Accept bid of MJ Hughes Construction, Inc. for the NW Cornell Tunnel Rehabilitation Project for $2,773,237 (Procurement Report - Bid No. 00001605)

June 02, 2021 TO THE COUNCIL: On June 17, 2020 , Council approved Authorizing Ordinance No.190007 for Procurement Services to competitively solicit the NW Cornell Tunnel Rehabilitation Project in accordance with PCC 5.34. The Chief Procurement Officer has advertised and received bids for Bid Number 00001605 on behalf of Portland Bureau of Transportation (PBOT) , with a project construction estimate of $ 3,180,000 . PBOT rated the project estimate confidence level as Moderate . Bids were opened on April 08, 2021 , and four (4) bids were received. The lowest responsive bid is from MJ Hughes Construction, Inc. , thus it is recommended that their bid be accepted at the estimated unit prices quoted for a total bid amount of $ 2,773,237 , which is 12.79 % 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. MJ Hughes Construction, Inc. has committed to subcontract 25.99% to COBID Certified firms as follows: Subcontractor Certification Area of work Ownership Amount A&D Flagging, LLC. DMWESB Flagging Black/Female $500 Affordable Electric, Inc. DMBE Electrical Lighting Black/Male $710,143 Egami Construction, Inc. DMWESB Permanent Signage Asian Pacific/Female $7,750 Northwest Geotechnical Consultant, Inc. DMBE Material Testing Hispanic/Male $2,500 Total $720,893 MJ Hughes Construction, Inc. acting as the prime contractor intends to self-perform 35 .25% of the work and to subcontract 38.76% to the following non-certified firm: Subcontractor Area of work Amount DSE & Associates, Inc. Survey $1,200 Pacific Foundation, Inc. Grouting Holes $58,587 Pacific Northern Environmental Corp. Demolition $290,000 Superior Gunite Co. Shortcrete $725,000 Total $1,074,787 MJ Hughes Construction, Inc. is located in Vancouver , Washington , 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 Bureau of Transportation has funds budgeted in FY 19/20 and 20/21 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 Chief Procurement Officer to execute the contract with MJ Hughes Construction, Inc. . Recommended by: Kathleen Brenes-Morua Interim Chief Procurement Officer KBM: ec