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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