TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager
SUBJECT: Central Maintenance Facility Boiler Replacement, Construction Contract Award
ACTION ITEM
RECOMMENDED ACTION(S):
Title
Consider approving the award of a firm-fixed price construction contract to Bay City Engineering Company, Inc., in the amount of $654,245 for the replacement of the heating system boilers at the Central Maintenance Facility.
Body
BUDGETARY/FISCAL IMPACT:
The District received four bids in response to this Invitation for Bid. All four bids were well below the independent cost estimate prepared by STV, Inc. as part of the design package. Two of the bids were determined to be non-responsive because they failed to meet the minimum Small Business Enterprise goal established by AC Transit’s Contract Compliance group for this project. The contract will be funded by $654,245 in District Capital from the existing Capital Improvement Program.
BACKGROUND/RATIONALE:
This contract is to replace CMF boilers that provide heat for the maintenance areas within CMF. The project will replace the existing gas water boilers installed in 1984. These boilers failed emissions testing required under Bay Area Air Quality Management District (BAAQMD) regulations (Regulation 9-7), and a notice of violation was issued by the BAAQMD.
The District retained Architectural & Engineering (A&E) consultant, STV, Inc. to assess the existing boilers to determine if they could be modified to meet current emissions standards, or if they needed to be replaced. The assessment determined the boilers are at the end of their life expectancy and cannot be modified to meet current air quality standards. Accordingly, the assessment stated that replacement is necessary and provided several replacement alternatives. Staff has evaluated the replacement options and selected the best option for the District.
This contract will result in a firm-fixed price contract with an approximate six-month period of performance. Upon evaluation, Bay City Engineering Company, Inc. was determined to be the lowest priced responsive and responsible bidder.
The District's Contracts Compliance Officer has determined a 15% small and/or disadvantaged business goal.
Table 1. Procurement Timeline
|
ACTION |
DATE |
|
Solicitation Issued |
10/25/2018 |
|
Pre-Bid meeting and job walk |
11/5/2018, and 11/19/2018 |
|
Bid Due date |
12/7/2018 |
|
Evaluations Complete |
12/18/2018 |
Table 2. Vendor Metric
|
METRIC |
VALUE |
|
Number of SBE / DBE firms solicited |
634 |
|
Number of respondent firms |
4 |
|
Number of firms determined to be Responsive and Responsible |
2 |
Table 3. Bid Results (responsive and responsible)
|
FIRMAMOUNT |
|
|
Bay City Engineering Co., Inc. |
$654,245 |
|
Mesa Energy Services, Inc. |
$798,504 |
ADVANTAGES/DISADVANTAGES:
The installation of the boilers will address regulatory compliance issues, which resulted in a notice of violation from the Bay Area Air Quality Management District. There are no disadvantages in implementing this boiler replacement project.
ALTERNATIVES ANALYSIS:
Staff issued an on-call tasking to an A&E firm to evaluate the possibility of repairing the existing units to meet emissions compliance standards. The A&E analysis determined that repair of the existing units would not bring the units into regulatory compliance and, therefore, was not a feasible option.
PRIOR RELEVANT BOARD ACTION/POLICIES:
Staff Report 18-018, February 14, 2018 Solicitation for Central Maintenance Boiler Replacement
ATTACHMENTS:
None
Approved by:
Ramakrishna Pochiraju, Executive Director of Planning & Engineering
Reviewed by:
Denise C. Standridge, General Counsel
Claudia L. Allen, Chief Financial Officer
Chris Andrichak, Director of Management and Budget
Joe Callaway, Director of Capital Projects
Gene Clark, Director of Procurement and Materials
Richard Wrzesinski, Facilities Maintenance Manager
Dan Ruslen, Senior Project Manager
Phillip Halley, Contracts Compliance Administrator
Prepared by:
Stephen P. Stanley, Project Manager