Accept bid of $2,634,575 from Team Electric Company for the Groundwater Pump Station Motor Control Center Replacement Project (Procurement Report - ITB 00002276)
TO THE COUNCIL:
On April 27, 2022, Council approved Ordinance Number 190794 for Procurement Services to competitively solicit the Groundwater Pump Station Motor Control Center (MCC) Replacement Project in accordance with PCC 5.34. The Chief Procurement Officer has advertised and received bids for Bid Number 00002276 on behalf of Portland Water Bureau (PWB), with a project construction estimate of $2,425,000. PWB rated the project estimate confidence level as High.
Bids were opened on March 7, 2024, and two (2) bids were received. The lowest responsive bid is from Team Electric Company, thus it is recommended that their bid be accepted at the estimated lump sum quoted for a total bid amount of $2,634,575, which is 8.64% higher the engineer’s estimate.
| Subcontractor | Certification | Area of Work | Ownership | Amount |
| Optimal Control Systems, Inc, | MBE | Provide gear and instrumentation, startup and testing | Native American /Male | $1,160,058 |
| Concrete Inspection Services, Inc. | WBE | Penetrating radar of concrete | Caucasian /Female | $6,645 |
| Bedrock Commercial Concrete Cutting, LLC | ESB | Remove concrete housekeeping pads, pour new pad and core drill as needed | Caucasian /Male | $50,398 |
| Total | $1,217,101.00 | |||
Team Electric Company, acting as the prime contractor intends to self-perform 53.80% of the work and to subcontract 0% to non-certified firm.
Team Electric Company is located in Clackamas, Oregon, and is not a State COBID Certified Contractor and is a Caucasian/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.
Funding for this Project, with budgeted contingency, is available in Portland Water Bureaus W02559, FY 2022-2023 and FY 2023-2024 Budgets.
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 Team Electric Company.
Recommended by:
Kathleen Brenes-Morua
Interim Chief Procurement Officer
KBM: mss
Official Record (Efiles)
Impact Statement
Purpose of Proposed Legislation and Background Information
Authorize the Chief Procurement Officer to execute a construction contract for Groundwater Pump Station Motor Control Center (MCC) Replacement Project to Team Electric Company. The construction cost based on bids received is $2,634,575.
The Groundwater Pump Station (GWPS) serves as the primary back up to the Bull Run supply and poses risk to the Portland Water Bureau if it is not available during an emergency. Since its construction in 1983, the GWPS has been used to supply drinking water during emergency events when the Bull Run supply is not available and during summer peak demands to augment the Bull Run supply.
The existing motor controller centers (MCCs) for the pumping system at the GWPS are obsolete and replacement parts are difficult to obtain since most of the components are no longer being manufactured. Based on the installation date of 1983, these components are ten (10) years beyond the end of their expected useful life of 25-30 years. The Groundwater Pump Station MCC Replacement Project (Project) will replace the MCCs for the eight (8) pumps at GWPS.
Ordinances 190794 was approved by City Council on April 27, 2022, authorizing the Chief Procurement Officer to issue a competitive solicitation for the project known as Groundwater Pump Station Motor Control Center (MCC)Replacement Project on behalf of Portland Water Bureau (PWB).
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 $2,425,000 and the confidence level was High. Based on bids received, PWB anticipates the construction contract cost to be $2,634,575, which is 8.64% over the engineer’s estimate.
Funding for this Project, with budgeted contingency, is available in Portland Water Bureaus W02559, FY 2022-2023 and FY 2023-2024 Budgets.
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 February 12, 2024, including a public notice posted in the Daily Journal of Commerce.
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. Team Electric Company has committed to subcontract 46.19% to COBID Certified firms as follows:
| Subcontractor | Certification | Area of Work | Ownership | Amount |
| Optimal Control Systems, Inc, | MBE | Provide gear and instrumentation, startup and testing | Native American /Male | $1,160,058 |
| Concrete Inspection Services, Inc. | WBE | Penetrating radar of concrete | Caucasian /Female | $6,645 |
| Bedrock Commercial Concrete Cutting, LLC | ESB | Remove concrete housekeeping pads, pour new pad and core drill as needed | Caucasian /Male | $50,398 |
| Total | $1,217,101.00 | |||
Team Electric Company, acting as the prime contractor intends to self-perform 53.80% of the work and to subcontract 0% to non-certified firm.
Team Electric Company is located in Clackamas, Oregon, and is not a State COBID Certified Contractor and is a Caucasian/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
Analysis provided by City Budget Office
This ordinance accepts the bid for $2.63 million, which is 8.6% higher than bureau engineer estimates of $2.425 million. Funding for the project, including contingency, are available in W02559, FY 2023-2024 Budgets.