HomeMy WebLinkAbout2010-04-13; City Council; 20196; Contract Joint First Responder Training FacilityCITY OF CARLSBAD - AGENDA BILL
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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
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FIRST RESPONDER TRAINING FACILITY. PROJECT NO. 3686
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WHEREAS, the City Council of the City of Carlsbad, California, desires to construct the
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Joint First Responder Training Facility, Project No. 3686; and
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WHEREAS, the plans and specifications for furnishing of all labor, materials, tools,
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equipment, transportation, and other expenses necessary or incidental to the Joint First
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Responder Training Facility, Project No. 3686 have been prepared and are on file in the City
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Clerk's Office of the City of Carlsbad and are incorporated herein by reference; and
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WHEREAS, payment of prevailing wages will not be required as part of the construction
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contract; and
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WHEREAS, Public Contract Code ("PCC") §20101 authorizes cities to pre-qualify
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contractors who wish to bid on public works contracts, and 22 contractors were pre-qualified to
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submit bids based on criteria approved by the City Council; and
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WHEREAS, nine (9) sealed bids were received on March 16, 2010, by the City of Carlsbad
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for the construction of said project; and
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WHEREAS, the lowest responsive and responsible bid to construct said project was
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submitted by Ledcor Construction Inc. in the amount of $11,260,870; and
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WHEREAS, funding for said project has been appropriated from Proposition C funds and in
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the Unreserved Undesignated General Fund in the 2009/2010 Capital Improvement Program in
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the amount of $24,500,000 to cover all project costs and is sufficient; and
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NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad,
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California, as follows:
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1. That the above recitations are true and correct.
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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.
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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