RRA - Item 4 - Acceptance of BIDS and Award of Contract - Highcliff Street Improvements l l
R �� ROSEMEAD REDEVELOPMENT AGENCY
8838 VALLEY BLVD.,ROSEMEAD,CA 91770•(818)288-6671•Telecooier 8183079218
L l
TO: FRANK G. TRIPEPI, EXECUTIVE DIRECTOR
FROM: KEN RUKAVINA, CITY ENGINEER 0
DATE: MARCH 17, 1998
RE: ACCEPTANCE OF BIDS AND AWARD OF CONTRACT - HIGHCLIFF
STREET IMPROVEMENTS
The following bids were received for the subject project on February 26, 1998:
1. Civil Constructors
2. E. C. Construction $459,162.50
3. Gentry Brothers Inc. $463,906.27
4. Sequel Contractors, Inc. $475,488.50
5. Los Angeles Engineering, Inc. $476,288.00
6. Damon Const. Co. $482,633.50
7. Pima Corp. $495,218.00
8. Sully-Miller Contracting Co. $523,707.00
9. Silvia Construction, Inc. $527,864.25
10. J.E.G. Construction Co., Inc. $539,676.60
$617,282.00
Attached are copies of the three low bids, a bid analysis, and Dun and Bradstreet reports
for the second and third low bids. A Dun and Bradstreet report was not available for Civil
Constructors due to the short time period this contractor has been in business. The
average bid was $511,340.46.
The low bid submitted by Civil Constructors, in the amount of $459,162.50, should be
rejected for two reasons.
The last paragraph of the Bidder's Information (Page C-6 in attached bid) requires the
listing of all current and prior D.B.A.'s alias, and/or fictitious business names for any
AGENCY AGENDA
MAR 2 41998
ITEM No. 171
March 17, 1998
Page 2
principal having an interest in the bid. Civil Constructors listed "Construction Engineers"
as such a former name. Public records indicate that Donald Brockman, Vice President of
Civil Constructors was the President of"General Construction Engineers, Inc."at the same
9209 Lower Azusa Road in the City of Rosemead. General Construction Engineers, Inc.
has outstanding County and IRS tax liens.
Secondly, Civil Constructors did not list any subcontractors with his bid. Per Public
Contract Code §4106 "if a prime contractor fails to specify a subcontractor...the prime
contractor agrees that he or she is fully qualified to perform that portion himself or herself,
and that the prime contractor shall perform that portion himself or herself."
Public Contract Code §4109 provides that "Subletting or subcontracting of any portion of
the work in excess of one-half of 1 percent of the prime contractor's total bid as to which
no subcontractor was designated in the original bid shall only be permitted in cases of
public emergency or necessity, and then only after a finding reduced to writing as a public
record of the awarding authority setting forth the facts constituting the emergency or
necessity."
Since this project is composed of a variety of work, including street reconstruction,
placement of concrete, masonry walls, water lines, street lights, and storm drain work, the
failure to list subcontractors displays a total lack of the understanding of the public works
contracting process. Staff questioned the contractor regarding this issue and was told by
him that he would submitting a list of subcontractors prior to contract award. Staff
subsequently received a letter from him stating that he would be performing 100 percent
of the work, which is contrary to what he verbally stated. Given the fact that Civil
Constructors has only performed two projects to date, it is staffs opinion that this
contractor does not have all the skills to perform the work himself. Therefore, Civil
Constructors' failure to list subcontractors violates the Public Contract Code.
Upon rejection of the bid submitted by Civil Constructors, the contract can be awarded to
the second low bidder, E. C. Construction, a responsible contractor, in the amount of
$463,906.27 which is 4 percent above the Engineer's estimate of$445,000.00.
There were irregularities in the bids submitted by E.C. Construction, Co., Los Angeles
Engineering, Inc., and Pima Corp. Incorrect total bids were submitted due to addition and
extension errors. The correct bid amounts are listed on previous page.
March 17, 1998
Page 3
RECOMMENDATION
1. Reject the bid submitted by Civil Constructors.
2. Waive the irregularities in the bids submitted by E.C. Construction, Co., Los Angeles
Engineering, Inc., and Pima Corp.
3. Accept the bids and award the project to E.C. Construction, Co., in the amount of
$463,906.27.
4. Authorize the Chairman to sign the contract on behalf of the Agency.
Attachments
C\1998 RSM D\STA FFRPTIRRA\H IG FIC LILIE.A W D