Accept bid of $3,073,190 from Kodiak Pacific Construction Co. for the NE 97th Ave and NE Couch/Davis Area Improvements Phase 1 Local Improvement District Project (Procurement Report - ITB 00002310; C-10067, C-10068)

TO THE COUNCIL: On April 24, 2019, Council approved Ordinance Number 189472 for Procurement Services to competitively solicit the NE 97th Avenue Phase II Local Improvement District Project in accordance with PCC 5.34. On December 18, 2019, Council approved Ordinance Number 189811 for Procurement Services to competitively solicit the NE Couch – Davis Streets Local Improvement District Project in accordance with PCC 5.34. The Chief Procurement Officer has advertised and received bids for Bid Number 00002310 on behalf the Portland Bureau of Transportation (PBOT), with a project construction estimate of $4,454,059. PBOT rated the project estimate confidence level as low. Bids were opened on April 30, 2024, and three (3) 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 $3,073,190 which is 31% 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. Kodiak Pacific Construction Co. has committed to subcontract 20.08% to COBID Certified firms as follows: Subcontractor Certification Area of Work Ownership Amount Andersons Erosion Control Inc. DWBE Landscaping Caucasian/Female $70,990 CBK Constructors, LLC DWBE Highway, Street, and Bridge Construction Caucasian/Female $13,700 Egami Construction Inc. DMWBE Traffic Sign Installation and Removal Asian Pacific/Female $85,525 Fritz Cutting and Coring ESB Site Work Caucasian/Male $7,746 Heffner Paving, LLC WBE/ESB Highway, road, street, and sidewalk Caucasian/Female $197,968 Imn Traffic Specialties LLC DMWBE/ESB Flagging and Traffic Control African American/Female $64,500 Wedo Enterprises Inc. ESB Dump Trucking Caucasian/Male $176,646 Total $617,075 Kodiak Pacific Construction Co. acting as the prime contractor intends to self-perform 27.31% of the work and to subcontract 52.61% to the following non-certified firms: Subcontractor Area of Work Amount LaRusso Concrete Inc. Concrete $506,874 Prairie Electric Electrical $770,133 Hicks Striping Pavement Markings $90,705 Duke Excavation Sumps $71,118 Willamette Fence Co. Fencing $17,550 Total $1,456,380 Kodiak Pacific Construction Co. is located in Sherwood Oregon, and is a State COBID Certified WBE Contractor. They have a current City of Portland Business Tax Registration and are in full compliance with all of the City’s contracting requirements. This project is part of the Portland Bureau of Transportation Capital Improvement Program, which is funded through FY2024-25. 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: Kathleen Brenes-Morúa, NIGP-CPP, CPPO, DBIA™, ARM Interim Chief Procurement Officer kbm: rab