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HomeMy WebLinkAbout06 - Award Contract No. 3449- Sunset Ridge Park - SupplementalReceived After Agenda Printed CITY OF NEWPORT BEACH City Council Staff Report Agenda Item No. 6 December 10, 2013 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Public Works Department David A. Webb, Public Works Director 949 - 644 -3311, dawebb(a)newportbeachca.gov PREPARED BY: Andy Tran, P.E., Senior Civil Engineer 949 - 644 -3315, atran(a)newportbeachca.gov APPROVED: TITLE: Sunset Ridge Park - Award of Contract No. 3449 Supplemental Report On December 4, 2013, Horizons Construction Company International, Inc. (Horizons), the second low bidder, submitted the attached formal bid protest to the City with regard to the Sunset Ridge Park project. According to the protest letter from Horizons, the low bid submitted by Environmental Construction, Inc., (ECI) should be considered non- responsive due to irregularities in their bid. Horizons letter claims the bid submitted by ECI was missing the word "thousands" in the written bid amount; included two different signatures for the same name of the president; and failed to list subcontractors for material areas of work. Staff from the Public Works Department and City Attorney's Office reviewed the bid protest and do not agree with the claims submitted by Horizons. The missing word in the written bid amount is a minor irregularity and can be waived as such. The signatures on the bid submitted by ECI have been verified as legitimate. Staff contacted ECI and confirmed they intend to self - perform any work which is not being performed by one of the listed subcontractors. Staff also contacted the references provided by ECI for technical ability and experience and verified they have successfully completed projects of similar size and scope with other public agencies. For the reasons given above, staff recommends accepting the bid submitted by ECI as the lowest responsive and responsible bid and awarding the contract to ECI. Submitted Public Works Director Attachment: A. Letter of protest dated December 4, 2013 12/04/2013 16:31 FAX CONSTRUCTION CO., INTL. General Contracting and Engineering December 04, 2013 Attn: Mr. Andy Tran, P.E. Senior Civil Engineer City of Newport Beach 100 Civic Center Drive Newport Beach, CA 92660 Re: Sunset Ridge Park bid 1173 N. Patt St. Anaheim Ca 92801 TEL (714) 626 -0000 FAX (714) 626 -0006 License k 825022 IM0001 /0002 Horizons Construction Company International, Inc ( "Horizon ") is submitting this letter in connection with its bid to the City of Newport Beach on the Sunset Ridge Park, Contract Number 3449 ( "the Project "). Please consider this letter to serve as a formal protest of the award of the contract to any bidder other than Horizons. It is my understanding that the preliminary bid results show that the bidder Environmental Construction, Inc., ( "ECI ") submitted a purported bid for $5,215,476. Horizons requests a copy ofECPs bid, and all documents submitted by ECI in connection with the bidding procedure (including its subcontractor listing information). Under the California Public Records Act, bidders have the right to examine the bidding documents of the successful bidder. Gibbs & Hunt, California Construction Law § 2.02(G)(1). Horizons is now exercising that right because Horizons suspects that there are irregularities in the bid of ECI. Horizons acknowledges that it was given an opportunity to view SCI's bid, but not make copies. Based on Horizons' limited and preliminary review, Horizons believes ECI's bid is non - responsive due to the following apparent reasons. Horizons reserves the right to supplement this protest with more facts upon receiving and reviewing the requested information: ECI wrote two different prices in its bid proposal. ECI wrote "Five Million, Two hundred fifteen and four hundred seventy six dollars" ECI also wrote "$5,215,476.00." Missing from the written out bid price was the word `thousands." This materially changes the bid amount. This is precisely the type of irregularity that may not be waived under the Public Contract Code. A public entity may waive an irregularity in a bid only if the irregularity is inconsequential. Ghilotti Construction Co. v. City of Richmond (1996) 45 Ca1.App.4th 397, 900. Inconsequential means the irregularity cannot affect the 12/04/2010 10:32 FAX amount of the bid and cannot allow a bidder to walk away from the bid without waiving its bid bond. Valley Crest v. City Council (1996) 41 Ca1.AppAth 1432, 1442. See also MCM Const., Inc. v. City & County of San Francisco (1998) 66 Cal. App. 4`h 359, 373 (city was without power to waive irregularity where contractor failed to list dollar amounts of subcontractors). Gf. 0002 /0002 There are irregularities in the signatures. The bid and /or subcontractor listing appears to have two different signatures for the same name for the president. It appears to Horizons that the president did not sign both. The failure to sign a bid properly is also an irregularity that may not be waived. Menefee v. County of Fresno, 163 Cal. App. 3d 1175 (1985). The bid failed to list subcontractors for several material areas of work including roofing, landscaping, site utilities, site concrete, fire alarm, and fire sprinklers. Each of these areas will exceed '/2 of I% of the work, and subcontractors should have been listed pursuant to Public Contract Code sections 4104 -4107. ECI is not legally permitted under either the specifications or California license laws to perform all of these areas. This letter is a formal protest against any award of the contract to a bidder other than Horizons. Horizons reserves the right to supplement this protest with additional facts after it receives the requested information. Horizons also requests notice pursuant to Government Code section 54954.1 of all meetings related to the award. Horizons ask to be faxed all staff reports or recommendations concerning this project as soon as they are available to the public. If this letter is insufficient to accomplish any of these purposes, please let us know immediately what else is required so we can comply. Please also consider this a request for all communications between ECI and the City in connection with any prior bids for the Project. If you need any further information, dont hesitate to contact me. Sincerely, — a-�� Hatem Ibrahim, President Horizons Construction Company. Cc: Armenak Kavcioglu, Attorney at Law.