Public Works Agency
www.santa-ana.org/pw
Item # 19
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
July 1, 2025
TOPIC: Agreement Amendments for On-Call Material Testing and Special Inspection Services
AGENDA TITLE
First Amendment for Agreements with AESCO, Inc., Kleinfelder, Inc., and RMA Group, Inc. for On-Call Material Testing and Special Inspection Services (Non-General Fund)
RECOMMENDED ACTION
Approve first amendment to the Caltrans federally procured agreements with AESCO, Inc., Kleinfelder, Inc., and RMA Group, Inc. for on-call material testing and inspection services, to increase the contract amount by $750,000 for a total amount not to exceed $1,700,000, for the remaining term (Agreement Nos. A-2025-XXX, A-2025-XXX, and A- 2025-XXX).
GOVERNMENT CODE §84308 APPLIES: Yes
DISCUSSION
The Public Works Agency Engineering Services Division (PWA) is responsible for the administration and oversight of all Capital Improvement Program projects (CIP) in the City. As part of the City’s adopted budget and CIP, numerous federally funded construction projects have been completed and are scheduled to be completed over the next two years.
On April 18, 2023, City Council approved agreements with AESCO, Inc., Kleinfelder, Inc., and RMA Group, Inc. for on-call material testing and special inspection services through a federally compliant procurement process authorized by Caltrans. These agreements were established to ensure that the City could access qualified firms to provide quality assurance testing for federally funded capital improvement projects (CIPs). Each firm was selected through a qualifications-based selection (QBS) process that complies with Caltrans Local Assistance Procedures Manual requirements.
These services are necessary for verifying contractor compliance with construction material specifications, particularly for concrete, asphalt, soil compaction, welds, and structural steel elements. Testing and inspection services are required under both federal and state funding guidelines and are critical for project certification, close-out, and audit readiness.
Agreement Amendment for On-Call Material Testing and Special Inspection Services July 1, 2025
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Since the original contract approval, the City has experienced a significant increase in federally funded CIP construction activity. The on-call testing and inspection agreements have already supported more than 20 federal infrastructure projects across a wide range of scopes, including streetlight installations, active transportation and mobility improvements, school safety enhancements, stormwater infrastructure, traffic signal upgrades, utility and sewer improvements, park and recreation facility renovations, and well rehabilitation. Many of these projects involve ARPA funding, which requires strict adherence to quality assurance and material testing protocols.
This increased workload has resulted in rapid drawdown of the original $950,000 shared contract capacity. The proposed amendment increases the total not-to-exceed amount by $750,000 (Exhibits 1-3) to $1,700,000 to ensure continued access to these services through the remainder of the agreement term.
Caltrans is not a decision maker in this process but plays an oversight role. The agreements were procured using Caltrans’ federally approved process, which allows their use on federally funded projects without further procurement. While the agreements were established by the City of Santa Ana, other local agencies are not party to these contracts and do not share in their use.
Without this amendment, the City would risk project delays and noncompliance with federal and state construction oversight requirements. Staff recommends amending the existing contracts to allow for the uninterrupted completion of federally funded projects.
ENVIRONMENTAL IMPACT
There is no environmental impact associated with the action.
FISCAL IMPACT
There is no fiscal impact at this time. Before utilizing on-call services, staff must obtain approval from the Finance and Management Services Agency (FMSA) by submitting a Notice to Proceed Request. This request must specify the funding source and the required dollar amount. FMSA will verify that the necessary funds are encumbered and available within the authorization and aggregate limits of these agreements. Once approved, PWA will issue a Notice to Proceed detailing the specific scope and maximum expenditure for the task.
EXHIBIT(S)
1. Agreement Amendment with AESCO, Inc.
2. Agreement Amendment with Kleinfelder, Inc.
3. Agreement Amendment with RMA Group, Inc.
Submitted By: Nabil Saba, P.E., Executive Director, Public Works Agency Approved By: Alvaro Nuñez, City Manager