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CC - Item 3E - Rosemead Community Recreation Center Expansion and Facade Improvement Project - Award of ContractROSEMEAD CITY COUNCIL STAFF REPORT TO: THE HONORABLE MAYOR AND CITY COUNCIL FROM JEFF ALLRED, CITY MANAGER DATE: JULY 22, 2014 SUBJECT: ROSEMEAD COMMUNITY RECREATION CENTER EXPANSION AND FACADE IMPROVEMENT PROJECT — AWARD OF CONTRACT SUMMARY As a part of the City's Fiscal Year 2013 -14 Capital Improvement Program, the City Council approved the Rosemead Community Recreation Center Expansion and Fagade Improvement Project (Project). The project consists of the construction of a stand -alone 3,367 square foot expansion building adjacent to the existing RCRC building. This new building will include a large multi - purpose room, a prep kitchen, restrooms, and lobby area. Additionally, fagade improvements will be completed on the existing RCRC building to create a uniform and modern look. Miscellaneous site work will be completed, as well as the construction of a new mini plaza that will serve as an outdoor gathering space and to connect the two buildings. This project is being funded entirely through bond proceeds from the former redevelopment agency. This item was originally scheduled for the City Council's consideration on June 24, 2014. However, the City received a late protest appeal letter prior to the meeting and asked that this item be continued in order to allow for additional review by the City. After additional review, the protest appeal has been denied by City staff. Staff Recommendation It is recommended that the City Council: 1. Approve the plans and specifications for the Rosemead Community Recreation Center Expansion and Fagade Improvement Project, and 2. Concur with the findings to waive the minor irregularities contained in the bid from CEM Construction; and 3. Authorize the City Manager to enter into a contract with CEM Construction in the amount of $1,638,500.00, which includes the Base Bid and Alternate Bid Items No. 2 and 3, and authorize a contingency in the amount of $240,000.00 (Approximately 15 %) to cover the cost of any unforeseen construction expenses. ITEM NO. C City Council Meeting July 22, 2014 Pace 2 of 5 DISCUSSION The existing Rosemead Community Recreation Center was built in 1975 and is approximately 17,000 square feet in size. This facility serves as a major community recreation facility that houses senior programs, recreation classes, special functions, and community events. In 2010, the City completed a Parks and Facilities Master Plan to guide future capital improvement programs. Through the process, with significant community input, the Rosemead Community Recreation Center was identified as needing significant upgrading and expansion. Together with the new Civic Center Parking Lot and Downtown Plaza, this area will serve as an inviting space for public events and will expand on services available to the community. To date, a portion of the RCRC improvements have been completed, including the replacement of roof materials and heating /cooling systems and interior renovations. Additional interior updates as well as furnishings are currently underway and will be completed within the next couple of weeks. This project will consist of the construction of a new, stand -alone 3,367 square foot building adjacent to the existing RCRC. This building will provide for much needed space with a multi - purpose room, prep kitchen area, restrooms, and a lobby area. Similar facade treatments will be completed on the existing RCRC building to upgrade the appearance of the aging building and to create a uniform look within the recreation complex. The project, which will be funded entirely with bond proceeds from the former redevelopment agency, has an estimated cost of $1,800,000.00. A Notice Inviting Bids for this project was published in local newspapers on May 22, May 29, and June 5, 2014. At 11:00 a.m. on June 5, 2014, the City Clerk publicly opened and read eight (8) sealed bids with the following result: Rank Bidder Base Bid Alternate Bid Amount Items #2 &3 1 California Averland Construction, Inc. $ 1,444,040.00 $ 20,100.00 2 CEM Construction $ 1,600,000.00 $ 38,500.00 3 Thomco Construction, Inc. $ 2,061,363.50 $ 47,732.38 4 Cal -City Construction, Inc. $ 2,100,000.00 $ 35,000.00 5 Nile Advanced Construction, Inc. $ 2,282,345.00 $ 33,400.00 6 Professional Services Construction, Inc $ 2,390,242.68 $ 84,045.00 7 Woodcliff Corporation $ 2,548,500.00 $ 42,900.00 8 CWS Systems, Inc. $ 3,394,000.00 $ 81,000.00 Staff additionally recommends the award of Alternate Bid Items No. 2 & 3, which include additional items pertaining to the existing RCRC building. Alternate Item No. 2 includes the replacement of existing exterior lights and Alternate Item No. 3 includes the removal of some surface mounted conduit and reinstalling the electrical below the finished City Council Meeting July 22, 2014 Page 3 of 5 surface. Items included in Alternate No.1 (window replacement) are currently under construction and will not be included with this contract. On Friday, June 13, 2014, staff received a letter from California Averland Construction, Inc., the lowest bidder, asking that their bid be withdrawn for reason of clerical error. City staff accepted the withdrawal of bid as the City maintains the right to reject any and all bids. Subsequently, staff recommends award of contract to the second lowest bidder, CEM Construction. Staff has reviewed the bid documents for completeness and investigated the contractor's background and recent projects for competency. CEM Construction is the lowest responsive bidder and is qualified to complete the work as specified for this project. CEM Construction has completed a number of building related projects for the City of Rosemead, including the City Hall Interior Renovations, the renovations to the Garvey Park Gym, and is currently completing interior finishes and the replacement of doors and windows at the existing RCRC facility. Protest and Appeal Letters A bid protest letter was received on June 16, 2014 from Thomco Construction of Anaheim, CA protesting the bids of both California Averland Construction, Inc. and CEM Construction. Staff reviewed the letter and issued a response letter to the contractor rejecting the bid protest. Subsequently, a protest appeal letter was received on June 23, 2014 from Thomco Construction appealing the denial of Thomco's original bid protest. Based on the information contained in this appeal letter, staff requested clarification of several items contained in CEM's bid. Per the Project specifications, "Invitations to Bidders" (Page 26), "the City may investigate the qualifications of any bidder under consideration, require confirmation information furnished by a bidder, and require additional evidence of qualifications to perform the work described in these bid documents ". The protest appeal letter identified the following items in CEM's bid. After reviewing these items, staff has sought additional information and the results of that investigation are summarized below. Experience of CEM Construction CEM Construction ( "CEM "; License No. 951254) is a licensed Class A and B contractor in the State of California. Upon review of CEM's licenses, it was determined that both are active and valid, and that the business entity was formed in 2009. Upon further review, it was determined that the principal of CEM has held contractor's licenses in the State of California for nearly 25 years and has been active in general building construction during this time. Accordingly, it was determined that the discrepancy in CEM's bid regarding the time of licensure is a minor deviation and that the contractors' licenses held by CEM's principal for nearly 25 years satisfies the intent of the original NIB. City Council Meefing July 22, 2014 Subcontractors /Self Performance of Trades As a Class A and B licensed contractor, CEM Construction may self - perform various construction trades, including but not limited to demolition, grading, irrigation, paving, concrete installation, framing, and carpentry. Additionally, in accordance with the Fair Practices Act (Public Contracts Code, Section 4100 - 4114), CEM provided a list of subcontractors for additional trades included in this project. It was determined that each of these subcontractors hold active and valid licenses in the State of California. In reviewing references provided by CEM, we have been informed that CEM has satisfactorily self - performed projects of similar scope and magnitude to the RCRC Project involving multiple trades. Aluminum Panel Materials Installation and Cost Schedules As discussed above, CEM holds both Class A and Class B contractor's licenses, and may self - perform certain items included in the Project. Further, CEM indicated that in its bid, it provided an estimated schedule of values. CEM clarified that if awarded a contract, the schedule of values may change for some trades; however, the total bid price provided will not be adjusted. Additionally, under the Supplemental General Conditions for the Project (see section 10 -1.3) and section 3400 of the Public Contract Code, a qualified contractor may substitute products or materials of the general type and quality of the products desired in the bid documents, upon approval by the Engineer or Architect on the Project. References of CEM Construction The principal of CEM provided additional clarification to the City regarding experience as a licensed contractor. The principal has held contractor's licenses in the State of California for nearly 25 years and has been active in general building construction during this time. Based on this clarification of CEM's experience and bid, it was determined to waive the minor irregularities contained in CEM's bid. These items have been determined to be immaterial and are considered bid irregularities. The clarification of these items does not provide an unfair advantage to CEM over other bidders relative to bid pricing, does not change the total bid price provided by CEM, and does not allow for the addition of subcontractors in accordance with the Fair Practices Act (Public Contracts Code, Section 4100 - 4114). A copy of these findings and the protest appeal denial was mailed and discussed with Thomco Construction on July 8, 2014. Copies of the protest, protest appeal and City responses are included as attachments for your review. FINANCIAL REVIEW This project was included in the Fiscal Year 2013 -14 Capital Improvement Program and is funded entirely through bond proceeds from the former redevelopment agency. The total appropriation necessary to award this contract is $1,878,500.00. City Council Meeting July 22, 2014 Pace 5 of 5 ENVIRONMENTAL REVIEW This project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 (C) of the CEQA Implementing Guidelines. PUBLIC NOTICE PROCESS This item has been noticed through the regular agenda notification process. Submitted By: 1 Chris Marcarello Director of Public Works Attachments: 1. Plans and Specifications (Available in City Clerk's Office) 2. Bid Analysis 3. Project Correspondence with Bidders City of Rosemead RCRC EXPANSION & FACADE IMPROVEMENT PROJECT Project No. 31004 Bid Analysis Contractor: California Averland Construction, Inc. RANK: 1 Bid Summary Item iDescription Unit Qry Unit Price Total 1 General Requirements LS 1 $ 83,000.00 $ 83,000.00 2 Site Work LS 1 $ 243,240.00 $ 243,240.00 3 Concrete Footings /Foundation /Slab LS 1 $ 76,000.00 $ 76,000.00 4 Masonry LS 1 $ 57,000.00 $ 57,000.00 5 Metals LS 1 $ 24,100.00 $ 24,100.00 6 Woods &Plastics __.. 1 �I $ 144,500.00 $ 144,500.00 7 _ Thermal & Moisture Protection _LS ! LS 1 $ 153,100.00 $ 153,100.00 8 Doors & Windows LS 1 $ 58,700.00 $ 58,700.00 9 Finishes LS 1 $ 212,700.00 $ 212,700.00 10 Specialties LS! 1 $ 39,700.00 $ 39,700.00 11 Equipment LS 1 $ 7,000.00 $ 7,000.00 12 Furnishings LS 1 $ 15,000.00_$ 15,000.00 13 Special Construction - NA LS 0 - _ -_ 14 Conveying Systems - NA LS 0 - - 15 Mechanical _ LS 1 $ 118,000.00 $ 118,000.00 16 Electrical LS 1 $ 212,000.00 $ 212,000.00 Total Base Bid $ 1,444,040.00 Alternate Bid Item No. 1 LS 1 $ 36,000.00 $ 36,000.00 Alternate Bid Item No. 2 LS 1 $ 12,100.00 $ 12,100.00 Alternate Bid Item No. 3 LS 1 $ 8,000.00 $ 8,000.00 Total Base Bid and All Alternates $ 1,500,140.00 Contractor: CEM Construction Bid Summary Item Description 1 General Requirements 2 Site Work _ 3 Concrete Footings/Foundation/Slab _ _ 4 Masonry 5 Metals 6 Woods & Plastics 7 Thermal & Moisture Protection 8 Doors & Windows 9 Finishes 10 Specialties 11 Equipment 12 Furnishings 13 Special Construction - NA 14 Conveying Systems - NA 15 Mechanical 16 Electrical Total Base Bid Alternate Bid Item No. 1 Alternate Bid Item No. 2 Alternate Bid Item No. 3 Total Base Bid and All Alternates RANK: 2 LS 1 $ 50,000.00 $ 50,000.00 LS 1 $ 255,000.00 $ 255,000.00 LS 1 $ 50,000.00 $ _50,000.00 LS 1 $ 50,000.00 $ 50,000.00 LS 1 $ 60,000.00 $ 60,000.00 LS 1 $ 100,000.00 $ 100,000.00 ._ LS _ 1 $ 200,000.00 $ 200,000.00 LS 1 $ 125,000.00 $ 125,000.00 LS _ 1 $ 310,000.00 $ 310,000.00 LS 1 $ 110,000.00 $ 110,000.00 LS 1 $ 25,000.00 $ 25,000.00 LS 1 $ 25,000.00 $ 25,000.00 LS 0 LS 0 - LS 1 $ 125,000.00 $ 125,000.00 LS 1 i $ 125,000.00 $ 125,000.00 $ 1,600,000.00 LS 1 $ 20,000.00 $ 20,000.00 LS 1 $ 8,500.00 $ 8,500.00 LS 1 $ 30,000.00 $ 30,000.00 $ 1,658,500.00 Contractor: Thomco Construction, Inc. RANK: 3 Bid Summary 1 General Requirements LS 1 $ 276,652.00 i $ 276,652.00 2 Site Work LS 1 $ 384,474.00 $ 384,474.00 3 Concrete Footings /Foundation /Slab LS 1 $ 73,000.00 $ 73,000.00 4 Masonry LS 1 $ 35,350.00 $ 35,350.00 5 Metals LS 1 $ 14,600.00 $ 14,600.00 6 Woods & Plastics LS 1 $ 158.773 00 $ 158,773.00 7 Thermal & Moisture Protection LS 1 $ 431,270.00 $ 431,270.00 8 Doors & Windows LS 1 $ 95,674.00 $ 95,674.00 9 Finishes LS 1 $ 195,894.00 $ 195,894.00 10 Specialties LS 1 $ 28,156.00 $ 28,156.00 11 Equipment LS 1 $ 4,500.00 $ 4,500.00 12 Furnishings LS 1 $ 13,190.00 $ 13,190.00 13 Special Construction - NA LS 0 - - 14 Conveying Systems - NA LS 0 - - 15 Mechanical LS 1 $ 121,224.00 $ 121,224.00 16 Electrical LS 1 $ 208,486.00 $ 208,486.00 Total Base Bid $ 2,061,363.50 Alternate Bid Item No. 1 LS 1 $ 159,409.87 $ 159,409.87 Alternate Bid Item No. 2 LS 1 $ 23,523.74 $ 23,523.74 Alternate Bid Item No. 3 LS 1 $ 24,208.64 $ 24,208.64 Total Base Bid and All Alternates $ 2,268,505.75 Contractor: Cal -City Construction RANK: 4 Bid Summary Item Description Unit City Unit Price Total 1 General Requirements LS 1 $ 119,500.00 $ 119,500.00 2 Site Work LS 1 $ 310,800.00 $ 310,800.00 3 Concrete Footings /Foundation /Slab LS 1 $ 95,000.00 $ 95,000.00 4 ,Masonry LS 1 $ 28,000.00 $ 28,000.00 5 !Metals LS 1 $ 30,300.00 $ 30,300.00 6 Woods &Plastics LS 1 $ 99,500.00 ' $ 99,500.00 7 Thermal & Moisture Protection LS 1 $ 228,800.00 $ 228,800.00 8 Doors & Windows LS 1 $ 93,800.00 $ 93,800.00 9 Finishes LS 1 $ 223,150.00 $ 223,150.00 10 Specialties LS 1 $ 31,900.00 $ 31,900.00 11 Equipment LS 1 $ 5,000.00 $ 5,000.00 12 Furnishings LS 1 $ 23,500.00 $ 23,500.00 13 Special Construction - NA LS 0 - - 14 Conveying Systems - NA LS 0 - - 15 Mechanical LS 1 $ 183,000.00 $ 183,000.00 16 Electrical LS 1 $ 333,400.00 $ 333,400.00 Total Base Bid $ 2,100,000.00 Alternate Bid Item No. 1 LS 1 $ 115,000.00 $ 115,000.00 _ Alternate Bid Item No. 2 LS 1 $ 20,000.00 $ 20,000.00 Alternate Bid Item No 3 LS 1 $ 15,000.00 $ 15,000.00 Total Base Bid and All Alternates $ 2,250,000.00 Contractor: Nile Advanced Construciton Bid Summary 1 General Requirements 2 Site Work 3 Concrete Footings /Foundation /Slab 4 Masonry 5 Metals 6 Woods & Plastics 7 Thermal & Moisture Protection 8 Doors & Windows 9 Finishes 10 Specialties 11 Equipment 12 Furnishings 13 Special Construction - NA 14 Conveying Systems - NA 15 Mechanical 16 Electrical Total Base Bid RANK: 5 Unit Qty Unit Price Total LS 1 $ 545,145.00 $ 545,145.00 LS 1 $ 463,400.00 $ 463,400.00 LS 1 $ 40,000.00 $ 40,000.00 LS 1 $ 40,000.00 $ 40,000.00 LS 1 $ 16,500.00 $ 16,500.00 LS 1 $ 63,000.00 $ 63,000.00 LS _ 1 $ 382,600.00 $ 382,600.001 LS 1 ''.. $ 98,000.00 $ 98,000.00 LS 1 $ 200,000.00 $ 200,000.00 LS 1 I $ 39,000.00 $ 39,000.00 LS 1 $ 9,000.00 $ 9000.00 LS 1 $ 18,700.00 $ 18,700.00 LS 0 _ LS 0 - - LS 1 $ 175,000.00 $ 175,000.00 LS 1 $ 192,000.00 $ 192,000.00 $ 2,282,345.00 Alternate Bid Item No. 1 LS 1 $ 74,000.00 $ 74,000.00 Alternate Bid Item No. 2 LS 1 $ 21,400.00 $ 21,400.00 Alternate Bid Item No. 3 LS 1 $ 12,000.00 $ 12,000.00 Total Base Bid and All Alternates $ 2,389,745.00 Contractor: Professional Services Construction, Inc. RANK: 6 Bid Summary em Description Unit Qty Unit Price Total 1 General Requirements LS 1 $ 149,589.40 $ 149,589.40 2 Site Work LS 1 $ 514,878.00 $ 514,878.00 3 Concrete Footings /Foundation /Slab LS 1 $ 75,611.00 $ 75,611.00 4 Masonry LS 1 $ 59,890.00 $ 59,890.00 5 Metals LS 1 $ 21,809.00 $ 21,809.00 6 Woods & Plastics LS 1 $ 195,208.00 $ 195,208.00 7 Thermal & Moisture Protection LS 1 $ 469,873.00 $ 469,873.00 8 Doors & Windows LS 1 $ 214,372.00 $ 214,372.00 9 Finishes LS 1 $ 242,343.00 $ 242,343.00 10 Specialties LS 1 $ 16,021.00 $ 16,021.00 11 Equipment LS, 1 $ 2,260.00 $ 2,260.00 12 Furnishings _ LS', 1 $ 11,402.00 $ 11,402.00 13 Special Construction - NA LS 0 - - 14 Conveying Systems - NA LS 0 - - 15 Mechanical LS 1 $ 186,290.00 $ 186,290.00 16 Electrical LS 1 $ 223,005.00 $ 223,005.00 Total Base Bid Alternate Bid Item No. 1 Alternate Bid Item No. 2 Alternate Bid Item No.3 Total Base Bid and All Alternates LS LS LS $ 2,390,242.68 1 1 $ 140,000.00 $ 140,000.00 1 $ 49,615.00 $ 49,615.00 1 $ 34,430.00 $ 34,430.00 - - -$ 2,614,287.68 Contractor: Woodcliff Corporation Bid Summary RANK: 7 Item Description Unit Qty I Unit Price Total 1 General Requirements LS 1 $ 270,000.00 $ 270,000.00 2 Site Work LS 1 $ 541,000.00 $ 541,000.00 3 Concrete Footings /Foundation /Slab LS 1 $ 85,000.00 $ 85,000.00 4 Masonry LS 1 $ 60,000.00 $ 60,000.00 5 Metals LS 1 $ 25,500.00 $ 25,500.00 6 Woods & Plastics LS 1 $ 199,000.00 $ 199,000.00 7 Thermal & Moisture Protection LS 1 $ 410,500.00 $ 410,500.00 8 Doors & Windows LS 1 $ 123,000.00 $ 123,000.00 9 Finishes LS 1 $ 181,000.00 $ 181,000.00 10 Specialties LS 1 $ 25,000.00 $ 25,000.00 11 Equipment LS 1 $ 10,000.00 $ 10,000.00 12 Furnishings LS 1 $ 20,000.00 $ 20,000.00 13 Special Construction - NA LS 0 - - 14 Conveying Systems - NA LS 0 - - 15 Mechanical LS 1 $ 150,000.00 $ 150,000.00 16 Electrical LS 1 $ 460,000.00 $ 460,000.00 Total Base Bid Alternate Bid Item No 1 Alternate Bid Item No-.-2 _ Alternate Bid Item No 3 Total Base Bid and All Alternates $ 2,548,500.00 1 $ 85,000.00 LS 1 $ 15,900 00 $ 15,90000 LS 1 $ 27,00000 $ 27,000.00 Contractor: CWS Systems, Inc. Bid Summary RANK: 8 Item Description Unit Qty Unit Price Total 1 General Requirements LS 1 $ 400,000.00_$_ 400,000.00 - _ 2 2 _ -_ Site Work LS 1 $ 382,000.00 0 $ 382,000.00 3 _ Concrete Footings /Foundation /Slab LS 1 $ 114,000.00 $ 114,000.00 4 iMasonry LS _ 1 $ 32,000.00 $ 32,000.00 5 Metals LS 1 $ 244,000.00 $ 244,000.00 6 Woods & Plastics LS 1 $ 143,000.00 $ 143,000.00 7 Thermal & Moisture Protection LS 1 $ 506,000.00 $ 506,000.00 8 Doors &Windows ITS 1 $ 212,000.00 $ 212,000.00 9 Finishes LS 1 ! $ 308,000.00 $ 308,000.00 10 Specialties ITS 1 $ 101,000.00 $ 101,000.00 11 Equipment LS 1 $ 18,000.00 $ 18,000.00 12 _ Furnishings LS 1 $ 50,000.00 $ 50,000.00 13 Special Construction - NA LS 0 - - 14 Conveying Systems - NA LS 0 - - 15 Mechanical ITS 1 $ 170,000.00 $ 170,000.00 16 Electrical LS 1 $ 200,000.00 $ 200,000.00 Total Base Bid $ 3,394,000.00 Alternate Bid Item No 1 LS 1 $ 110,000.00 $ _110,000.00 _ Alternate Bid Item No. 2 LS 1 $ 45,000.00 $ 45,000.00 Alternate Bid Item No. 3 LS 1 $ 36,000.00 $ 36,000.00 Total Base Bid and All Alternates $ 3,585,000.00 I {VOR 4„ OR PRO 1, OI A, II AIFVI6EH] J• July 7, 2014 Glenn Thompson Thomco Construction 1279 N. Patt Street Anaheim, CA 92801 City of Rgsemead Shy %L 1A[I I1 W) I IIV'W:I" IAt al Al A) (ALIrOI:Nla i 11 "1 3 in n e0. °Inr Re: Rosemead Community Recreation Center Expansion Facade Improvements Project Bid Protest Appeal - DENIAL Dear Mr. Thompson, As the Director of Public Works for the City of Rosemead, I write in response to your appeal of the rejection of your Bid Protest Letter, dated June 23, 2014. In that letter, you protested the low bid of CEM Construction for the Rosemead Community Recreation Center Expansion and Facade Improvements Project (Project). We appreciate your comments and further inquiry into this bid. As you are aware, this bid award was previously scheduled for the Rosemead City Council's agenda on June 24, 2014. However, in light of your protest appeal, this item was continued by the City Council to allow for additional review by the City. After additional review, we offer the following in response to your appeal: Experience of CEM Construction CEM Construction ( "CEM "; License No. 951254) is a licensed Class A and B Contractor in the State of California. Upon review of CEM's licenses, it has been determined that both are active and valid. Further, the principal of CEM has provided additional clarification to the City regarding experience as a licensed contractor. The principal has held contractor's licenses in the State of California for nearly 25 years and has been active in general building construction during this time. Accordingly, we find that the discrepancy in the time of licensure is a minor deviation and that the contractors' licenses held by CEM's principal for nearly 25 years satisfies the intent of the original NIB. Subcontractors /Self Performance of Trades As a Class A and B licensed contractor, CEM Construction may self - perform various construction trades, including but not limited to demolition, grading, irrigation, paving, concrete installation, framing, and carpentry. Additionally, in accordance with the Fair Practices Act (Public Contracts Code, Section 4100- 4114), CEM has provided a list of subcontractors for additional trades included in this Project. City staff has found that each of these subcontractors hold active and valid licenses in the State of California. In reviewing references provided by CEM, we have been informed that CEM has satisfactorily self - performed projects of similar scope and magnitude to the City's Project involving multiple trades. • Aluminum Panel Materials Installation and Cost Schedules As discussed above, GEM holds both Class A and Class B contractor's licenses, and may self - perform under the proposed contract. Further, GEM has indicated that in its bid, it provided an estimated schedule of values. GEM has clarified that if awarded a contract, the schedule of values may change for some trades; however, the total bid price provided will not be adjusted. Additionally, under the Supplemental General Conditions for the Project (see section 10 -1.3) and section 3400 of the Public Contract Code, a qualified contractor may substitute products or materials of the general type and quality of the products desired in the bid documents, upon approval by Engineer or Architect on the Project. • References of GEM Construction The principal of GEM has provided additional clarification to the City regarding experienced as a licensed contractor. The principal has held contractor's licenses in the State of California for nearly 25 years and has been active in general building construction during this time. Based on the foregoing, the City hereby denies your appeal. Staff will recommend that the City Council award a construction contract to GEM Construction at the City Council meeting scheduled for July 22, 2014. Staff will recommend that the Council again continue the item from its July 8, 2014 meeting to the Council meeting of July 22, 2014. If you wish to present staff with further information or authority prior to the July 22ntl meeting, we welcome you to do so. Any further written comments must be provided to the Director of Public Works no later than the close of business on July 14, 2014, in order to give staff sufficient time to incorporate any necessary information into the staff report for the City Council meeting. Again, we appreciate your participation in this bid process. Should you have any additional questions, please feel free to contact me at (626) 569 -2118. Sincerely, VK kc�,r� Chris Marcarello Director of Public Works C: Jeff Allred, City Manager Rafael Fajardo, Civil Engineer Rachel Richman, City Attorney CEM Construction Uic. # 951234 8207 BROOKGREEN RD. DOWNEY, CALIFORNIA 90240 562/706 -3586 5621714-2886 June, 28 2014 Rafael M. Fajardo City of Rosemead 883 Valley View Rosemead, CA 91770 Dear Mr. Fajardo This is to clarify the letter from the City requesting additional information regarding experience, self - performance and references. CEM Construction changed name from "CUM Construction" to "CEM Construction" when the partnership between Emigdio Carrillo, Elise Margarita Michel and Alfredo Lopez Lopez ended, and a new partnership was established. CUM Construction Corporation was established in December 29, 1989 and Its name was changed to CEM Construction when it became a sole - proprietorship in December 22, 2009. In August 16, 2010 CEM Construction became a corporation. Jesus Eduardo Carrillo, Emigdio Carrillo Jr, Elie Margarita Cartillo and Elise Margarita Michel became new partners. This name change of corporation does not delete the 25 years of experience in the construction field from CEM Construction. CEM Construction is experienced in various construction trades and its subcontractors have years of experience in their trades. For instance, Roofing Grande Sierra a C39 license has more than 15 years of experience in roof installation and aluminum slate installation. CEM Construction has the expertise to construct any kind of materials indicated in the construction plans and specifications. CEM Construction has assured its clients an unmatched value and superior quality in its projects. We are honored and extremely proud that our clients have found our Los Angeles remodeling and construction work to be beyond their expectations. The following is a list of reference for your use • LA MASCOTA BAKERY 2715 Whittier Blvd. Los Angeles, California 90023 / Owner: Victor Salcedo (213) 422 -7319 Cost: $800,000.00 RINCONCITO DEL MAR RESTAURANT 2908 E. 1st St. Los Angeles, California 90033 / Owner: Juan Ramirez (323) 269 8723 Cost: $ 700,000.00 SOTOS PRODUCTS MARKET 4900 E. Rosecrans Ave. Compton, California 90221 / Owner: Juan Soto (562) 889 -9126 Cost: $910,000.00 • SALCEDO APARTMENTS 816 S Record Ave. Los Angeles, Califomia 90023 / Owner: Victor Salcedo (213) 422 -7319 Cost: $1, 400,000.00 It is typical from estimator to rush to the last moment to submit bids. Sometimes some of the estimated bid item prices do not seem reasonable for other estimators. However, the bid item prices are not forced to be around specific unit prices. The Contractor has the right to accommodate schedule of values prices according to his /her estimate. Nevertheless, the total Bid Price value will stay the same. If you have any further questions, please do not hesitate to contact us and we will be glad to assist you. Sincerely, /� Cr/ Emigdio Carr to CEM Construction June 23, 2014 Rosemead City Hall Public Works Department, Engineering Division 8838 E. Valley Blvd. Rosemead, CA 91770 Attn: Mr Rafael Fajardo, Associate Civil Engineer Mr Sean Sullivan, Management Analyst Mr Chns Marcarello, Director of Public Works Mr. Jeff Allred, City Manager Re: Bid Protest Rejection Appeal NIB No.: 2014 -08 Project: Rosemead Community Recreation Center Expansion and Facade Improvement With all due respect, please consider this letter Thomco Construction's response to the City's rejection of Thomco's bid protest letter dated June 16, 2014. Thomco is aware that the City of Rosemead plans to move forward with award of this project to GEM Construction, therefore, all previous complaints concerning Cal Avedand Construction's bid may be disregarded. We disagree with the City's rejection of Thomco's protest previously submitted. We have conducted an extensive and thorough review of GEM Construction's bid documents and discovered multiple issues which all give rise to the same conclusion, OEM's bid is both unresponsive and non - responsible to the plans, specifications and procedures established by statute, regulation and the bid documents. Although GEM Construction possesses a general building contractor's license and is allowed to self - perform any work that is not specifically listed for a particular subcontractor, there are sections in the project specifications that require the installer to have at least five (5) years of experience as a qualified installer of the product in order to do so. Two of these sections are: Section 08411 Storefront, 16720 Intrusion Detection and Security Access, GEM Construction has been in business since August 2010, (less than 5 years in business as a licensed contractor) which would render them with insufficient experience to perform both of this trades according to the City of Rosemead's Project Specifications, Similar to 5 years of experience as an installer, Section 07420 Aluminum Metal Plate Wall Panels, states that the "installer must be a company specializing in performing work of this section and approved by the manufacturer" GEM Construction is NOT a company that specializes in Aluminum Metal Plate Wall Panels of this nature and is therefore NOT qualified to self - perform this scope of work. In regard to the Aluminum panels, Thomco Construction's initial protest brought to the city's attention the large disparity between estimates Thomco had received and what GEM claims to be their cost. The city did not respond to this cost difference in their letter dated June 17, 2014. This cost difference between these two estimates is over $300,000.00 and should not be overlooked. The bid documents for this project included detailed cost breakdowns that the bidding contractors completed, It is the City's duty to utilize this data to perform an accuracy check of all submitted bids and Thomco feels that the City has been negligent in its evaluation of said bid schedules. This is not the only trade cost where there are large disparities between GEM Construction's bid and those of the other bidders, this is merely the most egregious. Many other sections of the specifications require that labor be performed by an adequate number of "skilled laborers who are thoroughly trained and experienced in the necessary crafts." Although GEM has the necessary license to self - perform many of these trades, it is impractical to expect that CEM will do so. Trounce Construction has been an established General Contractor since 1996, and has both the experience, staffing, and subcontractors needed to successfully complete a project of this magnitude. Thomco has provided the required references as part of the bid documents that indicate we are qualified. CEM has only listed two (2) references of the (3) required in the bid forms. These are both small project references, only one of which has been successfully completed as of this date. CEM has not provided adequate bidder references as required in the bid forms to indicate that they are capable of executing a project of this type /size and in particular while performing the majority of the work themselves. The Invitation to Bid, ITB -7, Item 23, Experience and Technical Requirements require that this data be complete and accurate, CEM has not done this. In addition to all of the other reasons cited, this is one more reason to reject CEM's bid and render it Non - Responsive. Thomco Construction urges the city to continue with their review of bids and their deliberation of bid results to ensure that they are compliant with the Fair Practices Act (California Public Contract Code 4100, at seq ) and amendments thereof. The facts will conclude that CEM Construction is both Non - Responsive and Non - Responsible in regard to their bid, experience, and abilities. If CEM Construction is deemed lowest responsive bidder and awarded the project, then Thomco Construction considers that they have been given an unfair advantage by the Rosemead Public Works Department by not following and upholding the laws and practices in place to protect bidders against this very scenario. This is against both the current bid documents for this project and more importantly the Fair Practices Act (California Public Contract Code 4100, at seq,) and amendments thereof. Nothing in this letter, nor any action or communication to date, should be construed to waive any rights or defenses, or claim for damages, that Thomco Construction, Inc. may have relating to this bid matter. All such claims, rights and defenses are reserved. We thank you in advance for reviewing this appeal and look forward to speaking with you in more detail on this matter. Thank you, Glenn Thompson Vice President POLLYIAW Y tfA'.`CR Il:O TGd: W111MtAt1RCON iuNC:L vame�lls: A.uru Ax6ffJ+rA MAUrwxrNNt il[rEY LY June 17,2014 Glenn Thompson Thomco Construction 1279 N. Patt Street Anaheim, CA 92801 Dear Mr. Thompson, City of Rosemead 8838 E. VA1.I.EY D UUVAnD P.D BOX 399 ItQSEMEAD. CALIFORNIA 91770 U EMONE(626)569 -21W FAX(626)30J 218 The City has received your Bid Protest Letter, dated June 16, 2014, protesting the low bids of both California Averland Construction, Inc. and CEM Construction for the Rosemead Community Recreation Center Expansion and Fagade Improvements Project. City staff received and reviewed eight bids on June 11 for the project. City staff has reviewed your bid protest letter and is rejecting it as It is without merit. Both contractors in question possess general building contractors licenses and are authorized, as such, to be awarded prime contracts for building projects. California Averland Construction, Inc, License No. 810681, Class B, and CEM Construction, License No. 951254, Class A & B, are both active and valid. Furthermore, California Averland Construction, Inc. and CEM Construction have specified subcontractors for several of the pertinent trades and are both qualified to self - perform any work that is not specifically listed for a particular subcontractor. - Please contact the Engineering Division at (626) 569 -2150 if you have any additional questions or concerns. Regards, Rafael Fajardo Associate Civil Engineer June 16, 2014 RECEIVE[' Rosemead City Hall CT OF RCSFME AD Public Works Departrnem, Engineering Division )UN ] s 2014 8930 E. Valley Blvd. Rosemead, CA 91770 Cm CLERK s oFFiCF BY Atb1.: Gloria Molleda, City Clerk - -- Re: Bid Protest NIB No.: 2014-08 Project: Rosemead Community Recreation Center Expansion and Facade Improvement Please consider this IeBer Ttgmco Concoction's for al bid protest to the two (2) low bids submited by Cal Avedand Construction, Inc. and CEM Construction on June 11, 2014, Thom Construction realizes that the City of Rosemead's Public Works Department is presently reviewing the bids submitted for this project and will likely make the following discoveries during their review. This protest is submitted in a timely manner as required by Filing of Bid Protests, Item No. 21. Per the Subletting and Subcontracting Fair Practices Act of the Public Contract Code of tte State of California, it states, '...each Bidder shall set forth: (a) the name and location of to place of business and (b) portion of the Work which will be done by each listed Subcontractor of each Subcontractor who will perbrrn work or labor or render services to the Contractor in or about the construction of the Work in an amount in excess of one -half of one percent (112%) of the Contractors Total Bid Price', One -half of one percent (0.5 %) of Cal Avedard's bid proposal would be only $7,220.20. One-half of one percent (0.5 %) of CEWs bid proposal would be only $8,000. So per the Pudic Cormacting Code of California, any trades work that is to be performed with a cost in excess of the above stated costs should be listed on the Bid Proposal Form and submitted at the line of bid. Thomco Construction has reviewed the Designation of Subcontractors Form submitted by Cal Averiand and CEM Construction, and has discovered multiple violations. Cal Avedand has Wiled to list multiple subocetnacLlns required to complete this project. These subcontractors not Iislad are: Demeition, Grading, Surveying, Acoustical Ceiling, Site Utilities, Wood Framing, Metal Stud and Drywall, bborslFrameslHantwae, Insulation, Exterior Plaster, A*Gra1h8 Coating, Res000m Accessories, Marker Board Wall Panels, and Aluminum Wall Panels. Thomco Construction obtained subcontractor proposals for these items and all of Base toss are much greater than one-half of one percent (0.5 %) of Cal Avedand's bid amount. We realize certain items can be self performed, but several limns cannot be Domed witllod the required specialty licenses. CEM Construction has failed to list many subcontractors required to complete this project. Those subcontractors not listed are: Dernoltion. Clear 8 Grub, Grading, Surveying, Concrete (Sib, building, and CMU), Site Utilities, Wood Framing, DoaslFrarreslNadwae, Insulation, Exterior Plaster, An8-Graffiti Coaling, Flooring, Resboom Accessories, Maker Board Wag Panels, Millwork, Aluminum Wall Panels, Store Front 8 Glazing, Plumbing, Landscape, and EWc*A. Tho moo Construction obtained subcontractor proposals for tese items and all of those costs are much greater than one -half of one percent (0.5 %) of CEM Construction bid amount We maize certain items can be sell perforated, but several items cannot be pedomied WOW ft requtred specialty licenses. Included below is a list of pricing, for a cost reference in rela8onship to the % of 1% Stale requirement. These estimates are from Cal Averland and CEM Construction's own bid documents, and by their own admission should equal more than 112%, therefore requiring subcontractors for Clese trades to be disclosed by law. CAL AVERLAND CONSTRUCTION, INC.: CEM CONSTRUCTION. • DemdiUat. • Demdieon: s $46,000 (32%) 0 $25,000 (16 %) • Concrete: • Site Clearing. z. $76,000 (5.3 %) 0 $25,000 (1.6 %) • Grading: • Grading: 0 $12,000 (1 %) o $25,000 (1,6 %) • See UAli6es: • Site Utilities: 0 $27,000 (1.9%) o $25,000 (1.6 %) • Wood Frwning: • Conoete. O $90,000 (6.2 %) 0 $50,000 (3.1 %) • Insulation • Wood Frartdng: 0 $10,000 (0.7 56) 0 $15,000(0.94 %) • Plaster • Doors I Frames I Hardware: 3 $25,000 (1.7 %) 0 $35,000 (2.2 %) • Acoustical Ceiling: • Insulation: 0 $27,000 (1.994) 0 $25,000 (1.6 %) • Anti -Graffiti Coaling: • Plaster: 0 $9.000 (0.6 %) 0 $25,000 (1.6 %) • Gypsum Board / Drywall. • Anti-Graf b Coating. 0 $26,00D (1.8 %) 0 $10,000 (0.6 %) • Aluminum Wall Panels: • Flooring: 0 $75,000 (5.2%) 0 $100,000 (6.3 %) • Doors I Frames I Hardware. • Restroom Accessories: 0 $24,000 (1.7 %) 0 $25.000 (1.6 %) • Marker Boards: 0 $10,000(0.6 %) • Millwork. 0 $25,000 (1.6 %) • Aluminum Wall Panels. o $25000(1.6 %) • Store Front: 0 $25,000 (1,6 %) • Plumbing: $50,000 (3.1 %) • Landscape: , $30,000 (1.9 %) • Electrical: c 4125,000 (7.8 %) 2 In addition to both of tiese subcontractors failure to fully list all of the required subcontractors, CEM Construction's references of past projects do not appear connplets. We would like to bring b your attention specifically the aluminum wall panel scope of work. Thornco received multiple numbers for this item, ranging from $329.000 to over $500,000 to supply and instal the required aluminum wall panels as listed on the drawings. While we understand pricing varies from contractor to contractor, the discrepancy in pricing listed by Cal Avedand and CEM Construction is far too great to be overlooked. The numbers t him two contractors listed for the Hem are so obviously inadequate, that we believe for this reason alone both of their bids should be deemed non-responsive. These are just a few e:arrples of the level of non - responsiveness discovered by Thomw Consfixulon, Inc. at first glance. We are certain that the Rosemead Public Works Department will also discover the same bid violations. If either Cal Averland Construction or CEM Construction is deemed lowest responsive bidder and awarded this project, then Tlontco Construction considers tat they have been given an unfair advantage by the Rosemead Public Works Department by not 1'dlor" and upholding the laws and practices in place to poled bidders against this very scenario. H general contractors are not required to fist subcontractors then everyone can job shop' projects abler they have been awarded, and the subcontractors have no pmlaction aganst for practices being wirki ced. This is against but dre current bid documents for this project and more impxtanify the Fair Practices Ad (Califon is Public Contract Code 4100, at seq.) and amendments thereof. We thank you in advance for reviewing this Bid Protest and look forward to spiraling with you in more detail on the matter. Thank you, Glenn Thompson Vice President: RECORD OF CONTRACTOR TRANSMITTAL TO: Rosemead City Hall 8838 E. Valley Blvd Rosemead, CA 91770 Date: 6 /16/2014 ATTN: Public Works Department, Engineering Division Project: Rosemead Community Recreation Center Expansion and Fagcde Improvements PRIORITY: ❑ URGENT ® NORMAL ❑ RESPONSE REQUIRED FOR: ❑ INFORMATION ONLY SENT BY: ® HAND DELIVER ❑ AS REQUESTED ❑ U.S. MAIL ❑ REFERENCE ❑ FAX ® YOUR FILES ❑ OVERNIGHT No. COPIES DATED DESCRIRION__ 1 1 6/16/14 Bid Protest Lefler 2 3 SIGNED: 9" 'K.— Holly Haney. Office Manager RECEIVED'.__ COPIES TO: ❑ A/E of Record or Designer ❑ Thomco Project Superintendent ® Thomco File: Red File RFr'vJ MDFao ,TTV o ,UN 16 Zp14 Cliv'LERKS OFFICE ® Owner / Construction Manager: ❑ Subcontractor.