TRANSMITTAL LETTER FOR BOARD MEETING OF AUGUST 10, 2023
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Authority to award Contract 23-684-21 Equipment Painting & Rehabilitation at Various Locations Groups E and F, to Era Valdivia Contractors, Inc., in an amount not to exceed $1,878,000.00, Account 201-50000-645780, Requisitions 1596104 and 1596107
Body
Dear Sir:
On March 16, 2023, the Board of Commissioners authorized the Director of Procurement and Materials Management to advertise for bids Contract 23-684-21, Equipment Painting & Rehabilitation at Various Locations.
At the Board Meeting of April 6, 2023, authorization was granted to revise the authority to advertise board letter as reported.
In response to a public advertisement of May 31, 2023, a bid opening was held on June 27, 2023. The bid tabulation for this contract is:
GROUP A: STICKNEY WRP FINAL TANKS
ERA VALDIVIA CONTRACTORS, INC. $1,624,000.00
CAPITAL INDUSTRIAL COATINGS, LLC $1,718,392.00
CHAMPION PAINTING SPECIALTY SERVICES CORP. $3,873,928.00
GROUP B: CALUMET WRP FINAL TANKS
ERA VALDIVIA CONTRACTORS, INC. $750,000.00
CAPITAL INDUSTRIAL COATINGS, LLC $779,000.00
CHAMPION PAINTING SPECIALTY SERVICES CORP. $1,836,520.00
GROUP C: O’BRIEN FINAL TANKS & EGAN PRIMARY TANKS
ERA VALDIVIA CONTRACTORS, INC. $950,000.00
CAPITAL INDUSTRIAL COATINGS, LLC $992,732.00
CHAMPION PAINTING SPECIALTY SERVICES CORP. $1,888,820.00
GROUP D: CALUMET WRP DIGESTER COVERS, STICKNEY DIGESTER COVERS AND
HANOVER PARK WRP DIGESTER COVERS
CAPITAL INDUSTRIAL COATINGS, LLC $805,000.00
ERA VALDIVIA CONTRACTORS, INC. $841,000.00
CHAMPION PAINTING SPECIALTY SERVICES CORP. $1,521,514.00
GROUP E: O'BRIEN WRP WATER TOWER
ERA VALDIVIA CONTRACTORS, INC. $499,000.00
CAPITAL INDUSTRIAL COATINGS, LLC $783,300.00
GROUP F: STICKNEY WRP WATER TOWER
ERA VALDIVIA CONTRACTORS, INC. $1,379,000.00
The Affirmative Action Ordinance, Revised Appendix D goals for this contract are 20 percent Minority Business Enterprise (MBE), 10 percent Women Business Enterprise (WBE), and 3 percent Veteran-owned Business Enterprise (VBE) for each group.
Era Valdivia Contractors, Inc. (Era) submitted bids for Groups A through F. A review of their submittal by the Acting Diversity Administrator, revealed that Era did not submit their Utilization plans for Groups A, B, C, and D because they could not obtain subcontractor pricing for these groups and did not submit the plans. Therefore, Era Valdivia Contractors, Inc. is not in compliance with the requirements of the Affirmative Action Ordinance Revised Appendix D under Section 15, Utilization Submission (a) and (c) and Section 16, Bid Submission Compliance Review (a) (i). Era Valdivia Contractors, Inc. bids for Groups A, B, C, and D are non-responsive and rejected in the public’s best interest. This bidder has been notified of this action by the Director of Procurement and Materials Management.
Capital Industrial Coatings, LLC (Capital) submitted bids for Groups A through E and are the low bidder for Group D and second low bidder for Groups A, B, C, and E. A review by the Acting Diversity Administrator revealed that Capital submitted WBE participation in the amount of 9 percent, when the goal is 10 percent. Therefore, there is a 1 percent shortfall for the WBE goal, and no waiver was requested for the WBE participation for any group. Therefore, Capital Industrial Coatings, LLC is not in compliance with the requirements of the Affirmative Action Ordinance Revised Appendix D under Section 15, Utilization Submission (b), (c), and (e) and Section 16, Bid Submission Compliance Review (a) (ii). Capital Industrial Coatings, LLC bids for Groups A, B, C, D, and E are non-responsive and rejected in the public’s best interest. This bidder has been notified of this action by the Director of Procurement and Materials Management.
Champion Painting Specialty Services, Corp. failed to notarize their Affidavit page (AF-1) as required in the contract documents and is considered non-responsive. In addition, their bid for Groups A, B, C, and D is approximately 103%, 110%, 47%, and 72%, respectively, over the District’s estimate and is considered too high. Therefore, the Director of Procurement and Materials Management has notified Champion Painting Specialty Services, Corp. that their bids are considered non-responsive and rejected in the public’s best interest.
Era Valdivia Contractors, Inc. (Era), the lowest responsible bidder for Groups E and F, is proposing to perform the contract in accordance with the specifications. The estimated cost of this contract for Groups E and F is $2,801,351.00 placing their total bid of $1,878,000.00 approximately 32.9 percent below the estimate.
Era Valdivia Contractors, Inc., is in compliance with the Affirmative Action Ordinance, Revised Appendix D as indicated on the attached report for Group E. The Minority Business Enterprise (MBE), Women Business Enterprise (WBE) and Veteran-owned Enterprise (VBE) utilization goals for this contract are as follows: Era offers themselves to satisfy the MBE goal, 16.66 percent WBE, and bidder indicated 3 percent for VBE participation.
Era Valdivia Contractors, Inc., is in compliance with the Affirmative Action Ordinance, Revised Appendix D as indicated on the attached report for Group F. The Minority Business Enterprise (MBE), Women Business Enterprise (WBE) and Veteran-owned Enterprise (VBE) utilization goals for this contract are as follows: Era offers themselves to satisfy the MBE goal, 10 percent WBE, and bidder indicated 3 percent for VBE participation.
Era Valdivia Contractors, Inc, has executed the Multi-Project Labor Agreement (MPLA) certificate as required. It is anticipated that the following construction trades to be utilized on this contract are painters, laborers, and truck drivers. The list of construction trades is not intended to confer any rights or jurisdiction upon any union or unions.
The contractor shall provide the specified painting services commencing upon approval of the contractor’s bond and complete the work for Group E in ninety (90) calendar days and Group F within one hundred eighty (180) calendar days.
The contract will require approximately ten (10) people for the services.
In view of the foregoing, it is recommended that the Director of Procurement and Materials Management be authorized to award Contract 23-684-21 to Era Valdivia Contractors, Inc., in an amount not to exceed $1,878,000.00, subject to the contractor furnishing a performance bond in form satisfactory to the Law Department and approved by the Director of Procurement and Materials Management.
Funds for the 2023 expenditure are available in Account 201-50000-645780.
Requested, John P. Murray, Director of Maintenance and Operations
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management, DAL:SEB:gv
Respectfully Submitted, Marcelino Garcia, Chairman, Committee on Procurement
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for August 10, 2023
Attachments