REPORT TO COUNCIL
SUBJECT
Title
Action on Award of Purchase Orders with Guerra Construction Group, SBV Concrete, Inc. DBA Valley Concrete, and Spencon Construction for As-Needed Asphalt and Concrete Repair and Replacement Services
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
The Department of Public Works (DPW) provides various services related to maintaining the City’s sidewalks, curbs, and gutters. This work includes removing and replacing concrete to mitigate tripping hazards and addressing drainage problems. The City does not have adequate staff to maintain all these facilities and as a result, utilizes contractors to provide concrete repair and replacement services. The department has a budget of $700,000 to address a portion of the repairs and replacements identified at various locations throughout the City. Additionally, other City departments work through DPW to repair concrete sidewalks, curbs and gutters resulting from work on underground utilities.
DPW also maintains City streets as well as various alleyways and parking lots. Most street rehabilitation work is scheduled in advance and performed by contractors under the Annual Street Rehabilitation program. DPW staff regularly performs minor asphalt removal and replacement, pothole repairs, and crack sealing. DPW does not have the capacity to efficiently complete large asphalt repairs.
DPW currently has purchase orders with two vendors to provide as-needed asphalt and concrete repair and replacement services which will expire on December 31, 2022. In order to continue providing these services, new purchase orders need to be awarded.
DISCUSSION
Pursuant to City Code Section 2.105.330, a formal Request for Bids (RFB) was conducted as the solicitation method for this procurement, with award recommendation to the lowest bidder(s). The bid allowed for multiple awards at the City’s sole discretion if determined to be in the City’s best interest.
The City released an RFB for as-needed asphalt and concrete repair and replacement services on the City’s e-procurement site. Services were separated into three major pricing categories:
Package A: Concrete Services
Package B: Asphalt Cement Pavement Services
Package C: Other Work (Interlocking Concrete Pavers/Catch Basin Tops)
The estimated quantities used to determine the lowest bids for each package were based on aggregated quantities of work performed between 2017 through 2021. Bidders were allowed to submit bids for any of the packages with the award being made to the lowest responsive, responsible bidder(s) of the total base bid for each package.
A total of 34 companies viewed the solicitation and four bids were received as follows:
|
Bidder |
Package A |
Package B |
Package C |
|
Guerra Construction Group |
$1,897,300 |
$85,000 |
$59,760 |
|
Spencon Construction |
$2,744,200 |
$76,500 |
$45,200 |
|
SBV Concrete, Inc. DBA Valley Concrete |
$2,263,860 |
$86,000 |
$24,634 |
|
Golden Bay Construction, Inc. |
$3,196,077 |
$131,750 |
$50,064 |
Staff recommends awarding each package to two bidders in the event the primary (low) bidder is unable to complete the work within the timeframe specified by the City, providing greater capacity and flexibility for the City to respond to unanticipated repairs.
Package A: Concrete Services
Staff recommends award of purchase orders for Package A to Guerra Construction Group (80 percent) and Valley Concrete (20 percent).
Package B: Asphalt Cement Pavement Services
Staff recommends award of purchase orders for Package B to Spencon Construction (90 percent) and Guerra Construction Group (10 percent).
Package C: Other Work
Staff recommends award of purchase orders for Package C to Valley Concrete (85 percent) and Spencon Construction (15 percent).
The recommended base funding for the three packages is $850,000 for the initial one-year purchase order term. A 15 percent contingency is also recommended, bringing the total maximum compensation to $977,500 as shown below:
Rates are fixed for the initial one-year term of the purchase order. After the initial term, price adjustments will be considered if properly substantiated by the contractor and subject to approval by the City. In addition, there are four one-year options to extend the purchase orders for a total of five years, assuming all options are exercised.
Prevailing wages will be paid under these purchase orders.
ENVIRONMENTAL REVIEW
The action being considered is exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15301 “Existing Facilities,” as the activity consists of the repair, maintenance or minor alteration of existing facilities involving no or negligible expansion of the use beyond that presently existing.
FISCAL IMPACT
The aggregate maximum compensation of the purchase orders is not-to-exceed $977,500, which includes a 15 percent contingency. Funding of $700,000 in the Sidewalk, Curb and Gutter Repair project in the Streets and Highways Fund FY 2022/23 Capital Improvement Project budget is available to fund a portion of the purchase order. Funding for other as-needed concrete and asphalt repairs will be identified for each project and will be charged accordingly.
The term of the purchase orders is from January 1, 2023 through December 31, 2023. This purchase order may be used for other projects as needs arise, subject to the availability of funds. Funding beyond the available budget is subject to the appropriation of funds.
COORDINATION
This report has been coordinated with the Finance Department and the City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Authorize the City Manager to execute a purchase order with Guerra Construction Group in the amount of $560,000 for as-needed concrete services (Package A) and $10,000 for asphalt cement pavement services (Package B) for an initial one-year term, with maximum compensation not-to-exceed $570,000;
2. Authorize the City Manager to execute a purchase order with Spencon Construction in the amount of $90,000 for asphalt cement pavement services (Package B) and $7,500 for other work (Package C) for an initial one-year term, with maximum compensation not-to-exceed $97,500;
3. Authorize the City Manager to execute a purchase order with Valley Concrete in the amount of $42,500 for other work (Package C) and $140,000 for as-needed concrete services (Package A) for an initial one-year term, with maximum compensation not-to-exceed $182,500;
4. Authorize the City Manager to adjust compensation amounts between the purchase orders during the term, provided the aggregate compensation of the initial term does not exceed $977,500, including a 15 percent contingency; and
5. Authorize the City Manager to exercise up to four one-year options to extend the purchase orders after the initial term, subject to the appropriation of funds.
Staff
Reviewed by: Craig Mobeck, Director of Public Works
Approved by: Rajeev Batra, City Manager