Accept bid of $4,935,000 from Tapani Inc for the West Lents Floodplain Restoration Project (Procurement Report – RFP 00002381)
TO THE COUNCIL:
Ordinance Number 191782 passed by Council on June 20, 2024, authorized Procurement Services to use an alternative contracting method of Best Value to select a contractor for the West Lents Floodplain Restoration Project. The Chief Procurement Officer advertised Request for Proposals (RFP) Number 00002381 on August 7, 2024, for the West Lents Floodplain Restoration Project with an estimate of $6,816,902. The Bureau of Environmental Services (BES) rated the project estimate confidence level as High.
On September 26, 2024, four (4) proposals were received. The proposals were reviewed, evaluated, and scored by a four (4)-member evaluation committee consisting of representatives from BES. The evaluation committee selected Tapani Inc. as the highest scoring proposer. The Chief Procurement Officer recommends the award of the contract to Tapani Inc. for $4,935,700.
The Contractor Equity Program and Regional Workforce Equity Agreement apply to the project. Tapani Inc. has made a commitment of $1,234,493 in utilization of disadvantaged, minority, women and emerging small business subcontractors, material suppliers and manufacturers certified by the Certification Office for Business Inclusion and Diversity (COBID). Tapani Inc. has committed to subcontract 25.1% to COBID Certified firms as follows:
| Subcontractor | Certification | Area of Work | Ownership | Amount |
|---|---|---|---|---|
| Andersons Erosion Control Inc. | DBE/WBE | Erosion Control | Caucasian/Female | $167,231 |
| C & C Flagging | D/M/WBE/ESB | Flagging | African American/Female | $5,320 |
| Cutter Construction Co, Inc. | DBE/WBE | Trucking | Caucasian/Female | $228,000 |
| Frank’s Excavating, LLC | DBE/MBE | Trucking | Hispanic/Male | $473,000 |
| Junk It Junk Removal LLC | MBE/ESB | Debris Removal | African American/Male | $18,000 |
| McDonald Excavating Inc. | DBE/MBE | Excavation | Native American/Male | $250,000 |
| Jeffery Ramond Grant | ESB | Fence Install | Caucasian/Male | $49,357 |
| O’Bunco Engineering Int’l, Inc. | DBE/MBE | Survey and Mapping | African American/Male | $43,585 |
| Total | $1,234,493 | |||
Tapani Inc. acting as the prime contractor intends to self-perform 74.9% of the work and to subcontract 0% to non-certified firms.
Tapani Inc. is located in Battle Ground, WA, and is not a State Certified COBID Contractor. They have a current City of Portland Business Tax Registration and EEO Certification and are in Full Compliance with the City’s contracting requirements.
It is recommended that a Performance Bond and Payment Bond each at 100% of the contract amount be furnished by the Contractor. Further, it is also recommended that a two (2) year Maintenance/Warranty Bond for 20% of the final contract amount be furnished by the Contractor before final payment is released.
Recommended by:
Sincerely,
Sylvester Donelson, Jr.
Chief Procurement Officer
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Impact Statement
Purpose of Proposed Legislation and Background Information
The project will restore more than six acres of floodplain and 2,400 feet of stream channel, plant over 15,000 native trees and shrubs, and remove 5,500 cubic yards of non-hazardous contaminated media. The proposed restoration project will transform a severely degraded reach of Johnson Creek into a resilient, dynamic natural system that absorbs the impacts of flooding, provides critical habitat and connectivity, measurably improves water quality, and provides natural community assets to underserved neighborhoods in east Portland.
Ordinance Number 191782 passed by Council, authorized Procurement Services to use an alternative contracting method of Best Value to select a contractor for the West Lents Floodplain Restoration Project. The Chief Procurement Officer advertised Request for Proposals (RFP) Number 00002381 on August 7, 2024, for the West Lents Floodplain Restoration Project with an estimate of $6,816,902. The Bureau of Environmental Services (BES) rated the project estimate confidence level as High at that time.
No revenues will be impacted by this legislation.
This legislation does not change existing City policy.
Financial and Budgetary Impacts
Based on the proposal received, BES anticipates the construction contract cost to not exceed $4,935,700.
No present positions will be created, eliminated or re-classified as a result of this legislation.
Economic and Real Estate Development Impacts
BES outreach staff have conducted a robust public involvement effort for the West Lents Floodplain Restoration, beginning in 2019. Outreach has focused on educating and informing nearby residents and property owners about the project, and about City floodplain restoration more widely.
Environmental Services has conducted the following outreach to date:
- Develop and maintain a project webpage
- Project updates mailed to 1000 property owners, renters, businesses, and public and private agencies in the area
- Email updates to the project email list
- Social media posts to the adjacent neighborhoods
- Focused outreach to adjacent property owners
- On-site tabling events and community tours
- Public presentation the Lents Neighborhood Association
- Situational email, mail, and phone correspondence to answer community questions, take input, and address concerns.
BES project information is available in multiple languages online. Fliers communicating what to expect during construction have been translated into 11 different languages.
Construction work will occur entirely on property owned by BES. Environmental Services designed the project to restore about 18 acres in the Johnson Creek floodplain. The project will reconnect Johnson Creek to its historic floodplain, reduce flooding on private property, restore habitat for fish and wildlife, and improve water quality in the creek. The property was purchased over the last 20 years to move people and businesses out of the floodplain and out of harms way. Because it is in the floodplain it cannot be developed for housing and economic development. The project will reduce flood risk to adjacent homes, businesses, and neighborhood and provide a green space that will be a community amenity.
The project area was originally all zoned residential. Most of the businesses that are affected are apartment complexes. The West Lents project will have a positive impact on the apartment complexes by reducing flooding and increasing greenspace for the residents to enjoy. There is only one parcel that is zoning for commercial use, which was used as a used vehicle parts business and was both an eye-sore and an environmental hazard.
The project has no impact to the timeline or cost of doing business or development. The proposed project would have no impact on business competitiveness, job growth, costs of goods or household income. However, this project does have a positive effect on affordability. As part of the acquisition process, the City removed 6 houses located in the project area. These houses were located in the floodplain and environmental protection zones. Removing these houses and constructing this flood control project will help other property owners by reducing flooding overall and decreasing flood insurance costs. Removing houses in the floodplain improves the City’s FEMA rating, which can improve individual flood insurance costs.
The only potential adverse impact of this project is the removal of residential housing. The loss of 6 single family homes can be mitigated by directing development to areas that are outside of the floodplain and environmental protection zones.
Community Impacts and Community Involvement
The public, construction contracting community, including contractors certified as State of Oregon disadvantaged, minority, women, and emerging small businesses became involved when the Chief Procurement Officer and BES advertised a notice of public hearing in the DJC on May 29, 2024, to welcome the public’s comments on the findings and recommendation to exempt the project from the requirement of competitive bidding during Council’s presentation on June 12, 2024. Procurement Services also advertised and publicly noticed the project on the City’s Online Procurement System on August 7, 2024, to welcome proposals from the contracting community.
Potential proposers were able to review the competitive solicitation, attend a pre-proposal meeting, ask questions, provide comments and submit a proposal in response to the Request for Proposals (RFP). Proposals received resulted in the award of a contract. Procurement Services managed the procurement process. No protests were received.
Due to complexity of construction, use of a Best Value solicitation increases the likelihood that cost saving solutions are identified and reduces the risk of schedule delays, cost overruns, claims, and workmanship issues. This method will help ensure the most appropriate construction techniques and sequencing are used by the most qualified and cost-efficient contractor. In addition, this approach decreases the likelihood of disputes and potential costly change orders that could impact the budget and schedule of the project.
Utilizing the best value method allows the City to monitor contractor outreach and utilization of apprentices, SDVBE/D/M/W/ESB subcontractors and help the City achieve the Contractor Equity Program (CEP) and Regional Workforce Equity Agreement (RWEA) objectives for this Project. Also, to set the City and local economy on a path where more local contractors have the ability to provide construction services while meeting the qualifications established by the CEP and RWEA.
No known persons or groups will be testifying.
No future public involvement is anticipated or necessary for this request.
100% Renewable Goal
This action neither increases nor decreases the City’s total energy use.
This action neither increases nor decrease the City’s renewable energy use.
Financial and Budget Analysis
This action accepts bid of $4.9 million from Tapani inc. for the West Lents Floodplain Restoration Project. Sewer Operating Fund resource for the project are included within the FY 2024-25 Adopted Budget. No additional appropriations are required as a result of this action.