July 20, 2004

SUBJECT: Rejection of Only Bid Received in Response to Invitation for Bids No. F0304-69 for the Construction of a Bicycle and Pedestrian Trail on Calabazas Creek

Request is made that Council reject the only bid received in response to Invitation for Bids No. F0304-69 for the construction of a bicycle and pedestrian trail on Calabazas Creek between US Highway 101 and Route 237 for the Department of Public Works Engineering Division (Public Works Project No. TR-00/06-03).

The Calabazas Creek Trail Project provides a bicycle and pedestrian trail on Calabazas Creek from US Highway 101 to Route 237 which connects to the John W. Christian Greenbelt at Fairwood Park. A portion of the trail crosses lands owned by the City of San Francisco and administered by the San Francisco Public Utilities Commission. Project funding is predominately Federal and Transportation Development Act grant funds supplemented by local matching funds.

The project includes construction of approximately one mile of asphalt concrete pathway and placement of a 125' prefabricated steel bridge, including foundation and approach structures, over the creek bed.

Bid specifications were prepared by Public Works and Purchasing staff. The Notice Inviting Bids was published in The Sun on May 12, 2004. The bid package was distributed to Bay Area Builders Exchanges and broadcast to potential contractors through the DemandStar by Onvia public procurement network. Nineteen contractors requested bid documents.

Sealed bids were publicly opened on June 9, 2004. One responsive bid was received, as follows:

The bid from R. M. Harris exceeds the available budget for the project.

Public Works staff, concerned about the lack of competitive bids on this project, contacted several contractors who purchased plans but did not bid on the project. In response to staff inquiries, all of the contractors contacted indicated that they were too busy to bid at this time but would respond if bids were solicited again next year. The bid invitation was released late in the construction season due to delays in the issuance of the San Francisco Public Utilities Commission permit. As confirmed by their comments, many contractors had already scheduled summer work; and as the result, only one bid was received.

Staff recommends rejecting the bid from R. M. Harris Company and rebidding the project in the spring of 2005.

There will be no immediate fiscal impact from rejecting the bid from R. M. Harris Company. The fiscal impact of rebidding the project is difficult to predict. Although staff anticipates that the cost of materials, especially steel, will increase, but it is anticipated that the potential increase in material costs will be offset by a more competitive bidding climate. Grant funding deadlines can still be met in spite of the recommended delay.

It is recommended that Council reject the bid from R. M. Harris Company which was submitted in response to Invitation for Bids No. F0304-69 for the construction of the Calabazas Creek Trail Project and direct staff to rebid the project in Spring 2005.

Prepared by:

Elaine Wesely
Purchasing Officer

Reviewed by:

Mary J. Bradley
Director, Finance

Reviewed by:

Marvin Rose
Director, Public Works

Approved by:

Amy Chan
City Manager