HomeMy WebLinkAbout04.f. Authorize General Manager to solicit and negotiate a construction contract for the Pump and Blower Building Seismic Upgrades, DP 7291 Central Contra Costa Sanitary District 4•f,
f.._ BOARD OF DIRECTORS
._ -- POSITION PAPER
Board Meeting Date: May 19, 2016
Subject., AUTHORIZE THE GENERAL MANAGER TO SOLICIT AND NEGOTIATE A
CONSTRUCTION CONTRACT FOR THE PUMP AND BLOWER BUILDING
SEISMIC UPGRADES, DISTRICT PROJECT 7291
Submitted By. Initiating DeptJDiv.:
Jason DeGroot, Associate Engineer Engineering and Technical Services/Capital
Projects
REVIEWED AND RECOMMENDED FOR BOARD ACTION:
C. Mizutani—Senior Engineer -.v ` ..�
E. Lopez—Capital Projects Division Manager Kent Alm Roger S.Bailey
J-M. Petit—Director of Engineering and Technical Services Counsel for the District General Manager
ISSUE: On April 27, 2016, zero bids were received for the construction�wle Pump
and Blower Building Seismic Upgrades, District Project 7291. The Pump and Blower
Building Seismic Upgrades Project (Seismic Upgrades Project) is a complex
construction project that involves specialized contractors. Due to inherent risks and the
bustling current bidding environment, contractors were not interested in'competing in a
low-bid format. Staff is requesting authorization to use an alternate project delivery
method using a negotiated contract to complete the project.
BACKGROUND: In January 2008, California adopted the 2007 California Building
Code (2007 CBC). Among the updates in the 2007 CBC were significant changes to
seismic design. In 2009, a seismic evaluation of the treatment plant facilities was
completed that included a recommendation to bring the Pump and Blower Building up to
current seismic design standards.
The Seismic Upgrades Project will update the Pump and Blower Building and Machine
Shop to meet current seismic design standards. The scope of work includes demolition
of existing walls, installation of reinforced concrete shear walls, installation of buckling
restrained braces with associated foundations, and structural steel work. Complete
Project Solutions (CPS, the lead structural engineering design consulting firm) along
with MWH (Montgomery-Watson-Harza, the project electrical-mechanical engineer
consultant) and District staff prepared the plans and specifications for the project. The
project was also peer-reviewed by a senior structural engineer from Carollo Engineers.
The Engineer's estimate for construction was $3.9 million. The project was advertised
on March 10 and 16, 2016, and the bid opening was April 27, 2016. No bids were
received.
A total of 44 sets of plans and specifications were issued, 29 by prime contractors via
PlanetBids. The project included a mandatory prebid meeting and, based on the
attendance and contractor feedback, several changes were incorporated. The bid
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POSITION PAPER
Board Meeting Date: May 19, 2016
Subject AUTHORIZE THE GENERAL MANAGER TO SOLICIT AND NEGOTIATE
A CONSTRUCTION CONTRACT FOR THE PUMP AND BLOWER
BUILDING SEISMIC UPGRADES, DISTRICT PROJECT 7291
opening was extended twice during the bid period to allow prospective bidders more
time to bid and to avoid conflict with three other projects being bid the same day by
other agencies. Bids were examined a second time to provide additional time for
contractors to get bids from subcontractors, and a second prebid meeting was
scheduled to accommodate contractors with scheduling conflicts during the first
meeting. In addition, staff reached out to several contractors (private and commercial)
in an attempt to find additional bidders for the project. The contractors that responded
were either not interested or were too busy.
After receiving zero bids, staff contacted the planholders who showed the most interest,
and requested feedback as to why they did not submit bids and under what
circumstances they would participate. They responded that the current robust market
for both municipal and commercial projects enables them to focus on other projects with
less risk and higher potential for profit. Of the contractors contacted after the bid
opening, two have indicated they would consider a negotiated contract.
The District has satisfied the statutory requirements of the California Public Contract
Code for public bidding of the project and, by not receiving bids, the Board may now
proceed with the needed project using a negotiated bid format. Staff is working with
Legal Counsel to discuss the process of negotiating a construction contract. Upon
Board approval, staff will seek qualified contractors to enter into a negotiated contract.
The construction contract will be reviewed by Legal Counsel and be presented to the
Board for approval at a later date.
ALTERNATIVES/CONSIDERATIONS:
1. Rebid the project this year, which is not recommended because it would most
likely result in the same outcome.
2. Redesign the project, which is not recommended. The design was based on
existing constraints which dictated the chosen design and was already peer-
reviewed by a third party. A redesign would add additional time and likely add
significant higher costs to the project, and may result in an equally or more
complex design, potentially having a similar zero bid outcome.
3. Rebid the project in the future when there is a more favorable bidding
environment. This is not recommended because the Seismic Upgrades Project
has been delayed twice and, due to the critical equipment in the building, seismic
upgrades need to be completed.
FINANCIAL IMPACTS: This project is included in the Fiscal Year 2015-16 Capital
Improvement Budget with a total estimated project budget of approximately $5,553,000.
Page 2 of 3
POSITION PAPER
Board Meeting Date: May 19, 2016
Subject AUTHORIZE THE GENERAL MANAGER TO SOLICIT AND NEGOTIATE
A CONSTRUCTION CONTRACT FOR THE PUMP AND BLOWER
BUILDING SEISMIC UPGRADES, DISTRICT PROJECT 7291
COMMITTEE RECOMMENDATION: The Engineering and Operations Committee
reviewed this project at its meeting on May 10, 2016, and concurred with staff on finding
a qualified contractor and possible negotiated construction contract for the Pump and
Blower Building Seismic Upgrades, District Project 7291.
RECOMMENDED BOARD ACTION: Authorize the General Manger to solicit and
negotiate a construction contract for the Pump and Blower Building Seismic Upgrades,
District Project 7291.
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