Accept bid of $7,371,394 from Iron Horse Excavation, Inc. for the Downtown Old Town Market Madison Sewer Rehabilitation Project (Procurement Report - ITB 00002210)

Authorize the Chief Procurement Officer to execute a construction contract for Downtown Old Town Market Madison Sewer Rehabilitation Project to Iron Horse Excavation, Inc. dba Oxbow Construction. The construction cost based on bids received is $7,371,394. The Bureau of Environmental Services (BES) needs to rehabilitate 9,500-ft of deteriorated sewer pipe in the Portland Downtown Neighborhood between SW Madison, Jefferson, Columbia, Clay, and Market. Downtown Old Town (DTOT) Market Madison Sewer Rehabilitation Project is part of BES' Large Scale Sewer Rehabilitation Program within the DTOT Program. It is a multi-year and multi-million-dollar investment to assess the condition and capacity of the aging public sewer system serving Portland's Downtown and Old Town neighborhoods. Program goals are to rehabilitate or replace severely deteriorated sewer pipes, maintenance holes, and service laterals throughout the City's sewer system and restore service life as economically and efficiently as possible. Ordinances 191487 was approved by City Council on October 18, 2023, authorizing the Chief Procurement Officer to issue a competitive solicitation for the project known as Downtown Old Town Market Madison Sewer Rehabilitation Project on behalf of BES. No revenues will be impacted by this legislation. This legislation does not change existing City policy.

The engineer’s estimate for this project was $9,076,000 and the confidence level was High. Based on bids received, BES anticipates the construction contract cost to be $7,371,394, which is 18.78% under the engineer’s estimate. Funds are available in the Sewer System Operating Fund, FY 23-24 Budget, BES's FY 2023 - 2027 Capital Improvement Plan, WBS Element E11000 No present positions will be created, eliminated or re-classified as a result of this legislation.

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 November 3, 2023, including a public notice posted in the Daily Journal of Commerce. 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). Bids received resulted in the award of the construction contract. Procurement Services managed the procurement process. 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. Iron Horse Excavation, Inc. dba Oxbow Construction has committed to subcontract 20.72% to COBID Certified firms as follows: Subcontractor Certification Area of Work Ownership Amount Alvin L. Hall D/MBE Hauling Services African American/Male $40,000 Brothers Concrete Cutting, Inc. MBE Sawcutting Native American/Male $35,000 Chick of All Trades, LLC D/M/WBE Flagging Hispanic/Female $150,000 JNM Services, LLC WBE/ESB Traffic Control Caucasian/Female $600,000 Kodiak Pacific Construction Co. WBE Asphalt Paving Caucasian/Female $300,000 LCP, LLC D/WBE Rodent Control Caucasian/Female $10,000 Nuwave Concrete DBE Concrete Caucasian/Male $42,000 Sambar Construction, LLC ESB DD/REAMING/ Sewer Caucasian/Male $350,000 Total $1,527,000.00 Iron Horse Excavation, Inc. dba Oxbow Construction, acting as the prime contractor intends to self-perform 79.28% of the work and to subcontract 0% to non-certified firm. Iron Horse Excavation, Inc. dba Oxbow Construction is located in Troutdale, Oregon, and is a State COBID Certified Contractor and is a Caucasian/Female 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. No known persons or groups will be testifying. No future public involvement is anticipated or necessary for this request.