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Home My WebLink About09 AWARD CONTRACT FOR THE MOFFETT DRIVE BRIDGE AND ROADWAY CONSTRUCTION PROJECT, CIP NO. 70224• Agenda Item 9 AGENDAREPORT Reviewed: — City Manager Finance Director MEETING DATE: FEBRUARY 21, 2017 TO: JEFFREY C. PARKER, CITY MANAGER FROM: DOUGLAS S. STACK, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER SUBJECT: AWARD CONTRACT FOR THE MOFFETT DRIVE BRIDGE AND ROADWAY CONSTRUCTION PROJECT, CIP NO. 70224 SUMMARY Staff is recommending that the City Council award the construction contract for the Moffett Drive Bridge and Roadway Construction Project, CIP No. 70224 to the lowest responsive / responsible bidder, USS Cal Builders, Inc. RECOMMENDATION It is recommended that the City Council: 1. Deny the bid protest submitted by SEMA Construction, Inc.; 2. Award the construction contract for Moffett Drive Bridge and Roadway Construction Project, CIP No. 70224 to the lowest responsive/responsible bidder, USS Cal Builders, Inc., in the amount of $5,732,024.04 and authorize the Mayor and the City Clerk to execute the contract documents on behalf of the City; and 3. Appropriate $332,624 from the Capital Improvement Program — General Fund (Fund 200) and $867,376 from the MCAS Tax Allocation Bonds Fund (Fund 561). FISCAL IMPACT The total estimated expenditure for the construction of this project is $7,100,000. The project is funded through MCAS Tax Allocation Bonds with a current budget of $5,900,000. Staff is requesting an appropriation of funds in order to award the contract. As part of the project the City will be installing infrastructure for the Irvine Ranch Water District (IRWD) in the amount of $332,624. The cost associated with this work will be reimbursed by IRWD. The remaining unfunded balance is $867,376, which staff is recommending be appropriated from MCAS Tax Allocation Bonds (Fund 561). The current fund balance for Fund 561 is $17,951,000. Project expenditures include: • Construction Contract...................................................................$ 5,732,024.04 • Geotechnical Engineering and Materials Testing ...........................$ 148,000.00 • Construction Management and Inspection ...................................$ 439,000.00 • Construction Engineering.............................................................$ 150,000.00 • Contingency.................................................................................$ 630,975.96 • Total Estimated Expenditures...................................................$ 7,100,000.00 Award Contract for Moffett Drive Bridge February 21, 2017 Page 2 CORRELATION TO THE STRATEGIC PLAN The Project will extend Moffett Drive from 500 feet east of Downs Road to 600 feet west of Meridian Way. The Project contributes to the fulfillment of the City's Strategic Plan Goal A: Economic and Neighborhood Development. Specifically, the Project implements Strategy 1, by furthering the development of critical phases of Tustin Legacy. DISCUSSION AND BACKGROUND The City Council adopted Resolution No. 16-45 approving the plans and specifications and authorized and directed the City Clerk to advertise for Project bids on September 20, 2016. The Project will extend Moffett Drive from +/- 500 feet east of Downs Road to +/- 600 feet west of Meridian Way, through construction of a bridge over Peters Canyon Channel and includes roadway, storm drain, sidewalk, and landscape improvements, as well as installation of domestic water and reclaimed water for the Irvine Ranch Water District. The Project was advertised and the bids were opened on November 8, 2016 and evaluated. The City Council on December 20, 2016, rejected all bids received on the Project and directed the City Clerk to return all bid bonds and re -advertise for bids. The project was subsequently advertised and the formal bids were opened on February 7, 2017 and evaluated. Bid packages were purchased by 25 companies. Seven (7) bids were received by the noticed deadline and are summarized as follows: • USS Cal Builders, Inc....................................................................$ 5,732,024.04 • SEMA Construction, Inc................................................................$ 6,309,434.11 • KEC Engineering...........................................................................$ 6,543,838.40 • Flatiron West, Inc..........................................................................$ 6,768,233.00 • MCM Construction, Inc..................................................................$ 6,857,284.00 • Reyes Construction, Inc................................................................$ 6,935,764.00 • Steve P. Rados, Inc.......................................................................$ 7,270,860.00 Staff has reviewed the references and verified the State Contractor's License for USS Cal Builders, Inc., and has determined that they are in good standing and current. The City received a formal bid protest dated February 10, 2017 from SEMA Construction, Inc. (SEMA), the apparent second lowest bidder. In the protest SEMA requested that the City find the apparent lowest bidder, USS Cal Builders, Inc., non-responsive. SEMA asserted that USS Cal Builders failed to list a subcontractor or subcontractors for items of work that are valued in excess of one-half of one percent (0.5%) of the total bid price in violation of the bid documents. SEMA alleges that USS Cal Builders should have listed a subcontractor or subcontractors to perform the work needed for bid items numbers 23 and 24 as they are not capable of self - performing the work and the total value of the work for the two bid items is more than 0.5% of the total bid price. Staff, along with the City Attorney's Office, has reviewed and investigated the matter and determined that SEMA's protest is without merit. Public Contract Code section 4104 provides that a general contractor must list a subcontractor who will perform work on a public works project the value of which exceeds one-half of one percent of the prime contract's bid. If no such subcontractor is listed, the prime contractor must self -perform the work in question. In addition, if the value of the work in question does not exceed one-half of one percent, the prime contractor is not obligated to list a subcontractor for that scope of work. Award Contract for Moffett Drive Bridge February 21, 2017 Page 3 City staff requested USS Cal Builders to provide a response to SEMA's assertions. USS Cal Builders' response adequately addresses the issues raised by SEMA. USS Cal Builders explained that they will self -perform the work in connection with bid item number 24. On the face of the bid documents, there is nothing legally preventing USS Cal Builders from self - performing this work (i.e., licensing issues) and the City, therefore, has no basis to dispute this response. As to bid item number 23, USS Cal Builders explained that they will purchase the materials direct and subcontract out the labor- the value of which will not exceed one-half of one percent. Moreover, staff noted that the value of bid item number 23 does not exceed one-half of one percent of the total bid price so there is no requirement to list a subcontractor for the work contained therein; further verification from USS Cal Builders supporting the response therefore was not needed as determined by staff and the City Attorney's Office. The information above is a summary of the bid protest and the City's response. The bid protest and the formal response from the City have been included as attachments to this report. It is recommended that the City Council deny the bid protest by SEMA Construction, Inc., award the construction contract to the lowest responsive/responsible bidder, USS Cal Builders, Inc., and authorize the Mayor and the City Clerk to execute the contract documents on behalf of the City, and appropriate $332,624 from the Capital Improvement Program — General Fund (Fund 200) and $867,376 from the MCAS Tax Allocation Bonds Fund (Fund 561). rStacK, N.L. Public Works/City Engineer Attachment(s): 1. SEMA Construction, Inc. Letter Dated February 10, 2017 2. City Response to Bid Protest 3. Location Map 4. Bridge Design Perspectives SACity Council Items12017 Council Items\02-21-2017Wward Contract -Moffett Drive Bndge Construction (70224)Wward of Contract for Moffett Drive Bridge Construction (70224).docx ATTACHMENT 1 SEMA Construction, Inc. Letter Dated February 10, 2017 February 10, 2017 DOUGLAS S. STACK, P.E., Director Department of Public Works City of Tustin 300 Centennial Way Tustin, California 92780 (714) 573-3150 Via Hand Delivery FEB 10 2017 USS Cal Builders failed to list subcontractors for items of work valued in excess of one-half of one percent (0.596) of their total bid. Per the attached 'Bid Opening "oavy and Highway General Contractors Summary Report' USS Cal Builders did not list an Asphalt Paving Subcontractor as needed for bid Items #23 & #24, USS Cal Builders does not self perform these items 320 Gowwd Way of work as they list Asphalt Pavers on a regular basis to perform these items of work suge 150 on other contracts. These items exceed 0.5% of USS Cal Builders total bid of kvkv $5,732,024.04. 9co261omia 8 Item #23 Asphalt Rubberized Hot Mix (ARHM-GG-C-PG 64-16,1/2") -216 TON @ $98.28/TON (W4700W For (0" 188.M Item #24 Asphalt Concrete Base Course (III -B2 -PG 64-10-110, 3/4") 286 TON @ $98.28/TON Total of the Asphalt Paving items is $49,336.56 or 0.86% of USS Cal Builders total bid, attached bid tabulations. As such In accordance with Government Code Section 4104, USS Cal Builders should be found non responsive by the City of Tustin and not awarded CIP NO 70224. As the lowest responsive, responsible bidder SEIVIA Construction, Inc. stands ready to perform the contract. For any questions, please call (949) 470-0500 at your convenience. Respectfully, Joshua& Clyne Senior Vice President Heavy and Highway General Contractors 320 Goddard Way Suite 150 #A* caftmle 92618 (949) 4740500 t�W(949)7$&9200 CITY OF TUSTIN PUBLIC WORKS DEPARTMENT ENGINEERING DIVISION BID OPENING SUMMARY REPORT DATE: February 7, 2017" TIME: 10 .M. PROJECT:: Moffett Drive Extension Bridge and Roadway Construction Proiect (CIP NO. 702241 ENGINEER'S ESTIMATE: $5,900,000.00 BIDDER CITY BID AMOUNT BOND 1. USS Cal Builders Stanton $5,674,794.00 10% 2, SEMA Construction Irvine $6,309,434.11 10% 3, KEC Engineering, Inc, Corona $6,543,838.40 10% 4. Flatiron West, Inc. San Marcos $6,768,233.00 10 S. MCM Construction, Inc. N. Highlands $6,857,284.00 109E 6. Reyes Construction, Inc, Pomona $6,935,764,00 10% 7. Steve P. Rados, Inc, Santa Ana $7,270,860.00 10% APPARENT LOW BIDDER: No. 1 USS Cal Builders BID: SS,674,794 00 ITEM LISTED 5U6 ONTRACTORS CITY Landscape & Irrigation Marina Landscape, Inc, Orange Chainlink Fences & Gate Herbert, Inc, Oceanside CIDH Piling Zamborelli Enterprises Laguna Beach Electrical Elecnor Belco Electric, Inc. Chino Prestressing CIP Concrete Schwager & Davis, Inc. San lose Rebar Integrity Rebar Placers Perris Bridge Fabricator & Installer Stinger Bridge & Iron Coolidge, AZ 010 PROPOSALS RECEIVED FROM CLERK BY: City Clerk's Office 0 LIST OF SUBCONTRACTORS By submission of this proposal, the Bidder certifies: 1. That helshe is able=to and will perform the balance of all work which is not covered in the above subcontractors listing.' 2. That the AGENCY will be furnished copies of all subcontracts entered into and bonds furnished by subcontractor for this project. C-11 &a g 8 8 8 Ei E� a 8 8 8 8 8 8 8 8 8 8 8 8.8 8$ 8 8 8 a 8 s s pn 8 8 8 8$ 8 8 8 8 8 8 8 8 8 8 a a 8 8 8 8 a N Vi 8 4S $ E! 8 a a 8 8 8 8 8 8 Ei- 8 Ei $i 8$89 da I § § § § E� 8 19 8 8 8 8 8 8 8 8 8 8 8 8 1,5 M 9 A P, z A A 11 � k N �l a 8 8 a. iR 8 8 ; F. x t .. 08858¢8 88888ss so's Is s s a ? & s s s s A * tq it 35 LS 35 T t; 16 PK 9 5i o yj ��'.igg8g88qK $8 $ 8 9 8 a 88gE$g855� 258 it 13 8 8 8 Zt8 8 RvMd 8 8 g-. 4 Vi $9888.1 $!a ,�igoffl VA !3 !s !3 !3 A th 4 �s 6 it 6ul6 a66 t 6 5 vs a !3 !S wf jr s u i F F 91 412 ... . ..... ...... 16 tg Ht M4 §gg 9999 1 M.1 14 w of A iv sf of 16 El 8 Ap I T ' zs 01 Ji \ � � �\ � � � . � . \�� / . . . � . \ � - . s� � � �f / � . � /�� \%\» < � � � . ~�° $\$/\ .�. \ � \� > . � . � �` . . � . . ^�� , . . . � � . ATTACHMENT 2 City Response to Bid Protest Department of Public Works Douglas S. Stack, P.E. Director February 16, 2017 FIRST CLASS MAIL AND E-MAIL Joshua P. Clyne SEMA Construction, Inc. 320 Goddard Way, Suite 150 Irvine, CA 92618 Re: Construction Protest Re Bid of USS Cal Builders Tustin, Moffett Drive Extension Bridge and Roadway Project, CIP No. 70224 Dear Mr. Clyne: The City is in receipt of the bid protest filed by SEMA Construction, Inc. ("SEMA") concerning the above -referenced project. The City has contacted USS Cal Builders, Inc. ("USS") and asked USS to respond, which it has done. USS's response is attached. This letter provides the City's response to SEMA's bid protest. Summary SEMA filed a timely bid protest claiming that the apparent low bidder on the Moffett Drive Extension Bridge and Roadway Project, USS, submitted a bid that was nonresponsive, and specifically that the bid failed to list subcontractors for items of work valued in excess or one-half of one percent (0.5%) of the total bid. For the reasons explained below, and based on the evidence submitted, there is no competent evidence showing that USS has violated provisions of Public Contract Code section 4104 in connection with their bid, and for that reason SEMA's bid protest is without merit and is denied. Analysis On February 7, 2017, bids were received and opened on the Moffett Drive Extension Bridge and Roadway Construction Project, CIP No. 70224 ("Project"). The apparent low bidder was USS. On February 10, 2017, the City received a bid protest ("Bid Protest") from SEMA. The Bid Protest asserts that USS failed to list a subcontractor or subcontractors for items of work that are valued at more than one half of one percent of their total bid price. SEMA alleges that USS should have listed a subcontractor or subcontractors to perform the work needed for bid items nos. 23 and 24 as they are not capable of self - performing the work and the total value of the work for the two bid items is more than 0.5% of the total bid price. 300 Centennial Way, Tustin, CA 92780 • P: (714) 573-3150 9 F: (714) 734-8991 0 www.tustinca.org Joshua P. Clyne SEMA Construction, Inc. February 16, 2017 Page 2 Public Contract Code section 4104 provides that a general contractor must list a subcontractor who will perform work on a public works project the value of which exceeds one-half of 1 percent of the prime contractor's bid. If no such subcontractor is listed, the prime contractor must self -perform the work in question. In addition, if the value of the work in question does not exceed one-half of one percent (0.5%), the prime contractor is not obligated to list a subcontractor for the scope of work. In response to the contention in the Bid Protest, USS submitted the attached response dated February 13, 2017. USS's response adequately addresses the issues raised by SEMA. USS explains that they will self -perform the work in connection with bid item no. 24. On the face of the bid documents, there is nothing legally preventing USS from self -performing this work and the City therefore has no basis to reject the bid on this ground. As to bid item no. 23, USS explains that they will purchase the materials directly and subcontract the labor, and they state that the value of the labor portion of the bid item will not exceed one-half of one percent (0.5%). In addition, the City observed that the total value of bid item no. 23 does not exceed one-half of one percent (0.5%) of the total bid, so there was no requirement to list a subcontractor for the work contained therein. Accordingly, there is no competent evidence demonstrating that USS Cal Builders, Inc. has violated provisions of Public Contract Code section 4104 in connection with their bid. SEMA's bid protest is therefore without merit and is denied. Sincerely, CITY OF TUSTIN DoVas.Stack, P.E. Di Public Works/City Engineer Attachment C., Rabih EI -Zein, Sr. Vice -President, USS Cal Builders, Inc. David Kendig, City Attorney Joe Forbath, Deputy City Attorney Ken Nishikawa, City of Tustin Benny Tenkean, City of Tustin .50 Z-VUSS CAL BUILDERS February 13, 2017 VIA EMAIL & FAX Douglas S. Stack, P.E., Director Department of Public Works City of Tustin 300 Centennial Way Tustin, CA 92780 714-573-3150 Re: Response to Bid Protest by SEMA Construction Moffet Drive Extension Bridge and Roadway Bid Date- February 7th, 2107. Construction Project CIP NO. 70224 Dear Mr. Stack, RECEIVED FEB 14 2017 TUSTIN PUBLIC WORKS DEPT. We received the above mentioned letter from your office today February 13th, 2017 (below) and our response is as follows: • In regards to item 23 (Asphalt Rubberized Hot Mix), please note that USS Cal Builders will be purchasing the materials from the supplier directly and the labor portion of this work shall not exceed one half of one percent of the contract sum. • In regards to item 24 (Asphalt Concrete Base Course), please note that we are intending on performing this work in house and with our own forces, both the purchase of the materials and the associated labor work. A determination of responsiveness boils down to a simple binary analysis: whether or not the bidder complied with the bidding instructions and in this case it is clear that USS Cal Builders, Inc has done exactly that, there are no regulations against listing a supplier. Here USS Cal Builders bid must be found responsive due to our conformance to the above mentioned requirements. USS Cal Builders did not deviate from the requirements of the contract documents. Sincerely, Rabih EI -Zein Sr. Vice President USS Cal Builders, Inc. T 714 828 4882 . F 714 828 9498 LIC 654454 8051 Main Street, Stanton, Cts 90680 www.usscalhuilders.com ATTACHMENT 3 Location Map LOCATION MAP Moffett Drive Bridge and Roadway Construction Pr* TUSTIN LEWCT PROJECT LOCATION Moffett Drive Bridge and Roadway Construction Project (CIP No. 70224) FILE: CIP 70224 Moffett Bridge & Roodwoy.dwg TUSTIN RANCH PROJECT LOCATION :I. �� ♦ . R ♦ �� ♦ ,� ATTACHMENT 4 Bridge Design Perspectives o a"x z 5/8" box D 8"x 4" box 6"x 1-9" I -Beam I --I in 2 5/8" Dia 171 �' i � I� - II- -� - i IIII �I �I ENMMM—�ral.-— \I