COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Department of Public Works

DATE:

August 2, 2006

BOARD MEETING DATE:

August 15, 2006

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

TO:

Honorable Board of Supervisors

FROM:

Neil R. Cullen, Director of Public Works

SUBJECT:

Resurfacing of the Runway and Taxiways, Installation of Stopways and Various Other Improvements at the San Carlos Airport - (AIP Projects No. 3-06-0210-08 and No. 3-06-0210-09).

Recommendation

Adopt a resolution:

1)

Relieving O.C. Jones and Sons Inc., the low bidder, from their obligation to enter into a contract for the above referenced project; and

2)

Awarding and authorizing execution of a contract for the above referenced project to the second low bidder, Interstate Grading and Paving Inc.

Vision Alignment

Commitment: Ensure basic health and safety for all.

Goal(s): Maintain and enhance the public safety of all residents and visitors.

The proposed project will improve the condition of the Airport’s runway and taxiway surfaces and provide safety and security enhancements for the benefit of Airport users.

Background

Previous Board Action

Adopted Resolutions No. 66285 and No. 66944 accepting Airport Improvement Grant 3-06-0210-08 and 3-06-0210-09 from the Federal Aviation Administration (FAA) to help fund the construction of runway and taxiway improvements and the installation of safety equipment at the Airport.

Adopted Resolution No. 66945 authorizing the President of the Board to accept matching grant funds from the California Department of Transportation Division of Aeronautics (DOT) equal to five percent (5%) of the aforesaid FAA grants.

Adopted Resolution No. 68042 on June 6, 2006, adopting plans and specifications, determining prevailing wage scales, and calling for sealed proposals for the above referenced project.

History

Bids for this project were accepted on July 11, 2006, and subsequently referred to this office for checking and recommendation. The bids have been checked and the following is a summary of the bids received:

Base Bid

Base Bid plus Alternate Bids
(Total Bid)

O. C. Jones and Sons, Inc (O.C. Jones)

$2,444,370

$2,649,495

Interstate Grading and Paving, Inc

$2,551,006

$2,722,606

C.F. Archibald Paving

$2,673,686

$2,852,186

Granite Rock Company

$2,821,105

$3,000,530

O Grady Paving, Inc

$3,568,159

$3,741,559

The bid documents require the submittal of a base bid and a total bid, which includes two separate bid alternates for security fencing and Precision Approach Path Indicators (PAPI). This configuration enables contract elements that may exceed available funding to be eliminated from the project. However, the contract documents provided that the total bid is to be used as the basis for determining the low bidder.

O.C. Jones’ bid ($2,649,495) was the lowest total bid received. However, the Public Contract Code provides that a contractor must list his subcontractors on the bid, and if no subcontractors are listed, then the contractor must perform all of the work in excess of 1/2 of 1 percent of the contract with their own forces.

Discussion

O.C. Jones failed to list subcontractors on the Subcontractor Summary Sheet in the proposal, and subsequently sent us a letter requesting that they be allowed to use subcontractors that they had intended to use, and if not, that they be relieved of their bid as provided by Section 5100 et seq of the Public Contract Code.

We reviewed O.C. Jones’ request with County Counsel, and County Counsel determined that the Public Contract Code does not allow a contractor to list subcontractors after bids are open. We also concluded that O.C. Jones not listing their subcontractors was an error and agree that they should be relieved of their bid.

The second lowest bidder, as mentioned above, was from:

Interstate Grading and Paving Inc.

128 South Maple Avenue

South San Francisco, CA 94080

at $2,722,606 ($2,551,006 base bid)

Interstate Grading and Paving Inc.’s (Interstate) base bid is 20% higher than the Engineer’s Estimate of $2,133,375. Their bids as well as the bids of the other bidders reflect the increase in the price of asphalt concrete ($65.00 per ton in the Engineer’s Estimate as opposed to $73.50 per ton bid by Interstate). We are recommending that a contract be awarded as we received 6 bids for the work and do not believe, based on the size of the contract, that significantly lower bids will be received if the project is re-advertised.

Interstate has assured compliance with the County’s Contractor Employee Jury Service Ordinance, as well as all other contract provisions that are required by County ordinance and administrative memoranda, including but not limited to insurance, hold harmless, non-discrimination and equal benefits.

A resolution has been approved as to form by County Counsel and the FAA has agreed that we can award the project.

Fiscal Impact

The total estimated cost of the project, excluding the bid alternates and including a contingency of approximately eight percent (8%) (approximately $200,000), is $2,750,000. The contingency is used to pay the contractor for any additional material placed for the various bid items, as the quantities paid for are based on field measured quantities actually used/installed in conjunction with the project.

The project will initially be financed from the Airport Enterprise Fund, as the Federal and State grants are received on a reimbursable basis. The Airport Enterprise Fund has sufficient funds available to handle the cash flow requirements of the project while monthly grant payments are being requested of the FAA and State. The final cost distribution will be estimated as shown once the grants are received:

Amount

% of Project

FAA Grant 3-06-0210-08 &
FAA Grant 3-06-0210-09

$2,557,500

(93%)

State 5% Matching Grant

$ 137,500

(5%)

Airport Enterprise Fund

$ 55,000

(2%)

Total

$2,750,000

(100%)

Construction of the security fencing improvements and PAPI’s will be included in another upcoming project that we are submitting for FAA grant funding.

There is no impact to the General Fund.