HomeMy WebLinkAbout08 REJECTION OF BIDS & AUTHORIZATION TO RE-ADVERTISE FOR DETENTION BASIN0 AGENDA REPORT
TI ATE: MAY 17,2016
TO: JEFFREY C. PARKER, CITY MANAGER
FROM: DOUGLASS. STACK, DIRECTOR OF PUBLIC WORKS/CITY
ENGINEER
SUBJECT: REJECTION OF ALL BIDS AND AUTHORIZATION TO RE -ADVERTISE
FOR BIDS FOR THE DETENTION BASIN LANDSCAPING AND WATER
QUALITY INSTALLATION (CIP NO. 50038) AND TUSTIN LEGACY
LINEAR PARK IMPROVEMENTS (CIP NO. 20077) SEGMENT 1 AND 2
CO
Staff is recommending that the City Council reject all bid proposals received on thf;
Detention Basin Landscaping and Water Quality Installation (CIP No. 50038) and Tustin
Legacy Linear Park Improvements (CIP No. 20077) Segment 1 and 2 construction
projects and authorize and direct City Clerk to re -advertise for bids. The City received
ten bids for this project, all higher than the engineers estimate.
It is recommended that the City Council reject all ten bids received on the Detention
Basin Landscaping and Water Quality Installation (CIP No. 50038) and Tustin Legacy
Linear Park Improvements (CIP No. 20077) Segment 1 and 2 Construction Project and
direct the City Clerk to return all bid bonds and re -advertise for bids.
The City's Capital Improvement Program (CIP) budget for Fiscal Year 2015-2017 for th(,-.
Detention Basin Landscaping and Water Quality Installation (CIP No. 50038) and Tustin
Legacy Linear Park Improvements (CIP No. 20077) Construction Project included
sufficient funding and appropriation to construct the project. The updated engineer's
estimate for the project is $4,700,000. The project is funded through MCAS Backbone
Infrastructure F --s (Fund 187), MCAS Tax Allocation Bond (Fund 561), Community
Public Works
May 17, 2016
Page 2
Facilities District 14-1 (Fund 443) and OCTA Measure M-2 Environmental Cleanup
Program Grant (Fund 139).
The Detention Basin Landscaping and Water Quality Installation and Tustin Legacy
Linear Park Improvements contribute to the fulfillment of the City's Strategic Plan Goal
A: Economic and Neighborhood Development. Specifically, the project implementation
of Strategy 1, which among other items, is to develop critical phases of Tustin Legacy.
City Council adopted Resolution No. 16-07 approving the plans and specifications and
authorized and directed the City Clerk to advertise for bids on February 16, 2016. The
project was subsequently advertised and the bids were opened on April 19, 2016 and
evaluated. The City received ten bids with the total amount ranging from $4,986,656 to
$8,677,943.
The bid summary is as follows:
1.
KASA Construction, Inc.
$4,986,655.25
2.
BrightView Landscape Development
$5,446,160.75
3.
Los Angeles Engineering, Inc.
$5,524,713.25
4.
Sukut Construction, Inc.
$5,526,132.00
5.
Interlog HYM Engineering
$5,564,504.44
6.
Environmental Construction, Inc.
$5,667,118.50
7.
C.S. Legacy Construction, Inc.
$6,215,218.26
8.
Clean Cut Landscape
$6,240,988.75
9.
M.S. Construction MGMT Group
$7,012,538.30
10.
Kana Engineering Group, Inc.
$8,677,943.00
Prior to seeking bids for the project, the City pre -qualified sign fabricators to fabricate
the entry monument to ensure the quality of the sign. The notice inviting bids for the
project required bidders to utilize only these pre -qualified sign fabricators for both
fabrication and installation. On April 22 the second lowest bidder, Brightview
Landscape Development, filed a protest against the bid submitted by the low bidder,
KASA Construction. Brightview contended that KASA's bid did not include installation of
the Entry Monument by the pre -qualified sign fabricator and this resulted in an unfair
competitive bid advantage. Subsequently, KASA Construction submitted a letter
explaining their approach and justification for their bid being responsive and justified for
award. Unfortunately, the unintended consequence of prequalification narrowed the
Public Works
May 17, 2016
Page 3
competitiveness for all bidders when it came to sign fabrication and installation. Both
letters are attached for reference.
Upon further review of the contract specifications, staff has determined that a revision of
the Notice Inviting Sealed Bids specifications would be in the City's best interest in order
to clarify to bidders the perception of ambiguity of the entry monument sign installation
requirements. Only two of the four pre -qualified sign fabricators provided bids for the
entry monument and only one bid on both the sign fabrication and installation as
required by the notice inviting bids. Thus, there were no competitive bids for the
fabrication and installation of the Entry Monument. Given this outcome, and to eliminate
the perception of an unfair bidding advantage, staff has worked with the City Attorney's
office to provide further clarity on the subject item and the removal of the
prequalification requirement in the amended Notice Inviting Sealed Bids and contract
documents.
Pursuant to the Public Contracts Code, staff recommends the City Council reject all bids
and allow staff to revise the contract specifications to re -advertise for this work. In
analyzing the unit costs for all bids received on the project, it was determined that
modifications to the plans and specifications were not necessary, other than removing
the prequalification for the entry monument sign fabrication and installation and that re-
bidding the project could result in overall project cost near the updated engineer's
estimate. The design plans and specifications for the entry sign fabrication and
installation are of such specificity and detail, that any general contractor will have to
comply regardless of prequalification. In the re -advertisement for bids the City will
award the contract to the lowest responsible bidder for the entire project, but require
bidders to include in their bids a price for the sign fabrication and installation. The City
will have the option of deducting that work from the bid award if necessary to meet
budgetary constraints.
The detention basin project at the corner of Red Hill Avenue and Barranca Parkway
consists of landscaping, irrigation and water quality installation. This portion of
detention basin project is partially funded by OCTA Measure M-2 Environmental
Cleanup Program grant. Segments 1 and 2 of the linear park around the detention basin
consists of general clearing and grubbing, grading, construction of trails and
amphitheater, landscape improvements and monument sign installation at the corner of
Barranca Parkway and Red Hill Avenue. Segments 3 and 4 of the linear park from the
detention basin to Armstrong Avenue including the parking area will be graded only at
this time and the landscape and park improvements will be constructed at a later date in
conjunction with the Cornerstone I (Flight) Development project.
Public Works
May 17, 2016
Page 4
The tentative schedule for construction of the project is as follows:
• Authorization to Advertise for Bids
05/17/2016
• First Legal Advertisement
05/26/2016
• Second Legal Advertisement
06/02/2016
• Bid Opening
06/28/2016
• Tentative Award of Contract
07/19/2016
• Tentative Start Construction
08/15/2016
• Estimated Completion of Construction
07/28/2017
Attachments:
Attachment 1:
Location Map
Attachment 2:
Bid Protest Letter from BrightView
Attachment 3:
KASA Letter Regarding Prequalified Fabricator/Installer
Attachment 4:
KASA Response to Bid Protest
LOCATION MAP
Tustin Legacy Linear Park
Grading Project from
Barranca Pkwy/Red Hill Ave
to Armstrong Ave
I`
g,
v
TUSTIN
RANCH
w`0mr �
r p
d
y
A`
'4
TUSTIN LEGACY
a
NO SCALE
cy�
PROJECT LOCATION
Tustin Legacy Linear Park
F
PROJECT
Grading Project from �
Barranca Parkway / Red Hill LOCATION
o
Avenue to Armstrong Avenue
(CIP No. 20077)
�FcIl
F
9,9 9L
Q
C�> Aq
qy
FILE: Tustin Legacy Linear Park Grading Project.dwg
Pepper Hamilton LLP
Atcooneys ac la•.:
350 South Grand Avenue
Two California Plaza
Suite 3400
Los Angeles, CA 90071-3427
213.928.9800
Fax 213.928.9850
April 22, 2016
Via Hand Delivery
Doug Stack
Director of Public Works
City of Tustin
300 Centennial Way
Tustin, CA 92780
APR 2 2 2016
TUSTIN
Marion T. Hack
direct dial: 213.928.9885
direct fax: 800.541.3513
hackm@pepperlaw.com
Re: BID PROTEST
Detention Basin Landscaping and Water Quality Installation (CIP NO. 50038) and Tustin
Legacy Linear Park Improvements (CIP No. 20077) Segment 1 & 2 Construction Project
To Whom it May Concern:
In accordance with the Notice Inviting Sealed Bids (page B-6, Section 20 Bid Protest)
Brightview Landscape Development ("BVLD") hereby protests any attempt to award the
contract for the Detention Basin Landscaping and Water Quality Installation (CIP NO. 50038)
and Tustin Legacy Linear Park Improvements (CIP No. 20077) Segment 1 & 2 Construction
Project ("Project") to any bidder other than BVLD. It is our understanding that Kasa
Construction, Inc. ("Kasa") was the low bidder on the Project, but upon review of Kasa's bid we
feel that the City of Tustin ("City") must find that Kasa's bid was non-responsive. Kasa's bid
defects were material they cannot be waived by the City. As BVLD was the second lowest
bidder, and Kasa's bid is non-responsive, BVLD requests that the City award the Project to
BVLD.
I. Legal Basis of Protest
Pursuant to the Subletting and Subcontracting Fair Practices Act (Pub. Cont. Code §
4100 et seq.) bidders on public projects are required to list the subcontractors whose work
Philadelphia Boston
Detroit Berwyn
Washington, D.C.
Harrisburg Orange County
www.pcpperlaw.com
Los Angeles New York Pittsburgh
Princeton Silicon Valley Wilmington
Pepper HamiltM LLP
A, - y, y, a, 1...
City of Tustin
April 22, 2016
Page 2
exceeds one half of one percent of the overall bid. Further, the bidder must set forth the portion
of the work which will be done by each subcontractor, and the prime contractor is required to list
only one subcontractor for each portion of work as defined by the contractor in his bid. Id., at
4104(b).
In addition, public entities may require additional bidding requirements, if specifically
outlined in the bid documents. "Because of the potential for abuse arising from deviations from
strict adherence to standards which promote these public benefits [elimination of favoritism,
fraud and corruption], the letting of public contracts universally receives close judicial scrutiny
and contracts awarded without strict compliance with bidding requirements will be set aside."
MCM Construction, Inc. v. City and Cnty of San Francisco (1998) 66 Cal.App.4a' 359, 369.
A key concern is where a contractor fails to submit a bid that is responsive to the
requirements of the bid form. A bid is responsive if it promises to do what the bidding
instructions require. Taylor Bus Service, Inc. v. San Diego Bd. of Educ. (1987) 195 Cal.App.3d
1331, 1341. Usually whether a bid is responsive can be determined from the face of the bid
without outside investigation or information. Id., at 1342. A bid is non-responsive when, for
example, the bid form is not completely filled out and signed, as required by the bidder
instructions, or where there are other errors or omissions. See, e.g., Cypress Sec., LLC v. City &
Cnty. of S.F. (2010) 184 Cal. App. 4th 1003; Domar Elec., Inc. v. City of L.A. (1995) 41 Cal.
App. 4th 810; Menefee v. Cnty. of Fresno (1985) 163 Cal. App. 3d 1175.
The contracting entity may waive inconsequential deviations in the bid. However, only
technical or minor defects in a bid can be waived. Moreover, even when a defect is technical or
minor, there are limits to what can be waived: The defect "cannot have [1] affected the amount
of the bid or [2] given a bidder an advantage or benefit not allowed other bidders" Konica
Business Machines v. Regents of University of California (1988) 206 Cal. App. 3d 449. These
are 2 distinct tests. If either is met, the defect cannot be waived and the defective bid must be
rejected. An example of an un-waivable error is a late submittal of a bid, permitting the
acquisition of lower subcontractor pricing which could affect the bid price. Saliba-Kringlen
Corp. v. Allen Engineering Co. (1971) 15 Cal.App.3d 95, 99. In another instance the
contractor's bid did not state the contracted value for each subcontractor, as required by the bid
form. Valley Crest Landscape, Inc. v. City Council (1996) 41 Ca1.App.4a' 1432, 1439. The court
in Valley Crest held that the bid form requirement was material to the public entity's needs, in
that it defined the subcontractor's work value/percentage which was controlled by the statute. Id.
Thus, even where the defect did not affect the overall bid price the defect could not be waived by
the public entity. Id. Further, the court in Valley Crest stated that an irregularity in a bid should
be allowed only if it would not give the bidder an unfair advantage. Id.; 47 Ops.Cal.Atty.Gen.
129, 130 (1966). Lastly, a court held that where the relief sought was not for a typographical or
439029037 v I
Pepper Hamilton LLP
Aaomcc+�� law
City of Tustin
April 22, 2016
Page 3
arithmetical error, but for a mistaken submission of a bid, and thus the contractor could not be
released from its bid bond, the irregularity in the bid could not be waived by the public entity.
Menefee, supra, at 1181.
II. Kasa's Bid is Non -Responsive
BVLD's protest in this matter involves Kasa's bid for the Project. In particular (1)Kasa's
listing of Creo Industrial Arts ("Creo") for the fabrication of the Entry Monument; and (2)
Kasa's failure to specify a Pre -Qualified subcontractor for the installation of the Entry
Monument.
The Notice Inviting Sealed Bids for the Project (otherwise known as a Request for
Proposals or "RFP") specifically stated:
The CITY OF TUSTIN, as Agency has Pre -Qualified a list of Sign
Fabricators. General Contractors are required to solicit bids for
the Entry Monument installation from the Pre-Oualified Sign
Fabricator only. [Emphasis in original.]
While Creo was listed in Section 11 — Pre -Qualified Sign Fabricators, in the RFP, Creo did not
comply with other requirements of the RFP. Section 5 of the RFP requires:
No contractor or subcontractor shall be listed on a bid proposal for a
public works project unless registered with the Department of
Industrial Relations pursuant to Labor Code Section 1725.5.
Prior to bid, on April 18, 2016, Creo notified BVLD that it was not registered by the
Department of Industrial Relations ("DIR"). (See attached letter from Creo Ex. 1.) Nor was
Creo a licensed subcontractor and as such could not legally install the Entry Monument. As a
result, Creo attempted to bid only the fabrication portion of the work to BVLD, for $320,095.
However, the plain meaning of the RFP states that the installer of the Entry Monument must be
one of the Pre -Qualified entities listed in Section 11 of the RFP. As such, BVLD was forced to
utilize the next lowest priced subcontractor, from the list of available subcontractors in order to
remain responsive to the bid requirements. BVLD specifically did not list Creo because they
did not meet the bid requirements even though they had more favorable pricing. BVLD
then submitted its bid listing Brandt Group, Inc., whose price was $768,825. Brandt did have the
required contractor's license and DIR registration, as required by the RFP.
Kasa's bid listed Creo as the fabrication subcontractor for the Entry Monument, but failed
to identify an contractor's license or DIR as required by the RFP. Thus, as noted by the court in
#39029037 vi
Pepper Hamilton LLP
Annmcr.. ' ,_
City of Tustin
April 22, 2016
Page 4
Cypress See., LLC v. City & Cnty. of S.F. Kasa's bid was non-responsive. Maintaining a valid
contractor's license, and providing that license number to the City should be a material
consideration for the bid. The RFP also specifically required a DIR registration, thus failure to
list any registration must be material to the City. Cypress, supra, at 1003. Further, and more
importantly, Kasa named a subcontractor that did not meet the RFP requirements for
subcontractors, in that Creo did not have a DIR registration. Thus, the listing of Creo in Kasa's
bid makes Kasa's bid non-responsive. In addition, Kasa's failure to list a subcontractor for the
Entry Monument installation requires that Kasa self -perform that work. The RFP clearly states
that only the pre -qualified entities in Section 11 were to be used for installation of the Entry
Monument.
Kasa's failure to list a qualified subcontractor constitutes a non-responsive bid. As the
City believed that the use of specific pre -qualified subcontractors for the Entry Monument was of
such importance as to provide this at the start of the RFP, and include bold and underlining in
that requirement, it seems obvious that this was a material requirement for the bid. As a material
requirement it cannot be waived. Valley Crest, supra, at 1439.
Kasa's listing of Creo and its attempt to self -perform the installation work on the Entry
Monument are material deviations from the RFP, which significantly affect the overall price
submitted by Kasa in comparison to BVLD's bid. An examination of Kasa's bid finds that its
Entry Monument line item (Item 41) was listed as $580,000. This is a function of Creo's
improper bid for fabrication of $320,095 and Kasa's failure to subcontract the installation work
as required. As can be seen, there is approximately $190,000 in difference in price between
Kasa's bid line item and the cost to BVLD for the same work. Thus, with normal markup to be
included in the bid pricing BVLD has been disadvantaged over $210,000 based on Kasa's non-
responsive bid. Clearly, the use of Cleo by Kasa affected the amount of the bids, and gave Kasa
a clear advantage over BVLD. Either of which situations precludes the City from waiving the
defect at this time, as noted by the court in Konica. Konica, supra, at 449. Kasa's failure to
follow the bidding requirements gave Kasa an unfair advantage, which precludes the waiver of
the defect. Valley Crest, supra, at 1439. This mistake also was not typographical or
arithmetical, it was clearly a mistaken submission of a bid which cannot be waived by the City.
Menefee, supra, at 1181.
III. Conclusion
Kasa's bid is fatally flawed. It is apparent that its bid is non-responsive. Kasa cannot
rectify the irregularities without the City's waiver, but the City does not have the discretion to
waive these items. No matter what course is taken by the City, other than rejecting Kasa's bid as
non-responsive, the City will become involved in facilitating a violation of State law. We
#39029037 v
Pepper Hamilton LLP
.<«,.,, ,1.
City of Tustin
April 22, 2016
Page 5
respectively urge the City to reject Kasa's bid and award the Project to the lowest responsible
and responsive bidder, BrightView Landscape Development.
Sincerely,
Marion T. Hack
Partner
MTH:cm
cc: Tomas Kuehn - Brightview Landscape Development
#39029037 vl
CREO
INDUSTRIAL
III IIITH STREET II
WOODINVILLE, WASHINGTON 98072
ARTS
T: 425.775.7444 � 425.775.2505
WWW.CREOINDUSTRIALARTS.COM
Date: April 18, 2016
From: Jeff Braaten
Account Executive
Proposal: Red Hill Barranca Monument
I. Scope of Work
Il. Services Details
Ill. Pricing
IV. General Terms & Conditions
1. Scope of Work
In accordance with RSM Design drawings dated June 1, 2015 and
Addendums 1 and 2, Creo Industrial Arts is pleased to present this
proposal for the Red Hill Barranca Monument project (Item 41 on City
of Tustin Bid form).
am
CREO a"°Rrs
It. Services Details
Phase I — Submittals
• Prepare one samples set of all applicable colors, finishes, and
materials. If design direction changes as a result of submittal
review, CREO will propose a corresponding change order for
additional submittal and revised scope of work.
Phase II — Construction Documentation
• Based on client furnished digital artwork, and
architectural/structural drawings as applicable, CREO will prepare
construction drawings specifying sizes, materials, colors, and
installation specifications.
• Obtain engineering approval for structural components and
attachment methods in conformance with city of Tustin codes.
Design and engineering of footings or above -grade concrete walls
are not included in this scope of work.
Phase III — Fabrication
• Upon documentation and submittal approval, fabricate signage in
strict accordance with construction drawings.
Phase IV — Crating, Shipping
• Crate and ship to location for installation by others, in strict
accordance with approved construction drawings and as described
below.
CREOINOUSTRART�s
M. Pricing
Item 1: Arches and Letters
Fabricate and ship arch structure and internally illuminated letterforms.
Design and engineering of below -grade footings and above -grade finished
concrete are not included in this proposed scope of work. Installation of
signage is to be completed by others.
Total: $320,095.00 + tax if applicable
*Note that Creo Industrial Arts does not have a California Class A Contractors
license or a DIR, both of which may preclude us from performing on-site labor.
However, it appears that neither are required of a firm to fabricate and ship for
installation by others.
Clarifications / Exclusions
Sign Type
Description
Notes
5' tall, custom fabricated and painted aluminum channel
Letters
Letters
letters with internally LED illuminated return sections of
routed acrylic fabricated to allow for "halo" illumination
of concrete letterforms (by others).
Custom fabricated and painted aluminum cabinet with
Alum
Fabricated Aluminum
internally -illuminated LED downlight. Cabinet is
Base
Base
fabricated In 7 sections to match the reveals in
concrete base.
Custom fabricated and painted aluminum Arch with
Archway
Archway with three arches
intemal LED illumination. Arch is fabricated in 5
sections for through -bolt assembly.
ACCEPTANCE:
Please indicate acceptance of this proposal by signing on the line provided
below.
l f
Authorized Client's Signature Date
CREO
IV. General Terms & Conditions
1. Prices do not include applicable state and local sales taxes.
1. Permit fees are not included in this proposal.
2. The fee schedule is for outline of services above only. Changes to the scope of work shall
be estimated and submitted to client for change order approval prior to commencement.
3. All Creo products are fabricated to the highest standard appropriate to their architectural
context and priced accordingly.
4. Prices are valid for 90 days.
5. This proposal does not include waterproofing of walls after penetrations made by Creo or its
subcontractors.
6. Creo will warranty electrical components in accordance with warranty terms supplied to Creo
by manufacturer. Service associated with replacement of warranty components will be billed
to client as a reimbursable expense.
7. Creo will warranty banners and attachment components in accordance with warranty terms
supplied to Creo by manufacturer. Service associated with replacement of warranty
components will be billed to client as a reimbursable expense. Creo will not provide a
warranty to client if no warranty is provided to Creo by manufacturer.
8. If Creo is delayed in the progress of completion of work due to any act, occurrence, or
condition beyond Creo control, then the estimated or agreed upon completion date shall be
extended for a reasonable period of time. Creo shall be entitled to additional compensation
for all costs and expenses caused by the delay.
9. Individual sign type budgets are subject to revision. If proposed fabrication and/or installation
methods are revised due to site survey discoveries or engineering review, a corresponding
change order may be issued.
10. To facilitate the documentation process and meet the intended schedule the following items
are assumed:
a. Creo will receive electronic files with each page of the design intent drawings fully
assembled in one file within two working days of the client's notice to proceed.
Assembly of text, scans and drawings from various files to recreate page layouts
is not in the scope of this proposal, and if requested will be billed on a time and
materials basis.
b. Site Plans, Floor Plans, Structural and Architectural drawings pertinent to sign
locations and sign attachment details will be made available within one week of
the client's notice to proceed.
c. Final artwork for digital output graphics, other than standard text, will be provided
by the designer in an acceptable form that is full size and "production ready".
Creation of vector art, enlargement to full size, and dean up of line work is not in
the scope of this proposal, and if requested, will be billed on a time and materials
basis at an hourly rate of $75.00 per hour.
11. Creation of evacuation routes and evacuation map layouts is the responsibility of the
designer, and is not including in this proposal.
12. Pricing is based on unobstructed access to sign locations during unloading and installation.
Delays caused by unforeseen hazards, accessibility complications, conflicts with other
trades, or below grade obstructions may result in a corresponding change order for the time
lost to resolve the delay.
13. Unless specified otherwise, Creo is not responsible for any and all structural blocking,
embedments, sleeves, or cutouts for sign interface, or the capacity of existing structures or
the ground to support the loads imposed by the installation of Creo products.
14. Unless specified otherwise, Creo is not responsible for repair and restoration of landscaping
disturbed in the course of excavating for electrical power, lighting fixtures or footings related
to the install of the signage scope.
15. Pricing is based on the assumption that the work will be completed within a normal M -F, 40
hour work week. If weekends or overtime work is required to complete the work due to a
change in schedule or conditions outside of Creo control, Creo shall be entitled to additional
compensation for all additional premium labor costs and expenses caused by the delay.
16. Prices quoted do not include the costs of running electrical circuit wiring to sign locations
and assumes primary power will be brought to sign locations by other. Creo will only make
electrical connections to circuits that meet NEC specifications.
17. If at any time during this project, prices for raw materials increase more than 5%, Creo
reserves the right to pass the increased cost on to the client.
•
a
iL
'I
5
rte,
il
COEUR D'ALENE
CASINO RESORT
CREO
- I.. �.. i A,,,, a
1
•
•• •i.�i,�ii•�N�i.��i•�N .d•�,
�,+:i• ',,,•,N, "�,•�' • � rryr r• t•,•t,++,++,t•,t•,,•+',,i•N••'t"i1•'
•.+,1,•.•,11:x•' •'';:' �•'r•sS S S ;S.• t • ,t ,t t t • , �".
got
so
• •1+1•N•++ N.a'�. . •rirS�,S � �•�ti ,�,~Z� r� �,��,�,t��,1��1"��'�.'����t�,+,�i+���•
•;1•+�.N SirrSSSSrS•i+rSri%:: �r�•,' ++1+Id+,+It+Id,,•"•+`•••
' + • . •� rrrrrSrSr•• �•••y. •, � a+,••,N,t+,•a•" +••+",+•�',i1i'Ii
•,++`NN .•�r �i �•i �•iryiS'•��•�ii':��5:,. �i•�i•��`�i••i•��•�P�•'� "�d�+:+�i
•N+. ,. ��i �••ir.r� r�ir•+ti.�I. �.• .,'. ••, ,at, ,+•+,a,•+,• ,,N;.•+a,�•a••"
1 • i S• •r • 4• a • , . • a a .'.•
•� '•i• i••i! iii � �i%ir'ir�•�. �•,. •a a� +•�•+�+a ",as �prt""a�`a,•+"*`�
.' •r .• •• a+ •+,. ,• ,+•a+,• as 1+•,a aaa .+`• ,
t •'%� ' i•'s ir•Si•�i!i••%.•:yS :�•' ,� ��a�•'�I��t',,�"a�, ��i�a�•�1,'y+".
��r•�r• r•i•�iir• :• Sri :r. 1+ t+ as ,a t,•+• aN ••, ,• ��" ",.
•,• ••'+•i� ii,i i �•• i : �; .�• ;; a•,aia,,,s�, ,,,,,•a,�aa,1,•w,a, `,`,
.ri i J L
11
dor
%, Vim.'
BREMERTON MEMORIAL PLAZA
Dos
Lagos
T- DIRECTORY
T6"Prmw4 _'a
at Dos Lagos
m
LMM m TAI
.,
12
C O N STR U CTI O N
License # 927544
April 20, 2016
City of Tustin
Attention: City Engineer
Department of Public Works
300 Centennial Way
Tustin, CA 92780
Project: Detention Basin Landscaping — Water Quality Installation and Tustin Legacy
Linear Park Improvements Segment 1 & 2 Construction Project
Project #: CIP No. 50038 & CIP No. 20077
Subj ect: ENTRY MONUMENT — PRE -QUALIFIED FABRICATOR
Please consider this letter as an explanation and clarification pertaining to the reasoning as to
why KASA chose to utilize the pre -qualified fabricator CREO Industrial Arts. Hopefully this
will shed some transparency on the issue to justify KASA's due diligence in utilizing a Pre -
Qualified Fabricator as indicated in the Notice Inviting Sealed Bids.
I have attached Exhibits #1 through #7 which are email correspondences prior to the bid that
correspond with the timeline shown below.
TIMELINE
#1 - 4-18-16 — 5:38 pm — Proposal received from Brandt Sign of $748,825
#2 — 4-18-16 — 5:39 pm — KASA replies to Brandt and informs them their price is too high and
the j ob will go way over budget.
#3 — 4-18-16 — 5:59 pm — Proposal received from CREO of $320,095. Body of the email and the
proposal clearly states that "it does not include installation". CREO has completed nearly 30
projects with the same signage designer.
#4 - 4-18-16 — 6:00 pm — KASA forwards the quote to a reputable local Signage Contractor —
Bravo Sign and Design who has worked with the City of Tustin in the past. KASA was seeking
a price for the installation. If the cost for partial install is less than half of 1% of the overall
contract value, listing the sub -contractor is not required.
#5 — 4-19-16 — 9:37 am — KASA requests from Brandt Sign an Installation Only price.
#6 — 4-19-16 — 9:44 am — KASA sends another email to Brandt Sign forewarning them that their
price is too high and KASA must give the City the best value and cost savings, while asking for
their help to reduce it.
#7 — 4-19-16 - 9:52 am — Brandt declines the request to provide Install Only.
15148 Sierra Bonita Lane Chino CA 91710
Phones 909045708260 Fax: 909045708261
C O N STR U CTI O N
License # 927544
In addition to the emails above .............
4-18-16 — Approximately 5 pm — I personally called Vomar Products and spoke to John
Barmaan. He indicated they would not be bidding and informed me that CREO is a good
company and will get the job done.
4-18-16 — Approximately 5 pm — I called CNP Signs and Graphics numerous times and left
messages for Nick Nutter. No call backs.
4-19-16 — Approximately 8:30 am — I called CNP Signs 2 times and finally spoke to Nick
Nutter. He indicated that he was also passing on bidding the project.
If KASA did not indicate the intended Pre -Qualified Fabricator somewhere on the proposal,
other Bidders would have protested that KASA was not Pre -Qualified and did not intend on
using a Pre -Qualified Fabricator. Due to the significant cost difference, KASA made the
decision to give back the savings to the City and utilize the services of CREO to fabricate the
signage.
CREO has completed nearly 30 projects with the same Sign Fabricator Designer and appeared to
be the most qualified to perform the fabrication. Since CREO did not have a DIR # prior to bid,
their price was based on fabrication and delivery ONLY, and therefore they will NOT be
performing any work on site. They are nothing more than a supplier, NOT a Subcontractor
which is why KASA did not list their CSLB # on the Subcontractor Listing Form. CREO's name
was listed strictly for informational purposes as an intent to identify the use of a Pre -Qualified
Fabricator. Below is the body of the email sent by CREO with their Proposal prior to bid and
clearly, we are all on the same page.
Attached, please see Creo Industrial Arts proposal for fabrication and delivery of the Tustin Legacy Signage and Arches project. We
are excited about the opportunity to work with you in the near future, and we truly believe we are the most qualified firm to fabricate
these unique structures. For your reference, 1 have included a few examples of comparable projects we've completed recently, and 1
think you will find that we are different from the other signage bidders participating in this process. We are the only ones with a
proven track record of fabricating large, structural, highly detailed signage/architectural elements like these all over the country, and
we have completed nearly (30) projects with this signage designer alone. We hope to have the opportunity to add this one to the list
as well.
Please note that the proposal only includes engineering, documentation, mockups, fabrication, and shipping. It does not include the
engineering or implementation of the concrete, and it does not include installation of the elements we will fabricate. Although we are
one of the prequalified sign fabricators listed in the documents, we only recently discovered that in order to bid site -related work we
would need to have a California Class A Contractors License (we have a C45 Specialty Contractor's License) and a be registered
with the DIR in California (we have Washington State Worker's Comp). We do not have either of these, and because of this we are
only bidding fabrication and shipping. We believe this satisfies the requirement, and we look forward to further discussions in the
coming days.
Thanks, and we look forward to hearing from you.
Jeff Braaten I Account Executive I CREO Industrial Arts I D: 425.374.5901 1 M:
425.218-3762
INDUSTRIAL 0324 21674 STREET SE
OODNVILLE. WA 98072 REO ARTS T. 425.775.7444 F; 425 775.2505
UST6MMILICATIdRFOR THEOUILT#.MOWN '�WW.CREUIN0USTRIALARTS. C0M
15148 Sierra Bonita Lane Chino CA 91710
Phone: 909045708260 Fax: 909045708261
C O N STR U CTI O N
License # 927544
0 if
Please let me know if you have any questions or concerns.
Respectfully,
Sam Kasbar
Vice President
KASA Construction Inc.
Attachments: Exhibits #1 through #7
15148 Sierra Bonita Lane Chino CA 91710
Phones 909045708260 Fax: 909045708261
Sam Kasbar
From: Robert Lange <rlange@lfc.com>
Sent: Monday, April 18, 2016 5:15 PM
To: Hector Zavala
Subject: Tustin Legacy Monument Signage Quote -Bid Item #41
Hector, I rounded off all the corners I could for this very difficult sign. I look forward to working for you again. Per page
A-3 of the Notice Inviting Sealed Bids for this project, Brandt is one of the pre -approved signage sub -contractors for bid
item 41. The pre -approval process was detailed and exhaustive.
Our quote for this work is $748,825.00.
Brandt is pleased to quote on the monument sign for the Tustin Legacy project. We are an pre -approved provider for
this work, we did a very similar installation (although much smaller) about three years ago one mile north at the SE
corner of Red Hill/Valencia. We are properly licensed for this work, bondable at an added 3% and DVBE certified.
We are pleased to quote this monument sign item complete, including the 72 foot long cast concrete low wall,
including excavation and footings, the cast concrete letters spelling "TUSTIN LEGACY", and the illuminated letter overlay
for the cast concrete letters. Also included are the twin internally illuminated aluminum painted arches with
footings. All of this work is furnished and installed per bid item #41 'Entry Monument', item complete. Others will be
responsible traffic control (if any), permits and bringing switched electrical power to a point of connection
approximately 20 feet from our signage. The one foot high retaining wall 12 feet to the front of our sign will is not
included in our quote. We have included all necessary engineering and the very extensive required full scale mock-ups.
We guarantee our quotes for 60 days after award of the prime contract provided we are listed subcontractor at bid
opening. Thank you for the opportunity to earn your business.
Regards,
Robert B. Lange
Brandt Group, Inc.
17 Corporate Plaza Dr., Suite 200, Newport Beach, CA 92660-7959
Direct Phone: (949) 644-8229 Direct Fax: (949) 644-7003
rlangealfc.com
BRAND7'GROUP. INC.
CA License: 881954 A, B, C61/D42, C45, Haz, Asb - DVBE/SDVOSB DIR 1000016041
Sam Kasbar
From: Hector Zavala <hectorz@kasaconstruction.com>
Sent: Monday, April 18, 2016 5:39 PM
To: 'Robert Lange'
Subject: RE: Tustin Legacy Monument Signage Quote -Bid Item #41
Hey Robert,
Thanks for the Bid.. but holy cow.... I doubt the City will move forward considering the overall job will be way over -
budget. Can you please tell me who you intend on using for your concrete work? I would like to know if that's whats
driving up the cost and if so, I am sure I can have my subs probably do it for less.
Please advise
Hector Zavala
Estimator
15148 Sierra Bonita Ln.
Chino, CA 91710
P : 909-457-8260
F : 909-457-8261
J*ASA-._�
caNsrRucr+oN
The information contained in this e-mail message is intended only for the use of the individual or individuals named above. If the person actually receiving this
message or any other reader of the message is not the named recipient or the employee or agent responsible to deliver it to the named recipient, any use,
dissemination, distribution, or copying of the communication is strictly prohibited If you have received this communication in error, please immediately destroy
AND notify us by telephone at 909.457.8260.
From: Robert Lange [mailto:rlange@lfc.com]
Sent: Monday, April 18, 2016 5:15 PM
To: Hector Zavala <hectorz@kasaconstruction.com>
Subject: Tustin Legacy Monument Signage Quote -Bid Item #41
Hector, I rounded off all the corners I could for this very difficult sign. I look forward to working for you again. Per page
A-3 of the Notice Inviting Sealed Bids for this project, Brandt is one of the pre -approved signage sub -contractors for bid
item 41. The pre -approval process was detailed and exhaustive.
Our quote for this work is $748,825.00.
Brandt is pleased to quote on the monument sign for the Tustin Legacy project. We are an pre -approved provider for
this work, we did a very similar installation (although much smaller) about three years ago one mile north at the SE
corner of Red Hill/Valencia. We are properly licensed for this work, bondable at an added 3% and DVBE certified.
We are pleased to quote this monument sign item complete, including the 72 foot long cast concrete low wall,
including excavation and footings, the cast concrete letters spelling "TUSTIN LEGACY", and the illuminated letter overlay
for the cast concrete letters. Also included are the twin internally illuminated aluminum painted arches with
footings. All of this work is furnished and installed per bid item #41 'Entry Monument', item complete. Others will be
responsible traffic control (if any), permits and bringing switched electrical power to a point of connection
approximately 20 feet from our signage. The one foot high retaining wall 12 feet to the front of our sign will is not
included in our quote. We have included all necessary engineering and the very extensive required full scale mock-ups.
We guarantee our quotes for 60 days after award of the prime contract provided we are listed subcontractor at bid
opening. Thank you for the opportunity to earn your business.
Regards,
Robert B. Lange
Brandt Group, Inc.
17 Corporate Plaza Dr., Suite 200, Newport Beach, CA 92660-7959
Direct Phone: (949) 644-8229 Direct Fax: (949) 644-7003
rlangealfc.com
BR4NDTGROUP, INC.
CA License: 881954 A, B, C61/D42, C45, Haz, Asb - DVBE/SDVOSB DIR 1000016041
4!?L'{ r4R
aVe�
Sam Kasbar
From: Jeff Braaten <jbraaten@creo-ia.com>
Sent: Monday, April 18, 2016 5:47 PM
Subject: Tustin Legacy Signage/Arches Proposal
Attachments: 4-18-16 Creo Proposal.pdf
Attached, please see Creo Industrial Arts proposal for fabrication and delivery of the Tustin Legacy Signage and Arches
project. We are excited about the opportunity to work with you in the near future, and we truly believe we are the most
qualified firm to fabricate these unique structures. For your reference, I have included a few examples of comparable
projects we've completed recently, and I think you will find that we are different from the other signage bidders
participating in this process. We are the only ones with a proven track record of fabricating large, structural, highly detailed
signage/architectural elements like these all over the country, and we have completed nearly (30) projects with this
signage designer alone. We hope to have the opportunity to add this one to the list as well.
Please note that the proposal only includes engineering, documentation, mockups, fabrication, and shipping. It does not
include the engineering or implementation of the concrete, and it does not include installation of the elements we will
fabricate. Although we are one of the prequalified sign fabricators listed in the documents, we only recently discovered
that in order to bid site -related work we would need to have a California Class A Contractors License (we have a C45
Specialty Contractor's License) and a be registered with the DIR in California (we have Washington State Worker's
Comp). We do not have either of these, and because of this we are only bidding fabrication and shipping. We believe this
satisfies the requirement, and we look forward to further discussions in the coming days.
Thanks, and we look forward to hearing from you.
Jeff Braaten I Account Executive I CREO IndustrialArts D: 425.374.5901 1 M: 425.218-3762
n®la-
Sam Kasbar
From:
Sent:
To:
Subject:
Attachments:
Hector Zavala <hectorz@kasaconstruction.com>
Monday, April 18, 2016 6:00 PM
'dfiore@bravosign.com'; 'frank@bravosign.com'
FW: Tustin Legacy Signage/Arches Proposal
4-18-16 Creo Proposal.pdf
Importance: High
Debbie / Frank,
Please see below and attached.
Thanks,
Hector Zavala
Estimator
15148 Sierra Bonita Ln.
Chino, CA 91710
P : 909-457-8260
F : 909-457-8261
CONS T R U C T 1 0 1
The information contained in this e-mail message is intended only for the use of the individual or individuals named above. If the person actually receiving this
message or any other reader of the message is not the named recipient or the employee or agent responsible to deliver it to the named recipient, any use,
dissemination, distribution, or copying of the communication is strictly prohibited If you have received this communication in error, please immediately destroy
AND notify us by telephone at 909.457.8260.
From: Jeff Braaten [mailto:jbraaten@creo-ia.com]
Sent: Monday, April 18, 2016 5:47 PM
Subject: Tustin Legacy Signage/Arches Proposal
Attached, please see Creo Industrial Arts proposal for fabrication and delivery of the Tustin Legacy Signage and Arches
project. We are excited about the opportunity to work with you in the near future, and we truly believe we are the most
qualified firm to fabricate these unique structures. For your reference, I have included a few examples of comparable
projects we've completed recently, and I think you will find that we are different from the other signage bidders
participating in this process. We are the only ones with a proven track record of fabricating large, structural, highly detailed
signage/architectural elements like these all over the country, and we have completed nearly (30) projects with this
signage designer alone. We hope to have the opportunity to add this one to the list as well.
Please note that the proposal only includes engineering, documentation, mockups, fabrication, and shipping. It does not
include the engineering or implementation of the concrete, and it does not include installation of the elements we will
fabricate. Although we are one of the prequalified sign fabricators listed in the documents, we only recently discovered
that in order to bid site -related work we would need to have a California Class A Contractors License (we have a C45
Specialty Contractor's License) and a be registered with the DIR in California (we have Washington State Worker's
Comp). We do not have either of these, and because of this we are only bidding fabrication and shipping. We believe this
satisfies the requirement, and we look forward to further discussions in the coming days.
Thanks, and we look forward to hearing from you.
Jeff Braaten I Account Executive I CREO Industrial Arts I D: 425.374.5901 1 M: 425.218-3762
INDUSTRIAL RIO
RTS
CUSTOM FiBILICATION FOR THE BUILT ENVIRONMENT
M if
8324 21674 STREET SE
WOODI NVILLE. Wk 98072
1425.775.7444 F; 425,775,2505
WWW.CREO INOII STRI ALARTS.0 ON
Sam Kasbar
From: Tony Kasbar <tonyk@kasaconstruction.com>
Sent: Tuesday, April 19, 2016 9:37 AM
To: rlange@lfc.com
Cc: 'Sam Kasbar'; tonyk@kasaconstruction.com; 'Charles Rameh'
Subject: Detention Basin Landscaping / Brandt Group, Inc. / Entry Monument Installation
Importance: High
Robert
RE: Detention Basin Landscaping and Water Quality Installation (CIP No. 50038) and Tustin Legacy Linear Park
Improvements (CIP No. 20077)
Tuesday April 19, 2016 10:00 AM Bid
Please e-mail me your price for installation only of the Entry Monument for the above noted project. I need this before
10:00 AM this morning, I'll give you a call momentarily.
Thanks,
TONY KASBAR I PROJECT MANAGER
15148 SIERRA 8ONPTA LN, CHI N0 CA. 91710
C: 909466-3239 P,, 909-457-8260 F: 909-457-8281
J*f VErfk__
0 0 14E337RU0TIQN
The information contained in this e-mail message is intended only for the use of the individual or individuals named above. Ifthe person actually receiving this message
or any other reader of the message is not the named recipient or the employee or agent responsible to deliver it to the named recipient, any use, dissemination,
distribution, or copying of the communication is strictly prohibited. Ifyou have received this communication in error, please immediately destroy AND notify us by
telephone at 909.457.8260.
Sam Kasbar
From: Tony Kasbar <tonyk@kasaconstruction.com>
Sent: Tuesday, April 19, 2016 9:44 AM
To: rlange@lfc.com
Cc: 'Sam Kasbar'; 'Charles Rameh'; tonyk@kasaconstruction.com
Subject: RE: Detention Basin Landscaping / Brandt Group, Inc. / Entry Monument Installation
Robert
FYI — your price is really high in comparison to another pre -qualified sign -fabricator. I need to give the City the best value
and cost savings on this project and need your help to do it.
Thanks,
TONY KA B R I PROJECT MANAGER
15148 SIERRA 6ONaA LN, C K i N 0 CA. 91710
C: 903-486-32.39 P; 909-457-8260 F: 909-457-8261
CONSTRUCTION
The information contained in this e-mail message is intended only for the use of the individual or individuals named above. Ifthe person actually receiving this message
or any other reader of the message is not the named recipient or the employee or agent responsible to deliver it to the named recipient, any use, dissemination,
distribution, or copying of the communication is strictly prohibited. Ifyou have received this communication in error, please immediately destroy AND notify us by
telephone at 909.457.8260.
From: Tony Kasbar [mailto:tonyk@kasaconstruction.com]
Sent: Tuesday, April 19, 2016 9:37 AM
To: rlange@lfc.com
Cc: 'Sam Kasbar' <samk@kasaconstruction.com>; tonyk@kasaconstruction.com; 'Charles Rameh'
<cha rlesr@ kasaconstruction.com>
Subject: Detention Basin Landscaping / Brandt Group, Inc. / Entry Monument Installation
Importance: High
Robert:
RE: Detention Basin Landscaping and Water Quality Installation (CIP No. 50038) and Tustin Legacy Linear Park
Improvements (CIP No. 20077)
Tuesday April 19, 2016 10:00 AM Bid
Please e-mail me your price for installation only of the Entry Monument for the above noted project. I need this before
10:00 AM this morning, I'll give you a call momentarily.
Thanks,
TONY KASBAR I PROJECT MANAGER
15148 SIERRA BOPWA LEY, Cwiyo CA. 91710
C; 4 903-486-32.39 P; 909-457-8260 F: 909-457-8261
CONSTRUCTION
The information contained in this e-mail message is intended only for the use of the individual or individuals named above. Ifthe person actually receiving this message
or any other reader of the message is not the named recipient or the employee or agent responsible to deliver it to the named recipient, any use, dissemination,
distribution, or copying of the communication is strictly prohibited. Ifyou have received this communication in error, please immediately destroy AND notify us by
telephone at 909.457.8260.
Sam Kasbar
From:
Robert Lange <rlange@lfc.com>
Sent:
Tuesday, April 19, 2016 9:52 AM
To:
Tony Kasbar
Cc:
'Sam Kasbar'; 'Charles Rameh'
Subject:
Detention Basin Landscaping / Brandt Group, Inc. / Entry Monument Installation
Sorry. See page A-3 of the 'Invitation for Bids' (the ruling document above all others). There are only four potential sign
companies, and the guy in Washington does not appear to have a contractor's license that I can find. Brandt is one of
the four.
However, I'm sure we can work out some sub -contract work for you on the excavation, compaction, spoils removal and
sub -surface portion of the foundation.
Regards,
Robert B. Lange
Brandt Group, Inc.
17 Corporate Plaza Dr., Suite 200, Newport Beach, CA 92660-7959
Direct Phone: (949) 644-8229 Direct Fax: (949) 644-7003
rlangealfc.com
CA License: 881954 A, B, C61/D42, C45, Haz, Asb - DVBE/SDVOSB
From: Tony Kasbar [mailto:tonyk@kasaconstruction.com]
Sent: Tuesday, April 19, 2016 9:37 AM
To: Robert Lange <rlange@lfc.com>
Cc: 'Sam Kasbar' <samk@kasaconstruction.com>; tonyk@kasaconstruction.com; 'Charles Rameh'
<cha rlesr@ kasaconstruction.com>
Subject: Detention Basin Landscaping / Brandt Group, Inc. / Entry Monument Installation
Importance: High
Robert:
RE: Detention Basin Landscaping and Water Quality Installation (CIP No. 50038) and Tustin Legacy Linear Park
Improvements (CIP No. 20077)
Tuesday April 19, 2016 10:00 AM Bid
Please e-mail me your price for installation only of the Entry Monument for the above noted project. I need this before
10:00 AM this morning, I'll give you a call momentarily.
Thanks,
The information contained in this e-mail message is intended only for the use of the individual or individuals named above. Ifthe person actually receiving this message
or any other reader of the message is not the named recipient or the employee or agent responsible to deliver it to the named recipient, any use, dissemination,
distribution, or copying of the communication is strictly prohibited. Ifyou have received this communication in error, please immediately destroy AND notify us by
telephone at 909.457.8260.
CD IVSTRUCTIE3N
Building the Foundation for our Future
CA License No. 927544 1 Classifications: A, B, C-27, C-10
May 3, 2016
Doug Stack, Director
Public Works Department
City of Tustin
300 Centennial Way
Tustin, CA 92780
SUBJECT: AWARD OF THE DETENTION BASIN LANDSCAPING AND WATER QUALITY
INSTALLATION (CIP NO. 50038) AND TUSTIN LEGACY LINEAR PARK IMPROVEMENTS
(CIP NO. 20077) SEGMENT 1 & 2 CONSTRUCTION PROJECT
Dear Mr. Stack:
BACKGROUND
The City of Tustin (hereinafter the "City") opened ten (10) bids for the subject project on April 19, 2016. The Engineer's
estimate was $4,600,000. The ten (10) bids received on this project ranged from $4,986,655.75 to $8,677,943.001 with an
average amounting to $6,086,197.30. Our firm, KASA Construction, Inc. (hereinafter "KASA") was the apparent low
bidder with a proposal in the amount of $4,986,655.75; $459,505 lower than the apparent second low bidder and
$1,099,541.55 lower than the average of the ten (10) bids.
Based on various correspondences by and between KASA the City, it is KASA's understanding that the City is hesitant to
award the subject project to KASA following receipt of a protest letter submitted by the apparent second low bidder
Brightview Landscape Development (hereinafter `BVLD") stating that KASA's bid is non-responsive because (1) KASA
listed Creo Industrial Arts (hereinafter "Creo") for the fabrication of the Entry Monument; and (2) KASA did not specify
a Pre -Qualified subcontractor for the installation of the Entry Monument. BVLD proceeded to make reference to the
following statement contained within the Notice Inviting Sealed Bids in attempt to define KASA's bid as non-responsive
and secure award of the subject project:
The CITY OF TUSTIN, as Agency has Pre -Qualified a list of Sign Fabricators. General Contractors are
required to solicit bids for the Entry Monument installation from the Pre -Qualified Sign Fabricator only.
ANALYSIS
If the City determines that KASA's bid is non-responsive, the City would unduly incur a minimum of $459,505 in
additional costs as our proposal is in fact responsive and contains no material defects for the following reasons:
1. The Notice of Inviting Bids provided a list of Pre -Qualified Sign Fabricators not Pre -Qualified Sign
Installers. The second portion of the requirement was that the General Contractor only solicit bids for the
installation from the list of Pre -Qualified Sign Fabricators.
2. KASA solicited bids from each of the four Pre -Qualified Sign Fabricators for both fabrication and installation.
3. Two of the four Pre -Qualified Sign Fabricators California Neon Products dba: CNP Signs & Graphics (hereinafter
"CNP") and Vomar Products (hereinafter "Vomar") voluntarily passed on providing a proposal for the subject
project. KASA (and all other bidders) were left with only two Pre -Qualified Sign Fabricator options: Brandt
Group, Inc. (hereinafter "Brandt") and Creo.
15148 Sierra Bonita Lane, Chino, California 91710
Phone: (909) 457-8260 Fax: (909) 457-82611 www.kasaconstruction.com
CD IVSTRUCTIE3N
Building the Foundation for our Future
CA License No. 927544 1 Classifications: A, B, C-27, C-10
4. According to the Contractors State License Board, Brandt Group, Inc.'s license is exempt from having workers
compensation insurance as they've certified that they have no employees; despite the absence of any workers
compensation insurance since June of 2014 and Brandt's certification that they have no employees, Brandt Group,
Inc.' provided a proposal to fabricate and install the sign however refused to provide a proposal for sign
fabrication only.
5. If two of the four Pre -Qualified Sign Fabricators listed by the City (CNP and Vomar) voluntarily stated they are
not bidding the subject project and Brandt does not carry workers compensation insurance as they've certified that
they have no employees, the only Pre -Qualified Sign Fabricator who provided a proposal to fabricate the
sign was the vendor KASA clearly noted in our proposal, Creo. By utilizing a Pre -Qualified Sign Fabricator
and performing the installation of the sign in-house KASA has therefore followed the requirements of the bidding
instructions.
6. As BLVD stated in their protest, "a bid is responsive if it promises to do what the bidding instructions require.
Taylor Bus Service, Inc. v. San Diego Bd. OfEduc. (1987) 195 Ca1.App.3d 1331, 1341."
RECOMMENDATION:
Award a construction contract to KASA Construction, Inc. 15148 Sierra Bonita Lane, Chino, CA 91710, in the amount of
$4,986,655.75.
ALTERNATIVES:
1) Determine KASA's proposal as non-responsive without merit and award a construction contract to BLVD while
unduly incurring additional costs amounting to a minimum of $459,505.
2) Reject all bids and re -advertise the project, unduly delaying construction and inadvertently resulting in proposals
substantially higher than KASA's low bid of $4,986,655.75 as even if KASA listed Brandt, KASA's bid would
have remained approximately $270,680 higher than our current proposal and lesser than the apparent second low
bidder.
CONCLUSION:
If the City awards the subject project to KASA the City will reap the benefit of a minimum of $459,505 in immediate cost
savings versus the apparent second low bidder, BLVD and $1,099,541.55 in cost savings when compared to the average
of the ten (10) bids. All bidders had access to the same four Pre -Qualified Sign Fabricators therefore KASA had no unfair
advantage; Considering KASA followed the bid requirements, KASA's bid is in fact responsive and contains no material
defects therefore by awarding the construction contract to KASA the City is acting in accordance with all
requirements of the Public Contract Code and State law.
Respectfully,
KASA Construction, Inc.
Sam Kasbar,
Vice President
15148 Sierra Bonita Lane, Chino, California 91710
Phone: (909) 457-8260 Fax: (909) 457-82611 www.kasaconstruction.com