Accept bid of $5,474,999 from Orr, Inc. for the NE 6th Drive Pump Station Project (Procurement Report - ITB 00002173)
TO THE COUNCIL:
On March 15, 2023, Council approved Ordinance Number 191206 for Procurement Services to competitively solicit the NE 6th Drive Pump Station Project in accordance with PCC 5.34. The Chief Procurement Officer has advertised and received bids for Bid Number 00002173 on behalf of Bureau of Environmental Services (BES), with a project construction estimate of $4,540,000. BES rated the project estimate confidence level as Moderate.
Bids were opened on September 12, 2023, and three (3) bids were received. The lowest responsive bid is from Orr, Inc., thus it is recommended that their bid be accepted at the estimated lump sum quoted for a total bid amount of $5,474,999, which is 20.6% over the engineer’s estimate.
The City’s equity in contracting aspirational goal of 20% of the hard construction costs for subcontractor and supplier utilization of firms certified by the State’s Certification Office for Business Inclusion and Diversity (COBID) applies to this project. Orr, Inc. has committed to subcontract 4.45% toCOBID Certified firms as follows:
Subcontractor | Certification | Area of Work | Ownership | Amount |
Andersons Erosion Control, Inc | D/W | Irrigation/Erosion Control Services | Caucasian/Female | $12,650 |
Brothers Concrete Cutting, Inc. | MBE | Sawcutting | Native American/Male | $25,000 |
C & C Flagging LLC | D/M/W/ESB | Flagging | African American/Female | $20,000 |
Kodiak Pacific Construction Co. | WBE | Paving | Caucasian/Female | $23,365 |
Miller Factors, LLC | WBE | Landscaping | Caucasian/Female | $19,696 |
MJE Industrial, LLC | ESB | Painting/Coating | Caucasian/Male | $142,990 |
Total | $243,701.00 |
Orr, Inc., acting as the prime contractor intends to self-perform 67.14% of the work and to subcontract 28.41% to the following non-certified firm:
Subcontractor | Area of Work | Amount |
AKS Engineering & Forestry, LLC | Surveying | $16,895 |
Alpine Abatement Associates | Asbestos Abatement | $2,650 |
Bryan R. Green | Plumbing | $39,735 |
Earth Dynamics, LLC | Vibration Monitoring | $25,000 |
Five Star Electric, Inc. | Electrical | $460,000 |
Kraft Masonry, Inc. | Masonry | $61,841 |
Pacific Foundation, Inc. | Piling/Shoring | $660,000 |
Santiam Heating & Sheetmetal, Inc. | HVAC/Sheetmetal | $44,050 |
TGC Structural | Concrete | $182,741 |
Willamette Fence Co., Inc. | Fencing | $62,520 |
Total | $1,555,432.00 |
Orr, Inc is located in Turner, Oregon, and is a State COBID Certified Contractor and is a Native American/Male owned firm. They have a current City of Portland Business Tax Registration and are in full compliance with all of the City’s contracting requirements.
Funds will be paid out of the Sewer System Operating Fund Budget WBS Element E11052 within the BES' FY 22-23 budget.
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.
The bid sureties of the remaining bidders should be returned immediately in compliance with Section 5.34.410D of the City Code.
Procurement Services recommends that Council accept this Report and authorize the Chief Procurement Officer to execute the contract with Orr, Inc.
Recommended by:
Biko Taylor
Chief Procurement Officer
BT: mss
Official Record (Efiles)
Impact Statement
Purpose of Proposed Legislation and Background Information
Authorize the Chief Procurement Officer to execute a construction contract for NE 6th Drive Pump Station Project to Orr, Inc. The construction cost based on bids received is $5,474,999.
The Bureau of Environmental Services (BES) needs to upgrade the NE 6th Drive Pump Station. The station has been in service for over 45 years and has exceeded its designed and anticipated useful life. The NE 6th Drive Pump Station Upgrade will bring the Pump Station into conformance with current BES standards and provide long-term reliability and resiliency for conveying municipal wastewater in the collection system.
The project will upgrade the existing NE 6th Drive Pump Station with new equipment, including pumps, wet well, control building, electrical infrastructure, and standby generator. The project will also add new features and equipment to the Pump Station, including a force main inspection and cleaning tool launch station, valve vault, and an onsite air release valve.
Ordinances 191206 was approved by City Council on March 15, 2023, authorizing the Chief Procurement Officer to issue a competitive solicitation for the project known as NE 6th Drive Pump Station Project on behalf of BES.
No revenues will be impacted by this legislation.
This legislation does not change existing City policy.
Financial and Budgetary Impacts
The engineer’s estimate for this project was $4,540,000 and the confidence level was Moderate . Based on bids received, BES anticipates the construction contract cost to be $5,474,999, which is 20.6% over the engineer’s estimate.
Funds will be paid out of the Sewer System Operating Fund Budget WBS Element E11052 within the BES' FY 22-23 budget.
No present positions will be created, eliminated or re-classified as a result of this legislation.
Community Impacts and Community Involvement
The construction contracting community, including contractors certified with the State of Oregon as minority, women, and emerging small businesses became involved when the Chief Procurement Officer advertised and publicly noticed the project on the City’s Online Procurement System July 26, 2023, including a public notice posted in the Daily Journal of Commerce on July 28, 2023.
Potential bidders were able to review the competitive solicitation, ask questions, provide comments and submit a bid in response to the Invitation to Bid (ITB). Bids received resulted in the award of the construction contract. Procurement Services managed the procurement process.
The City’s equity in contracting aspirational goal of 20% of the hard construction costs for subcontractor and supplier utilization of firms certified by the State’s Certification Office for Business Inclusion and Diversity (COBID) applies to this project. Orr, Inc. has committed to subcontract 4.45% toCOBID Certified firms as follows:
Subcontractor | Certification | Area of Work | Ownership | Amount |
Andersons Erosion Control, Inc | D/W | Irrigation/Erosion Control Services | Caucasian/Female | $12,650 |
Brothers Concrete Cutting, Inc. | MBE | Sawcutting | Native American/Male | $25,000 |
C & C Flagging LLC | D/M/W/ESB | Flagging | African American/Female | $20,000 |
Kodiak Pacific Construction Co. | WBE | Paving | Caucasian/Female | $23,365 |
Miller Factors, LLC | WBE | Landscaping | Caucasian/Female | $19,696 |
MJE Industrial, LLC | ESB | Painting/Coating | Caucasian/Male | $142,990 |
Total | $243,701.00 |
Orr, Inc., acting as the prime contractor intends to self-perform 67.14% of the work and to subcontract 28.41% to the following non-certified firm:
Subcontractor | Area of Work | Amount |
AKS Engineering & Forestry, LLC | Surveying | $16,895 |
Alpine Abatement Associates | Asbestos Abatement | $2,650 |
Bryan R. Green | Plumbing | $39,735 |
Earth Dynamics, LLC | Vibration Monitoring | $25,000 |
Five Star Electric, Inc. | Electrical | $460,000 |
Kraft Masonry, Inc. | Masonry | $61,841 |
Pacific Foundation, Inc. | Piling/Shoring | $660,000 |
Santiam Heating & Sheetmetal, Inc. | HVAC/Sheetmetal | $44,050 |
TGC Structural | Concrete | $182,741 |
Willamette Fence Co., Inc. | Fencing | $62,520 |
Total | $1,555,432.00 |
Orr, Inc is located in Turner, Oregon, and is a State COBID Certified Contractor and is a Native American/Male owned firm. They have a current City of Portland Business Tax Registration and are in full compliance with all of the City’s contracting requirements.
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 decreases the City’s renewable energy use.
Financial and Budget Analysis
The engineers project estimate for the project was $4.54 million, which was moderate. Based on bids, BES anticipates the construction contract being 20.6% higher than the estimate above – this ordinance approves the lowest responsive bid for the project. This work will be paid by the Sewer System Operating Fund Budget, WBS E11052
Document History
Item 1068 Regular Agenda in December 20, 2023 Council Agenda
City Council
Accepted - Prepare Contract
- Aye (4):
- Mingus Mapps
- Dan Ryan
- Rene Gonzalez
- Carmen Rubio
- Absent (1):
- Ted Wheeler