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HomeMy WebLinkAbout05.a. Award construction contract for nondestructive potholing of underground utilities - Contract 039457ENGCentral Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: August 2, 2012 Subject: AWARD A CONTRACT TO ARROW CONSTRUCTION; AUTHORIZE THE GENERAL MANAGER TO EXECUTE CONTRACT DOCUMENTS SUBJECT TO SUBMITTAL REQUIREMENTS FOR PROVIDING NONDESTRUCTIVE POTHOLING OF UNDERGROUND UTILITIES, CONTRACT 039457ENG Submitted By: Initiating Dept. /Div.: Nancy Molina, Associate Engineer Engineering /Capital Projects REVIEWED AND RECOMMENDED FOR BOARD ACTION: A. Mestets A. A. Antkowiak Ann . Farrell General Manager 5.a . ISSUE: On July 17, 2012, four (4) sealed bids were received and opened for the Nondestructive Potholing of Underground Utilities, Contract 039457ENG. The Board of Directors must award the contract or reject bids within 50 days of the bid opening. Authorize the General Manager to execute the contract documents subject to SUBMITTAL requirements. RECOMMENDATION: Find that the project is exempt from the California Environmental Quality Act (CEQA), award a construction contract to Arrow Construction; authorize the General Manager to execute the Contract Documents subject to favorable review of insurance certificates, bond submittals, appropriate Contractor license, and any other required submittals (SUBMITTALS). FINANCIAL IMPACTS: Approximately $122,175 per year, or $366,525 for three years. ALTERNATIVES /CONSIDERATIONS: Reject all bids and rebid the project, or continue issuing individual contracts each time nondestructive potholing of underground utilities is needed, which is not efficient, therefore, is not recommended. BACKGROUND: The Capital Projects Division performs approximately 200 potholes each year as part of the design of collection system projects. The purpose of potholing is to expose underground utilities along the proposed sewer alignments at points of potential conflicts. The results are used to evaluate alternatives during design and to minimize change orders during construction. Staff has found that bidding the nondestructive potholing services on a periodic basis results in a lower overall cost and a significant reduction in paperwork associated with negotiating and issuing separate contracts. The purpose of the bid request is to R \CapitalProjects \Blanket Contracts \Contracts & Bids \039457 - Potholing \039457 Nondestructive Potholing Award PP -1.doc Page 1 of 3 POSITION PAPER Board Meeting Date: August 2, 2012 Subject: AWARD A CONTRACT TO ARROW CONSTRUCTION; AUTHORIZE THE GENERAL MANAGER TO EXECUTE CONTRACT DOCUMENTS SUBJECT TO SUBMITTAL REQUIREMENTS FOR PROVIDING NONDESTRUCTIVE POTHOLING OF UNDERGROUND UTILITIES, CONTRACT 039457ENG establish a unit cost for each portion of the work for certain potential projects, while obtaining the lowest overall cost for the District. District staff prepared the bid documents for the work. The Engineer's estimate for work of the Nondestructive Potholing of Underground Utilities, Contract 039457ENG, is $84,000 per year. This project was advertised on June 29 and July 5, 2012. Four (4) sealed bids ranging from $122,175 to $170,195 were received and publicly opened on July 17, 2012. The higher- than - expected bid prices are due to rising costs of performing air vacuum excavation. The Engineer's cost estimate was based on the District's last contract, and was not sufficiently adjusted to reflect current higher costs of vacuum potholing. The Engineering staff conducted a technical and commercial review of the bids and determined that Arrow Construction is the lowest responsive bidder. The initial contract amount will be $122,175. District staff may exercise options for additional one -year periods (up to two) at the bid prices, provided that the initial work is successful and the prices are still favorable to the District. A summary of bids received is shown in Attachment 1. Staff has concluded that this Contract is exempt from the California Environmental Quality Act (CEQA) under District CEQA Guidelines Section 15262 since it will provide information for design of sewer improvements and will not have a legally binding effect on later activities. The Board of Directors' approval of this award of Contract will constitute an independent finding that the Contract is exempt from CEQA. RECOMMENDED BOARD ACTION: Staff recommends the following: Find that the project is exempt from CEQA, 2. Award a contract in the amount of $122,175 to Arrow Construction, the lowest responsive bidder, for providing nondestructive potholing of underground utilities services for a one -year period with an optional extension for two additional one -year periods, and 3. Authorize the General Manager to execute the Contract Documents subject to SUBMITTAL requirements. R \CapitalProjects \Blanket Contracts \Contracts & Bids \039457 - Potholing \039457 Nondestructive Potholing Award PP -1.doc Page 2 of 3 ATTACHMENT 1 NONDESTRUCTIVE POTHOLING OF UNDERGROUND UTILITIES DISTRICT PROJECT 039457ENG SUMMARY OF BIDS PROJECT NO.: 039457ENG DATE: JULY 17, 2012 PROJECT NAME: NONDESTRUCTIVE POTHOLING OF UNDERGROUND UTILITIES PROJECT LOCATION: VARIOUS CITIES IN CONTRA COSTA COUNTY NO. OF ADDENDA: 0 ENGINEER EST.: $84,000 /PER YEAR NO. BIDDER BID PRICE 1 Arrow Drillers DBA Arrow Construction $122,175 Justin Bovolick 1850 Diesel Drive Sacramento, CA 95838 916- 825 -2144 2 Bess Test Lab $134,985 Dennis Mead 991 George Street Santa Clara, CA 95054 408 - 988 -0101 3 Subtronic Corporation $141,000 Shannon Baxter 5031 Blum Road #2 Martinez, CA 94553 925 - 228 -8771 4 Exam Technologies, Inc. $170,195 Jose Dominguez 1831 Bayshore Highway Burlingame, CA 94010 650 - 777 -4324 BIDS OPENED BY /s/ Elaine Boehme, CMC DATE July 17, 2012 P: \Capital Projects \B Ian ket Contracts \Contracts & Bids \039457 - Potholing \039457 Nondestructive Potholing Award PP -1.doc Page 3 of 3