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Agenda Item
ASR
Control 12-000088 |
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MEETING DATE: |
02/28/12 |
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legal entity taking action: |
Board of Supervisors |
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board of supervisors
district(s): |
1 |
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SUBMITTING
Agency/Department: |
OC Public Works
(Approved) |
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Department contact
person(s): |
Phillip Cook (714) 667-4909 |
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Randy Vannoy (714) 667-4923 |
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Subject:
Award Replacement of Feed Water
Pumps Project
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ceo Concur |
County
Counsel Review |
Clerk of the Board |
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Concur |
No Legal Objection |
Discussion |
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3 Votes Board Majority |
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Budgeted: Yes |
Current Year Cost:
$1,268,900 |
Annual Cost:
N/A |
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Staffing Impact: No |
# of Positions:
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Sole Source:
No |
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Current Fiscal Year Revenue: N/A |
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Funding Source: General
Fund 036: 100% |
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Prior Board Action: 11/22/11
#26; 3/15/11 #18 |
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RECOMMENDED ACTION(S):
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1. |
Find that the proposed project is Categorically Exempt (Class 2) from the provisions of CEQA pursuant to Section 15302 of the CEQA Guidelines. |
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2. |
Release the bid submitted by Halcyon Electric, Inc. |
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3. |
Award contract to West Coast Air Conditioning Co., Inc. in the amount of $1,268,900 for the Central Utility Facility (CUF) - Replace Feed Water Pumps Project. |
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4. |
Authorize the Chairman of the Board to execute the contract when the required bonds and certificates of insurance have been submitted and approved by County Executive Office Risk Management and County Counsel. |
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5. |
Authorize return of bid guarantees to all bidders upon execution of contract. |
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6. |
Direct the Auditor-Controller to encumber $1,268,900 from account 100-036-036-PA11-4200 for the contract with West Coast Air Conditioning Co., Inc. in Fiscal Year 2011-12. |
SUMMARY:
Award of contract to West Coast Air Conditioning Co., Inc. for the Central Utility Facility (CUF) - Replace Feed Water Pumps Project 100-036-036-PA11-4200 in the amount of $1,268,900 will reduce the risk of service disruption for County, city, state and federal buildings in the Civic Center serviced by the CUF and avoid further costly repairs to current outdated equipment.
BACKGROUND INFORMATION:
On March 15, 2011, your Board approved plans and specifications, made CEQA findings, and set the bid opening date for the replacement and upgrade of two electric and two steam-driven feed water pumps and associated systems at the Central Utility Facility (CUF). Boiler feed water pumps are critical for the successful operation of the CUF.
The four feed water pumps circulate water to cool and recover heat from the Cogen natural gas turbines. This superheated water is used to produce steam for the heating and cooling of Civic Center facilities. The existing feed water pumps are over 43 years old and depending on weather conditions, 3-4 pumps are generally required to be online to meet daily service demands, which includes several facilities operating on a 24 hour basis. Recently, the CUF has experienced multiple pump failures, limiting the CUF to two operational pumps. If multiple failures occur during extreme weather conditions, the CUF will most likely be unable to maintain required heating, ventilation, and air-conditioning requirements.
The following summarizes the four (4) bids received on April 6, 2011, and the Engineer's Estimates:
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Engineer's Estimate |
$ 655,934 |
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Halcyon
Electric, Inc. |
$ 815,000 |
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West Coast Air Conditioning Co., Inc. |
$ 1,268,900 |
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Cedars Engineering Construction, Inc. |
$ 1,380,000 |
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Dahl, Taylor & Associates Constructor, Inc. |
$ 1,575,048 |
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Final Engineer's Estimate updated September 2011 |
$ 1,564,273 |
Bids were opened on April 6, 2011, and Halcyon Electric, Inc. was the apparent low bidder with a bid of $815,000. On April 7, 2011, Halcyon officially withdrew their bid claiming a clerical error. The next lowest bid was submitted by West Coast Air Conditioning Co., Inc. in the amount of $1,268,900. The Project was designed by TMAD Taylor and Gaines (TTG), which provided an original Engineer's Estimate of $655,934, which was included in the Notice Inviting Bids.
Based on the difference between the submitted bids and TTG’s Engineer’s Estimate, a review was conducted. On April 25, 2011, TTG provided the following explanation quoted below (italics):
The estimate of price submitted by TMAD
Taylor and Gaines certainly was below the market price. Few factors contributed
to such low estimate as follows:
Additional cost due to phasing of the job and
costs of the electrical facilities added
so that the existing emergency generator could provide enough power for the new
electric pumps were not included. These cost items would add about $150,000 to
the estimate prior to adding overhead and profit.
No allowance for tax on
material was incorporated. This was about 8.75% addition to the material and
equipment costs. The material cost did not include the rise due to inflation
happened from early 2010 to the 1st quarter of 2011. This was found
to be equivalent to about 12% on average.
Incorporating
the above factors into the previous cost estimate and including 15% profit and
overhead, the project cost estimate would amount to $ 1,076,126.
Funding for this Project in FY 2010-11 had only been appropriated in the amount of $741,000 based on the original Engineer's Estimate. As part of the FY 2011-12 1st Quarterly Budget Adjustment Report (QBAR), your Board approved allocating additional funding from other less critical projects to support the recommended contract award for this Project. As material costs have increased since the time bids were submitted, TTG further revised their Engineer's Estimate to $1,564,273 in September 2011.
West Coast Air Conditioning Co., Inc. (WCA) submitted a letter dated January 3, 2011, indicating their willingness to honor their bid of $1,268,900 until April 1, 2012. WCA has successfully constructed the County's Cogeneration projects at the CUF and at John Wayne Airport. Their Contractor's License No. #262349 was verified as current and active through the Contractors State License Board database on January 18, 2012. A copy of the verification is on file. The Contractor is qualified to perform this project based on research of the references submitted by the Contractor and is committed to successfully completing the Project.
Compliance with CEQA: CEQA and other legal requirements were complied with at the time bidding was authorized on March 15, 2011. The subject project was determined to be Categorically Exempt (Class 2) from the provisions of CEQA pursuant to Section 15302 of the CEQA Guidelines. The project is exempt because it involves the replacement or reconstruction of existing facility involving negligible or no expansion of capacity per Section 15302 (c) of the CEQA Guidelines.
FINANCIAL IMPACT:
N/A
STAFFING IMPACT:
N/A
EXHIBIT(S):
Exhibit A - Bid Recap Sheet
Exhibit B - Bid Withdraw Halcyon
Exhibit C - Bid Extension West Coast Air