Title
Transportation Department recommending the following pertaining to the US Highway 50/Missouri Flat Road Interchange Phase 1A Project 71317:
1. Award the Construction Contract to the lowest responsible, responsive bidder Nehemiah Construction, Inc. in the amount of $18,368,264.90;
2. Authorize Chairman to sign the Contract with Nehemiah Construction, Inc., subject to review and approval of final contract documents by County Counsel and Risk Management;
3. Authorize Director of said Department to execute Contract Change Orders with an individual value up to $150,000, provided the cumulative total of all change orders is within the contingency budget established for the project; and
4. Authorize Chairman to sign Contract Change Orders in the total amount of $575,000 for the County's share of certain supplemental work items (maintain traffic/flagging, dust control and water pollution control).
RECOMMENDED ACTION: Approve.
FUNDING: 2004 General Plan Traffic Impact Mitigation Fees, except EID contribution estimated at $500,000.
Body
BUDGET SUMMARY:
Total Estimated Cost $28,990,000
Funding
Budgeted * $28,990,000
New Funding $
Savings $
Other $
Total Funding Available $28,990,000
Change To Net County Cost $0
* included in five year CIP - $4.6 million of the cost has been appropriated in FY 06-07 and the balance will be included in the proposed budget for FY 07-08.
Fiscal Impact/Change to Net County Cost:
The cost associated with the construction phase of this project was estimated at and is programmed in the Department's Capital Improvement Program at $28,990,000. Given the bid results, as detailed below, the budget will provide for the following: bid price (rounded) of $18,400,000, supplemental items at $865,000, County furnished materials at $265,000, work by PG&E to be paid for by the County at $1,200,000, construction management, survey and materials testing at $3,900,000 and a contingency budget of $4,360,000.
Funding for this project is initially through 2004 General Plan Traffic Impact Mitigation (TIM) Fees except for costs associated with work being performed under the County's construction contract for El Dorado Irrigation District (EID). Under the terms of a previously approved agreement with that agency, EID will fund the cost of those improvements, estimated at $500,000 given the bid unit prices. Detailed information regarding the funding for this project was provided as part of the agenda items requesting authorization to advertise (Legislative File 07-347).
There is no net cost to the County General Fund associated with this agenda item.
Reason for Recommendations:
On February 27, 2007, the Board approved the Plans and Specifications, and authorized the advertisement for construction bids for the US Highway 50/Missouri Flat Road Interchange Phase 1A project. The project will widen Missouri Flat Road, construct a new overcrossing of US Highway 50, and make improvements to the interchange ramps, adjacent roadways and surrounding commercial access. The project will relieve existing congestion, add capacity, and provide safety improvements to the interchange and adjacent roadways. Also included in the construction package is the relocation of EID water facilities as needed in the project area. The County and EID have entered into an agreement setting the terms for reimbursement of costs associated with EID's facilities relocation.
On April 17, 2007, the Department received four (4) bid proposals for this project. The bids are as follows:
• Nehemiah Construction, Inc. $18,368,264.90
• Teichert Construction $18,561,651.50
• Granite Construction Company $20,735,735.00
• Sierra Nevada Construction, Inc. $23,348,007.00
The final Engineer's Estimate for the bid work was $ 20,600,000.
Staff has reviewed the bid proposals and finds Nehemiah Construction's proposal to be both responsive and responsible. Given that finding, and their low bid, the Department recommends the contract be awarded Nehemiah Construction, Inc., 4790 East 2nd Street, Benicia CA 94510.
The low bid for the project was approximately $2,200,000 below the engineer's estimate. Given the project budget, this will allow the contingency for the project to be set at $4,360,000, or approximately 22 percent of the anticipated construction cost (bid amount, plus supplemental items, plus County furnished items). Although contingency is typically set at 10% of anticipated costs, given the magnitude and complexity of this project, the higher contingency amount is appropriate at the present time. During the Department's next annual CIP review (February 2008), the project’s status will be evaluated and a recommendation made whether to maintain the current contingency budget, or re-program a portion of those funds to other CIP projects, based upon project progress.
Request for Additional Contract Change Order Authority
Public Contract Code Section 20142 allows a Board of Supervisors to authorize the County Engineer or other county officer to order changes in the work of a public contract. This ability to delegate is capped at $150,000. The Board of Supervisors, by Resolution 106-93 has utilized this provision and delegated to the Directors of Transportation, Environmental Management and General Services, and the Chief Administrative Officer, change order authority not to exceed $50,000.
Given the magnitude of the subject contract and the exposure to the County should work be delayed due to a needed change, it is requested the change order limit for this contract be increased to $150,000, which is consistent with the limits set in the Public Contract Code. This authority is requested provided the cumulative cost of all change orders is maintained within the contingency budget established for the project.
Approval of Change Orders for Supplemental Items of Work
The project contract has been prepared in conformance with County and Caltrans bid item payment procedures. In doing so, certain items of work, necessary to complete the project and which require a variable work effort to complete, are identified in the contract documents as supplemental items of work to be performed and paid for on a time and material basis, using standard Caltrans force account billing procedures. The work is authorized by issuance of a change order, which also encumbers the funds anticipated to be needed for each of the planned supplemental items and is billed against as the work progresses. The amount of each change order is based on an evaluation by the DOT staff of the project components, area, and time frame.
Due to the magnitude of the subject project, the value of some of the supplemental work items will/may exceed the Department's authority for individual change orders. Approval is therefore requested for the following three large supplemental work item change orders totaling $575,000.
1) Maintain traffic/flagging - $270,000
2) Dust Control - $100,000
3) Water Pollution Control - $205,000
The remaining supplemental items are anticipated to remain within the Department's authority for change orders.
Action to be Taken Following Approval:
1. The Department will forward the construction contract to Nehemiah Construction, Inc. for their signature.
2. The Department will return the signed construction contract, together with the required bonds, insurance, County Counsel and Risk approval, to the Clerk of the Board for the Board Chairman's signature of the contract.
3. Upon receipt of the fully executed construction contract, the Department will issue a Notice to Proceed.
4. The Director of Transportation will execute change orders as approved and/or delegated by the Board.