REPORT TO COUNCIL
SUBJECT
Title
Action on the Award of the Public Works Contract for the Fairview Substation Expansion Project [Council Pillar: Deliver and Enhance High Quality Efficient Services and Infrastructure]
Report
BACKGROUND
On April 19, 2020, the City opened bids for the Fairview Substation Expansion Project (Contract No. 2403H). The project scope involves installation of a third transformer bank at the existing two-transformer bank at the Fairview substation. This expansion is required to meet the customer's request of an additional 30 MVA of capacity. Additional work scope involves expansion of the 12kV switchgear building, construction of electrical bus system from the new third transformer to existing switchgear building, and new control wiring connecting the new equipment.
DISCUSSION
Four bids were received for the Fairview Substation Expansion Project. The Engineer's Estimate and the evaluated bids are as follows:
Engineer's Estimate
$350,000
Tri Technic, Inc.
$454,950
Newtron
$502,400
Cal Electro, Inc.
$593,800
Rosendin Electric
$695,650
Tri Technic, Inc.'s bid is $104,950 over the Engineer's Estimate. The Engineer's Estimate was prepared by the City's engineering consultant, MTH Engineers, Inc. The catalyst driving the difference between the Contractor bid and Engineer's estimate is that the labor market for utility type projects has continued to be in heightened demand, specifically in the greater Bay Area where few contractors are qualified to do this type of utility work. Contractors from outside the region bidding the work in our service area show higher mobilization costs, but remain competitive with local contractors who have submitted higher bids given their existing work commitments. Furthermore, the COVID-19 epidemic crisis has tightened the material and supply market due to higher material and labor costs to implement comply with Health Department requirements for worker safety. The bid was reviewed for compliance with ...
Click here for full text