TO: HONORABLE MAYOR
AND CITY COUNCIL
FROM: Matt Loesch
Mukesh (Mookie) Patel
SUBJECT: See Below DATE: July 28, 2025
Approved
Date:
8/4/25
COUNCIL DISTRICT: Citywide
SUBJECT: Report on Bids and Award of Contract for the 10582-SJC On-Call General Engineering Construction Contract 25-28 Project
RECOMMENDATION
Report on bids and award of a contract for the 10582 – SJC On-Call General Engineering Construction Contract 25-28 Project for minor capital improvement projects at the San José Mineta International Airport to the lowest responsive, responsible bidder, A. Teichert & Son, Inc. dba Teichert Construction for a maximum not to exceed amount of $3,000,000 for a duration of three years.
SUMMARY AND OUTCOME
Approval of the recommendation will enable the completion of small, unforeseen capital improvement and maintenance projects at the San José Mineta International Airport.
BACKGROUND
The 10582-SJC On-Call General Engineering Construction Contract 25-28 Project was initiated to procure one on-call construction contract in the amount of $3,000,000 for a duration of three years. The Public Works Department, working with the Airport Department, will use this contract to issue task orders for minor construction and maintenance work, including repair and replacement of ramps, roadways, sidewalks, vehicle service road, and paving work at San José Mineta International Airport on an as- needed basis.
COUNCIL AGENDA: 8/19/25
FILE: 25-287
ITEM: 2.11
HONORABLE MAYOR AND CITY COUNCIL
July 28, 2025
Subject: 10582 SJC On-Call General Engineering Construction Contract 25-28
ANALYSIS
Bids were opened on July 3, 2025, with the following results that were evaluated on the basis of the lowest percentage overhead and profit markup rate.
Contractor Overhead and Profit
Markup Rate (Percent)
A. Teichert & Son, Inc. dba Teichert
Construction (Pleasanton)
7.89 Granite Rock Company (San José)
(non-responsive)
7.00 O’Grady Paving (Mountain View)
(non-responsive)
24.90 The bids from Granite Rock Company and O’Grady Paving were deemed non- responsive for failing to properly complete their California Air Resources Board Regulation Compliance form. On July 3, 2025, the City issued a notice of intent to award notifying Granite Rock Company and O’Grady Paving that their bids were non- responsive and stating the City’s intent to award the contract to the lowest responsive, responsible bidder, A. Teichert & Son, Inc. dba Teichert Construction. No protests were submitted during the five-day protest period.
A. Teichert & Son, Inc. dba Teichert Construction has prior experience working with the City of San José, including its current on-call contract with the San José Mineta International Airport. Its overhead and profit markup rate of 7.89% is consistent with rates on other recent SJC on-call contracts and staff considers it reasonable for this type of work.
Wage Theft Prevention Policy Check
The Office of Equality Assurance reviewed bidders for compliance with the City’s Wage Theft Prevention Policy on July 3, 2025, and again on July 15, 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 over $1.2 million.
HONORABLE MAYOR AND CITY COUNCIL
July 28, 2025
Subject: 10582 SJC On-Call General Engineering Construction Contract 25-28
Local and Small Business Analysis
The recommended contractor is not a local or a small business enterprise.
Subcontractors will be determined at the time task orders are issued.
EVALUATION AND FOLLOW-UP
Task orders under the 10582-SJC On-Call General Engineering Construction Contract 25-28 will be approved by the Director of Public Works in amounts not exceeding the minor public works threshold of $730,000. No additional follow-up action with the City Council is anticipated at this time.
COST SUMMARY/IMPLICATIONS
No funding is needed to approve the recommendation for contract award associated with this memorandum. Funding sources will be identified prior to the issuance of task orders to the contractor as detailed scopes of work are identified and cost and schedules are negotiated, subject to the appropriation of funds.
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 August 19, 2025 City Council meeting.
COMMISSION RECOMMENDATION AND INPUT
No commission recommendation or input is associated with this action.
CEQA
Determination of Consistency with the Norman Y. Mineta San José International Airport Master Plan Amendment Environmental Impact Report, File No. ER22-279.
HONORABLE MAYOR AND CITY COUNCIL
July 28, 2025
Subject: 10582 SJC On-Call General Engineering Construction Contract 25-28
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 MUKESH (MOOKIE) PATEL
Director of Public Works Director of Aviation
For questions, please contact Sal Kumar, Deputy Director of Public Works, at [email protected].