non-permeable paver traffic islands and new traffic striping throughout all Project locations. There are two Bid Alternates on this Project.
Bid Alternate No. 1 includes installation of landscaped traffic islands, planting, irrigation, and permeable paver traffic islands on Third Street from Saint John Street to Williams Street, Fourth Street from Julian Street to San Salvador Street, and Taylor/Mabury Street from 21st Street to Lenfest Road.
Bid Alternate No. 2 includes pavement surface treatment prior to installation of new traffic striping on Second Street from Reed Street to Keyes Street and Third Street from Williams Street to Keyes Street.
Construction is scheduled to begin in September 2025 with substantial completion in March 2026.
ANALYSIS
Bids were opened on February 13, 2025, with the following results:
Contractor Base Bid
Amount
Variance
Amount
Over/
(Under)
Percent
Redgwick Construction Company
(Oakland) $3,454,094 ($138,562) (4)
FBD Vanguard Construction, Inc.
(Santa Clara) $3,548,116 ($44,540) (1)
Sposeto Engineering, Inc.
(San José) $3,589,698 ($2,958) (0)
Engineer’s Estimate $3,592,656 -- --
Joseph J. Albanese, Inc.
(Hayward) $3,879,410 $286,754 8
Ghilotti Construction Company, Inc.
(Santa Rosa) $4,178,198 $585,542 16
HONORABLE MAYOR AND CITY COUNCIL
May 27, 2025
Subject: Report on Bids and Award of Contract for the 10026 – Downtown Better Bikeways Hardscape Conversion Project
Contractor Base Bid
Amount
Variance
Amount
Over/
(Under)
Percent
Granite Rock Company
(San José) $5,653,423 $2,060,767 57
Section 3-1.01D of the City of San José Special Provisions specifies how the City will determine the low bid when bid alternates are included. The section requires the City to determine the low bid by consideration of the base bid alone.
The Project included two bid alternates; the bid results are listed below.
Bid Alternates
Contractor Bid Alternate
No. 1
Bid Alternate
No. 2
Redgwick Construction Company
(Oakland) $2,675,240 $390,003
FBD Vanguard Construction, Inc.
(Santa Clara) $3,184,015 $214,753
Sposeto Engineering, Inc.
(San José) $2,028,958 $218,388
Engineer’s Estimate $2,471,036 $212,242
Joseph J. Albanese, Inc.
(Hayward) $3,238,405 $245,665
Ghilotti Construction Company, Inc.
(Santa Rosa) $2,120,920 $158,888
Granite Rock Company
(San José) $1,405,500 $170,220
In addition to the base bid scope of work, Bid Alternate No. 2 is recommended for award. There is no available funding to include the award of Bid Alternate No. 1.
Bid Price Analysis
The low bid, based on the base bid alone, submitted by Redgwick Construction Company is 4% under the Engineer’s Estimate. Staff considers the low bid to be acceptable for the work involved.
HONORABLE MAYOR AND CITY COUNCIL
May 27, 2025
Subject: Report on Bids and Award of Contract for the 10026 – Downtown Better Bikeways Hardscape Conversion Project
Bid Protest
On April 23, 2025, the City issued the Notice of Intent to Award the contract to Redgwick Construction Co. On April 30, 2025, the City received a timely written protest from FBD Vanguard Construction, Inc. (Attachment B – Protest submitted by FBD Vanguard Construction, Inc.) requesting that the City deem Redgwick Construction Company’s bid non-responsive and award the contract to FBD Vanguard Construction, Inc. On May 5, 2025, the City received a protest response letter from Redgwick Construction Company (Attachment C – Response letter from Redgwick Construction Company). On May 8, 2025, the Public Works Department responded to FBD Vanguard Construction, Inc. by declining its request and stating that the department would continue to recommend award to Redgwick Construction Company (Attachment D – City’s response to FBD Vanguard Construction, Inc. Bid Protest).
Contractor Responsibility Analysis
Redgwick Construction Company has successfully completed multiple projects for the City of San José and other local agencies, including the 8728 – Alum Rock Park Service Road Slide Repair Project, which was accepted in October 2024, and the Monument Boulevard Class I Path Project, which was accepted in August 2023.
Contingency
San José Municipal Code Section 27.04.050 provides for a standard contingency of 10% on all public works contracts except those involving the renovation of a building or buildings. The standard 10% contingency is appropriate for this Project.
Wage Theft Prevention Policy Check
The Office of Equality Assurance reviewed bidders for compliance with the City’s Wage Theft Prevention Policy on February 13, 2025, and again on April 28, 2025. No wage theft issues were identified.
Project Labor Agreement Applicability
The City’s Project Labor Agreement is applicable to this Project because the Engineer’s Estimate is higher than $1.21 million.
Local and Small Business Analysis
The recommended contractor is not a local or a small business enterprise. Two local businesses are listed as subcontractors for the base bid and Bid Alternate No. 2. Jalos Construction (San José) will be performing concrete work valued at approximately
HONORABLE MAYOR AND CITY COUNCIL
May 27, 2025
Subject: Report on Bids and Award of Contract for the 10026 – Downtown Better Bikeways Hardscape Conversion Project
$860,000. JJ Nguyen, Inc. (San José) will be performing pavers installation work valued at approximately $1,100,000.
EVALUATION AND FOLLOW-UP
No additional follow-up action with the City Council is expected at this time.
COST SUMMARY/IMPLICATIONS
The proposed operating and maintenance costs of this Project have been reviewed, and it has been determined that the Project will have no significant adverse impact on the Construction Excise Tax Fund, Building and Structure Construction Tax Fund, or General Fund operating budgets. This Project is consistent with the City Council- approved Budget Strategy Economic Recovery section in that it will spur construction spending in our local economy.
1. TOTAL COST OF PROJECT:
Project Delivery* $ 1,318,738
Construction 3,844,097
Contingency 384,410
TOTAL PROJECT COSTS $ 5,547,245
Prior Years’ Expenditures 364,165
TOTAL REMAINING PROJECT COSTS $ 5,183,080
*Project delivery includes $386,738 for planning and design services and $932,000 for inspection, survey, materials lab services, utilities, construction management, and project closeout costs.
2. COST ELEMENTS OF CONTRACT AS RECOMMENDED AS PART OF THE MEMORANDUM:
Mobilization and Traffic Control $ 1,006,472
Concrete and Paving 2,013,244
Signage, Striping, and Demolition 244,568
Other Construction Costs 189,810
Bid Alternate No. 2 390,003
TOTAL CONTRACT AMOUNT $ 3,844,097
HONORABLE MAYOR AND CITY COUNCIL
May 27, 2025
Subject: Report on Bids and Award of Contract for the 10026 – Downtown Better Bikeways Hardscape Conversion Project
BUDGET REFERENCE
The table below identifies the fund and appropriation to fund the contract recommended as part of this memorandum and remaining project costs, including project delivery, construction, and contingency costs.
Fund
#
Appn.
#
Appropriation
Name
Total
Appropriation
Amount for
Contract
2024-
2025
Adopted
Capital
Budget
Page
Last Budget
Action
(Date, Ord.
No.)
465 423V Downtown San
José Bikeways $4,197,000 $3,844,097 912 10/22/2024,
31133
COORDINATION
This memorandum has been coordinated with the City Attorney’s Office, the City Manager’s Budget Office, and the Planning, Building and Code Enforcement Department.
PUBLIC OUTREACH
This memorandum will be posted on the City’s Council Agenda website for the June 17, 2025 City Council meeting.
COMMISSION RECOMMENDATION AND INPUT
No commission recommendation or input is associated with this action.
CEQA
Categorically Exempt, File No. ER22-137, CEQA Guidelines Sections 15301, Existing Facilities.
HONORABLE MAYOR AND CITY COUNCIL
May 27, 2025
Subject: Report on Bids and Award of Contract for the 10026 – Downtown Better Bikeways Hardscape Conversion Project
PUBLIC SUBSIDY REPORTING
This item does not include a public subsidy as defined in section 53083 or 53083.1 of the California Government Code or the City’s Open Government Resolution.
/s/
/s/
MATT LOESCH JOHN RISTOW
Director of Public Works Director of Transportation
For questions, please contact Mathew Nguyen, Public Works Deputy Director, at [email protected]
or Jessica Zenk, Transportation Deputy Director, at
[email protected].
ATTACHMENTS:
A – Project Location Map-10026 Downtown Better Bikeways Hardscape Conversion B – Protest submitted by FBD Vanguard Construction, Inc .
C – Response letter from Redgwick Construction Company
D – City’s response to FBD Vanguard Construction, Inc. Bid Protest MARTHA
SAN JOSE STATEUNIVERSITY
LOCATION MAPNOT TO SCALE
10026 - DOWNTOWN BETTER BIKEWAYSHARDSCAPE CONVERSION(EAST WILLIAM STREET TO KEYES STREET)FEDERAL PROJECT NUMBER STPL-5005(169) NORTH
Attachment A - Project Location Map
Attachment B
Attachment C
May 8, 2025
Robert Purdy
FBD Vanguard Construction, Inc.
550 Greenville road
Livermore, CA 94550
[email protected]
SUBJECT: PW 10026 – Downtown Better Bikeways Hardscape Conversion Bid Protest
Dear Mr. Purdy,
This letter is to inform you that City staff has evaluated your letter dated April 29, 2025, entitled “Formal Bid Protest”, and will be making the following recommendation to the City Council.
Pursuant to the San Jose Municipal Code, the City Council has the authority to resolve bid protests made during this procurement.
RECOMMENDATION:
City staff will recommend upholding the intent to award the construction contract to Redgwick Construction Company.
BACKGROUND:
On February 13 , 2025 , bids were opened for the PW 10026 – Downtown Better Bikeways Hardscape Conversion Project. Six bids were submitted:
1. Redgwick Construction Company (base bid $3,454,094.00; bid alts $3,065,243.00);
2. FBD Vanguard Construction, Inc. (base bid $3,548,116.00; bid alts $3,398,768.00);
3. Sposeto Engineering, Inc. (base bid $3,589,698.10; bid alts $2,247,345.10);
4. Joseph J. Albanese, Inc. (base bid $3,879,410.00; bid alts $3,484,070.00);
5. Ghilotti Construction Company, Inc. (base bid $4,178,197.50; bid alts $2,279,807.50); and
6. Granite Rock Company (base bid $5,653,423.00; $1,575,720.00).
On April 23, 2025, the City issued a Notice of Intent to Award the contract to Redgwick Construction Company, the bidder who submitted the lowest responsive and responsible bid.
Attachment D
SUBJECT: PW 10026 Protest
PROTEST:
On April 30, 2025, the City received a timely written protest from FBD Vanguard Construction, Inc. The protest asserted that Redgwick Construction Company ’s bid should be deemed non - responsive for irregularities within the company’s subcontractor listing form and requested that the City award the construction contract to FBD Vanguard Construction, Inc.
ANALYSIS: FBD VANGUARD CONSTRUCTION, INC.’S PROTEST IS BASELESS
A. The errors in Redgwick Construction Company ’s subcontractor listing form are minor irregularities that the City has discretion to waive.
FBD Vanguard Construction, Inc.’s protest asserts that errors within Redgwick Construction Company’s subcontractor listing form (Exhibit 12 -B (Part 1)) are material to Redgwick Construction Company’s bid and have provided Redgwick Construction Company with an “unfair advantage.” The City strongly disagrees with this characterization of the errors as anything other than minor irregularities that Section 27.10.570 of the San Jose Municipal Code and Section 2 -
1.06 of the City’s Standard Specifications authorize the City, at its sole discretion, to waive.
1. Columbia Electric : FBD Vanguard Construction, Inc.’s protest correctly notes that Redgwick Construction Company’s Exhibit 12 -B (Part 1) lists the line items to be performed by Columbia Electric as 5 and 23, whereas the quote from Columbia Electric provided as part of Redgwick Construction Company’s Disadvantaged Business Enterprise submittal lists the line items to be performed by Columbia Electric as 5, 23, and 26.
In its protest response letter dated May 5, 2025, Redgwick Construction Company explained the discrepancy, stating that the company understood Exhibit 12 -B (Part I)’s instruction to list “each subcontractor who will perform work amounting to more than one half of one percent (0.5%) of the Total Base Bid” (emphasis added) to mean that bidders were not required to list work done as part of Bid Alternate No. 1 or Bid Alternate No. 2.
As line item 26 is part of Bid Alternate No. 1, it was intentionally omitted by Redgwick Construction Company from Exhibit 12-B (Part 1).
The City maintains that Redgwick Construction Company misinterpreted Exhibit 12 -B (Part I)’s instructions and that bidders were required to list subcontractors performing work on the base bid and bid alternates, provided that the value of the work in question exceeded
0.5% of the total base bid amount. However, we recognize Redgwick Construction Company’s argument that the instructions could be interpreted differently. Given the ambiguity and the fact that the City does not intend to award Bid Alternate No. 1, the City will accept the omission of line item 26 on the Exhibit 12-B (Part 1) as a minor irregularity that is within the City’s discretion to waive pursuant to Section 27.10.570 of the San Jose Municipal Code and Section 2-1.06 of the City’s Standard Specifications.
2. JJ Nguyen, Inc.: FBD Vanguard Construction, Inc.’s protest correctly notes that Redgwick Construction Company’s Exhibit 12-B (Part 1) lists a subcontract value for JJ Nguyen, Inc. as $50 ,216, whereas the quote from JJ Nguyen, Inc. provided as part of Redgwick SUBJECT: PW 10026 Protest
Construction Company’s Disadvantaged Business Enterprise submittal listed the value of work as $502,160. The omission of the last digit in the subcontract value on the Exhibit 12-B (Part 1) is clearly a minor irregularity that is within the City’s discretion to waive pursuant to Section 27.10.570 of the San Jose Municipal Code and Section 2-1.06 of the City’s Standard Specifications.
The City regularly waives minor irregularities that do not have a material impact on a bid including but not limited to math errors, 1 incorrectly transcribed Department of Industrial Relations registration or California State Licensing Board license numbers, and missing reference contact information. Waiving the irregularities listed above is consistent with the City’s practice and our commitment to ensuring a fair, open, and transparent procurement process.
It should be noted that FBD Vanguard Construction, Inc.’s protest incorrectly states that the San Jose Municipal Code identifies specific types of errors within bids as providing an unfair advantage and which, as a result, must be cause for a bid to be deemed non-responsive.2
B. Redgwick Construction Company was not required to have or list a subcontractor with a “C-10” specialty contractor’s license to perform irrigation electrical work.
As FBD Vanguard Construction, Inc. correctly points out , subcontractor listing requirements stipulate that work valued at more than 0.5% of the bid must be assigned to a designated subcontractor or self-performed. Per Section 2-1.15 of the City’s Standard Specifications3 “if the Contractor fails to specify a subcontractor…the Contractor agrees that it is fully qualified to perform that portion itself, and that the Contractor shall perform that portion of the work.” By declining to list a subcontractor to perform irrigati on electrical work, Redgwick Construction Company has agreed to perform that work.
However, FBD Vanguard Construction, Inc. is incorrect when it says that bidders were required to list a subcontractor with a C-10 specialty license to perform irrigation electrical work or, if self- performing the work, possess a C-10 specialty license themselves. There is no mention of a C-10 license requirement within project Specifications. Had the City wanted to require a C -10 license, it could have and would have done so.
Therefore, contrary to FBD Vanguard Construction, Inc. ’s claim, Redgwick Construction Company was not required to have or list a subcontractor with a C-10 license on its Exhibit 12-B (Part I) and, therefore, its bid was not non-responsive.
1 Math errors are corrected in accordance with the process specified in Section 2-1.05 of the City’s Standard Specifications 2 The protest also incorrectly cites the Public Contract Code as an authority over the City’s procurement process. As a Charter City, the City of San Jose has adopted Title 27 of the San Jose Municipal Code to “control over the California Public Contract Code except wherein it expressly incorporates the California Public Contract Code” (SJMC 27.04.010). 3 The protest also incorrectly cites the Public Contract Code as an authority over the City’s procurement process. As a Charter City, the City of San Jose has adopted Title 27 of the San Jose Municipal Code to “control over the California Public Contract Code except wherein it expressly incorporates the California Public Contract Code” (SJMC 27.04.010).
SUBJECT: PW 10026 Protest
As stated above, the City Council has the authority to resolve bid protests made during this procurement. FBD Vanguard Construction, Inc. will be afforded the opportunity to formally present its case to the City Council when this item is agendized for City Council action.
Alternatively, FBD Vanguard Construction, Inc. may withdraw its protest.
Thank you,
Lauren Profeit
CIP Procurement Manager
San José City Hall, 5th Floor
200 E. Santa Clara Street
San José, CA 95112
[email protected]