Staff Report - 328 Ductile Iron Pipe Rehabilitation Phase III - 2022-03-28Agenda Item Details
Public Content
Meeting Mar 28, 2022 - Board of Directors Regular Meeting
Category H. ENGINEER'S REPORTS
Subject 2. Consider Rejecting the Nu Line Technologies, LLC Bid as Non-Responsive and
Awarding a Contract to Nor-Cal Pipeline Services for the Project 328 Ductile Iron
Pipe (DIP) Rehabilitation Phase III Project
Access Public
Type Action, Discussion
Preferred Date Mar 28, 2022
Absolute Date Apr 25, 2022
Fiscal Impact No
Dollar Amount 543,273.00
Budgeted Yes
Budget Source Project 328 DIP Rehab
Recommended
Action
1. Reject the Nu Line Technologies, LLC bid as non-responsive.
2. Award a contract to the lowest responsive and responsible bidder, Nor-Cal
Pipeline Services in the amount of $543,273.
3. Approve a 10% contingency in the amount of $54,327.
Goals 1.6 Sewer Infrastructure - Rehabilitate and/or replace infrastructure before
reaching the end of its life cycle
1.11 Sewer Infrastructure - Closed Circuit Televise (CCTV) pipeline
1.10 Sewer Infrastructure - Monitor inflow after significant weather events
1.0 Sewer Infrastructure
To: Board of Directors
From: Mark Esquer, District Engineer
Date: March 28, 2022
Subject: Consider Rejecting the Nu Line Technologies, LLC Bid as Non-Responsive and Awarding a Contract
to Nor-Cal Pipeline Services for the Project 328 Ductile Iron Pipe (DIP) Rehabilitation Phase III Project
Summary
The project work generally consists of rejuvenating the inside of existing ductile iron sewer pipe (DIP) and lining it with
a cured-in-place pipe (CIPP). Contractors were required to bid on installing CIPP at several ductile iron pipe (DIP)
locations throughout the District service area. The project work is being conducted because the DIP has become
corroded and must be rejuvenated prior to failure.
Bids, received from three contractors, were opened on March 3, 2022, and ranged from $543,273 to $681,900. The Bid
Register showing bidder details is attached to this report. The Engineer's estimate for this project is $416,250 and was
based on unit prices from the DIP Phase II project bids. The DIP Phase III contains significantly more work, however
shorter liners sections. The bids also reflect a higher unit cost for the shorter repair length for each pipe.
The middle bidder, Nu Line Technologies, LLC, (Nu Line) submitted two (2) Schedule of Work Item Summary pages
(Form 7 of 13). The first Schedule of Summary page was in the correct page 7 position and was read aloud during the
Bid Opening. That Nu Line bid was read aloud as $674,667. After all bids were read, all bidders left. After the bidders
had left, the District started to review the bid packages and noticed an irregularity with the Nu Line bid and they had
included a second Schedule of Work Item summary page between page 1 and page 2 of the 13 page form. That
summary page listed a price of $520,817. Later in the day, Nu Line contacted the District to advise that we read the
incorrect Summary page. After consideration, District staff recommend rejecting the Nu Line bid due to irregularities
and rejecting their bid. The District has the right to reject the Nu Line bid as non-responsive.
Recommendation
That the Board of Directors:
1. Reject the Nu Line Technologies, LLC bid as non-responsive.
2. Award a contract to the lowest responsive and responsible bidder, Nor-Cal Pipeline Services in the amount of
$543,273.
3. Approve a 10% contingency in the amount of $54,327.
Analysis
Engineers used the practice of installing ductile iron pipe (DIP) to protect shallow sewers, waterline crossings, and flood
channel crossings because of the inherent strength in the pipe walls. However, air in the line reacts with the dissolved
sulfur compounds in wastewater causing the formation of sulfuric acid. The acid accumulates on
the iron to cause corrosion, degrading the inside walls of ductile iron pipe. Over time, defects in the plastic wrapping
allows naturally corrosive soils to also damage the pipe exterior.
This project consists of industrial cleaning of ductile iron pipe within our gravity sewer system and installing a cured-in-
place pipe liner. Sixty-three (63) locations will be rehabilitated within this phase of the project. In addition, when this
project is completed.
Legal Review
District Counsel has reviewed the bid documents, reviewed any bidding discrepancies or irregularities, and
has reviewed and approved the contract to form. District Counsel recommends the Board should reject the Insituform
Technologies, Inc. low bid as non-responsive.
Environmental Review
Rehabilitating existing sewer pipeline is categorically exempt under the California Environmental Quality Act (CEQA)
(Public Resources Code Section 21000 et. seq.) under Section 15302 as a “Class 2” project as stated under 15302(c)
“Replacement or reconstruction of existing utility systems and/or facilities involving negligible or no
expansion of capacity“.
Financial Review
The District staff has a budget adjustment to transfer $32,000 form the Project 326 19th Street Force Main
Replacement budget to this project to use for this and possibly a forth project phase. The available budget with
encumbrance after the budget adjustment is $651,009. The total construction cost for this project phase is $543,273,
plus an additional 20% for construction engineering, inspection, administration and a contingency. There is adequate
funding for this project.
Public Notice Process
Administrative Content
Executive Content
Motion & Voting
Copies of this report are on file and will be included with the complete agenda packet for the March 28, 2022 Board of
Directors meeting at District Headquarters and posted on the District's website at www.cmsdca.gov
Alternative Actions
1. Reject all bids and direct staff to solicit bids again.
2. Refer the matter back to staff for additional information.
Nor-Cal Signed Contract Bonds.pdf (2,662 KB)
Bid Results - 2022-03-03 - Project 328 DIP Rehab Phase III.pdf (58 KB)
To reject the Nu Line Technologies, LLC bid as non-responsive.
Motion by Art Perry, second by Brett Eckles.
Final Resolution: Motion Carries
Aye: Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer, Brett Eckles
To award a contract to the lowest responsive and responsible bidder, Nor-Cal Pipeline Services in the
amount of $543,273, and approve a 10% contingency in the amount of $54,327.
Motion by Art Perry, second by Brett Eckles.
Final Resolution: Motion Carries
Aye: Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer, Brett Eckles