Loading...
HomeMy WebLinkAbout2010-04-13; City Council; 20196; Contract Joint First Responder Training FacilityCITY OF CARLSBAD - AGENDA BILL 17 AB# 20r196 MTG. 04/13/10 DEPT. TRAN ACCEPTING BIDS AND AWARD OF CONTRACT TO LEDCOR CONSTRUCTION INC. FOR IOIMT FIR<5T RF^POMnPR TRAINING FAPII ITYJwMN I ritxOI r\COr wINL/drx 1 rVAIINIINO rrAOILI 1 I PROJECT NO. 3686 DEPT. DIRECTOR C,>V CITY ATTORNEY ^\^ CITY MANAGER i (yL^-^ RECOMMENDED ACTION: Adopt Resolution No. 2010-083 accepting bids and award of contract to Ledcor Construction Inc., for the Joint First Responder Training Facility, Project No. 3686. ITEM EXPLANATION: The proposed Joint First Responder Training Facility (JFRTF) is located within the area encompassed by Orion Street and Orion Way near the City's police station known as the Safety Center site, and the location is shown on Exhibit 1. The JFRTF includes the following improvements: • Police and fire training grounds including car extrication area, trench rescue area, underground confined space rescue area, public art site area, perimeter security masonry wall, site lighting and landscaping with vegetated swale, prefabricated bioretention, and detention basins. • A Shooting Range/Classroom Building containing a police firing range (25 yard handgun and 100 yard rifle training), a dedicated room for firearms/judgment training simulator, offices, storage rooms, restrooms, and classroom. • Two (2) fire training burn prop buildings, each listed with a separate deductive bid item o Commercial burn prop which includes a four story training tower (Bid Alternate Item B-1) o Residential burn prop having two stories and a backyard fence (Bid Alternate Item B-2) On November 3, 2009, through the adoption of Resolution No. 2009-280, the Carlsbad City Council approved the plans and specifications and authorized the City Clerk to advertise to receive bids for the construction of the JFRTF. During the bidding process twenty two (22) contractors were pre-qualified to submit bids for the construction. On March 16, 2010, nine (9) sealed bids were received for the construction of the project, which are summarized in Table 1. The apparent lowest responsible bidder is Ledcor Construction Inc. with a total bid amount of $11,260,870. The Engineer's Estimate for this project is $14,000,000 assuming the payment of prevailing wages is not required. A letter dated March 22, 2010 from Jaynes Corporation indicated that Ledcor Construction Inc. and the second apparent low bidder Edge Development, Inc., listed subcontractors that were not licensed contractors in the State of California; and therefore, does not conform to California Law. In addition, the letter indicated that the fire training equipment did not meet specification requirements and cannot meet California Code requirements. As a result, Jaynes Corporation's letter indicated the first and second apparent low bidders should be disqualified from award based on non-responsive bids. Staff has reviewed the documentation and concludes that the subcontractors listed by Ledcor Construction Inc. is in compliance with California State law and the fire training equipment will be reviewed in the submittal process and with Section 01030 (Substitutions) for conformance requirements. (See attached letter dated March 26, 2010. DEPARTMENT CONTACT: William Plummer, (760) 602-2768, bill.plummer@carlsbadca.gov FOR CITY CLERKS USE ONLY. COUNCIL ACTION: APPROVED DENIED CONTINUED WITHDRAWN AMENDED XD D D D CONTINUED TO DATE SPECIFIC CONTINUED TO DATE UNKNOWN RETURNED TO STAFF OTHER -SEE MINUTES D D D D Page 2 In conclusion, staff has completed its review of all documents and finds that they are in order. Therefore, staff recommends that Ledcor Construction Inc. be awarded the contract. TABLE 1 SUMMARY OF BIDS FOR JOINT FIRST RESPONDER TRAINING FACILITY CONTRACTOR 1 . Ledcor Construction Inc. 2. Edge Development, Inc. 3. Jaynes Corporation 4. Erickson-Hall Construction Company 5. Solpac Construction Company 6. PW Construction Inc. 7. Roel Construction Company 8. Pro West PCM Inc. 9. T. B. Penick & Sons, Inc. CITY/STATE San Diego, CA Temecula, CA San Diego, CA Escondido, CA San Diego, CA Glendora, CA San Diego, CA Wildomar, CA San Diego, CA TOTAL BID AMOUNT From Schedule A $11,260,870* $11,562,875 $11,748,557 $12,102,300* $12,260,000 $12,511,160* $12,920,680 $13,136,891* $13,951,595 * The amount shown is a corrected amount from the contractor's bid. ENVIRONMENTAL IMPACT: A Mitigated Negative Declaration (MND) and Mitigation Monitoring and Reporting Program were prepared for the Joint First Responders Training Facility (CUP 08-15). The Notice of Intent (NOI) to adopt a MND was published in the newspaper October 8, 2008, and sent to the County Clerk's Office for a 20-day public review (October 9, 2008 - October 29, 2008). No comment letters were received during the 20-day review period. The MND was approved by the Planning Commission on November 19, 2008 in compliance with the California Environmental Quality Act (CEQA) Guidelines Section 15074. FISCAL IMPACT: The award of contract is based on the total cost for construction which was included in Schedule A of the Contractor's Proposal. However, the bid documents contained two alternative deductive bid items. The first alternative deductive bid item, No. B-1, was for the Commercial Burn Prop (four story training tower), and the second alternative deductive bid item, No. B-2, was for the residential burn prop (2-story house). With reference to the Contractor's Proposal submitted by Ledcor Construction Inc., alternative Bid Item No. B-1 had a deductive amount of $1,300,000, and alternative Bid Item No. B-2 had a deductive bid amount of $550,000. Staff is recommending that the construction bid award be based on the entire project bid amount contained in Schedule "A" because of the favorable bids received which were below the Engineer's Estimate of $14 million. Using the total construction amount for Schedule "A" from the Contractor's Proposal, a summary of the project cost is shown in Table 2. Sufficient funds are available for the completion of the project construction. The JFRTF uses $13,650,000 from the Proposition C funds and $10,850,000 in General Capital Construction funds. Using $13,650,000 in Proposition C funds leaves a balance of approximately $5,000,000 for allocation to other Proposition C eligible projects. Page 3 TABLE 2 PROJECT COST SUMMARY FOR THE DESIGN, ENVIRONMENTAL, AND CONSTRUCTION OF THE JOINT FIRST RESPONDER TRAINING FACILITY DESCRIPTION PRELIMINARY AND FINAL DESIGN, ENVIRONMENTAL, & PERMITS (completed) Preliminary Study (P&D Consulting) Feasibility, Planning, and Conceptual Studies (RRM Design) Preliminary Design, Environmental Review, and Conditional Use Permit (RRM Design) Final Design, Plans, Specifications, and Building Permit (RRM Design) Financial Review by Rosenow Spevacek Group (RSG) Public Art Component Design (Pleasant Line Corporation) Miscellaneous expenses Subtotal CONSTRUCTION Construction Contract (from Ledcor Construction Inc.) Construction Contingency Construction Management & Inspection (to be performed by Dudek) Engineering Support (to be performed by RRM Design) Post Construction Warranty Review (to be performed by RRM Design) Geotechnical Services grading and material testing (to be performed by Leighton) Public Art Component fabricate and install (to be performed by Pleasant Line Corp.) City Staff Subtotal MISCELLANEOUS CMWD & SDCWA Water Capacity Fees based on 2-2" meters, budget amount Recycled Water Capacity Fee based on 1-2" turbo meter, budget amount Sewer Capacity Fee based on 4 EDU's, budget amount Sewer Benefit Area "G" Fee based on 4 EDU's, budget amount Pre-Opening Expense, budget amount Furnishings, Fixtures and Equipment (FF&E), budget amount Miscellaneous Items, Dry Utilities, budget amount Subtotal TOTAL PROJECT COST CURRENT APPROPRIATION ADDITIONAL APPROPRIATION REQUIRED ESTIMATED COSTS $41,000 170,000 528,000 1,012,000 34,000 27,000 10,000 $1,822,000 $11,260,870 1,100,130 853,660 449,875 28,050 54,900 153,000 99,515 $14,000,000 $98,000 31,000 5,000 3,000 50,000 330,000 161,000 $678,000 $16,500,000 $24,500,000 $-0- The current financial status of the Joint First Responder Training Facility project is shown in Table 3 below. TABLE 3 - CURRENT EXPENDITURES FOR JOINT FIRST RESPONDERS TRAINING FACILITY TASK DESCRIPTION Design Construction, Inspection, Materials Testing Studies and Reports TOTAL CURRENT YEAR APPROPRIATION $1,876,510 22,589,473 34,017 $24,500,000 CURRENT YEAR EXPENDITURES/ ENCUMBRANCES $1,607,445 153,264 34,017 $1,794,726 REMAINING BALANCES $269,065 22,436,209 0 $22,705,274 Page 4 From the October 21, 2009 report prepared by RSG, the preliminary estimated annual maintenance and operating budget for the JFRTF, assuming City use of the facility only, is shown in Table 4 below. TABLE 4 - OPERATION AND MAINTENANCE BUDGET FOR JOINT FIRST RESPONDER TRAINING FACILITY DESCRIPTION Police Shooting Range Fire Burn Props Public Works Maintenance & Operations Salary and Benefits Costs Operating Costs currently budgeted Training Cost Savings TOTAL NET NEW ANNUAL ESTIMATED M&O BUDGET Annual Estimated Replacement Cost TOTAL NET NEW ANNUAL ESTIMATED BUDGET ESTIMATED COST $158,000 65,000 58,000 110,000 (131,000) (206,000) $54,000 (a) 270,000 (b) $324,000 (c) (a) The Net New Annual Estimated M&O Budget amount of $54,000 represents the net increase to the City's General Fund Operating Budget in order to operate and maintain the Joint First Responders Training Facility when taking into account all the currently budgeted appropriations savings that could be used for the Joint First Responder Training Facility, assuming that the facility is only used by City staff. (b) Annual Estimated Replacement Cost represents a conservative annual amount that would be transferred into the Infrastructure Replacement Fund for the replacement of the Joint First Responder Training Facility at the end of its useful life. The Finance Department will be analyzing the Infrastructure Replacement Fund to determine if the annual contribution to the Infrastructure Replacement Fund will need to be adjusted to accommodate the inclusion of the Joint First Responder Training Facility into the transfer calculation. (c) The Total Net New Annual Estimated Budget of $324,000 represents the estimated net increase to the City's General Fund Operating Budget if the annual Infrastructure Replacement Fund transfer needs to be increased by $270,000. This does not reflect any potential revenue that could be generated by charging a fee to outside agencies. For more information on the Joint First Responder Training Facility revenue generation, see the October 21, 2009 Feasibility study prepared by RSG on file with City Clerk. EXHIBITS: 1. Location Map. 2. Resolution No. 2010-083 accepting bids and award of contract to Ledcor Construction, Inc., for the Joint First Responder Training Facility, Project No. 3686. 3. Letter from Jaynes Corporation dated March 22, 2010 4. Letter from City of Carlsbad dated March 26, 2010 5. Letter from Procopio dated March 24, 2010 LOCATION MAP CITY OF OCEANSWE VICINITY MAP NOT TOSCALE NOT TO SCALE SITE. PACIFIC OCEAN PROJECT NAME JOINT FIRST RESPONDER TRAINING FACILITY PROJECT NUMBER 3686 EXHIBIT 1 DKAm BY: SCOTT EVANS. CARLSBAD ENGINEERING DEPT. 8/18/09 C:\CAPITAL\PWUUER\X86.DWG RESOLUTION NO. 2010-083 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, ACCEPTING BIDS AND AWARD OF CONTRACT TO LEDCOR CONSTRUCTION INC., FOR JOINT 1 2 3 FIRST RESPONDER TRAINING FACILITY. PROJECT NO. 3686 4 WHEREAS, the City Council of the City of Carlsbad, California, desires to construct the 5 Joint First Responder Training Facility, Project No. 3686; and 6 WHEREAS, the plans and specifications for furnishing of all labor, materials, tools, 7 equipment, transportation, and other expenses necessary or incidental to the Joint First 8 Responder Training Facility, Project No. 3686 have been prepared and are on file in the City 9 Clerk's Office of the City of Carlsbad and are incorporated herein by reference; and 10 WHEREAS, payment of prevailing wages will not be required as part of the construction 11 contract; and 12 WHEREAS, Public Contract Code ("PCC") §20101 authorizes cities to pre-qualify 13 contractors who wish to bid on public works contracts, and 22 contractors were pre-qualified to 14 submit bids based on criteria approved by the City Council; and 15 WHEREAS, nine (9) sealed bids were received on March 16, 2010, by the City of Carlsbad 16 for the construction of said project; and 17 WHEREAS, the lowest responsive and responsible bid to construct said project was 18 submitted by Ledcor Construction Inc. in the amount of $11,260,870; and 19 WHEREAS, funding for said project has been appropriated from Proposition C funds and in 20 the Unreserved Undesignated General Fund in the 2009/2010 Capital Improvement Program in 21 the amount of $24,500,000 to cover all project costs and is sufficient; and 22 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, 23 California, as follows: 24 1. That the above recitations are true and correct. 25 26 27 28 1 2 3 4 5 6 7 8 9 2. That the bid in the amount of $11,260,870 submitted by Ledcor Construction Inc., for the construction of the Joint First Responder Training Facility, Project No. 3686, is accepted and the Mayor is hereby authorized to execute a contract with Ledcor Construction Inc. 3. The City Manager is hereby authorized to approve construction change orders up to $1,100,130. 4. That the award of this contract is contingent upon the bidder submitting the lowest responsible bid executing the required contract and submitting the required bonds and insurance policies, as described in the contract, within twenty (20) days of adoption of this resolution. The City Manager may grant reasonable extensions of time. 10 '" 11 '" 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 13th day of April, 2010, by the following vote to wit: AYES: Council Members Lewis,Kulchin, Hall and Blackburn. NOES: Packard. ABSENT: None. MIDE A. LEWIS, Mayor ATTEST: LORRWE M. fSEAL City CleTk M March 22,2010 Mr. Kevin Davis, Sr. Contract Administrator Public Works - Contract Administration City of Carlsbad 1635 Faraday Avenue Carlsbad, CA 92008 Re: Joint First Responder Bid No. PWS10-31-UTIL, March 16,2010 Subject Review of Apparent Low Bids Dear Mr. Davis, After reviewing copies of bid form subcontractor lists submitted by Ledcor Construction and Edge Development we believe there are significant errors in both bid submissions. Ledcor listed the following subcontractors which to our knowledge have no license to contract in California: Range Systems, New Hope, MN, for Shooting Range, Pro Safe Training, Ontario, Canada for fire trainers, and Sierra, Henderson, NV, for plastic wall panels. Edge listed the following subcontractors which to our knowledge have no license to contract in California: Range Systems, New Hope, MN, for Shooting Range, Action Target, Provo, Utah, for target systems, and Pro Safe Training, Ontario, Canada for fire trainers. Our understanding is that listing unlicensed companies for installation work in California does not conform to California law and that both bids are non-responsive. There is also a question as to whether Pro Safe fire training equipment can meet the project specifications and California code requirements. Please note that our bid includes providing the equipment and supervision from Fireblast 451 with installation labor cost under the subcontractor listing threshold and being provided by qualified and licensed personnel. We respectfully request that you give due consideration to these issues prior to making any decision for award. Thank you for your time and effort regarding this matter. Sincerely, JAYNES CORPORATION of CALIFORNIA Richard Cohen Executive Vice President cc: Bill Plummer, Deputy City Engineer file JAYNES CORPORATION OF CALIFORNIA 111 Elm Street, Fourth Floor • San Diego, CA 92101 -2649 • Tel (619) 233-4080 • Fax (619) 233-4090 Ol of Carlsbad Public Works - Contract Administration 03/26/2010 Mr. Richard Cohen. Executive Vice President Jaynes Corporation of California 111 Elm Street, Fourth Floor San Diego CA 92101-2649 RESPONSE TO LETTER RE: REVIEW OF LOW BIDS FOR THE "JOINT FIRST RESPONDER TRAINING FACILITY", PROJECT NO. 3686 Thank you for your letter dated March 22, 2010, in which you express your concerns about bids the city received from Ledcor Construction and Edge Development. You stated that Ledcor and Edge listed companies in the subcontractor section of their bids who were not licensed as contractors in this state. Since Ledcor submitted the apparent low bid, I will limit discussion to that bid in this letter. After communications with an agent acting for Ledcor, the City's position is that the three companies to which you refer (Pro Safe, Range Systems and Sierra Metals) are suppliers and not subcontractors as defined by the California Public Contract Code and City bid instructions. Ledcor also states that the portions of work provided by the un-named installation subcontractors will each be less than the reporting threshold of 0.5% of the total amount of work. In your letter you state that the bid from Ledcor is non-responsive simply because they listed unlicensed companies and that this act does not conform to California law. The City finds no support for this opinion in the law. In fact, there are court decisions that clearly disagree with this position. You may wish to consult your legal counsel for more information on this topic. In response to your concern that Pro Safe fire training equipment may not meet project specifications and code requirements; the city intends to review all products used in light of applicable specifications, codes and Section 01030 (Substitutions) of the project manual. Thanks again for the opportunity to address your concerns. s CEVIN L. DAVIS Sr. Contract Administrator 0 1635 Faraday Avenue • Carlsbad, CA 92008-7314 • (760) 602-4677 • FAX (760) 602-8562 Procopio9 Procopio, Cory, Hargreaves & Savitch LLP David B. Kuhlman Direct Dial: (619) 515-3261 E-mail: dbk@procopio.com March 24, 2010 VIA E-MAIL AND VIA FACSIMILE Kevin L. Davis Senior Contract Administrator City of Carlsbad 1635 Faraday Avenue Carlsbad, CA 92008 Email: Kevin.Davis@carlsbadca.gov Facsimile No. : (760) 602-8562 Re: Bid No. PWS10-31 -UTIL, Joint First Responder Dear Mr. Davis: This law firm represents Ledcor Construction ("Ledcor"), the apparent low bidder to the City of Carlsbad ("City") for Bid No. PWS 10-31-UTIL, Joint First Responder (the "Project"). We are writing on Ledcor's behalf to respond to the letter dated March 22, 2010 from Jaynes Corporation of California ("Jaynes"), protesting our client's bid. Bids were opened on March 16, 2010 at 2:00 p.m. Ledcor submitted the lowest apparent base bid in the sum of $11,261,000.00. Edge Development submitted a bid that was $301,875.00 higher than Ledcor's, in the sum of $11,562,875.00. Jaynes, the apparent third low bidder, submitted a bid that was $487,557.00 higher than Ledcor's, in the sum of $11,748,557.00. In its March 22, 2010 letter, Jaynes argues that Ledcor's bid should be considered non- responsive for one reason: that three (3) subcontractors listed in Ledcor's bid "have no license to contract in California." Jaynes protests Edge's bid for the same reason. Jaynes' protest is not supported by California law. In particular, the protest must be denied for the following reasons: 1. Pro-Safe Fire Training Systems is not a subcontractor, but rather a supplier. Under California law and the City's bid documents, bidders are not required to list suppliers. 530 B Street, Suite 2100 • Sin Diego, CA 92101-4469 • T. 019.231.1900 f. 619.23S.039S North County Office: 1917 Patomar Oaks Way, Suite 300 • Carlsbad, CA 92008-6511 • T. 760,931 9700 F. 760 931 1155 www.procopio.com 109523/000051/1180196.01 Kevin L. Davis March 24, 2010 Page 2 2. While prime contractors are required to be licensed at the time they submit their bid to the public entity, there is no requirement that subcontractors be licensed at bid time. To the contrary, under California law the subcontractor's license must be in place at the time the subcontractor performs the subcontract. M. W. Erectors, Inc. v. Niederhauser Ornamental and Metalworks Co., Inc. (2005) 36 Cal.4th 412, 435. 3. The listing of an unlicensed subcontractor does not make the prime contractor's bid non-responsive. To the contrary, if the subcontractor does not obtain its license prior to performing its subcontract work, the prime contractor is entitled to request substitution of the subcontractor under Public Contract Code Section 4107. D.H. Williams Construction, Inc. v. Clovis Unified School District (2007) 146 Cal.App.4th 757. For all of these reasons, Ledcor has submitted the lowest responsive and responsible bid to the City for this Project. I. LEDCOR HAS SUBMITTED THE LOWEST RESPONSIVE AND RESPONSIBLE BID FOR THE PROJECT A. Pro-Safe Fire Training Systems, Inc. Is A Supplier. Not A Subcontractor, And Was Therefore Not Required To Be Listed. Jaynes argues that Pro-Safe Fire Training Systems, Inc. ("Pro-Safe") is a "subcontractor" that has no license to contract in California. Jaynes is wrong. Pro-Safe is a supplier of equipment and materials only. Ledcor will be subcontracting with another qualified firm to install the materials and equipment furnished by Pro-Safe. The value of that installation work is no more than $15,000, which is far below one half of one percent of Ledcor's total bid ($56,305.00). Consequently, there is no requirement that Ledcor list the installation subcontractor under the City's bid instructions or Public Contract Code 4104. As confirmed by the City's bid instructions, "[s]uppliers of materials from sources outside the limits of work are not subcontractors." Likewise, under the Public Contract Code, a company is not a subcontractor (and is not required to be listed) unless it "will perform work or labor or render service to the prime contractor," or "specially fabricates and installs a portion of the work or improvement according to detailed drawings contained in the plans and specifications." (Public Contract Code Section 4104(a)(l).) Pro-Safe is doing neither. Consequently, since Pro-Safe is a supplier and not a subcontractor, it is not required to be listed or to hold a California contractor's license. The fact that Ledcor listed Pro-Safe, in an abundance of caution and in the interest of complete disclosure, in no way renders Ledcor's bid non-responsive. 109523/000051/1180196.01 t^Procopio" Kevin L. Davis March 24, 2010 Page3 B. Listed Subcontractors Are Not Required To Be Licensed At The Time Of Bid. Jaynes' protest rests entirely on the assumption that two of Ledcor's listed subcontractors, Sierra Metals and Range Systems (the latter of which was identified by the City as an approved manufacturer for the shooting range equipment) must be licensed at the time of bid. The assumption is incorrect. Under California law the subcontractor's California license must be in place at the time the subcontractor performs the work under the subcontract, and not at the time it submits its bid or enters into the subcontract agreement. M. W. Erectors, Inc. supra, 36 Cal.4th at 435. Consequently, as long as Range Systems and Sierra Metals secure their California licenses before starting their work, they will be in full compliance with California licensing requirements. C. Even If Range Systems And Sierra Metals Fail To Obtain Their Licenses Before Starting Their Work. Ledcor Is Entitled To Request Subcontractor Substitution Under The Public Contact Code. Jaynes also erroneously assumes that the listing of an unlicensed subcontractor is a proper ground for a bid protest. Again, Jaynes is wrong. Under California law the listing of an unlicensed or improperly licensed subcontractor does not make the prime contractor's bid non- responsive. In D.H. Williams Construction, Inc. v. Clovis Unified School District (2007) 146 Cal.App.4th 757, Williams, the prime contractor, listed a subcontractor whose license had expired. The public agency rejected the bid as non-responsive, and Williams filed suit to challenge that determination. Both the trial court and the California Court of Appeal ruled that the public agency could not properly reject the bid as non-responsive. Instead, the Court of Appeal held that the public agency was required to conduct a hearing if it believed that the listing of the subcontractor was intentional or otherwise established that Williams was not a responsible bidder (i.e., a bidder with the fitness, quality and capacity to perform the work). Id. at 761, 763. As explained by the Court of Appeal: Unless the District determined that listing the unlicensed subcontractor was intentional or otherwise served to establish Williams was not a responsible bidder, no purpose of the Public Contract Code would be served by excluding Williams' bid: the District would receive the same product at the same price stated in the bid, the low bidder and its other listed subcontractors would be awarded the work, and the only entity made poorer would be [the listed subcontractor], which has relinquished all claims. Id. at 767. In reaching its decision, the Court of Appeal also noted that Williams was entitled to seek replacement of the unlicensed subcontractor under Public Contract Code section 4107(6), under which the public agency may conduct a substitution hearing to determine that the request is proper. Id. at 770. 109523/000051/1180196.01 Kevin L. Davis March 24, 2010 Page 4 Consequently, if either Range Systems or Sierra Metals fails to secure its California license before starting its work, Ledcor will be entitled to request and will request substitution under Public Contract Code Section 4107(6), after contract award, as provided by the statute. As a result of that substitution request, the approved Range Systems materials and equipment could simply be installed by another, licensed company. II. CONCLUSION There is currently unparalleled competition among contractors for the award of public works contracts. An unfortunate by-product of that competition is a dramatic increase in the filing of bid protests for reasons that are not recognized or supported by California law. The protest by Jaynes falls into that category, as the only ground it raises (the licensing of listed subcontractors) is not a basis for rejecting Ledcor's bid under California law. Because Ledcor has submitted the lowest responsive and responsible bid, it is entitled to the award of the contract under the City's bid instructions and the Public Contract Code. Please let me know if you require any additional information. Additionally, please notify me of the date, time and place of any public hearing at which the matter of the contract award will be addressed. Very truly yours, David B. Kuhlman DBK/cmc cc: Ledcor Construction 109523/000051/1180196.01