Accept bid of Kodiak Pacific Construction Co. for Errol Heights Street and Storm Drainage Improvements Project for $5,991,000 (Procurement Report - ITB No. 00001843)

TO THE COUNCIL: On February 23, 2022, Council approved Ordinance Number 190716 for Procurement Services to competitively solicit the Errol Heights Street and Storm Drainage Improvements Project in accordance with PCC 5.34. The Chief Procurement Officer has advertised and received bids for Bid Number 00001843 on behalf the Portland Bureau of Transportation (PBOT), with a project construction estimate of $6,591,448. PBOT rated the project estimate confidence level as High. Bids were opened on April 4, 2022, and four (4) bids were received. The lowest responsive bid is from Kodiak Pacific Construction Co., thus it is recommended that their bid be accepted at the estimated unit prices quoted for a total bid amount of $5,991,000 which is 9% below 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. Kodiak Pacific Construction Co. has committed to subcontract 23.49% to COBID Certified firms as follows: Subcontractor Certification Area of Work Ownership Amount C & C Flagging LLC D/M/W/ESB Flagging African American/Female $12,480 Faison Construction Inc D/MBE Concrete African American/Male $1,176,500 CBK Constructors, LLC D/WBE Metal Handrail Caucasian/Female $49,987 Fox Erosion Control and Landscape, Inc. D/WBE Erosion Control and Landscaping Caucasian/Female $91,209 Harrity Tree Specialists, Inc. ESB Erosion Control Caucasian/Male $76,995 Total $1,407,171 Kodiak Pacific Construction Co. acting as the prime contractor intends to self-perform 73.1% of the work and to subcontract 3.41% to the following non-certified firms: Subcontractor Area of Work Amount Duke Construction & Excavation LLC Storm Drywell Sumps $96,776 Hicks Striping & Curbing Inc. Striping $6,650 Northstar Electrical Contractors Lighting $88,400 Scott Pipeline Video Inc Pipeline Video & Cleaning $12,430 Total $204,256 Kodiak Pacific Construction Co. is located in Sherwood, Oregon, and is a State COBID Certified WBE 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. Funds for construction of the project are programmed in the PBOT Capital Improvement Program in FY 2021-22 and 2022-23 under cost center T00526. 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 Chief Procurement Officer to execute the contract with Kodiak Pacific Construction Co. Recommended by: Biko Taylor Chief Procurement Officer BT: rab