Accept bid of 2KG Contractors Inc. for the Washington Park Hypochlorite Project for $1,509,561 (Procurement Report - ITB 00002122)
TO THE COUNCIL:
On February 8, 2023, Council approved Ordinance Number 191168 for Procurement Services to competitively solicit the Washington Park Hypochlorite Project in accordance with PCC 5.34. The Chief Procurement Officer has advertised and received bids for Bid Number 00002122 on behalf the Portland Water Bureau (PWB), with a project construction estimate of $1,850,000. PWB rated the project estimate confidence level as High.
Bids were opened on January 29, 2023, and two (2) bids were received. The lowest responsive bid is from 2KG Contractors Inc., thus it is recommended that their bid be accepted at the estimated unit prices quoted for a total bid amount of $1,509,561 which is 18% below 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. 2KG Contractors Inc. has committed to subcontract 22.1% toCOBID Certified firms as follows:
Subcontractor | Certification | Area of Work | Ownership | Amount |
|---|---|---|---|---|
La Londe LLC | WBE | Electrical | Caucasian/Female | $289,448 |
Taurus Power and Controls, Inc. | DBE/MBE | Instrumentations and Controls | Asian Pacific/Male | $44,077 |
Total | $333,525 | |||
2KG Contractors Inc. acting as the prime contractor intends to self-perform 74.3% of the work and to subcontract 3.6% to the following non-certified firms:
Subcontractor | Area of Work | Amount |
|---|---|---|
Correct Equipment | Chemical Feed Equipment & Pumps | $54,350 |
Total | $54,350 | |
2KG Contractors Inc. is located in Portland, Oregon, and is not a State COBID Certified Contractor. 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 the Project (W02108) is available in the FY 2022-2023 Budget and will be requested in the FY 2023-2024.
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 2KG Contractors Inc.
Recommended by:
Biko Taylor
Chief Procurement Officer
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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 Washington Park Hypochlorite Project for $1,509,561.
Portland Water Bureau (PWB) needs to refurbish the existing hypochlorite facility to chlorinate the two Washington Park Reservoir reflecting pools and provide secondary water quality treatment for downtown, Northwest Industrial and Southwest Waterfront districts, and Portland West Hills.
Ordinance No. 191168 was approved by City Council on February 8, 2023, authorizing the Chief Procurement Officer to issue a competitive solicitation for the Washington Park Hypochlorite Project. The construction cost based on bids received is $1,509,561.
Financial and Budgetary Impacts
The engineer’s estimate for this project was $1,850,000 and the confidence level was high. Based on the proposal received, the PWB anticipates the construction contract cost to not exceed $1,509,561 which is 18% below the engineer’s estimate.
Funding for the Project (W02108) is available in the FY 2022-2023 Budget and will be requested in the FY 2023-2024.
The purposed legislation will not create, eliminate or re-classify any positions now or in the future.
Community Impacts and Community Involvement
The reconstructed hypochlorite facility will serve residents and businesses downtown, the Northwest Industrial district, and in the Southwest Waterfront. It will also benefit several neighborhoods in northwest and southwest Portland, including the Southwest Hills, Forest Park, Sylvan Highlands, and Arlington Heights neighborhoods. The Project will serve over 300,000 people, including five hospital complexes, over twenty schools, and sixty parks.
The Project will ensure public health and economic viability in the area by improving the maintenance, operability, and water quality of the existing water system around Washington Park and on Portland's west side. In addition, the future reflecting pools can be enjoyed by all who visit Washington Park.
The Project is located on the southeastern edge of the Washington Park Reservoir Improvement project construction worksite, which will continue to be active through 2025. We anticipate that the public will perceive any construction impacts from this work to be related to the reservoir project and have well-established mechanisms in place to respond to inquiries.
Beginning in 2012, the Washington Park project team conducted stakeholder interviews, convened a community sounding board, regularly briefed area neighbors and business groups, met with historic advocacy groups, and communicated with the Portland Historic Landmarks Commission. Community outreach related to the hypochlorite facility will be integrated into ongoing outreach for Washington Park Reservoir, including e-newsletters, webpages, neighborhood association meetings, social media, updates to our virtual tour, and partner meetings with Explore Washington Park, Portland Parks and Recreation, and Tri Met. This proposed work is outside of the Historic District and is not expected to have any adverse impacts.
There are no significant objections or concerns related to this project. The construction impacts are in keeping with ongoing impacts as part of the larger reservoir project. There will be no increased or changed ongoing impacts related to operating the facility, and the Project will not change the aesthetic for neighbors or those visiting the site.
The benefits of this project will ensure safety for those who visit the reflecting pools and will ensure the same high-quality water to customers downtown and at some of the farthest reaches of the system. The customers and neighborhoods that will benefit from this project are significant, as previously described.
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 on May 25, 2023. A public notice was also posted in the Daily Journal of Commerce on May 26, 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). Proposals received resulted in the award of the construction contract. Procurement Services managed the procurement process. No protests were received.
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
The bureau previously estimated the total cost of the work to be $1.85 million, so the bid from 2KG Contractors is 18% lower than projected. The bureau will cover this request out of WBS W02108 which has $1.13 million budgeted in FY 2023-24.