THE PORT OF LOS ANGELES

Executive Director's

Report to the

Board of Harbor Commissioners

DATE: JANUARY 14,2010

FROM: CONSTRUCTION DIVISION

SUBJECT: RESOLUTION NO. - AWARD OF CONSTRUCTION CONTRACT CONTRACTOR: SIALIC CONTRACTORS CORPORATION DBASHAWNAN HARRY BRIDGES BOULEVARD VOLUNTARY IMPROVEMENTS PROJECT - FEDERAL PROJECT NO. FTIP LA 960176 SPECIFICATION NO. 2711

SUMMARY:

This contract will improve a 1.2 mile segment of Harry Bridges Boulevard in the City of Los Angeles' Wilmington community. The lowest responsive and responsible bidder is Sialic Contractors Corporation dba Shawnan (Shawnan) located in Downey, California. The contract amount plus a 5% contingency is $18,601,128, and the contract duration is 630 calendar days. This project is federally funded under the American Recovery and Reinvestment Act (ARRA) of 2009, through the State of California Department of Transportation (Caltrans) . A bid protest was received from the third lowest bidder, which was investigated by staff and found to be a waivable informality, and therefore is rejected.

RECOMMENDATION:

It is recommended that the Board of Harbor Commissioners (Board):

1. Adopt Resolution No. to award the referenced contract for Item Nos. 1 through 77 of the proposal schedule to Shawnan in the amount of $17,715,360; that the 5% contingency not included in the original contract amount be applied for a total of $18,601,128; and authorize payment from the Construction Account. The contract time for performance of the work will be 630 calendar days from the Notice to Proceed;

2. Authorize the Executive Director to execute and the Board Secretary to attest to this contract for and on behalf of the Board; and

3. In accordance with City Charter 655 (g), delegate and authorize the Executive Director to adjust final bid quantities and accept the construction contract upon its completion.

DATE: JAN UARY 14, 2010 PAGE 2 OF 6

SUBJECT: FEDERAL PROJECT NO. FTIP LA 960176

DISCUSSION:

Previous Board Actions - The Board certified the Harry Bridges Boulevard Voluntary Improvements under the Berth 136-147 (TraPac) Container Terminal Project Environmental Impact Report (EIR) on December 6, 2007.

Project Description - This project consists of street improvements along Harry Bridges Boulevard from Lakme Avenue to Figueroa Street including, but not limited to, site demolition and removals, grading, utility relocations, and construction of concrete walks, concrete and asphalt concrete paving, concrete curbs and gutters, driveways, traffic signals, fire hydrants, street lighting, storm drainage, signage, pavement markings and striping, landscaping, irrigation, and fiber optic infrastructure.

Harry Bridges Boulevard, which is part of the National Highway System, connects John S. Gibson Boulevard with Alameda Street, and is the main truck route from San Pedro and Wilmington to State Route 47. Although the project will widen Harry Bridges Boulevard, the street will remain a two-lane highway in each direction with the capacity to increase to three lanes in each direction to accommodate future traffic demand.

Construction Award Process - City of Los Angeles Charter Section 371, Subdivision (a) - Competitive Bidding, sets forth the procedure staff followed to award this contract. For construction contracts such as this one, the Harbor Department publishes the Notice Inviting Bids in daily newspapers and trade publications circulated in the City of Los Angeles, as well as on the Port of Los Angeles website. The Harbor Department conducts a pre-bid conference and job walk to familiarize the prospective bidders with the jobsite and to answer questions related to the construction contract. Following submittal to the Harbor Department, the bids are publicly opened and the lowest apparent bidder is declared. Bid documents, Disadvantaged Business Enterprisel Underutilized Disadvantaged Business Enterprise (DBE/UDBE) participation, and other required documents are reviewed for compliance with Harbor Department and Federal funding requirements. Once all information is verified and the lowest bidder is deemed responsive, recommendation for award of the construction contract is made.

The Notice Inviting Bids concerning Specification No. 2711 was advertised on September 23, 2009, on the Port of Los Angeles website, and in the Los Angeles Times, L. A Watts Times, Dodge Construction "Green Sheet", Hoy, and Metropolitan News Company.

DATE: JANUARY 14,2010 PAGE 3 OF 6

SUBJECT: FEDERAL PROJECT NO. FTIP LA 960176

As authorized by the Executive Director on June 17, 2009, the Chief Harbor Engineer received eight (8) bids for the subject contract on December 17, 2009. The Analysis of Bids (Transmittal No. 1) lists the companies that submitted bids and their respective bid amounts. The bids received were opened and Shawnan was declared the apparent lowest responsive bidder. Staff's analysis of the bids following the bid opening indicated that Shawnan was the lowest responsive bidder at $17,715,360. Staff recommends addition of a 5% contingency based on a qualitative review of project specific risks, including schedule constraints and potential unforeseen conditions that may arise during construction resulting in a total contract amount of $18,601,128.

Construction staff has verified Shawnan's state license and project references. In conformance with Section 10.8.4 of Ordinance No. 143429, certification is hereby made that Shawnan has executed and filed an Affirmative Action Plan with their bid. A notification letter has been sent to the City Office of Contract Compliance as required in the ordinance. This contract is consistent with State of California Prevailing Wage provisions and the Federal Wage requirements. If there is a difference between minimum wage rates predetermined by the Secretary of Labor and the general prevailing wage rates determined by the Director of the California Department of Industrial Relations for similar classifications of labor, the Contractor and subcontractors shall pay not less than the higher wage rate.

Since the project is federally funded, the Disadvantaged Business Enterprise (DBE) and Underutilized Disadvantage Business Enterprise (UDBE) Program will replace the Small Business Development program. A DBE is a small business that is 51 % owned by one or more socially and economically disadvantaged individuals, is responsible for the day­to-day activities of this business, and meets standards set forth by Section 8(a) of the Small Business Act. These groups include: Women, Black Americans, Hispanic Americans, Asian Americans, Subcontinent Asian Americans, and Native Americans. A UDBE is a firm meeting the definition of a DBE as specified under 49 Code of Federal Regulations (CFR) and includes all groups listed under DBE with the exception of Asian Americans and Hispanic Americans. The DBE/UDBE Program will be used to ensure full and equitable participation by disadvantaged business enterprises. Shawnan has provided the required documents regarding the DBE/UDBE Program and has exceeded the Harbor Department's participation level of 11.1 % for DBE and 7.5% for UDBE. Shawnan's DBE and UDBE participation levels are 11.32% (Transmittal No. 2) .

Bid Protest - In a letter dated December 21, 2009, FTR International (FTR) , the third lowest bidder, submitted a bid protest requesting that the Harbor Department deem Shawnan's bid non-responsive (Transmittal No.3). In their letter, FTR claims that Shawnan's bid was non-responsive because Shawnan listed Team Fishel , an

DATE: JANUARY 14, 2010 PAGE 4 OF 6

SUBJECT: FEDERAL PROJECT NO. FTIP LA 960176

unlicensed subcontractor, to perform high voltage electrical work; listed multiple subcontractors to perform work in the electrical trade; and does not meet the DBE and UDBE goals since their UDBE subcontractor's scope is undefined.

Staff reviewed the protest, further analyzed the bid documents considering the protest, and consulted with Shawnan. Shawnan provided a written response to the protest and provided documentation substantiating Team Fishel 's contractor's license. Team Fishel is licensed to work in California, under the name The Fishel Company, and was listed to perform dry utilities work only. The contract does not include high voltage electrical work. High voltage electrical work will be performed by the Department of Water and Power. Shawnan's bid clearly lists and defines the type of work each subcontractor will perform. V. T. Electric, a UDBE, will perform all the electrical work required by the contract documents for the project. Therefore, Shawnan meets the DBE/UDBE goals.

FTR also raised a discrepancy between the total amount for Bid Item Nos. 55, 56 and 61, and the value of work to be completed by Team Fishel according to the bidding documents. Since Team Fishel will only perform dry utilities work, other work included in Bid Item Nos. 55, 56 and 61 will be completed by Shawnan.

In addition, the Specification does not require the subcontracting amount to be of the same value as the bid item(s) for that type of work to be performed.

Staff also consulted the City Attorney's Office regarding the bid protest and has concluded that the matters raised in the protest were deemed to be waivable informalities under Section 371(c) of the Charter, and, therefore, Shawnan's bid is responsive. A letter rejecting the protest has been issued to FTR (Transmittal No.3), which discussed staff's findings, and provides the date and time of the Board meeting at which the recommendation for award will be made.

ENVIRONMENTAL ASSESSMENT:

The proposed action is a Contract between the City of Los Angeles Harbor Department and Shawnan to construct street improvements along Harry Bridges Boulevard from Lakme Avenue to Figueroa Street. The construction was assessed in the Berths 136­137 (TraPac) Container Terminal Project Environmental Impact Report (EIR), which was certified and approved by the Board on December 6, 2007. As such, the Director of Environmental Management has determined that the project is exempt from the requirements of the California Environmental Quality Act (CEQA) in accordance with Article II, Section 2 (i) (previously assessed) of the Los Angeles City CEQA Guidelines.

DATE: JANUARY 14,2010 PAGE 5 OF 6

SUB..IECT: FEDERAL PROJECT NO. FTIP LA 960176

FINANCIAL IMPACT:

This project has received approval to receive $21 ,500,000 in federal funding under the ARRA 2009 fund . Approval of the proposed contract would commit the Harbor Department to expending $2,215,360 during the current FY 2009/2010 for the construction services discussed herein.

It is anticipated that the funds for this contract will be expended as follows:

Fiscal Year 2009/2010: $ 2,215,360 Fiscal Year 2010/2011: $ 13,000,000 Fiscal Year 2011/2012 : $ 3,385,768 Total $ 18,601,128

Funds in the amount of $2,215,360, for the current fiscal year, have been budgeted in the Capital Improvement Program Budget, Account No. 54510, Center No. 1 099, and Program No. 502. Upon Board approval, funds for future fiscal years will be requested to be budgeted as part of the annual budget process.

Although the Contractor, Shawnan, is not obligated to perform any work under the contract in any fiscal year in which no appropriation for the contract has been made, the Contractor agrees to resume performance of the work required by the contract on the same terms and conditions for a period of 60 days after the end of the fiscal year if an appropriation therefore is approved within that 60-day period. The Contractor is responsible for maintaining all insurance and bonds during this 60-day period. The time for performance shall be extended during this period until the appropriation is made; however, such extension of time is not compensable. If in any subsequent fiscal year funds are not appropriated for work required by the contract, the contract shall be terminated. However, such termination shall not relieve the parties of liability for any obligation previously incurred.

Ongoing maintenance costs associated with the project discussed herein will be borne by the Harbor Department and is expected to be $90,000 per year.

ECONOMIC BENEFITS:

Spending the amount of $18,601 ,128 under this contract will result in approximately 166 direct and 122 secondary (indirect and induced) one-year equivalent job impacts for our five-county region.

DATE: JANUARY 14, 2010 PAGE 6 OF 6

SUBJECT: FEDERAL PROJECT NO. FTIP LA 960176

CITY ATTORNEY:

The Office of the City Attorney reviewed and approved Specification No. 2711 "As to Form" on August 4,2009.

TRANSMITTALS:

1 . Analysis of Bids 2. Contractor and Subcontractor List 3. Bid Protest Letter from FTR International & Harbor Department Letter Rejecting

the Bid protest from FTR International 4. Vicinity Map and Project Site

Chief Harbor Engineer Construction Division

DINE KNATZ, Ph.D.

~ (initials)

Exec tive Director

Author: LWalsh/bellh 2711801