Accept bid of Landis & Landis Construction, LLC for the Stark and Buckman East Reconstruction and Green Streets Project for $25,873,710 (Procurement Report - Bid No. 00001864)

Authorize the Chief Procurement Officer to execute a construction contract for the Stark and Buckman East Reconstruction and Green Streets (HSS-17) to Landis & Landis Construction, LLC. The construction cost based on bids received is $25,873,710. This project is part of the Bureau of Environmental Services (BES), Maintenance and Reliability Sewer Program and Neighborhood to the River Program (NTR). The Maintenance and Reliability program aims to rehabilitate or replace severely deteriorated sewer pipes, manholes, service laterals, and inlet pipes throughout the City’s sewer system and restore service life as economically and efficiently as possible. The NTR program goals are to relieve undersized sewer pipes from surcharging and filling basements and to treat some of the storm water with Green Infrastructure methods, while avoiding having to replace sewers which are not yet deteriorated. During this project, approximately 23,077 feet of deteriorated or undersized sewer pipes will be rehabilitated or replaced, and 71 vegetated stormwater facilities will be built. The Stark and Buckman East Reconstruction and Green Streets (HSS-17) involves the construction of combination sewer and street improvements including water quality facility basins, and potable water main, water service, and hydrant work, between SE Hawthorne St and NE Everett St., from SE 14th Ave to SE 32th Ave. Ordinance No. 190286 was approved by City Council on February 3, 2022 authorizing the Chief Procurement Officer to issue a competitive solicitation for the Stark and Buckman East Reconstruction and Green Streets (HSS-17) on behalf of BES. No revenues will be impacted by this legislation nor does it change existing City policy.

Based on bids received, BES anticipates the construction contract cost to be $25,873,710. The estimated construction cost was $23,837,000 and the confidence level was High. BES assigned that rating given the stage of the project at that time (~90% design). Per Resolution 36430, a “high” confidence project rating allows for total project contingencies (including project management, design, engineering, plus construction) range between 20%-30%. BES conducted a bid analysis and determined that the bid from Landis & Landis Construction shows a bid amount of $25,873,710, which is approximately 8.5% above the estimated construction cost of $23,837,000 and is the apparent low bid. Three (3) bids were received for this project. The prices submitted by Landis & Landis Construction for the mobilization, stormwater facilities, manholes, water pipes, sanitary and storm pipes, and resurfacing are higher than those from the engineer’s estimate (bid items 1, 36, 39, 40, 43, 45, 48, 67, 93, 102, 130). These items all had a difference from the engineer’s estimate of at least $198,616. The mobilization, stormwater facilities, manholes, water pipes, sanitary and storm pipes, and resurfacing account (11 bid items) which accounted for $4,167,509 of the $6,033,667 cost difference between the engineer’s estimate and the projected contract. This is a result of the current shortage of raw materials increasing the material cost and lead times, labor shortages increasing labor costs, and other economic hardships due to multiple ongoing global events. The prices submitted by Landis & Landis Construction for trench backfill and removal of surfacing are lower than those from the engineer’s estimate (bid items 27, 15). Uncertainty of future prices has also influenced bid prices, and contractors must lock in prices for the next three years. Additionally, most of the additional costs are material costs and material prices have increased dramatically in the last two years. Funds are available in the Bureau of Environmental Services FY 2021-22 Operating Fund Budget under WBS Element E10216.C60. 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 on April 13, 2022. Potential bidders were able to review the competitive solicitation, attend a pre-bid meeting, 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. No protests were received. No known persons or groups will be testifying. No future public involvement is anticipated or necessary for this request.