accepted report

Accept bid of Westech Construction, Inc. for the North Suttle Road Local Improvement District for $4,688,940 (Procurement Report - Bid 00001969; C-10058)

transportation
infrastructure utilities
procurement
local improvement

Introduced by: Former Mayor Ted Wheeler
Status: Accepted

Impact statement

Purpose & background

Authorize the Chief Procurement Officer to execute a construction contract for the North Suttle Road LID to Westech Construction,Inc. The construction cost based on bids received is $4,688,940. This project is part of the North Suttle Road Local Improvement District. The general character and scope of the improvement is to remove the existing dirt, gravel and/or hard surface; grade the street to its proper subgrade; construct a concrete street with an aggregate base; construct stormwater drainage facilities including stormwater planters; construct curbs on both sides of the street, construct sidewalk on one side of the street, generally on the north side; and plant street trees on one side of the street. The improvements will be constructed on North Suttle Road from the west right of-way line of North Portland Road to 3000 feet west of North Portland Road, plus any transition work on abutting street segments, intersections, railroad track and/or adjacent property determined to be necessary by the City Engineer. Ordinance No. 188576 was approved by City Council on August 30, 2017 (and amended by Ordinance 189523 on May 29, 2019) authorizing the Chief Procurement Officer to issue a competitive solicitation for the North Suttle Road LID on behalf of PBOT. No revenues will be impacted by this legislation. This legislation does not change existing City policy.

Financial impacts

Based on bids received, PBOT anticipates the construction contract cost to be $4,688,940. The engineer’s estimate for this project was $4,759,180 and the confidence level was Low. PBOT conducted a bid analysis and determined that the bid was competitive and not generally materially unbalanced. Funds are available in PBOT’s Owner Cost Center as project T00698. No present positions will be created, eliminated or re-classified as a result of this legislation.

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 October 4, 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. 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 August 30, 2017, Council approved Ordinance Number 188576 (and amended by Ordinance Number 189523 on May 21, 2019) for Procurement Services to competitively solicit the North Suttle Road LID in accordance with PCC 5.34. The Chief Procurement Officer has advertised and received bids for Bid Number 00001969 on behalf of the Portland Bureau of Transportation, with a project construction estimate of $4,759,180. PBOT rated the project estimate confidence level as Low. Bids were opened on December 8, 2022, and three (3) bids were received. The lowest responsive bid is from Westech Construction, Inc, thus it is recommended that their bid be accepted at the estimated unit prices quoted for a total bid amount of $4,688,940, which is 1.48% under 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. Westech Construction, Inc has committed to subcontract 17.01% to COBID Certified firms as follows: Subcontractor Certification Area of Work Ownership Amount A+ Flagging, Inc. DBE MBE WBE FLAGGING Hispanic $15,624 Azuri Construction, Inc. DBE MBE FENCING Hispanic $109,712 Brothers Concrete Cutting Inc. MBE SAWCUTTING Native American (Indian) $13,654 Cartello Construction DBE ESB WBE SIGNS Caucasian (White) $52,964 Cutter Construction Co Inc DBE WBE TRUCKING Caucasian (White) $150,000 Heffner Paving, LLC ESB WBE PAVING Caucasian (White) $102,758 Iron Horse Excavation, LLC DBE WBE BORING Caucasian (White) $247,501 Miller Factors, LLC WBE LANDSCAPING Caucasian (White) $105,485 Total $797,698 Westech acting as the prime contractor intends to self-perform 45.39% of the work and to subcontract 37.60% to the following non-certified firm: Subcontractor Area of Work Amount Roger Langeliers Construction Co. CONCRETE $1,762,855 Total $1,762,855 Westech Construction, Inc is located in Portland, 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. The Portland Bureau of Transportation has funds budgeted in FY 22/23 and proposed FY 23/24 for construction, inspection and management of the project. 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 Westech Construction, Inc. Recommended by: Biko Taylor Chief Procurement Officer BT: veh

Tally

5 yea 0 nay