SUBJECT: REPORT ON BIDS AND AWARD OF CONTRACT FOR THE SAN JOSE/SANTA CLARA WATER POLLUTION CONTROL PLANT, FY 2002/2003 CAPITAL IMPROVEMENT PROGRAM, TRANSMISSION PUMP STATION, VARIABLE FREQUENCY DRIVE COOLING PROJECT
Report on bids and award of contract for the “San José/Santa Clara Water Pollution Control Plant: Transmission Pump Station Variable Frequency Drive Cooling Project,” to the lowest responsive bidder, ICOM Mechanical Inc., in the amount of $314,033; and approval of a contingency in the amount of $31,403 for a total amount not to exceed of $345,436.
BACKGROUND
The Transmission Pump Station is the facility that houses all of the automated pumping infrastructure related to the South Bay Water Recycling Program. Once wastewater has been sufficiently treated to be redistributed as recycled water, the pumps and associated machinery in this facility provide the supply for the regional distribution system.
During the past five summers, the variable frequency drive units (VFD) have experienced failures when internal operating temperatures have exceeded 110 degrees Fahrenheit. Operating under these high temperatures has caused the failure of electronic components within the VFD which in turn causes them to trip offline. In an effort to prevent this, several portable cooling units have been employed during warm weather periods with limited success.
ANALYSIS
In order to provide a long-term and effective solution to this problem, a permanent cooling system needs to be added to this facility. This proposal employs a design-build concept wherein the contractor will provide the design drawings, specifications, construction management, and the related installation of the new cooling system. The project contingency will provide funds for any additional and unforeseen services that arise during construction. The project is estimated to begin in June of 2003, with completion projected in December of 2003.
A two-step process was used to obtain bids from qualified contractors. First step was an invitation to pre-qualify for bidding on this project, prepared by staff, advertised by the City Clerk’s Office, and distributed to interested firms on November 25, 2002. Five firms expressed interest in the project, and on December 20, 2002, three firms submitted pre-qualification packages for the project. The firms are listed below.
· Environmental Systems, Inc.
· ICOM Mechanical, Inc
· Therma, Inc.
The pre-qualification submittals were reviewed and evaluated by staff from the Environmental Services Department. The criteria used to evaluate the consultants included: firm experience, staff experience in design, project management, construction management, financial integrity, and ability to deliver the required services according to the project’s schedule. All three firms were determined to be qualified to submit bid packages. Second step was on March 4, 2003 bid packages were distributed to all three pre-qualified firms.
Bids were opened on March 20, 2003 with the following results:
Contractor City Bid Amount
Environmental Systems, Inc. Santa Clara $332,900
ICOM Mechanical, Inc. San Jose $314,033
Therma,
Inc. San
Jose No bid
submitted
Engineer’s Estimate: This is a design-build project. As a result, no separate design engineer’s estimate is available. The Department’s electrical engineer has evaluated the two bids, which were within 6% of one another, and found them to be within staff’s anticipated project cost. ICOM Mechanical provided the low bid, and as described by their design approach, satisfies project requirements. The bid documents were evaluated and found to be in order.
Notice inviting firms to pre-qualify was published by the City Clerk’s Office in both the San José Mercury News and the San José Post. In addition, the RFQ was posted on the ESD Internet website and General Service’s BidLine.
COORDINATION
The project has been coordinated with the Offices of the City Manager, City Attorney, Equality Assurance, and Risk Management; and was scheduled to be heard at the May 8, 2003, Treatment Plant Advisory Committee (TPAC) meeting.
COST IMPLICATIONS
1. AMOUNT OF RECOMMENDATION: $345,436
2. COST OF PROJECT:
Design $19,386
Construction $294,647
Project Contingency $31,403
TOTAL $345,436
3. SOURCE OF FUNDING: 512 – San Jose-Santa Clara Treatment Plant Capital Fund
Existing funds are available for this project. No additional appropriation action is required.
In accordance with the Mayor’s prescribed budget strategy, this proposal meets the expressed principles by focusing on the protection of a vital core service, emphasizing expenditures
that reduce costs, and accelerating an improvement project that provides positive externalities.
The Plant represents an asset of approximately one billion dollars. Improvements, such as this project, are a necessary expenditure to protect such a vital asset. Moreover, the implied capital improvement project would stimulate additional economic activity along with the associated benefits.
BUDGET REFERENCE
Budget Document: 2002-2003 Adopted Capital Budget, Page 908, amended on October 15, 2002, Ordinance Number 26755
The City of San José Nondiscrimination Requirements are included in this project as required in Chapter 4.08 of the San Jose Municipal Code.
Exempt, PP02-11-346
CARL W. MOSHER
Director, Environmental Services Department