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Home My WebLink About08 - Utilities Locker Room Maintenance — Award of Contract No. 9501-1 (25F03)Q SEW Pp�T CITY OF z NEWPORT BEACH c�<,FORN'P City Council Staff Report October 8, 2024 Agenda Item No. 8 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: David A. Webb, Public Works Director - 949-644-3311, dawebb@newportbeachca.gov PREPARED BY: Peter Tauscher, Senior Civil Engineer - 949-644-3316, ptauscher@newportbeachca.gov TITLE: Utilities Locker Room Maintenance — Award of Contract No. 9501-1 (25F03) ABSTRACT: The City of Newport Beach received construction bids for the Utilities Locker Room Maintenance project and requests City Council approval to award the contract to American Construction Company LLC, of Anaheim. This project updates the locker room used by employees of the Utilities Department, located at 949 West 1611 Street. RECOMMENDATIONS: a) Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 (Existing Facilities) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because this project has no potential to have a significant effect on the environment; b) Approve the project plans and specifications; c) Award Contract No. 9501-1 to American Construction Company LLC, for the total bid price of $232,500, and authorize the Mayor and City Clerk to execute the contract; and d) Establish a contingency of $35,000 (approximately 15% of total bid) to cover the cost of unforeseen work not included in the original contract. DISCUSSION: As part of the annual Facilities Maintenance Master Plan (FMMP) program, staff identified the locker room at the Utilities Yard as needing renovations. The locker room is over 40 years old. It receives intense use and does not meet current staff needs. Staff members from the Utilities and Public Works Departments met and discussed a suitable design and layout that will provide a more efficient use of space, an energy -efficient Light Emitting Diode (LED) lighting system, increased ventilation, and new locker storage, resulting in better working conditions for staff. IE Utilities Locker Room Maintenance — Award of Contract No 9501-1 (25F03) October 8, 2024 Page 2 On September 11, 2024, at 2 p.m., the City Clerk opened and read the following electronic bids for this project: BIDDER TOTAL BID AMOUNT Low American Construction Company, LLC. DBA ACC $ 232,500 2nd Global Builders, Inc. $ 249,888 3rd Corner Keystone Construction Corporation $ 277,738 4th Estate Design and Construction $ 280,000 5th R Dependable Construction, Inc. $ 282,500 6th Triangle DeCon Services, Inc. $ 332,500 7th Fidelity Builders, Inc. $ 357,000 8th Newbuild Construction and Restoration, Inc. $ 472,500 9th MSH Construction $ 494,904 The City received nine bids. The apparent low bidder, American Construction Company LLC, possesses a California State Contractor's License Classification "B", as required by the project specifications. A review of the contractor's references shows satisfactory completion of similar contracts for other public agencies including the County of Riverside, the Anaheim Elementary School District, and the City of Banning. American Construction Company LLC's bid came in at approximately 23% below the engineer's estimate of $300,000. The average bid price was roughly $298,000. American Construction Company is a small outfit operating for less than five years. Its aggressive bid may reflect a desire to achieve references for future work. After the bid opening, the City received a bid protest claiming deficiencies in the apparent low bidder's responsiveness and ability to perform the work. The City reviewed the protest and the response from American Construction Company LLC, as part of the recommendation process and found no merit in the protect claim. The protest letter and response are included as attachments to this report. Pursuant to the contract specifications, the contractor shall have 60 consecutive working days to complete the project. Work is scheduled to start in January 2025. The project plans and specifications will be available for review at the October 8, 2024, City Council meeting or upon request. FISCAL IMPACT: The adopted Capital Improvement Program (CIP) budget includes sufficient funding for this contract. The contract will be expensed to the Water Enterprise Fund CIP Account in the Public Works Department, 70101-980000-25F03. The Water Enterprise Fund generates revenue primarily through water rates collected by service users. FIN Utilities Locker Room Maintenance — Award of Contract No The following funds will be expended: Account Description Water Enterprise Fund CIP Proposed fund uses are as follows: Vendor American Construction Company American Construction Company Various Account Number 70101-980000-25F03 Purpose Construction Contract Construction Contingency Printing & Incidentals Total: 9501-1 (25F03) October 8, 2024 Page 3 $ 270,000 Amount $ 232,500 $ 35,000 $ 2,500 $ 270,000 Staff recommends establishing $35,000 (approximately 15% of total bid) for contingency purposes and unforeseen conditions associated with construction. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 (Existing Facilities) 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 — Protest Letter Attachment C — Protest Letter Response FIN Attachment A 16TH STREET PUMP STATION UPGRADES AND BACKUP GENERATOR LOCATION MAP CITY OF NEWPORT BEACH PUBLIC WORKS DEPARTMENT C-7693-1 18W 13 9/24/24 ATTACHMENT B TRI /A\NGLE September 18, 2024 Ms. Ellis Peterson Associate Civil Engineer, Public Works Department City of Newport Beach 100 Civic Center Drive Newport Beach, CA 92660 Phone: (949) 644-3014 E-mail: epeterson@newportbeachca.gov Re: Bid Protest for City of Newport Beach Public Utilities Locker Room Maintenance Project with Contract No. 9501-1 Dear Mr. Peterson, Triangle DeCon Services, Inc. (hereinafter "Triangle") was pleased to have this opportunity to submit the bid proposal for above -mentioned project on Wednesday September 11th, 2024. Based on Bid results published on PlanetBids; Triangle submitted a base bid price of $332,500 pursuant to bidding instructions and bidding documents published by City of Newport Beach on PlanetBids. However, other bidders appear to have submitted bid proposals not in compliance with the bidding instructions and California Public Contracting Code which would make them to be non -responsive. California Public Contracting Code section 04100 (titled "Subletting and Subcontracting Fair Practices Act") states that public project specifications or bidding general conditions must require persons or firms making bids to set forth the names and locations of subcontractors which will perform work in excess of one-half of one percent of the total bid price. The bidding contractor must also designate the type or portion of work which will be performed by each listed subcontractor. Prior to establishment of Subcontractor Fair Practices Act, it was common for successful general contractors to bid -shop or bid - peddle the subcontractors bids. Bid shopping is defined as the use of the low bid already received by the general contractor to pressure other subcontractors into submitting even lower bids. Bid peddling is defined as an attempt by a subcontractor to undercut known bids already submitted to the general contractor in order to procure the job. The California legislature enacted the above law to prevent such practices. 8-5 City of Newport Beach Notice of Inviting Bids included a Designation of Subcontractors form and affidavit on page 9 and it required all bidders to list all subcontractors who will perform work in excess of/z% of the bidder's total bid amount. Please see attachment on the following page for this said form. We have reviewed the bid results published on PlanetBids and subcontractors listed by other bidders and offer the following comments: - American Construction Company LLC submitted a bid amount of $232,500 and it listed only one subcontractor, All American Building Services, for the Electrical potion of the work. It failed to list plumbing, tile, casework, etc. and it must be disqualified. - Global Builders Inc. submitted a bid amount of $249,888 and it did not list any subcontractor at all; so it must be disqualified. - Corner Keystone Construction Corporation submitted a bid amount of $277,738 and it did not list any subcontractor, so it must be disqualified. - Estate Design and Construction submitted a bid amount of $280,000 and it did not list any subcontractor, so it must be disqualified. - R Dependable Construction Inc submitted a bid amount of $282,500 and it did not list any subcontractor, so it must be disqualified. - Triangle Decon Services Inc. submitted a bid amount of $332,500 and it listed subcontractors for casework & cabinets, tile, polished concrete floor, electrical, plumbing and toilet partitions & accessories to comply with the California PCC and City of Newport Beach bidding requirements, so it must be determined as the lowest responsive and responsible bidder. According to California Public Contracting Code and City of Newport Beach bidding instructions and requirements, we believe that Triangle Decon Services Inc should be selected as the most responsive and responsible bidder with a bid package in compliance with the California PCC and City of Newport Beach requirements. We look forward to hear back from the City of Newport Beach on this Bid Protest. Sincerely, Matt Pirayeh President Triangle Decon Services, Inc. City of Newport Beach UTILITIES LOCKER ROOM MAINTENANCE Contract No. 9501-1 DESIGNATION OF SUBCONTRACTOR(S) - AFFIDAVIT State law requires the listing of all subcontractors who will perform work in an amount in excess of one- half of one percent of the Contractor's total bid. If a subcontractor is not listed, the Contractor represents that he/she is fully qualified to and will be responsible for performing that portion of the work. Substitution of subcontractors shall be made only in accordance with State law and/or the Standard Specifications for Public Works Construction, as applicable. Pursuant to Public Contract Code Section 22300 appropriate securities may be substituted for any monies to be withheld to ensure performance under the Contract. The Bidder, by signing this designation, certifies that bids from the subcontractors as listed in the Bidder's electronic bid have been used in formulating the bid for the project and that these subcontractors will be used subject to the approval of the Engineer and in accordance with State law. No changes may be made in these subcontractors except with prior approval of the City of Newport Beach. Bidders must also include DIR registration numbers for each subcontractor. Bidder �7 Authorized Signature/Title 8-7 NNW ATTACHMENT C — ACC & ENGRAERNG — Design I Engineering I Construction 9 951-903-2284 ® www.accandengineering.com *714-844-2140 0 Benaaccandengineering.com (°)1130 N Kraemer Blvd #I, Anaheim, CA 92806 QDIR I PW-LR-10008010970 BPELSG 139074 Q CSLB 11073807 Response to Bid Protest for City of Newport Beach Public Utilities Locker Room Maintenance Project (Contract No. 9501-1) Date: September 20, 2024 To: Ms. Ellis Peterson Associate Civil Engineer, Public Works Department City of Newport Beach 100 Civic Center Drive Newport Beach, CA 92660 Phone: (949) 644-3014 E-mail: epeterson@newportbeachca.gov From: American Construction Company LLC 1130 N Kraemer Blvd # I, Anaheim, CA 92806 Phone: (714) 844-2140 Email: Ben@accandengineering.com By: Ben Harried, AM, ASCE, AIA CEO & Principal Engineer Subject: Response to Bid Protest by Triangle Decon Services Inc. Dear Ms. Peterson, We, American Construction Company LLC, are writing this letter in response to the bid protest submitted by Triangle Decon Services Inc. regarding the Public Utilities Locker Room Maintenance Project (Contract No. 9501-1). We are the lowest bidder for this project, having submitted a competitive and fully compliant bid. After reviewing the points raised in the protest, we strongly believe that the protest lacks merit and is based on an incorrect interpretation of both the City of Newport Beach's bidding requirements and applicable California public contracting laws. 1. Self -Performance of Work Without Subcontractors The main assertion made by Triangle Decon Services Inc. is that we did not list subcontractors for plumbing, tile, casework, and flooring, and as such, they claim our bid should be disqualified. This argument is fundamentally flawed. There is no provision in either the California Public AFFILIATIONS �� A Cam! AMER AN SOCIETY' gmerican Welding Society AmLIAR COMPANY MEMBER 7�.L OF CIVIL ENGINEERS 0 Member s ATE UCCEN E BOARD NCEES advancing licensure %. . enoineers andsurvevors (]i NA 140r6231e 1 � -A — ACC & ENGINURNG — Design I Engineering I Construction 9 951-903-2284 ® www.accandengineering.com *714-844-2140 0 Benaaccandengineering.com (°)1130 N Kraemer Blvd #I, Anaheim, CA 92806 QDIR I PW-LR-10008010970 BPELSG 139074 Q CSLB 11073807 Contract Code or the City of Newport Beach Municipal Code that prevents a licensed general contractor from self -performing work involving multiple trades. According to California Business and Professions Code Section 7057, a general "B" contractor is allowed to self -perform any trade work so long as the project involves two or more unrelated trades. This project clearly involves more than two trades, and as a general contractor, & Even Led by California Licensed Professional Engineers/Architects we take pride in being fully qualified to self -perform plumbing, casework, flooring, and other related activities. The only requirement for listing subcontractors arises when a subcontractor performs work exceeding one-half of one percent of the total bid. Since we intend to self -perform these trades, there is no requirement to list subcontractors for this work. Furthermore, the City of Newport Beach's Notice of Inviting Bids (referenced in the protest letter on page 9) and California Public Contract Code Section 4100 (Subletting and Subcontracting Fair Practices Act) reinforce this understanding. As per the guidelines, the designation of subcontractors is required only when a contractor is subcontracting work. If no subcontractor is used, the contractor affirms their qualification to self -perform the work. This is consistent with the language in the City's bidding instructions, which allow general contractors to complete the work themselves without listing subcontractors when self -performing multiple trades. 2. Compliance with CSLB and Newport Beach Municipal Code We thoroughly reviewed the relevant sections of the California State License Board (CSLB) guidelines and the Newport Beach Municipal Code to ensure our bid's compliance. Nowhere in these codes does it state that a general contractor, such as American Construction Company LLC, must list subcontractors for trades that the contractor is licensed to perform. Specifically: CSLB Business & Professions Code Section 7057 permits a Class B General Building Contractor to perform work involving multiple trades, and therefore we are within our rights to self - perform the trades in question. The Newport Beach Municipal Code, which governs public works bidding processes, does not disqualify contractors from self -performing trades on projects with multiple trades. We have not violated any municipal bidding rules. 3. Incorrect Interpretation of the Subcontractor Fair Practices Act The protest from Triangle Decon Services Inc. also misinterprets the intent of the Subletting and Subcontracting Fair Practices Act (Public Contract Code Section 4100). This Act was established to prevent unethical practices such as bid shopping and bid peddling, and to protect subcontractors. However, the Act does not mandate that a general contractor must subcontract out specific trades. Instead, it requires the listing of subcontractors only when they are actually being used. AFFILIATIONS AWs A Cam! AMER AN SOCIETY' gmerican Welding Society AmLIAR COMPANY MEMBER 7�.L OF CIVIL ENGINEERS Member NCEESC ad,'inglicensare%. .s�reuENSEBOARD en —ands —ors (]i NA 140r6231e 1 � -A — ACC & ENGRAERNG — Design I Engineering I Construction 9 951-903-2284 ® wwwaccandengineering.com *714-844-2140 0 Benaaccandengineering.com (°)1130 N Kraemer Blvd #I, Anaheim, CA 92806 QDIR I PW-LR-10008010970 BPELSG 139074 Q CSLB 11073807 Since we are self -performing the trades of plumbing, casework, flooring, and other necessary work, we were not required to list subcontractors. This aligns with the intent of both the Subcontractor Fair Practices Act and the City of Newport Beach's bidding instructions. Conclusion In summary, American Construction Company LLC has followed all applicable laws and bidding requirements set forth by the City of Newport Beach and the California Public Contracting Code. There is no rule preventing us from self -performing the work in question, nor is there any basis for the claim that our bid should be disqualified. We are fully compliant, and as the lowest responsible and responsive bidder, we respectfully request that the City award us the contract for this project. The protest from Triangle Decon Services Inc. lacks a solid legal foundation and does not apply in this case. Therefore, it should not be a basis for disqualifying our bid. We appreciate your attention to this matter and look forward to your fair decision. Sincerely, Amr Ben Hamed CEO & Principal Engineer American Construction Company LLC AM, ASCE, AIA AFFILIATIONS AWs A Cam! AMER AN SOCIETY' gmerican Welding Society AmLIAR COMPANY MEMBER 7�.L OF CIVIL ENGINEERS 0 Member s ATE UCCEN E BOARD NCEES advancing licensure %. . enoineers andsurvevors (]i NA 140r6231e 8-10