REPORT TO COUNCIL
SUBJECT
Title
Action on the Award of a Public Works Contract for the Northwest Loop Capacity Upgrade Project to Henkels & McCoy West, LLC, for a Not-to-Exceed Amount of $1,996,557, Inclusive of a 15% Contingency, Funded by the Northwest Loop Capacity Upgrade Capital Improvement Project (CIP No. 2444) Budget
Report
BACKGROUND
The City of Santa Clara's electric utility, Silicon Valley Power (SVP), issued a public works bid packet for the Northwest Loop Capacity Upgrade Project (Project). The Project will reconductor both 60kV transmission line end sections, approximately 2.6 miles, on the Northwest Loop to increase capacity. The additional capacity will serve San Tomas Junction, a single customer substation, as well as projected load growth in the City.
DISCUSSION
On February 12, 2026, in accordance with Section 1310 of City of Santa Clara Charter, which governs the competitive bidding for public works, a competitive Request for Bids (RFB) for the Project was published on the City's e-procurement system.
On March 19, 2026, bids for the Project were opened at the City Clerk's office. The City received two bids, as summarized in Table 1 below.
Table 1 - Bid Results
Bidder
Total Bid Amount
(Rounded to the Nearest Dollar)
Henkels & McCoy West, LLC
$1,736,136
Hot Line Construction Inc
$4,583,530
The total bid amount includes all labor, materials, equipment, and services to complete construction of the Project. The Project work includes site preparation, environmental, and traffic control measures, and replacement of conductors and equipment.
At the bid opening, Henkels & McCoy West, LLC was identified as the lowest apparent bider with a submitted bid in the amount of $1,736,136. This amount is approximately 35.7% lower than the Engineer's Estimate of $2,700,000, which was prepared using conservative assumptions for higher-risk work elements associated with the site-specific constraints.
Staff reviewed the bid for compliance with the terms and ...
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