Accept bid of Rio Underground Construction, LLC for the SE 19th Ave and SE Lambert St Water Mains Project for $2,553,920 (Procurement Report - ITB No. 00001811)

March 30, 2022 TO THE COUNCIL: On September 22, 2021, Council approved Ordinance Number 190561 for Procurement Services to competitively solicit the SE 19th Ave. and SE Lambert St. Water Mains Project (Project) in accordance with PCC 5.34. The Chief Procurement Officer has advertised and received bids for Bid Number 00001811 on behalf of the Portland Water Bureau, with a project construction estimate of $2,600,000. The Portland Water Bureau rated the project estimate confidence level as High. Bids were opened on March 01, 2022, and four (4) bids were received. The lowest responsive bid is from Rio Underground Construction, LLC., thus it is recommended that their bid be accepted at the estimated unit prices quoted for a total bid amount of $2,553,920, which is 1.7% 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. Rio Underground Construction, LLC. has committed to subcontract 20.87% to COBID Certified firms as follows: Subcontractor Certification Area of Work Ownership Amount Brothers Concrete Cutting, Inc. MBE Saw Cutting Native American/Male $20,000 Chick of All Trades, LLC. DMWBE Flagging Hispanic/Female $25,000 JNM Services, LLC WBE Traffic Control Caucasian/Female $25,000 JTWA Trucking, LLC. MBE Trucking African America/Male $50,000 Kodiak Pacific Construction Co. WBE Asphalt/Paving Caucasian/Female $281,400 LCP, LLC. DWBE Erosion Control Caucasian/Female $31,597 TTE, Inc. ESB Concrete Caucasian/Male $100,000 Total $532,997 Rio Underground Construction, LLC. acting as the prime contractor intends to self-perform 79.13% of the work. Rio Underground Construction, LLC. is located in Beaverton, 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. Funding for the Project (W02464), with budgeted continency, is available in the FY 2021-22 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 5.34.410D of the City Code. Procurement Services recommends that Council accept this Report and authorize the contract award to Rio Underground Construction, LLC. Recommended by: Biko Taylor Chief Procurement Officer BT: EA