HomeMy WebLinkAbout06.j. Reject sole bid received for construction of the Collection System Urgent Repairs, District Project 8434. ■
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Central Sari
BOARD. OF DIRECTORS
POSITION P
Board Meeting Date: April 6, 2017
Subject: REJECT BID SUBMITTED FOR THE CONSTRUCTION OF THE
COLLECTION SYSTEM URGENT PROJECTS, DISTRICT
PROJECT 8434
Submitted By: Initiating DeptJDiV.:
Edgar J. Lopez, Capital Projects Engineering and Technical
Division Manager Services/Capital Projects
REVIEWED AND RECOMMENDED FOR BOARD A CTION:
1
JM. Petit— Director of Engineering and Technical Services
A. Sasaki--Deputy.General Manager Kent AlmRa er S.Bailey
Y
Counsel for the Distriot General Manager
ISSUE: On March 7, 2017, one (1) bid was received for the construction of the
Collection System Urgent Projects, District Project 8434 (Project). The Board of
Directors (Board) must award the contract or reject the bid within 50 days of the bid
opening.
BACKGROUND: The Project was initiated to provide a cost-effective and expedient
method to complete critical sewer repair and replacement work that could not otherwise
wait for the standard design, bid, and build process. The construction contract
consisted of two major scope items: (1) a base scope of work to replace sewers,
perform spot repairs, construct manholes, and other related work this summer, and (2)
provide standby (on-call) services for up to two additional years. Central San has
historically completed urgent work through change orders on collection system sewer
renovation projects. The on-call services were intended to provide an alternate solution
for change orders and additional services such as recycled water or force main point
repairs, as needed.
This Project was advertised on February 17 and 22, 2017. The Engineer's estimate for
construction was $350,000. one (1) sealed bid in the amount of $463,250 was received
and publicly opened on March 7, 2017. The bid was provided by Devaney Engineering,
Inc. staff reviewed the bid and determined that the bid is valid; however, the costs are
significantly higher than the Engineer's estimate and budget for the Project.
Several contractors were contacted and interested in the Project during design, and the
planholder's list contained nine (g) general contractors and numerous subcontractors.
Staff received the following contractor feedback after the bid opening:
0 Most were interested in the base work; however, they could not commit to the
on-call services. In the current bid environment, there is sufficient work and
other upcoming bids.
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POSITION PAPER
Board Meeting Date: April 6, 2017
Subject-. REJECT BID SUBMITTED FOR THE CONSTRUCTION OF THE
COLLECTION SYSTEM URGENT PROJECTS, DISTRICT
PROJECT 8434
• The contractors that have on-call services cannot afford to add a similar
contract and tie up their resources. These contractors have a backlog of work
already.
Staff also evaluated and discussed the bid schedule with Devaney Engineering, Inc. in
comparison with the Engineer's estimate. The findings concluded that many of the bid
items were comparable and in line with recent bid results, but there were more costs
associated�with mobilization and for the items that would be similar to the on-call work.
Therefore, staff concluded that it is in the best interests of the public and central San to
reject the bid, and continue using the practice of adding urgent work to existing
collection system sewer renovation projects. The added cost of executing the proposed
Project is more than anticipated compared to the current practice. Staff plans to
incorporate the base scope of the Project into one or more current sewer renovation
projects. As for the on-call services, staff plans to work with Central San legal counsel
to find another solution.
ALTER NATIVESICONSIDERATIONS: Rebid the project or rebid without the on-call
services; both are not recommended. staff is also evaluating the California -Uniform
Public construction cast Accounting Act (Act), which provides for alternative bidding
procedures for public project work and higher bidding limit amounts. A large portion of
the urgent work performed at Central San could be done under this Act.
FINANCIAL IMPACTS: There is no overall financial impact to the capital
Improvements Budget.
COMMUNITY OUTREACH: central San held multiple homeowner meetings to assist
with any questions or concerns by the residents for the sewer work planned for this
summer. Some of these items will be addressed under the walnut Creek Sewer
Renovations, Phase 11 Project or other upcoming sewer renovation projects.
COMMITTEE RECOMMENDATION: The Engineering and Operations Committee
reviewed this subject at the meeting on March 17, 2017, and recommended to reject the
bid and allow the base work to be included in upcoming sewer renovation projects.
RECOMMENDED BOARD ACTION: staff recommends to reject the bid received for
the construction of the collection System Urgent Projects, District Project 8434.
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