accepted report

Accept Report from Chief Procurement Officer to award contract to Moore Excavation, Inc. for the Conduit 3 Ovality Repair & Venturi Meter Removal

infrastructure utilities
procurement
report

Department: Procurement and Business Opportunities
Introduced by: Former Mayor Ted Wheeler
Status: Accepted

Impact statement

Purpose & background

Three large-diameter conduits (Conduits 2, 3 and 4) carry water from the Bull Run Watershed to Portland. The Conduit 3 Ovality Repair Project and the Venturi Removal Project will replace damaged segments of pipe, remove flow restrictions, add cathodic protection, backfill the area, and provide surface restoration to the project sites. The Conduit 3 Ovality Repair Project will replace approximately 200 feet of damaged 58-inch-diameter pipe that was found to be significantly out of round during a condition assessment. The Venturi Removal Project will remove the Venturi meters located in Conduits 2, 3 and 4. The Venturi meters have been replaced with more modern meters and are no longer needed. The Venturi meters limit flow through the conduits and removal will allow operation at full capacity. They will be replaced with full-diameter piping to improve operation of the Bull Run conduits. These projects are recommended by the Conduit Least Hazardous Route Project Validation Report (2021) and Raw Water System Hydraulic Analysis (2021), both prepared by City of Portland Water Bureau staff. Ordinance No. 191845 was approved by City Council on July 31, 2024, authorizing the Chief Procurement Officer to issue a competitive solicitation for the Conduit 3 Ovality Repair & Venturi Meter Removal project on behalf of PWB. No revenues will be impacted by this legislation. This legislation does not change existing City policy.

Financial impacts

Based on bids received, PWB anticipates the construction contract cost to be $4,178,130. The engineer’s estimate for this project was $3,800,000 and the confidence level was Moderate. The low bid and the engineer’s estimate are within 10% of each other.

Economic impacts

The combined projects will improve the reliability and ability of our infrastructure to provide drinking water to support economic development in all communities who depend on Bull Run Water. There are no Real Estate Development Impacts because the projects are located within the Bull Run Watershed.

Community impacts

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 September 3, 2024. 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. No known persons or groups will be testifying. No future public involvement is anticipated or necessary for this request.

▸ Full text (the legislation as adopted)

TO THE COUNCIL: On July 31, 2024, Council approved Ordinance Number 191845 for Procurement Services to competitively solicit the Conduit 3 Ovality Repair & Venturi Meter Removal in accordance with PCC 5.34. The Chief Procurement Officer has advertised and received bids for Bid Number 00002407 on behalf of Portland Water Bureau (PWB), with a project construction estimate of $3,800,000. PWB rated the project estimate confidence level as Moderate. Bids were opened on October 29, 2024, and two (2) bids were received. The lowest responsive bid is from Moore Excavation, Inc., thus it is recommended that their bid be accepted at the estimated unit prices quoted for a total bid amount of $4,178,130, which is 9.95% 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. Moore Excavation, Inc has committed to subcontract 20.68% to COBID Certified firms as follows: Subcontractor Certification Area of Work Ownership Amount Brothers Concrete Cutting Inc. MBE Concrete Cutting Native American (Indian)/Male $400 Cutter Construction Co, Inc. DBE, WBE Trucking Caucasian (White)/Female $735,000 Fox Erosion Control and Landscape, Inc. DBE, WBE Landscaping Caucasian (White)/Female $21,750 Highway Specialized Transport, LLC DBE, WBE Trucking Caucasian (White)/Female $25,000 Kodiak Pacific Construction Co. WBE Asphalt Paving Caucasian (White)/Female $22,920 Netcompliance Environmental Services LLC DBE, MBE Asbestos Abatement Subcontinent Asian (Asian Indian)/Male $58,980 Total $864,050 Moore Excavation, Inc., acting as the prime contractor intends to self-perform 70.05% of the work and to subcontract 9.27% to the following non-certified firm: Subcontractor Area of Work Amount MESA Products Inc Cathodic Protection $387,512 Total $ 387,512 Moore Excavation, Inc. is located in Fairview, Oregon, and is not a State COBID Certified Contractor and is a White/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. Portland Water Bureau has funds budgeted in FY 2024-25 Budget and in the FY 2025-26 requested Budget for construction, inspection and management of the project. Funds will also be requested in the FY 2026-27 Budget. 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 5.34.410(D) of the City Code. Procurement Services recommends that Council accept this Report and authorize the Chief Procurement Officer to execute the contract with Moore Excavation, Inc. Recommended by: Sylvester Donelson, Jr. Chief Procurement Officer SD: veh

Tally

5 yea 0 nay