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REJECT BIDS FOR THE TRANSPORTATION MANAGEMENT CENTER EQUIPMENT UPGRADE PROJECT
recommended action
RECOMMENDATION
It is recommended that the City Council approve a motion to reject all bids received for the Transportation Management Center Equipment Upgrade, Project No. WT21010/Federal Project No. CML-5008(191), pursuant to Stockton Municipal Code section 3.68.160(B).
It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this motion.
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Summary
The Transportation Management Center (TMC) Equipment Upgrade project is funded by the Federal Highway Administration’s Congestion Mitigation and Air Quality (CMAQ) Program grant funds. The TMC Equipment Upgrade project will construct a new TMC and include upgrades to the central servers, local traffic signal controllers, closed-circuit television cameras, communication equipment, and new fiber optic network cabling (Attachment A - Vicinity Map). The project was included in the 2021-26 Five-Year Capital Improvement Plan (CIP).
On November 2, 2023, the City received three bids for this project. However, all bidders failed to submit complete Disadvantaged Business Enterprise (DBE) information due to an error in the assembled bidding documentation. After consulting with Caltrans (funding administrator) and the City Attorney’s Office, it was deemed that all bidders were non-responsive. Pursuant to Stockton Municipal Code (SMC) section 3.68.160(B), staff recommends Council approve a motion to reject all bids received.
The project will be re-advertised in spring of 2024.
DISCUSSION
Background
The TMC Equipment Upgrade project is funded by the Federal Highway Administration’s CMAQ Program grant funds. The project will construct a new TMC in the Public Works Department at new City Hall. The project will also upgrade the existing traffic management system which includes the upgrades to central servers, local traffic signal controllers, closed-circuit television cameras, communication equipment citywide, and installation of new fiber optic network cabling to support the new TMC (Attachment A). The TMC will allow engineers to remotely manage and/or monitor the traffic signal system when needed in real time. The benefits gained from the system are remote, real time diagnostics and troubleshooting, better maintenance response, and enhanced vehicle progression (reduced driver delays), which helps air quality and creates a better driving experience for the citizens.
The TMC Equipment Upgrade, Project No. WT21010/Federal Project No. CML-5008(191), was included in the 2021-26 Five-Year CIP. The project was approved for CMAQ funding in the amount of $3,906,000 and local share in the amount of $150,000 for an estimated total project cost of $4,056,000. The approved funding for construction is $3,756,000.
Since the project is funded with federal transportation dollars, DBE program rules apply. DBE rules require that the prime contractor either meet a calculated project-specific DBE participation goal or undertake and document good faith efforts to do so. If the apparent low bidder does not meet the project goal, a Good Faith Efforts Evaluation must be made examining several specific factors. Failure to meet the goal or provide evidence of adequate good faith efforts are grounds for rejecting the bidder as non-responsive.
A DBE is a socially and economically disadvantaged small business owned by a woman or by a specified ethnic group that has been properly certified by Caltrans. These groups include:
• African American
• Asian Pacific American
• Native American
• Women
• Hispanic American
• Subcontinent Asian American
Per Caltrans Local Assistance Produces Manual, a DBE goal of 21 percent was established for this project. The goal was calculated by examining the breakdown of the types of work to be performed, and the availability of certified DBE companies in our market area to perform the work. A pre-bid meeting was held on October 11, 2023, to emphasize the DBE requirements, and to provide information on how to meet the project DBE goal.
Present Situation
On September 21, 2023, the TMC Equipment Upgrade, Project No. WT21010/Federal Project No. CML-5008(191), was advertised for bids. On November 2, 2023, three bids were received with the following results:
COMPANY NAME BID AMOUNT
Econolite System, Inc. (Fremont, CA) $3,125,495.25
St. Francis Electric, LLC (San Leandro, CA) $5,020,740.00
Tennyson Electric, LLC (Livermore, CA) $5,487,750.00
Engineer's Estimate $3,411,818.00
Econolite System, Inc. of Fremont, CA, submitted the lowest bid in the amount of $3,125,495.25, which is below the engineer’s estimate. However, all bidders failed to submit complete DBE information due to an error in the assembled bidding documentation. After consulting with Caltrans (funding administrator) and the City Attorney’s Office, it was deemed that all bidders were non-responsive.
SMC section 3.68.160(B) provides that Council shall award a contract to the lowest and best regular responsible bidder or reject all bids. Staff recommends Council approve a motion to reject all bids received. The project will be re-advertised at a later date.
FINANCIAL SUMMARY
The current unencumbered balance for the TMC Equipment Upgrade, Project No. WT21010/Federal Project No. CML-5008(191), is $3,686,581.63 for construction, contingencies, and salaries.
There is no impact to the City’s General Fund or any other unrestricted fund as a result of taking the recommended action.
Attachment A - Vicinity Map