The URL can be used to link to this page

Home My WebLink About09 - Fire Station No. 6 Apparatus Bay Replacement ProjectSEW Pp�T CITY OF -? NEWPORT BEACH <,FORNP City Council Staff Report April 11, 2017 Agenda Item No. 9 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: David A. Webb, Public Works Director - 949-644-3311, dawebb@newportbeachca.gov PREPARED BY: Fong Tse, Assistant City Engineer, ftse@newportbeachca.gov PHONE: 949-644-3321 TITLE: Fire Station No. 6 Apparatus Bay Replacement Project - Reject All Bids - Contract No. 6422-1 (16F11) ABSTRACT: Staff has received bids for the Fire Station No. 6 Apparatus Bay Replacement Project. Staff believes the best course of action is to reject all bids and re -advertise the project for new bids. RECOMMENDATION: a) Staff recommends the City Council find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15302 (Replacement or Reconstruction) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential to have a significant effect on the environment; b) Reject all bids received for Contract No. 6422-1; and c) Direct staff to re -advertise for bids. FUNDING REQUIREMENTS: No fiscal impact. DISCUSSION: At 2:00 PM on March 1, 2017, the City Clerk opened and read the following bids for this project: BIDDER TOTAL BID AMOUNT Low New Dynasty Construction $ 997,500.00 2 Metro Builders & Engineers Group, Ltd. $ 1,077,900.00 3 PCN3, Inc. $ 1,118,000.00 4 Dalke & Sons Construction, Inc. $ 1,278,457.00 5 Optima RPM $ 1,395,000.00 9-1 Fire Station No. 6 Apparatus Bay Replacement Project - Reject All Bids - Contract No. 6422-1 (16F11) April 11, 2017 Page 2 After the bid opening, the second low bidder submitted a letter to the City protesting the low bidder's bid claiming it was non-responsive in complying with the contract's subcontracting requirements. The low bidder then submitted a response. However, after reviewing the information and non-responsive claim in more detail with the City Attorney's office, Staff recommends that City Council reject all bids and direct staff to re -advertise the project for new bids. ENVIRONMENTAL REVIEW: The Project consists of the demolition of the existing fire station garage and the construction of a new taller garage to house fire vehicles that are taller than the existing garage openings. The new garage structure will occupy the same space as the existing garage and will have the same purpose and capacity to house fire station vehicles. As such, Staff recommends the City Council find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15302 (Replacement or Reconstruction) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential to have a significant effect on the environment. NOTICING: The agenda item has been Noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENTS: Attachment A — Location Map Attachment B — Bid Protest Letter from Metro Builders & Engineers Group, Ltd. Attachment C — Bid Protest Response Letter from New Dynasty Construction 9-2 PR LO MA LEGEND ® PROJECT LOCATION N.T.S. / FIRE STATION NO. 6 APPARATUS BAY REPLACEMENT LOCATION MAP - NE MARINERS DR CITY OF NEWPORT BEACH PUBLIC WORKS DEPARTMENT C-6422-1 1 04/11/17 9-3 Attachment B Metro Builders & Engineers Group, ltd, March 2, 2017 City of Newport Beach Public Works Department 100 Civic Center Drive Newport Beach, CA 92663 Attn: Fong Tse, Project Manager. RE: Fire Station No, 6 Apparatus Bay Replacement -- Bid Date March 1, 2017 Bid Protest Mr. Tse, In. accordance with the Instructions to Bidders for the above referenced project, Metro Builders & Engineers Group, Ltd. hereby protests the bid from New Dynasty Construction Co, dated March 1, 2017. After review of the aforementioned bid package and the bid documents provided by the City of Newport Beach, our protest of the responsiveness of the apparent low bidder is as follows: The special provisions state that all work "shall be done in accordance with ... (4) Standard Specifications for Public Works Construction (2009 Edition)". Section 2-3.2 of the 2009 Greenbook states "The Contractor shall perform, with its own organization, Contract work amounting to at least 50 percent of the Contract Price." New Dynasty Construction Co. has listed a total subcontractor value of 54% of their contract value which violates this requirement. Additionally, specification section 08 3513 lists Byron Epp, Inc. as the manufacturer for the Four Fold Metal Doors. These are specialty items that require experienced crews to install. New Dynasty Construction. Co. does not list Byron Epp, Inc. or a proposed equal subcontractor to perform this specialized scope of work. Metro Builders & Engineers Group. Ltd, respectfully requests that the City of Newport Beach deem the bid from New Dynasty Construction Co. non responsive and non -responsible and award the contract to Metro Builders & Engineers Group, Ltd., as the lowest responsible responsive bidder. Fouad Houalla President Metro Builders & Engineers Group, Ltd. 2610 Avon SPreei, Newport Beam, CA 92663-- Phone: 949.515.4350 Fox: 949.515, 3351 - r»etrobvilriers.corn 9-4 MEW ITMISTT •D N S T R fes' C t I 0 N yG7)3:1 3002 Dow Avenue, Suite 218 - Tiusi�n • CA 9780 • Te!- 9-49-512-6.300 . Fax: 949-502-6404 March 6, 2017 City of Newport Beach Public Works Department 100 Ci vie Center Drive Newport Beach, CA 92663 Attn: Fong Tse Project Manager subject: Response to Letter of Protest Fire Station No. 6 Apparatus Bay Replacement Contract Number: 6422 Dear Mr. Tse This letter is being tendered by New Dynasty Construction who is the lowest bidder for Contract Number 6422, in response to the protest letter dated 2March17 of Metra Builders & Engineers Group, Ltd. of Newport Beach, CA. which is characterized New Dynasty construction's bid as non-responsive. 1} Metro Builders have indicated that New Dynasty Construction required self perform 50% of work according to Green Boot: Standard 2009 Edition. In the most recent case. Ghilotti Construction Co. v. City of Rielunond. an unsuccessful bidder challenged a bid award because the winning contractor's bid dew,iated from contract specifications. Atthoubh the lowest 'bidder hail proposed to subcontract more than 55% of the work 'In violation of the contract's 509.11 limit- the court held that the bid could be brought into compliance with only slight alterations and avitl3out af'f'ecting the amount of the hid. The court affirmed the contract and held that the public entity merely waived an "inconsequential irregularity,'" The court was satisfied that the contract award was fully consistent with public policy concerns and that there was no evidence of i`avoritisn-i. corruption. fraud. extravagance, or uncompetitive bidding practices," Although the facts of Valley" Crest were nearly identical to those of Ghilotti, this court distinguished Valley Crest in reaching its holding. The court stated that to the extent that its reasoning differed from that of Valley Crest, it respectfully disagreed. Copies of Ghilotti Construction and Valley Crest are attached for your convenience. New Dynasty Construction had proposed 541/0 of the work to be done by the fisted subcontractors and under Ghilotti Construction case the City should reject Metro Builders & Engineer's protest on this ground. 9-5 7) Regarding not naming a subcontractor for Four Fold Metal Doors, this is not a specialty work and can be self performed within New Dynasty Construction. Byron Epp, Inc., is only named as the Distributor (2.01 A subsection 1). The requirement is that the Doors have to be instaiied in accordance with manufacturer's instructions. Therefore, this second arguments of the Metro Builders &Engineers should also be rejected. Per Instruction to Bidders, the City of Newport Beach has the right to waive any minor or informality in such bids. Given the items above, New Dynasty Construction is the responsible and responsive lowest bidder on the aforementioned project. We would like to request the City of Newport Beach to recommend and intent to award the contract for the Fire Station No. 6 Apparatus Bay Replacement to New Dynasty Construction Co. Must you have any need for further inquiry in this regard, please feel free to contact me at the aforementioned number at your utmost convenience. Sincerely, r Al Chegini General Manager cc: Flie 9-6 3002 Claw Avenue, Sure 218 • Tustin -CA 92780 • Tel. 9.49-502-6444 • Fax: