HomeMy WebLinkAbout05.A. AUTHORIZE REQUEST BID RELIEF TO KAWEAH CONSTRUCTION COMPANY, AWARD A CONSTRUCTION CONTRACT TO NCCI, INC. & AUTHORIZE THE GENERAL MANAGER TO EXECUTE CONTRACT DOCUMENTS FOR THE CONSTRUCTION OF THE TREATMENT PLANT PIPING RENOVATIONS, PHASE 5 DP 7276Central Contra Costa Sanitary District
' BOARD OF DIRECTORS
-- POSITION PAPER
Board Meeting Date: May 6, 2010
No.: S.a. Bids and Awards
Type of Action: GRANT BID RELIEF/AWARD CONSTRUCTION
CONTRACT/AUTHORIZE EXECUTION OF CONTRACT DOCUMENTS
Subject: AUTHORIZE REQUEST OF BID RELIEF TO KAWEAH CONSTRUCTION
COMPANY, AWARD A CONSTRUCTION CONTRACT TO NCCI, INC., AND
AUTHORIZE THE GENERAL MANAGER TO EXECUTE CONTRACT DOCUMENTS
SUBJECT TO SUBMITTAL REQUIREMENTS FOR THE CONSTRUCTION OF THE
TREATMENT PLANT PIPING RENOVATIONS, PHASE 5, DISTRICT PROJECT 7276
Submitted By. Initiating Dept/Div.:
Gary Rathunde, Associate Engineer Engineering /Capital Projects
REV/EW,E/D ANDRECOMMENDED FOR BOArRD~ACT/ON:
f~~~s~i`-~ A. A~.Ofzo~~k _~~`
Rathunde A. Antkowiak ilecki
l `~(~ + `
ell K. Alm Ja es .Kelly, 7w'
Genera Manager
ISSUE: On April 14, 2010, eight sealed bids were received and opened for the
construction of the Treatment Plant Piping Renovations, Phase 5, District Project 7276.
On April 21, 2010, Kaweah Construction Company asked for bid relief. The Board of
Directors must determine whether to grant relief of bid and make a determination
whether to award the contract to the second lowest bidder 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), grant bid relief to Kaweah Construction Company,
award a construction contract to the second lowest bidder, NCCI, Inc., and 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 $2,802,000 including design, bid price,
contingency, and construction management.
ALTERNATIVES/CONSIDERATIONS: Alternatives include (1) reject the request for
relief of bid and award a construction contract to Kaweah Construction Company, or
(2) reject all bids and rebid the project. Staff does not recommend that the Board reject
all bids.
BACKGROUND: During the construction of the secondary treatment facilities in the
early 1970s, numerous piping systems were installed throughout the treatment plant.
N:\PESUP\POSition Papers\Rathunde\7276_Award_Contract.doc Page 1 of 14
POSITION PAPER
Board Meeting Date: May 6, 2010
subject: AUTHORIZE REQUEST OF BID RELIEF TO KAWEAH CONSTRUCTION
COMPANY, AWARD A CONSTRUCTION CONTRACT TO NCCI, INC., AND
AUTHORIZE THE GENERAL MANAGER TO EXECUTE CONTRACT DOCUMENTS
SUBJECT TO SUBMITTAL REQUIREMENTS FOR THE CONSTRUCTION OF THE
TREATMENT PLANT PIPING RENOVATIONS, PHASE 5, DISTRICT PROJECT 7276
These pipes carry the processed wastewater, sludge, steam, air, and other utility
services between the various sections of the plant. These pipes have been in place for
over thirty-five years and are showing signs of deterioration.
Phase 5 of the Piping Renovations Project will focus on replacing the 24-inch aeration
air supply headers and downcomers on the aeration tanks, 3 Water High Pressure
(WHP) pipelines in the West Gallery, condenser piping in the Pump and Blower
Building, and sump pump drain piping in the tunnels. In addition, valves and gates that
are leaking or have become inoperable are also being replaced as part of this project.
Attachment 1 shows the locations of all the project work.
The bid forms included a base bid schedule, which was used as a basis to compare
bids to determine the lowest responsive bidder. In addition, the forms included an
additive bid schedule that requested costs to construct the 24" diameter aeration air
headers from stainless steel rather than carbon steel. Construction from stainless steel
would minimize the potential for corrosion, thereby, increasing the service fife of the
system. Staff elected to structure the bids with the additive bid item to obtain cost
information prior to deciding the appropriate course of action.
District staff prepared the plans and specifications for the project. The Engineer's pre-
bid estimate for construction cost, excluding the additive bid item, was $2,225,000.
This project was advertised on March 19 and 24, 2010. Eight sealed bids ranging from
$1,699,000 to $2,521,000 were received and publicly opened on April 14, 2010.
A summary of bids received is shown in Attachment 2. A summary of the additive
prices for constructing the aeration air headers from stainless steel is shown in
Attachment 3.
On the morning of April 20, 2010, a representative of Kaweah Construction Company
telephoned District staff to advise that Kaweah Construction Company had made a
clerical error in preparing its bid. On April 21, 2010, within five (5) business days of the
bid opening, District staff received a letter from Kaweah Construction Company
providing an explanation regarding the inadvertent clerical error with respect to its bid
and requested that it be withdrawn (Attachment 4). The letter explained that Kaweah
Construction Company inadvertently made a computational error that lead to the
exclusion of $200,000 for the mechanical piping work.
Under California Public Contract Code Section 5103, a bidder may request relief of bid
within five (5) business days of bid opening in the event of a clerical or arithmetical error
in preparing the bid proposal. The law is stringent with regard to relief from bids and
N:\PESUP\Position Papers\Rathunde\7276_Award_Contract.doc Page 2 of 14
POSITION PAPER
Board Meeting Date: May 6, 2010
subject: AUTHORIZE REQUEST OF BID RELIEF TO KAWEAH CONSTRUCTION
COMPANY, AWARD A CONSTRUCTION CONTRACT TO NCCI, INC., AND
AUTHORIZE THE GENERAL MANAGER TO EXECUTE CONTRACT DOCUMENTS
SUBJECT TO SUBMITTAL REQUIREMENTS FOR THE CONSTRUCTION OF THE
TREATMENT PLANT PIPING RENOVATIONS, PHASE 5, DISTRICT PROJECT 7276
allows relief to be granted by the awarding authority only under specific circumstances.
Specifically, the law states that:
"The bidder shall establish to the satisfaction of the court that:
a. A mistake was made.
b. He or she gave the public entity written notice within five (5) business
days after the opening of the bids of the mistake, specifying in the notice
in detail how the mistake occurred.
c. The mistake made the bid materially different than he or she intended it to
be.
d. The mistake was made in filling out the bid, and not due to error in
judgment or to carelessness in inspecting the site of the work, or in
reading the plans or specifications."
Under the above Public Contract Code, it appears to staff that the error, as explained
by Kaweah Construction Company (Attachment 4), is a clerical error, and that bid relief
should be granted to Kaweah Construction Company. The Board must evaluate the
facts submitted and determine whether there is an adequate basis to grant Kaweah
Construction Company relief from its bid due to a clerical error.
Staff also evaluated whether the District should rebid the project, given that Kaweah
Construction Company's bid, taking into account the clerical error, would still be
approximately $178,000 less than the apparent second low bidder. (The law does not
allow the District to correct Kaweah Construction Company's bid for the clerical error
and award the project to Kaweah Construction Company).
Rebidding the project will result in a longer construction duration since no work on the
aeration basin header piping will occur this construction season. The longer
construction duration results in higher piping/equipment costs due to inflation, adds
additional Contractor mobilization and overhead costs, and increases the District's
administration/inspection costs. This results in a break-even between potential bid
savings and the additional costs incurred. Given the schedule impacts on other future
treatment plant projects, the improving bid climate (from a Contractor's perspective) and
the potential for emergency repairs, staff does not recommend rebidding the project.
The Engineering Department conducted a technical and commercial review of the bids
and concluded that, in the event that Kaweah Construction Company is granted relief
from its bid, the second low bidder, NCCI, Inc., is the lowest responsive bidder with a
base bid amount of $2,077,440. Based on the additive bid prices received from the two
N:\PESUP\Position Papers\Rathunde\7276_Award_Contract.doc Page 3 of 14
POSITION PAPER
Board Meeting Date: May 6, 2010
subject. AUTHORIZE REQUEST OF BID RELIEF TO KAWEAH CONSTRUCTION
COMPANY, AWARD A CONSTRUCTION CONTRACT TO NCCI, INC., AND
AUTHORIZE THE GENERAL MANAGER TO EXECUTE CONTRACT DOCUMENTS
SUBJECT TO SUBMITTAL REQUIREMENTS FOR THE CONSTRUCTION OF THE
TREATMENT PLANT PIPING RENOVATIONS, PHASE 5, DISTRICT PROJECT 7276
base bid amount of $2,077,440. Based on the additive bid prices received from the two
lowest bidders, staff recommends awarding only .the Base Bid work because an annual
cost analysis shows-that the carbon steel material is a more economical choice.
District staff will perform construction management and will provide contract
administration, inspection, survey, office engineering, and submittal review.
The funds required to complete this project,
The total cost of the Treatment Plant Piping
7276, is anticipated to be $2,902,000.
as shown in Attachment 5, are $2,802,000.
Renovations, Phase 5, District Project
This project is included in the fiscal year 2009-2010 Capital Improvement Budget (CIB)
on pages TP-72 and TP-73. Staff has conducted acash-flow analysis of the Treatment
Plant Program budget and concluded that adequate funds are available for this project.
Staff has concluded that this project is exempt from the California Environmental
Quality Act (CEQA) under District CEQA Guidelines Section 15301 since it involves
minor alterations to an existing public facility involving negligible or no expansion of use.
Approval of this project will establish the Board of Directors' independent finding that
this project is exempt from CEQA.
RECOMMENDED BOARD ACTION: Staff recommends the following:
Consider and accept the request for relief of bid from Kaweah Construction
Company and direct staff to return Kaweah Construction Company's bid bond
Find that the project is exempt from CEQA,
3. Award a construction contract in the amount of $2,077,440 for the for the
construction of the Treatment Plant Piping Renovations, Phase 5, District Project
7276, to NCCI, Inc. the second lowest responsive bidder, and
Authorize the General Manager to execute the Contract Documents subject to
SUBMITTAL requirements.
N:\PESUP\Position Papers\Rathunde\7276_Award_Contract.doc Page 4 of 14
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TREATMENT PLANT PIPING RENOVATIONS, Attachment
PHASE 5 1
District Project 7276
Project Location
Page 5 of 1
ATTACHMENT2
TREATMENT PLANT PIPING RENOVATIONS, PHASE 5
DISTRICT PROJECT NO. 7276
SUMMARY OF BIDS
PROJECT NO.: 7276 DATE: APR 14. 2010
PROJECT NAME: TREATMENT PLANT PIPING RENOVATIONS, PHASE 5
PROJECT LOCATION: 5019 IMHOFF PLACE, MARTINEZ, CALIFORNIA
PROJECT MANAGER: GARY E. RATHUNDE NO. OF ADDENDA: 1
ENGINEER EST.: $2,225,000
NO. BIDDER BID PRICE
~ Kaweah Construction Company $1,699,000
335 N. Thorne Ave.
Fresno California 93706
2 NCCI, Inc. $2,077,440
Pier 26 The Embarcadero
San Francisco CA 94105
3 GSE Construction Company $2,186,100
1020 Shannon Court
Livermore CA 94550
4 Associated Constructors, Inc. $2,235,871
1801 Walters Court
Fairfield CA 94533
5 Monterey Mechanical Company $2,242,100
8275 San Leandro Street
Oakland California 94621
6 Pacific Infrastructure $2,347,000
2134 Rheem Drive, Suite C
Pleasanton CA 94588
7 D. W. Nicholson $2,426,700
24747 Clawiter Rd
Ha and CA 94540-4197
8 Dowdle and Sons Mechanical Inc $2,521,000
100 Tower Rd.
American Can on CA 94503
BIDS OPENED BY /s/ Elaine Boehme
DATE April 14, 2010
N:\PESUP\Position Papers\Rathunde\7276_Award_Contract.doc Page 6 of 14
ATTACHMENT3
TREATMENT PLANT PIPING RENOVATIONS, PHASE 5
DISTRICT PROJECT NO. 7276
SUMMARY OF BASE BID AND ADDITIVE BID PRICES
NO. BIDDER BASE BID PRICE ADDITIVE BID PRICE
1 Kaweah Construction Company $1,699,000 $825,000
335 N. Thorne Ave.
Fresno California 93706
2 NCCI, Inc. $2,077,440 $798,647
Pier 26 The Embarcadero
San Francisco CA 94105
3 GSE Construction Company $2,186,100 $917,395
1020 Shannon Court
Livermore CA 94550
4 Associated Constructors, Inc. $2,235,871 $485,000
1801 Walters Court
Fairfield CA 94533
5 Monterey Mechanical Company $2,242,100 $450,000
8275 San Leandro Street
Oakland California 94621
6 Pacific Infrastructure $2,347,000 $460,000
2134 Rheem Drive, Suite C
Pleasanton CA 94588
7 D. W. Nicholson $2,426,700 $500,000
24747 Clawiter Rd
Ha and CA 94540-4197
8 Dowdle and Sons Mechanical Inc $2,521,000 $393,000
100 Tower Rd.
American Can on CA 94503
N:\PESUP\Position Papers\Rathunde\7276_Award_Contract.doc Page 7 of 14
APR-21-2010(WEO) 08:54 Kaweah Construction (FAX)559 268 0420 P. 002/002
ATTACHMENT 4
~ KAWEAH --~
CONSTRUCTION CO.
GENERAL ENGINEERING CONTRARORS
G°~~C~[~OMC D
APR 2 i 2010
CCCSD
SECRETARY OF THE DISTAICT
335 Naeth Thoma Awnua
Fegno, CA 93786
P.O. Ra:4378
Frosno, CA 93744
Apri121, 2010
CALIFORNIA CONTRARORS N0.130865, Phonr. 1559) 268.1540
Fmt: 1559) 268.0420
www.lylKgroup.com
Central Contra Costa Sanitary District
50191mhoff Place
Martinez, CA 94553-0392
Attn: Mrs. Elaine Bochme, Board Secretary and all Boazd Members
RL•: CCCSD Treatment Plant Piping Renovations, Phase 5
Bidder Relief
Courtesyfrzr: (915) G7G-7111
Dear Mrs. Bochme,
it is with regret that 1 inform you that as the apparent low bidder on the about referenced project,
Kawcah Construction Co. (KCC) must invoke our rights of bid relief because of a mistake with a bid
entry.
Pursuant to California Public Contract Code 5103 and as addressed in Volume 1, Section 15, Page 17 of
the Bid Documents, our staff incorrectly input a line item for Fabricated Steel Piping that was
$200,000.00 (fwo I-Iundred Thousand Dollars) less than what should have been alloarted. This lint item
mistake makes our bid materially different than KCC intended it to be and potentially places a corporate
hardship on us unless we receive bid relief and release from all obligations along with our bid security.
As Gary Rathunde and I discussed yesterday, if the District were to award the alternate based on the
benefits of stainless steel pipe in lieu of carbon steel pipe, we would be in a position to reconsider our
need for bid relief.
On behalf of all the employees of Kaweah Construcrion Co., I Otank you in advance for your immediate
attention to our relief and understanding in the situation. Please call me. if you need additional
information.
Page 8 of 14
cc. Mr. Steve Edwazds, AON Surety
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. April 12; 2010 RB FAB Es##E100914
Attn; Estimating Dept.
'Project: TreatmenfPlahtPiping Renovations Phase V - CCCSD
Gentlement
RB FAB is pleased forthe opportunity to quote'you;orrfurnishing all labor, materials,
services, and equipment required to shop fabricate the welded steel pipe and fftings with
specified shop Ifnings and coatings as hereinafter described in Attachment "A".
This scope, the, General Terms and Conditions, grid aA attachments, shalt become part of our
contract should our proposal be accepted. Included in our proposal is the preparation of
engineered assembly drawings, manifolds,,reducers; wyes, outlets, 4hreaded-outlets, elbows,:..
steetrings, flange-bolt-ups and couplings atmating connections.
Specifically excluded (unless specifically-described .hereinafter) but hot limited a are all: field
finish paint; pumps, valves, metering devices, pipe supports (unless shop welded to pipe),
gauges, tanks, vents, wall sleeves, pipe and fittings otherthan steel, gates, anchor bolts,
expansion joinfs, insulating.. devices,. cathodic protection, and flanSe-bolt-ups and couplings
required for the installation of pumps, valves, equipment, arid: other items furnished by others.
i
We trust you will find our proposal attractive,'and we would like the opportunity'of serving
". your needs.
i
i
i
Sincerely,
Fred Myer
Estimator
RB FAB
Enclosures: Attachment "A" - Items of-Sale
Attachment"B" - general Terms'and Conditions
P.O..Box 1586- Suisun,. CA. 94585'.` (707) 428-0933 Fax (707) 428-1859
Page 10 of 14
Attachment "A"
Estimate #- E100414
Page 1 of 1-
Pi•ojeet Name: Treatment Plant Piping Renovations Phase V- CCCSD
Bid Date: April l4, 2010 @ 2:00 RM
Qty
1-Lot
Description
Price
~ 24" A From the connection to the Existing to.and including the 24" Blihd Flange
This includes the 6" Stainless Steel Drop Legs
(Sea Welded Steel) Ref Sheets M-4-lthrough M-4-6 Lump Sum $389,249:00/
16'' D tea Ref Sheet M3-1 Lump Sum $7,649.00 ' ,
i~ir2'Vt'+ /
# 16" 3W 2ea Ref Sheet. M3-1 Lump Sum $7,649.00
3"/4" 3WHP From the 4" connection to the existing to the 2" connection to the Copper
Pipe (Ref Sheets M1-1 and M1-2.) gg
~.
24" REW New 24" Pipe Spool {Ref Sheet-MS-1) Lump. Sum $2,649.OOv'
3"/4" PD From the 4" connection to Sump Pumps 31108 and 3119 to.the connection
to Sump Pumps 32T05 and 32106"to the connection to Sump Pumps
31209and.312Y0. Ref Sheets.M6-lthroough M6-5.
- ~29;848i8t3
24" A From the connection to the Existing to and including the 24° Blind Flange.
{Sea Stainless Steel Type 304) Ref Sheets M;4-1through'M-4-6
Lump Sum $1,047,817:00
P:O. Box 1586-Suisun, CA. 94585:''(707) 428-0933 Fax (707)428-1859.
Page 11 of 14
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Attachment "B"
~,
Gerieral,Terms and Conditions
1. Prices are firm for a period of thirty (30) days from date of:proposal, provided written
acceptance is received withih thirty (30)-days. from date of proposal and piping: is released;for
fabrication within two (2) months thereafter. Extensioh of ahy of-these, conditionswill be cause.
for renegotiations.
2. Prices do not include anyexisting. city, _county,.state, federal, or any: other taxes that may be
imposed on-the items sold under this contract.. All such taxes to be for the account of the
buyer.
3. Payment Terms: 2% 10 days- Net 30 days;from date of shipment. No retainageshall be,
withheld: Past due invoices will be subjectao'monthly service iai'arge of 1 '%%a per month on"'
outstahding. balan res.
4: Materials will be.shipped FOB Jobsite, based oh full truckload quantities.
5: Buyer wilt immediately inspect Sellers' good`upomreceipt: No sliortage.claimsvill be
considered unless Seller'is notified of same ih writing within<.10-calendar days of ieceipt of
shipment:
6. Seller warrants that, at time of delivery, the quality of,materials and workmahship of goods
delivered shall conform to the pecifications set forth in the sales contract. Sellers' liability is
limited to the repairing.or replacement, at-Sellers'•option; of defectiJe fabrication.
7: R8 FAB-wile not recognize any backcharges caused bytrucking delays, strikes; acts of God;;
or any other items beyorid our control. Any backcharges'ctaimed mustbe,presented and
approved in writing, by an RB FAB representative on a timely basis so tfiaf we may participate
in corrective action.
t3. Any pipe exterior that into be Primed or epoxy coated in our shop will require minimal touch-
..,
up in the field; by.the contractor, due to inevitableshipping'artd receiving damage beyond RB
FABs' control. Every feasible'precautiori veill'be taken.at.RB FA6 to minimize damage to the.
coatings.
9, RB FAB is not responsible forany field diinerision ve~ification,,which is the responsibility of the
General Contractor
P.O. Box 1586-;Suisun, CA. 94585";(707) 428=0933 Fax (707)428-1&59 '
Page 12 of 14
10-020 - CCCSO Pipe Renovations Phase 5 ~ ~ ~ ~ weanaaday; Aplpta, aoi0
Fab S4B81 PtpB RB Fah
--- _. _.__----- KCC IN ESTIMATE ~
~ni.aza-iiaaa_
_.._..-
_-_.---
___
~
~uxrr
TOTAL .
Sateen, GA m
Dwp• Oetail Item Desuiptlon- Matt T a -0TY UN PRICE -_
M4-l thru M4-8 24'A Lino Epoxy Steel ~8 F1f. inG X80,240
~_
_. _. ...-.11 EA Flanged 8-Outlets/Line -._-._...-__„ ........
11 EA 8"SST Orop I egs.l Uns
6 EA 51gevQ_Opupliltgs / Lino ~
2 EA Addition Sieava CPUpllnps t t.tne __~ . .....
-
_ 88
218
48
t0 _FA,
EA -
f-;A-
EA a__ _____.
~
1.000. . mcl -~
lnG ,
IaG
'hx;l i0d
. Intl
Intl
(8;000
_„_-_. 1 EA 24"YC CPUPBnp / Llrre _ 8 EA
--_ Irxi InG
2a EA 8' Vlc Coupll /Line ~ t i8 EA T InG- _
~.
Ind ---
22 EA BN6 J Linb ~ 178 E4~ tnd ~InG
._ ..___ i. EA 24' 731intl Flange wl$NG /Une ~ ___..._...__ 8 EA inG ~ Ind
_ SupP°_~s _.....-.-. _..1 EA Typo t'Supports 1 Llne
___._ .. _ . -
.............._~ 8 EA Ind inCl ,
-.-..._..
.. _....
' ' - 8 EAT 2 Su
2 EA- 3 SuPPOns I Llno
____
_--. ~
18
...~:.
EA
...._._.~.
~fnd. ._
inG. ~...,,.
.Intl
Ind
KCC Labor toYrep Supports
Wdder 1a dRltl suPPPrts . _ __-._ __
M3-i thru M9-2 18' p & f8"3W 8
_,,,18 x t8 Ratlucor at oaeh n! the fourlines ,EpaxyySteel
~ B
4.. EA
EA.
~ 15,298
inG
-____-...
....__. 4 F.A Sleeve Coupllnq
-- ~._-_ _....__.
.~
4
.~~. ~ - ° """-°"`-
{ncl
~~
MS-t 24' Ett~_
_,.. _ _ Epos. Steel .2.Oa0
__ ._ FL x PE Spool w! 8anpetl outlet, __ 1 _., ___FJ1 - Ind ~
Cement Uhed & Ptlmed ,_.._®.._..._
t
GS.
~
~ _ _
_ P,000
__
- _~
-.-._.._
~`
Fre(ght , :._.
_
Ta"
..,_
9.250%
Ind
Ind __-~ __
(nd
0~-
GRANp TOTAL I ~ 1~ LS. i N i ~.:,
1.
Page 13 of 14
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