Accept bid of ORR, Inc. for the Sullivan Pump Station Safety Improvements Project for $1,464,697 (Procurement Report - Bid No. 00001878)
TO THE COUNCIL:
On April 27, 2022, Council approved Ordinance Number 190793 for Procurement Services to competitively solicit the Sullivan Pump Station Safety Improvements (Project) in accordance with PCC 5.34. The Chief Procurement Officer has advertised and received bids for Bid Number 00001878 on behalf of the Portland Bureau of Environmental Services (BES), with a project construction estimate of $1,040,000. BES rated the project estimate confidence level as high.
Bids were opened on June 16, 2022, and one (1) bid was received. The lowest responsive bid is from ORR, Inc, thus it is recommended that their bid be accepted at the estimated unit prices quoted for a total bid amount of $1,464,697.00, which is 40.8% 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 1.77% to COBID Certified firms as follows:
Subcontractor | Certification | Area of Work | Ownership | Amount |
MJE Industrial | ESB | Painting/Coating | Caucasian/Male | $12,868.00 |
Total | $12,868.00 | |||
ORR, Inc. acting as the prime contractor intends to self-perform 98.23% of the work.
ORR, Inc. is located in Stayton, Oregon, and is not 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 are available in the Pump Station Improvement Program, within the Sewer System Operating Fund, WBS Element E11356 in the Bureau of Environmental Services' FY2023-2024 Capital Improvement Plan. 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 contract award to ORR, Inc.
Recommended by:
Biko Taylor
Chief Procurement Officer
BT: EA
Official Record (Efiles)
Impact Statement
Purpose of Proposed Legislation and Background Information
The purpose of this legislation is to authorize the Chief Procurement Officer to execute a construction contract for the Sullivan Pump Station Safety Improvements for $1,464,697.
The proposed project would construct new platforms, enlarge an existing platform, build a permanent and safe ladder, install guardrail, and relocate light fixtures in a manner that would improve safety while accessing the pumps, valves, mechanical units, and light fixtures that require routine maintenance.
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 $1,040,000. Based on bids received, BES anticipates the construction contract cost to be $1,464,697 which is 40.8% over the engineer’s estimate.
BES conducted a bid analysis that the low bidder was over the Engineer’s Estimate due to several reasons. This project is in a very public area in downtown Portland. There will be impacts such as possible interactions with the public and traffic disruptions. The Contractor will be required to ensure the pump station is always available to Operations and Maintenance Staff during the construction period. The Contractor’s bid reflects these difficulties and the increased pricing and availability of materials due to global supply chain issues and COVID-19 as well as difficulties with hiring and retention of construction trades to perform the Work.
Funding for this project is included in the BES Pump Station Improvement Program which is funded through FY 2024.
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 posted the project on the City’s Online Procurement System and the DJC Oregon on May 2, 2022.
Potential bidders were able to review the competitive solicitation, attend a pre-bid meeting, 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. No protests were received.
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 1.77% to COBID Certified firms as follows:
Subcontractor | Certification | Area of Work | Ownership | Amount |
MJE Industrial | ESB | Painting/Coating | Caucasian/Male | $12,868.00 |
Total | $12,868.00 | |||
ORR, Inc. acting as the prime contractor intends to self-perform 98.23% of the work.
No known persons or groups will be testifying.
No future public involvement is anticipated or necessary for this request.
100% Renewable Goal
This Project neither contributes nor takes away for the City’s goal of meeting 100 percent community-wide energy needs with renewable energy by 2050.
Budget Office Financial Impact Analysis
The engineer’s estimate for this project was $1,040,000. Based on bids received, BES anticipates the construction contract cost to be $1,464,697 which is 40.8% over the engineer’s estimate.
BES conducted a bid analysis that the low bidder was over the Engineer’s Estimate due to several reasons. This project is in a very public area in downtown Portland. There will be impacts such as possible interactions with the public and traffic disruptions. The Contractor will be required to ensure the pump station is always available to Operations and Maintenance Staff during the construction period. The Contractor’s bid reflects these difficulties and the increased pricing and availability of materials due to global supply chain issues and COVID-19 as well as difficulties with hiring and retention of construction trades to perform the Work.
Funding for this project is included in the BES Pump Station Improvement Program which is funded through FY 2024.
Agenda Items
720 Regular Agenda in August 24, 2022 Council Agenda
Accepted - Prepare Contract
- Former Commissioner Jo Ann Hardesty Absent
- Commissioner Mingus Mapps Yea
- Commissioner Carmen Rubio Yea
- Commissioner Dan Ryan Yea
- Mayor Ted Wheeler Yea