DATE: April 12, 2022
SUBJECT:
Title
STRUCTURAL PILE REPAIRS AT NAVY PIER
A. RESOLUTION REJECTING BID PROTEST FROM ABHE & SVOBODA INC. REGARDING THE AWARD OF CONTRACT NO. 2020-15 TO REYES CONSTRUCTION INC.
B. RESOLUTION APPROVING PLANS AND SPECIFICATIONS AND AWARDING CONTRACT NO. 2020-15 TO REYES CONSTRUCTION INC. IN THE AMOUNT OF $10,081,700 FOR THE STRUCTURAL PILE REPAIRS AT NAVY PIER, SAN DIEGO, CA PROJECT, AS AUTHORIZED BY THE BOARD IN THE FY 2022 ECONOMIC RECOVERY PROGRAM APPROPRIATION.
Body
EXECUTIVE SUMMARY:
Staff recommends that the San Diego Unified Port District (District) Board of Port Commissioners (Board) reject the bid protest from Abhe & Svoboda Inc. regarding the award of Contract No. 2020-15 to Reyes Construction Inc. and approve the plans and specifications and authorize the award of an Economic Recovery Program construction contract to Reyes Construction Inc. in the amount of $10,081,700 for the Structural Pile Repairs at Navy Pier project.
The plans and specifications define the contract work that includes furnishing all labor, materials, equipment, systems, and disposal as necessary to complete pre-construction surveys, full length encasement of 20-inch square concrete piles; relocation and reinstallation of large rocks at locations on underwater slope where it interferes with pile encasement; removal and disposal of pipe debris; concrete repair of beams, pile caps, pile tops, soffit, low caps, and retaining walls; epoxy-injection repair of miscellaneous cracks under deck of the Navy Pier.
The construction contract was advertised starting on January 13, 2022. On March 1, 2022, a total of ten (10) bids were received; however, three (3) bids were deemed non-responsive. Seven (7) out of the ten (10) bids were deemed responsive with bid amounts ranging from $10,081,700 to $19,999,701. The lowest responsive and responsible bid was submitted by Reyes Construction Inc. in the amount of $10,081,700.
The lowest bidder, Abhe & Svoboda Inc., has protested claiming their bid was responsive and was the lowest, and therefore, an award of the contract to Reyes Construction, Inc., or any other bidder, is improper and unlawful under California law. Staff deemed Abhe & Svoboda Inc. non-responsive due to their failure to submit their required Bidder’s Statement of Experience with their original electronic bid as specified in the bidding instructions and specifications.
RECOMMENDATION:
Recommendation
A. Adopt a resolution rejecting bid protest from Abhe & Svoboda Inc. regarding the award of Contract No. 2020-15 to Reyes Construction Inc.
B. Adopt a resolution approving plans and specifications and awarding Contract No. 2020-15 to Reyes Construction Inc. in the amount of $10,081,700 for the construction of the Structural Pile Repairs at Navy Pier project as authorized by the Board in the FY 2022 Economic Recovery Program Appropriation.
Body
FISCAL IMPACT:
This project was originally funded for design in the FY 2021 and FY 2022 Major Maintenance Programs for a total of $262,131.52. The FY 2022 Economic Recovery Program Appropriation subsequently allocated a budget amount of $11,700,000 for construction phase costs.
Approval of this agenda will authorize the expenditure of $10,356,700 for the Structural Pile Repairs at Navy Pier project which includes soft costs for material sampling and testing, special inspections, diving inspections, and other specified quality assurance testing. The recommended total project budget of $10,860,785 will allow a 5% construction contingency pursuant to BPC Policy No. 110 with no fiscal impact to the FY 2022 Economic Recovery Program Appropriation. The recommended project budget items are as shown below:
COMPASS STRATEGIC GOALS:
Award of this construction contract will implement the Economic Recovery Program, approved by the Board to be in alignment with the District’s vision, mission and strategic goals.
This agenda item supports the following Strategic Goal(s):
• A thriving and modern maritime seaport.
• A Port that is a safe place to visit, work and play.
DISCUSSION:
This project is located at Navy Pier, San Diego, CA. Navy Pier is oriented from the east to the west along North Harbor Drive in San Diego Bay and is situated along the Embarcadero Wharf, north of Tuna Harbor and south of Broadway Pier. Formerly known as Pier 11A, Navy Pier was originally constructed in 1928. The original pier deck, a 65 ft wide by 433 ft long ‘L’ shaped pier, was constructed consisting of reinforced concrete slabs, beams, and pile caps. Later in 1941, an expansion of the pier was completed to form its current configuration as it exists today. The 1941 pier expansion doubled its size to approximately 990 feet long and 250 feet wide that is comprised of a mole pier surrounded by a reinforced concrete pile-supported deck structure. Project location map is shown herein as Attachment A.
The Port District has been addressing Navy Pier repair needs through regular inspections to assess operational and maintenance needs, while developing and identifying various repair strategies.
The 1928 era piles have previously been closely inspected in 1991, 1995, and 2004. The resulting inspection summaries reported that concrete piles exhibited sulfate attack below the water line resulting in softening of concrete and loss of reinforcing steel. Sulfate attack is generally considered a severe form of deterioration in structural concrete. A sulfate chemical attack is known to potentially affect the vertical load capacity of structural piles to some degree, primarily since softened concrete leads to loss of support and reduced protection for steel reinforcement. These past inspection reports recommended to encase the 1928 era piles.
In 2006, Navy Pier underwent a major rehabilitation which involved restoration of the mole retaining wall, concrete deck overlay, and underdeck repairs to corrosion-related concrete damage. Due to funding constraints during the 2006 rehabilitation project, concrete pile encasement was not ultimately included in that repair work effort.
In 2015, the Port commissioned a structural inspection of Navy Pier as part of a structural condition assessment to determine current conditions and document recommendations for future repair and maintenance through the Asset Management Program (AMP). The AMP identified Navy Pier as a priority facility and provided recommended maintenance repairs over a five-year planning period based on deterioration levels of the primary structural elements.
The most recent repair project in 2018, Structural Repairs to Navy Pier Project, was the first project in the AMP five-year maintenance plan which was focused on the most severely deteriorated structural elements by performing repairs on concrete piles, underdeck concrete beams, pile cap structures, concrete soffits, and fender system replacement at the west end of Navy Pier. Construction was completed in 2019 under the Major Maintenance Program.
In 2020, an underdeck and diving inspection was performed at Navy Pier to reevaluate the overall structural condition and to assess 1928 era piles for repair. The observations found that moderate to significant concrete surface softness and slope erosion is present in the 1928 era piles. These observations served to confirm the presence of an ongoing chemical attack on structural piles. Therefore, previous recommendations to repair all 1928 era vertical concrete piles was validated. In addition to the diving inspection, an assessment was also performed to identify underdeck structural elements. Consequently, the standing recommendation to include repair of these areas, as well as other identified concrete damage due to the advanced level of deterioration and their priority as structural elements, has been incorporated with this Structural Pile Repairs to Navy Pier Project.
This current project being recommended for award, Structural Pile Repairs to Navy Pier Project, represents the second project of the AMP five-year maintenance plan which addresses the 1928 era piles and remaining deteriorated structural elements. Final design was budgeted and initiated in the FY 2021 Major Maintenance Program.
The proposed contract work will include furnishing all labor, materials, equipment, systems, and disposal as necessary to complete pre-construction surveys; install full length encasements for 257 20-inch square concrete piles; relocation and reinstallation of large rocks at select locations along the underwater slope at affected pile encasements; removal and disposal of pipe debris; concrete repair of beams, pile caps, pile tops, soffit, low caps, and retaining walls; and epoxy-injection repair of miscellaneous under deck cracks. Permit requirements for this project include Coastal Development Permit and Army Corps of Engineers Regional General Permit.
PROCUREMENT:
The Contract Documents, including plans EM-2020-03 and Specifications 2020-15, were issued for a total bid period duration of 47 calendar days starting on January 13, 2022 (excerpts from the final specifications are in Attachment B). Project was advertised for formal competition through the Port of San Diego’s Vendor Portal, PlanetBids®. On March 1, 2022, a total of ten (10) bids were received; however, three (3) bids were deemed non-responsive. Seven (7) out of the ten (10) bids were deemed responsive with bid amounts ranging from $10,081,700 to $19,999,701. The Bid Tabulation in Attachment C contains the responsive bidder’s individual bid line items. The bid amounts are summarized in the table below.
1 Abhe & Svoboda Inc. was deemed non-responsive due to missing Bidder’s Statement of Experience with original electronic bid submission.
2 Global Diving & Salvage, Inc. was deemed non-responsive due to missing signature of the Surety on the Bid Bond.
3 Bellingham Marine Industries was deemed non-responsive due to missing responses to the Questionnaire for Bidder’s Statement of Experience.
Based on review of the bids by representatives of the District’s Procurement Department, the lowest responsive and responsible bid was determined to be submitted by Reyes Construction Inc. at $10,081,700. Review of Bid, herein attached as Attachment D, contains the checklist for bid qualifications and informalities.
Staff recommends that the Board approve the plans and specifications and award Contract No. 2020-15 to Reyes Construction Inc. in the amount of $10,081,700 for the construction of the Structural Pile Repairs at Navy Pier project.
Upon Board authorization, construction is expected to commence in May 2022 and be completed by November 2023.
Protest of Abhe & Svoboda Inc:
The lowest bidder, Abhe & Svoboda Inc., has protested claiming the award of Contract No. 2020-15 to Reyes Construction, Inc., or any other bidder, is improper and unlawful under California law. Abhe & Svoboda Inc. has protested against the award on the following grounds: (1) Abhe & Svoboda Inc.’s bid was the lowest responsive and responsible bidder; (2) Abhe & Svoboda Inc.’s bid materially complied with the bidding instructions and specifications; and (3) the clerical error in the electronic submission was a technicality that afforded Abhe & Svoboda Inc. no competitive advantage over other bidders. A copy of their bid protest letter is included in Attachment E.
Reyes Construction Inc. responded to Abhe & Svoboda Inc.’s protest (Attachment F) stating that Abhe & Svoboda Inc.’s failure to include the Bidder’s Statement of Experience in the original electronic submission was a material failure and was not-waivable since that would give Abhe & Svoboda Inc. an unfair advantage by giving it the option of waiting to see if it was the lowest bid, and then deciding whether to submit the required information or walk away from the bid without forfeiting its bid bond by not submitting the required information.
Abhe & Svoboda Inc. submitted two replies (Attachments G and H).
Abhe & Svoboda Inc. failed to submit their Bidder’s Statement of Experience (no qualifying project information was provided) electronically before the due date as specified in the Bid Proposal Package (Attachment I, Abhe & Svoboda’s electronically submitted Bid proposal package, page 10). Instruction to Bidders, specification Section 4.0, Article 4.1.6 (Attachment B, page 23) and the Bid Proposal Package (Attachment I, pages 1-3) state that all Bidders were required to submit a completed Bid Proposal Package in its entirety electronically prior to the bid. Instead, Abhe & Svoboda submitted their Bidder’s Statement of Experience with their hard copy bid proposal package the day after the original electronic bids were due (Attachment J). Staff deemed Abhe & Svoboda Inc. non-responsive due to their non-compliance in the electronic submission of their Bidder’s Statement of Experience as specified in the bidding instructions and specifications. While the bid documents reserve the right for the District to waive an informality in a bid, staff does not recommend the Board waive such. Staff recommends rejection of the protest by Abhe & Svoboda Inc., and recommends award of the contract to Reyes Construction Inc.
General Counsel’s Comments:
The Office of the General Counsel has reviewed and approved this agenda and proposed resolutions, as presented, as to form and legality. Legal analysis of this matter has been provided to the Board via a confidential, attorney-client privileged, and attorney work product protected memorandum.
Environmental Review:
In accordance with the California Environmental Quality Act (CEQA) statutes and guidelines, on June 7, 2018, the California Coastal Commission (CCC) approved Coastal Development Permit (CDP) 6-18-0282 for the repair of structural concrete components of the underdeck of Navy Pier and on December 17, 2021, approved an immaterial amendment to CDP 6-18-0282 (CDP 6-18-0282-A1) to revise the project description to include additional concrete deficiency repairs. CDP 6-18-0282, as amended, and its accompanying staff report acts as a CEQA substitute document pursuant to CEQA Section 21080.5 and CEQA Guidelines 15252, et seq. The District is a Responsible Agency pursuant to CEQA and is relying on CDP 6-18-0282, as amended, and its accompanying staff report pursuant to CEQA Guidelines Section 15253. The requirements of CEQA Guidelines Section 15253(b) are met because the District approval is for the same project, the CCC was the first agency to grant a discretionary approval, the District had the opportunity to review the property in a manner designed to inform the District of any environmental concerns, a consultation period was established for as long as required for public review of a CEQA exemption and the CCC exercised the powers of a Lead Agency. The District has considered the CCC-approved CDP, as amended, and its accompanying staff report and finds that they are sufficient for the proposed Board action. Therefore, no further CEQA review is required.
This Board item complies with Section 87 of the Port Act, which allows for the establishment, improvement, and conduct of a harbor, and for the construction, reconstruction, repair, maintenance, and operations of wharves, docks, piers, slips, quays, and all other works, buildings, facilities, utilities, structures, and appliances incidental, necessary, or convenient, for the promotion and accommodation of commerce and navigation. The Port Act was established by the California Legislature and is consistent with the Public Trust Doctrine. Consequently, the proposed project is consistent with the Public Trust Doctrine.
The project site is located in an area that has not been incorporated into the Port Master Plan and is therefore not within the District’s CDP jurisdiction. The project site is within the CDP jurisdiction of the CCC. On June 7, 2018, CCC approved CDP 6-18-0282 and on December 17, 2021, approved an immaterial amendment to revise the project description to include additional concrete deficiency repairs including concrete removal, drilling, installation of reinforcement, patching with epoxy or grout, and pile jacketing. No additional action under the California Coastal Act is required at this time.
Diversity, Equity, and Inclusion Program:
A 5% SBE goal was established for this contract opportunity. Of the ten bids received: three are SBEs, and one is an MBE. Eight of the bidders identified subcontractors. Reyes Construction, Inc., is an MBE and included one SBE/MBE for 27% SBE participation and 100% MBE participation.
PREPARED BY:
Noemi Aquino
Capital Project Manager, Engineering-Construction
Attachment(s):
Attachment A: Spec # 2020-15 Project Location Map
Attachment B: Spec # 2020-15 Excerpts from Specifications
Attachment C: Spec # 2020-15 Bid Tabulation
Attachment D: Spec # 2020-15 Review of Bid
Attachment E: Spec # 2020-15 Abhe & Svoboda Inc.’s Bid Protest Letter
Attachment F: Spec # 2020-15 Reyes Constructions Inc.’s Response Letter
Attachment G: Spec # 2020-15 Abhe & Svoboda Inc.’s First Reply Letter
Attachment H: Spec # 2020-15 Abhe & Svoboda Inc.’s Second Reply Letter
Attachment I: Spec # 2020-15 Abhe & Svoboda Inc.’s electronically submitted Bid Proposal Package
Attachment J: Spec # 2020-15 Abhe & Svoboda Inc.’s additional info submitted only in hardcopy after bid opening deadline