Loading...
SR-01-22-2013-3MCity Council Meeting: January 22, 2013 Agenda Item: L To: Mayor and City Council From: Martin Pastucha, Director of Public Works Subject: Construction Contract for the Arcadia Reservoir Roof Repair Project Recommended Action Staff recommends that the City Council: 1. Authorize the City Manager to negotiate and execute a construction contract with Mallcraft, Inc. a California based company, in an amount not to exceed $1,513,000 (including a 10% contingency) for the Arcadia Reservoir Roof Repair Project. 2. Authorize the Director of Public Works to issue any necessary change orders to complete additional work within contract authority. Executive Summary Arcadia Reservoir is a 5- million gallon potable water storage reservoir located at the Santa Monica Water Treatment Facility. The roof system covering the reservoir has deteriorated and requires repair and maintenance. The project would involve repair of the damaged roof framing, installation of a steel access platform over the roof to protect the roof from the weight of workers and equipment during future maintenance, and installation of a waterproof roofing material over the existing aluminum roof. Staff recommends Mallcraft, Inc., for the construction of this project in an amount not to exceed $1,513,000. Background The Arcadia Reservoir, located at Bundy and Wilshire Boulevards in West Los Angeles, was constructed in 1924. In the early 1980s, the reservoir's wood roof was completely replaced with new timber framing and an aluminum roof to seal the reservoir. In the early 1990s, the roof structure was modified to accommodate the installation of aeration equipment and maintenance access hatches. 1 Discussion The Water Resources Division operates and maintains an extensive water production and distribution network. The Arcadia Reservoir, located at the Santa Monica Water Treatment Facility, stores 5- million gallons of potable water that is produced by the treatment facility. In 2008, staff saw that the reservoir roof structure was deteriorating at several locations. A detailed inspection of the Arcadia Reservoir Roof was conducted by an engineering and roofing consultant. The inspection report identified damage to the wood framing that supports the aluminum roof at several locations. A structural engineer was retained in 2009 to prepare bid documents for the repair of the damaged roof framing, fabrication of a maintenance access platform, and installation of a waterproof roofing membrane over the existing aluminum roof. Contractor Selection In September 2012, the City published Notices Inviting Bids for the Arcadia Roof Repair Project. The bid was posted in the Santa Monica Daily Press and on the City's online bidding site in accordance with the City Charter and Municipal Code provisions. Thirty - seven prospective contractors requested bid packages. The City Clerk's Office received three sealed bids, which were publicly opened by the Deputy City Clerk on October 17, 2012. Bid results are as follows; Bidder 1. California Averland Construction, Inc. 2. Mallcraft, Inc. 3. Orian Construction & Roofing, Inc. Engineer's Estimate Bid Amount With Contingency $ 1,279,100 $ 1,407,000 $ 1,375,034 $ 1,513,000 $ 1,446,544 $ 1,592,000 $ 1,453,860 $ 1,600,000 Bids were evaluated based on competitive pricing, qualifications, direct experience and performance on similar projects, and availability and experience of staff to perform the work. References listed by contractors were contacted to ascertain past performance on similar projects. K, Staff recommends Mallcraft, Inc. as the best bidder based on its price, quality of services presented, experience with similar projects, including experience with relevant structural steel framing, and experience of key staff members. Mallcraft, Inc. has recently completed projects for the cities of West Covina and Los Angeles, and the State of California. References listed in the bid package were contacted and all respondents reported that work performed by Mallcraft, Inc. was completed in a timely and cost - effective manner while maintaining consistent quality. Staff also verified with the California Contractors State License Board that Mallcraft, Inc. and its subcontractors' licenses are current, active, and in good standing. The lowest monetary bidder, California Averland Construction, Inc. was deemed non- responsive for failing to meet the requirement of self - performance in excess of 50% of the work per the specifications and for the absence of relevant structural steel framing experience, which is desired to assure quality performance on the most essential element of the project. The City has received the two attached objections by the highest monetary bidder, Orian Construction & Roofing, Inc ( Orian) (Attachments 1 and 2). The City has sent a response letter to the corporation's president addressing these issues and the response letter is also attached to this staff report (Attachment 3). One of Orian's objections was the absence of a compact disk (CD) version of Mallcraft, Inc.'s and California Averland Construction, Inc.'s submitted bids. The purpose of the City's request for a CD is to move towards electronic submittals; however, because a typed hard copy of the bid was received, and the CD was not necessary to review the bid, its absence is considered a minor irregularity. Per the posted Instructions to Bidders, the City has the "right to waive any minor irregularity or informality in any bid." A second point of objection by Orian was that Mallcraft failed to list a major subcontractor for installation of structural steel. Mallcraft is self - performing this item of work, and therefore no structural -steel sub - contractor is listed on Mallcraft's bid form. 3 The City utilizes the best bidder criteria set forth in SMMC Section 2.24.072 in the recommendation and award of the bid. Mallcraft is the best bidder based on their price, quality of services presented, experience with relevant structural steel framing, and the experience of key staff members. Construction Management and Inspection Construction management for this project would be provided by staff from the Public Works Department. Construction management would include inspecting the contractor's work during construction, verifying and controlling field changes and unforeseen conditions, monitoring and mitigating impacts as a result of the construction activities, attending contractor's safety meetings, attending periodic progress meetings, and maintaining all necessary inspection documentation relevant to the work performed during construction. Financial Impacts & Budget Actions The construction contract to be awarded to Mallcraft, Inc. is for an amount not to exceed $1,513,000 (including a 10% contingency). Funds are available in the FY2012 -13 Capital Improvement Program budget in account C250973.589000. Prepared by: Jessica Arden, Civil Engineering Associate Approved: Forwarded to Council: } Martin Pastucha Rod Gould Director of Public Works City Manager Attachments: 1. Orian Email, 10/29/2012 2. Orian Letter, 11/01/2012 3. City of Santa Monica Letter, 01/04/2013 El Attachment 1 Office - Orian Construction and Roofing From: Office - Orian Construction and Roofing < office @oriancr.com> Sent: Monday, October 29, 2012 5:08 PM To: 'Jessica Arden' Subject: Ground for Potential Protests for Arcadia Reservoir Roof Repair Bid Importance: High Dear Ms, Arden, First of all, I would like to thank you for the pleasant phone conversation we had last week regarding the Arcadia Reservoir Roof Repair project and requested me to email you the nature of my potential protest. As per bid document Section 3 regarding the submission of Electronic bid, the common practice of public bid is most subcontractors /suppliers will submit their quotation at the last minute simply because it will enable bid shopping by the prime bidder in favor of a subcontractor /supplier. However, as per bid document, Section 3 (Electronic Bid) it clearly states that the "BID SUBMITTAL MUST INCLUDE ONE (1) ORIGINAL AND ONE (1) ELECTRONIC BID ON CD. EACH BID MUST BE IN A SEALED ENVELOPE AND SHOULD CLEARLY IDENTIFY THE PROJECT NAME ". In short, we can prove that If we had the freedom to change prices and change subcontractors we would be able to do so. When we submitted our price, Orian Construction and Roofing Inc. had no choice and no other alternative to change the bid per last minute quotation, while California Averland and Mallcraft submitted their bid without the Electronic bid so therefore, they had the advantage of inserting their quote up to the last minute of bid submission. We would be more than happy to provide documentation of the price change from our supplier if requested. The point is, if we did not have the electronic bid (as required) we would be able to change our price per last minute quotation. Our price would be calculated lower than California Averland and Mallcraft. Secondly, Mallcraft failed to submit the electronic bid and failed to list a major subcontractor (Structural Steel) while California Averland Construction failed to submit electronic bid as per Section 3. Also, in the bid breakdown of California Averland Construction for Structural Steel, they only listed $ 92,000 when in fact, the structural and grating exceeds $ 500,000. 1 also suggest to look into California Averland Construction response on Item M, page BF -16 of the bid document where it was asked, "Has any "owner" (Including a public agency owner) ever terminated a contract with your firm prior to completion of this project and their response was, "The City of Santa Monica terminated their contract ". The reason for the informal protest is to save time and for you to move forward with the project and with the reasons mentioned above, we request if you can look into it and find Orian Construction the lowest responsive bidder. Upon request, we will submit the document to prove that the total bid of Orian Construction and Roofing Inc. would have been the lowest and most responsive bidder. Lastly, we would like to know the timetable for the award of this job in case we need to file the formal protest Please feel free to call our office for any clarifications or any questions you may have. Thank you. Sion Shabo Project Manager Attachment 2 ORIAN CONSTRUCTION AND ROOFING INC 23123 Ventura Blvd., Suite 209, Woodland Hills, CA 91364 Tel No: (818) 224 -3350 • Fax No: (818) 223 -9797 • Email: office@oi-iaiier.com oriancr.com License #: 792951 November 1, 2012 Ms. Jessica Arden City of Santa Monica Dear Ms. Arden, We are still waiting for your response to our email sent last Monday, Oct. 29 which you acknowledged by calling our office. We requested from you the timetable for announcing the recommendation to award the Arcadia Reservoir Roof Repair project. This date is very crucial to us as it reserves our right to protest and as stated in the specifications, it only allows 7 days from the announcement of award. We are also waiting for your response when you called our office that you are going to disqualify California Averland Construction for the reason of non - performance of more than 50% as per specs and the City of Santa Monica Charter. You also mentioned that you will recommend Mallcraft as the lowest responsive bidder and that you are disqualifying Orian Construction and Roofing Inc. as Orian Construction and Roofing Inc. also is not performing 50% work. We respectfully disagree with your findings for the following reasons: 1. Mallcraft failed to submit their electronic bid 2. Mallcraft failed to list a major subcontractor (Structural Steel and Grating) which is way over $ 600,000. While Mallcraft in his bid breakdown inserted the price for the structural steel for $693,220.00 he still failed to enlist a major subcontractor for that portion of work in the Designation of Subcontractors and Supplier list (Form BF -5) of the bid document . The conclusion of Mallcraft bid just the structural steel is more than 50% of the total bid (for Subcontractor work) 3. Mallcraft's Roofing subcontractor price of $327,600 (Listed Subcontractor) 4. Mallcraft listed Rough Carpentry Subcontractor amounting to $ 148,904.00 As an answer to your statement that Mallcraft will perform more than 50% of the work is totally off track. Mallcraft bid tabulation shows: 1. Structural Steel - $ 693,220 (non - listed subcontractor) 2. Rough Carpentry (Golden State subcontractor) - $ 148,904 3. Roofing (Eberhard subcontractor) - $ 327,600 Total amount for Subcontractor bid is: $ 1,169,724 Grand total of Mallcraft bid is $ 1,375,034 less subcontractor bid of $ 1,169,724 so the total Mallcraft work will bring you only $205,310 which is below 15% when it requires the Prime Contractor to self- perform work more than 50 %. Please note that Mallcraft also failed to list the major steel subcontractor for the amount of $ 693,220. As for Orian Construction and Roofing Inc. we totally disagree with your statement that we are not self - performing more than 50 %. We already proved that Orian Construction and Roofing Inc. is the lowest responsive bidder by submitting the electronic bid and all other bid requirements and that Orian Construction and Roofing Inc. is also self - performing work more than 50% as showed in the total bid of $ 1,446,544 as we are self - performing the Roof work amounting to $ 550,000 under our own license. The only subcontractor involved on this job is the Structural Steel which is listed for the amount of $ 516,414. If you subtract the Structural Steel subcontractor work of $ 516,414 from the grand total bid of $ 1,446,544, it will give you a total of $ 930,130. The total dollar value of Orian Construction for self - performance work is way above 64 %. We strongly feel that Orian Construction submitted the perfect bid and calculation for the Arcadia Roof Repair project. As such, we hope this information and calculation will help you to have a clear picture of the whole bid. Rest assured, Orian Construction and Roofing Inc. will provide high quality and professional service for this project. Attached is a copy of Orian Construction and Mallcraft Bid form BF -5. Thank you. Josef Sayas President Bidder's Name! orian Construction and Roofing Inc. (enter on each bid form page) CSI Div No Trade Subeontlactor(Suppiier Name, P40fie, & Man" No " Address Portion of Work (0611ar amdunt) 0500 Structural Steel C A Suchen Corp.(Subcon) (818)767 -5408 License #209850 9231 Glenoaks Blvd, Sun Valley, CA 91352 - $ 516,414.00 Grating Supplier Grating Products Inc. (503) 597 -4190 18129 SW Upper Boones Ferry Road Portland, OR 97224 80,000.00 Roofing /Bldg, Supplier JS Roofing & Building Supplies, Inc. (800) 464 -2461 P.O. Box 5289 Chatsworth, CA 91317 250,000.00 Bolts /Epoxy Supplier Hllb (800) 879 -8000 5400 South 122nd East Avenue, Tulsa OK, 74146 5,000.00 raming/ nchor Supplier Arrow Tools, Fasteners & Saw Inc. (818) 780 -1464 7635 Burnet Ave. Van Nuys, CA 91405 2,000.00 i T Public Works I Bid Form Construction I Rev 01111 BF -5 Public Works I Bid Form Construction I Rev 01111 BF -5 F _r i 15220 Raymer St. i :7' `Roofing - $18782 -4604 , - - Van Nuys, CA 91405 $297,818 ' 329087 �Idder s Name: Mallcraft Inc. - ' (enter on ech tied FOrm page; oldan.Slate framers 610 S. Jefferson St. PI, CSI Trade 14-524 -9500 S koniriddr /SOOpHer. - Addrasg,," Portipn of Riv iihYe,!?hane, &.'r �!Vcck {dollar; No Licensd�ltl, j " s' 1 arnirunt} Public Works I Bid Form Construction I Rev 01111 BF -5 F Eberhard 15220 Raymer St. :7' `Roofing - $18782 -4604 , - - Van Nuys, CA 91405 $297,818 ' 329087 oldan.Slate framers 610 S. Jefferson St. PI, 6 Rough Carpentry 14-524 -9500 Placentia, CA 92870 $96'408 Public Works I Bid Form Construction I Rev 01111 BF -5 Attachment 3 ary or Santa nlonicn° January 4, 2013 City of Santa Monica Department of Public Works Office of the City Engineer 1437 4th St., Suite 300 Santa Monica, CA 90401 Josef Sayas, President Orian Construction & Roofing Inc. 23123 Ventura Blvd., Suite 209 Woodland Hills, CA 91364 Subject: Award of Arcadia Reservoir Roof Repair Project Dear Mr. Sayas, The City received your enclosed communication dated October 29, 2012 and November 1, 2012. We have reviewed this information and the three bids received on the project and plan to recommend award of the project to Mallcraft as the best bidder at the January 22, 2013 City Council meeting. Regarding Paragraph 3, Item 1 of your November 1, 2012 letter, City staff considersthe absence of an electronic bid as a minor exclusion. The purpose of the City's request for a CD is to move towards electronic submittals; however, because a hard copy of the bid was received and the CD was not necessaryto reviewthe bid, its absence is considered a minor irregularity. Perthe posted Instructions to Bidders, the City has the "right to waive any minor irregularity or informality in any bid.,, Regarding Paragraph 3, Item 2 of your November 1, 2012 letter, when self- performing an item of work, no sub - contractor listing is necessary on the Bid Form. Mallcraft is self - performing this item of work, and therefore there is no sub - contractor to list on Mallcraft's bid form for this bid item. The suppliers listed by Orion Construction and Roofing Inc. (Orion) do not count as part of the work that is being performed by others; therefore, Orion does meet the 50% self - performance bid requirement. This item was placed on the January 8, 2013 City Council agenda, but this item will be continued to the January 22, 2013 City Council agenda as we had intended to provide you with more notice prior to the meeting date. 1 -4 -13 Letter to Orian Construction & Roofing Company Page 2 of 2 Thank you for your interest in this matter. Please contact me at (310) 458 -8730 if you have any questions. Best regards, .,5 ;Z Lee Swain, P.E. City Engineer Enclosures: 1. Email from Orian Construction and Roofing dated 10 -29 -12 2. Letter from Orian Construction and Roofing dated 11 -1 -12 c: Martin Pastucha, Director of Public Works Mark Cuneo, Principal Engineer Jessica Arden, Project Manager Office - Orian Construction and Roofing From: Office - Orian Construction and Roofing <office @oriancr.com> Sent: Monday, October 29, 2012 5:08 PM To: 'Jessica Arden' Subject: Ground for Potential Protests for Arcadia Reservoir Roof Repair Bid Importance: High Dear Ms. Arden, First of all, I would like to thank you for the pleasant phone conversation we had last week regarding the Arcadia Reservoir Roof Repair project and requested me to email you the nature of my potential protest. As per bid document Section 3 regarding the submission of Electronic bid, the common practice of public bid is most subcontractors /suppliers will submit their quotation at the last minute simply because it will enable bid shopping by the prime bidder in favor of a subcontractor /supplier. However, as per bid document, Section 3 (Electronic Bid) It clearly states that the "BID SUBMITTAL MUST INCLUDE ONE (1) ORIGINAL AND ONE (1) ELECTRONIC BID ON CO. EACH BID MUST BE IN A SEALED ENVELOPE AND SHOULD CLEARLY IDENTIFY THE PROJECT NAME ". In short, we can prove that if we had the freedom to change prices and change subcontractors we would be able to do so. When we submitted our price, Orian Construction and Roofing Inc. had no choice and no other alternative to change the bid per last minute quotation, while California Averland and Mallcraft submitted their bid without the Electronic bid so therefore, they had the advantage of inserting their quote up to the last minute of bid submission. We would be more than happy to provide documentation of the price change from our supplier if requested. The point is, if we did not have the electronic bid (as required) we would be able to change our price per last minute quotation. Our price would be calculated lower than California Averland and Mallcraft. Secondly, Mallcraft failed to submit the electronic bid and failed to list a major subcontractor (Structural Steel) while California Averland Construction failed to submit electronic bid as per Section 3. Also, in the bid breakdown of California Averland Construction for Structural Steel, they only listed $ 92,000 when in fact, the structural and grating exceeds $ 500,000. 1 also suggest to look into California Averland Construction response on Item M, page BF -16 of the bid document where it was asked, "Has any "owner" (including a public agency owner) ever terminated a contract with your firm prior to completion of this project and their response was, "The City of Santa Monica terminated their contract ". The reason for the informal protest is to save time and for you to move forward with the project and with the reasons mentioned above, we request if you can look into It and find Orian Construction the lowest responsive bidder. Upon request, we will submit the document to prove that the total bid of Orian Construction and Roofing Inc. would have been the lowest and most responsive bidder. Lastly, we would like to know the timetable for the award of this job in case we need to file the formal protest. Please feel free to call our office for any clarifications or any questions you may have. Thank you. Sion Shabo Project Manager ORIAN CONSTRUCTION AND ROOFING INC. 23123 Ventura Blvd., Suite 209, woodland I- lilts, CA 91364 Tel No: (8 18) 224 -3350 • Fax No: (818) 223 -9797 - Email: office@oriancr.com License t 792951 November 1, 2012 Ms. Jessica Arden City of Santa Monica Dear Ms. Arden, We are still waiting for your response to our email sent last Monday, Oct. 29 which you acknowledged by calling our office. We requested from you the timetable for announcing the recommendation to award the Arcadia Reservoir Roof Repair project. This date is very crucial to us as it reserves our right to protest and as stated in the specifications, it only allows 7 days from the announcement of award, We are also waiting for your response when you called our office that you are going to disqualify California Averland Construction for the reason of non - performance of more than 50% as per specs and the City of Santa Monica Charter. You also mentioned that you will recommend Mallcraft as the lowest responsive bidder and that you are disqualifying Orian Construction and Roofing Inc. as Orian Construction and Roofing Inc. also is not performing 50% work. We respectfully disagree with your findings for the following reasons: 1. Mallcraft failed to submit their electronic bid 2. Mallcraft failed to list a major subcontractor (Structural Steel and Grating) which is way over $ 600,000. While Mallcraft in his bid breakdown inserted the price for the structural steel for $693,220.00 he still failed to enlist a major subcontractor for that portion of work in the Designation of Subcontractors and Supplier list (Form BF -5) of the bid document . The conclusion of Mallcraft bid just the structural steel is more than 50% of the total bid (for Subcontractor work) 3. Mallcraft's Roofing subcontractor price of $327,600 (Listed Subcontractor) 4. Mallcraft listed Rough Carpentry Subcontractor amounting to $ 148,904.00 As an answer to your statement that Mallcraft will perform more than 50% of the work is totally off track. Mallcraft bid tabulation shows: 1. Structural Steel - $ 693,220 (non - listed subcontractor) 2. Rough Carpentry (Golden State subcontractor) - $ 148,904 3. Roofing (Eberhard subcontractor) - $ 327,600 Total amount for Subcontractor bid is: $ 1,169,724 Grand total of Mallcraft bid is $ 1,375,034 less subcontractor bid of $ 1,169,724 so the total Mallcraft work will bring you only $205,310 which is below 15% when it requires the Prime Contractor to self- perform work more than 50 %. Please note that Mallcraft also failed to list the major steel subcontractor for the amount of $ 693,220. As for Orian Construction and Roofing Inc. we totally disagree with your statement that we are not self - performing more than 50 %. We already proved that Orian Construction and Roofing Inc. is the lowest responsive bidder by submitting the electronic bid and all other bid requirements and that Orian Construction and Roofing Inc. is also self - performing work more than 50% as showed in the total bid of $ 1,446,544 as we are self - performing the Roof work amounting to $ 550,000 under our own license. The only subcontractor involved on this job is the Structural Steel which is listed for the amount of $ 516,414. If you subtract the Structural Steel subcontractor work of $ 516,414 from the grand total bid of $ 1,446,544, it will give you a total of $ 930,130. The total dollar value of Orian Construction for self - performance work is way above 64 %. We strongly feel that Orian Construction submitted the perfect bid and calculation for the Arcadia Roof Repair project. As such, we hope this information and calculation will help you to have a clear picture of the whole bid. Rest assured, Orian Construction and Roofing Inc. will provide high quality and professional service for this project. Attached is a copy of Orian Construction and Mallcraft Bid form BF -5. Thank you. Josef Sayas President Bidder's Name'. Orian Construction and Roofing Inc. (enter on each bid form page) CSI Div No Trade Subcontractor /Supplier Name, Phone, & License No Address Portion of Work (dollar amount) 0500 Structural Steel C A Buchen Corp.(Subcon) (818)767 -5408 License #209850 _ 9231 Glenoaks Blvd. Sun Valley, CA $ 516,414.00 Grating Supplier Grating Products Inc. (503) 597 -4190 18129 SW Upper Boones Ferry Road Portland, OR 97224 80,000.00 Roofing /Bldg, Supplier JB Roofing & Building Supplies, Inc. (800) 464 -2461 P.O. Box 5289 Chatsworth, CA 91317 250,000.00 Bolts /Epoxy Supplier pp _ Hilti� (800) 879 -8000 5400 South 122nd East Avenue, Tulsa O 5,000.00 -raming/ nchor Supplier Arrow Tools, Fasteners & Saw Inc. (818) 780 -1464 7635 Burnet Ave. Van Nuys, CA 91405 2,000.00 Public Works I Bid Form Construction I Rev 01111 BF -5 y' `o i Bidder's Name: Mallcraft, ire. (enter on each bid form page) CSI Div No Trade Subcontractor /Supplier Name, Phone, &. License No ` address Portion of Work (dollar amounf) 7 Roofing Eberhard 818- 782 -4604 329087 15220 Raymer St. Van Nuys, CA 91405 $297,818 6 Rou Ca ent Rough IV rY olden State Framers 14.524 -9500 20899 610 S. Jefferson St. BI, Placentia, CA 92870 $96,408 Public Works I Bid Form Construction I Rev 01111 BF -5 Reference Contract No. 9691 (CCS).