Laserfiche WebLink
File Number: 17-347 <br />for maintaining and operating the onsite equipment. <br />Analysis <br />Bids for this project were opened on August 10, 2017 and one bid in the amount of $2,559,000 <br />was received from DeSilva Gates Construction. This bid exceeded the pre-bid engineer’s <br />estimate of $1,050,705 by $1,500,000. Staff believes that this bid amount is excessive and <br />recommends that the bid be rejected. Staff also believes that rebidding the project in the future <br />will produce a more favorable construction cost for this project. <br />Post-bid discussions with the low bidder and the other pre-bid meeting attendees (DeSilva Gates <br />Construction, O.C. Jones and Sons, and Golden Bay Construction) attributed the high bid amount <br />of this project to the following factors: <br />·A highly accelerated working schedule needed to complete the project in the required <br />number of working days before the onset of winter weather; and <br />·Above ground soil cement mixing (rather than in-situ) takes much longer and is much more <br />costly to complete; and <br />·Current heavy workload for contractors: One potential bidder could not bid because he did <br />not receive a quote for undergrounding work even though he contacted 20 firms. <br />Staff anticipates that rebidding this project will result in bids closer to the engineer’s estimate. <br />Staff plans to modify the construction documents to reduce costs by providing more working days, <br />a more favorable construction schedule with a spring start to avoid winter weather, and simplifying <br />the cement treatment mixing process. Staff will also call for a new bid this winter, in a more <br />favorable bid environment. Results will be presented to the City Council in early 2018. <br />The sole bidder does not have an office in San Leandro that would qualify them as a local <br />business per the Local Inclusion Policy Ordinance, nor did they meet the Local Business <br />Participation Goal of 25% by subcontracting with San Leandro businesses for 25% of the <br />contract value. The bidder had one local subcontractor, Columbia Electric, whose subcontract for <br />$144,000 represents 0.06% of the total contract value. However, the lowest bidder provided <br />documentation that demonstrated completion of the required good faith efforts to meet the local <br />business participation goal. This project is subject to the provisions of the Community Workforce <br />Agreement (CWA) and the bidder signed the Community Workforce Agreement commitment <br />form. <br />Current Agency Policies <br />Maintain and enhance the City’s infrastructure <br />Previous Actions <br />On June 3, 2013, by Resolution No. 2013-072, the City Council approved funding for the project. <br />Summary of Public Outreach Efforts <br />Page 2 City of San Leandro Printed on 9/12/2017