HomeMy WebLinkAbout2021-10-19; City Council; ; Acceptance of Bids, Award of Contract, Authorization of Additional Funding for the Police and Fire Headquarters Renovation Project and Denying a Bid Protest Meeting Date: Oct. 19, 2021
To: Mayor and City Council
From: Scott Chadwick, City Manager
Staff Contact: Steven Stewart, Municipal Projects Manager
steven.stewart@carlsbadca.gov, 760-602-7543
Mickey Williams, Police Chief
mickey.williams@carlsbadca.gov, 760-931-2260
Subject: Acceptance of Bids, Award of Contract, Authorization of Additional
Funding for the Police and Fire Headquarters Renovation Project and
Denying a Bid Protest
District: 2
Recommended Action
Adopt a resolution:
• Accepting the bids received, awarding a contract to RAL Investment Corporation, a
California corporation doing business as Silverstrand Construction Inc., for the Police and
Fire Headquarters Renovation Project, Capital Improvement Program Project No. 4715,
in an amount not to exceed $12,633,181
• Authorizing an appropriation of $13,000,000 from the General Capital Construction Fund
and Infrastructure Replacement and Maintenance Fund to Capital Improvement Project
No. 4715
• Denying Spectrum Construction Group, Inc.’s bid protest
Executive Summary
On July 27, 2021, the City Council adopted Resolution No. 2021-178, approving the plans,
specifications and contract documents, and authorizing the City Clerk to advertise for bids for
the Police and Fire Headquarters Renovation Project (see Exhibit 2 for location map). On July 29,
2021, staff advertised the approved plans, specifications and notice to bidders.
On Sept. 8, 2021, staff received eight construction bids and subsequently determined that the
lowest responsive and responsible bidder is RAL, with a bid in the amount of $12,633,181. On
Sept. 15, 2021, staff received a bid protest from PKEC Construction Counsel on behalf of the
second lowest bidder Spectrum Construction Group Inc. (Exhibit 3).
Carlsbad Municipal Code Sections 3.28.080(C) and 3.28.080(I)(6) require the City Council’s
approval for all formally-bid contracts when the value exceeds $200,000. This project is subject
to this requirement.
Staff recommend award of the contract to RAL, authorization of an appropriation of $13,000,000
to the project and denial of Spectrum’s bid protest.
Oct. 19, 2021 Item #1 Page 1 of 21
Discussion
The Police and Fire Headquarters facility, located at 2560 Orion Way, comprises a two-story
administration building attached to a one-story conference room building containing the
Emergency Operations Center. The Police and Fire Headquarters Renovation Project, Capital
Improvement Program Project No. 4715 was incorporated into the program during fiscal year
2014-15. The project’s work scope and design have been developed over several years in
coordination with Police and Fire Department staff. As a result, it comprehensively addresses
building infrastructure needs, energy efficiency upgrades and essential safety and security
improvements, incorporating a more efficient office layout.
Recent history of the project
•Nov. 19, 2019 – The City Council adopted resolution No. 2019-234, approving an
agreement with Sillman Wright Architects to complete the design work for the project
•May 5, 2020 – The City Council adopted Resolution No. 2020-076, approving Amendment
No. 1 to the agreement with Sillman Wright Architects to incorporate structural
engineering design services into the design work so the administration building would be
compliant with the Essential Services Building Seismic Safety Act
•Nov. 17, 2020 – The City Council adopted Resolution No. 2020-219, changing the Safety
Center name to Police and Fire Headquarters
•Jan. 26, 2021 – The City Council adopted Resolution No. 2021-032, approving
Amendment No. 4 to the Agreement with Sillman Wright Architects to incorporate
structural engineering design services into the design work so the one-story conference
room building containing the Emergency Operations Center would also be compliant
with the Essential Services Building Seismic Safety Act.
•July 27, 2021 – The City Council adopted Resolution No. 2021-178, approving plans,
specifications and contract documents and authorizing the City Clerk to advertise the
Project for bidding.
•July 29, 2021 – Staff advertised the approved plans, specifications and notice to bidders.
The city received eight bids on Sept. 8, 2021, and staff reviewed them on Sept. 9, 2021. Staff
determined that the bid submitted by RAL was the lowest responsive and responsible bid.
Bid protest
The city received a bid protest from the second lowest bidder, Spectrum, on Sept. 15, 2021. The
protest alleged that the lowest bid was nonresponsive primarily because:
1.RAL failed to name the lead personnel, such as the superintendent, foreman and lead
crew personnel in its bid
2.RAL allegedly did not comply with state Department of Industrial Relations listing and
license status requirements for certain subcontractors listed in its bid
3.RAL listed $0 for demobilization and site restoration work in response to Line Item No.
23.
Staff reviewed and researched the various issues presented in Spectrum’s bid protest. Regarding
the first issue, the city reserved the right to waive any minor irregularity or informality in bids
received in the advertised bid documents. Given the positive references received regarding
RAL’s past work, the absence of named individuals in RAL’s bid did not affect the dollar amount
Oct. 19, 2021 Item #1 Page 2 of 21
of its bid and did not confer on the company a material advantage over any other bidder who
bid on the project.
Regarding the second issue, staff confirmed that all RAL’s subcontractors’ licenses and
Department of Industrial Relations registrations were reviewed, cross-referenced and deemed
valid before the bid closed. RAL submitted the bid price for one subcontractor, AR Plumbing
Systems, within the timeframe allowed under California Public Contract Code section 4104
(a)(3)(A). Missing information in RAL’s bid, such as a subcontractor’s license type, effective dates
of license and incorrect addresses for subcontractors’ businesses in the subcontractors’ profiles
in PlanetBids, an online bidding platform, did not give RAL a monetary advantage over other
bidders.
According to the appellate court ruling in Ghilotti Construction Co. v. City of Richmond, a bid
that “substantially conforms to a call for bids may, though it is not strictly responsive, be
accepted if the variance cannot have affected the amount of the bid or given a bidder an
advantage or benefit not allowed other bidders or, in other words, if the variance is
inconsequential.” The minor irregularities described in the first two issues raised in the protest
may therefore be waived.
Regarding Issue 3, it would not be unjust or unfair for the city to require RAL to perform
demobilization and site restoration work for $0, which was the dollar amount RAL inserted for
Line Item No. 23. The scope of this line item of work is extremely small when compared to other
line items, which included a bid of $29,859 for “Mobilization and Temporary Facilities … ,” and
the overall amount of RAL’s bid, which totaled $12,633,181. (See the California Supreme Court
ruling in M.F. Kemper Construction Co. v. City of Los Angeles)
The court’s ruling in the Ghilotti case requires the city to evaluate RAL’s bid “in light of the public
interest, rather than the private interest of a disappointed bidder. A disservice to the public
would result if “a losing bidder were to be permitted to comb through the bid proposal or
license application of the low bidder after the fact”, and “cancel the low bid on minor
technicalities, with the hope of securing acceptance of his, a higher bid. Such construction would
be adverse to the best interests of the public and contrary to public policy.”
Options
Staff provide the following options for the City Council’s consideration:
1. Adopt a resolution accepting the bids received; awarding a contract to RAL in an amount
not to exceed $12,633,18, to provide construction services, authorizing an appropriation
of $13,000,000 for the Police and Fire Headquarters Renovation Project and denying a
bid protest from Spectrum
Pros
• A reasonable number of bids for the work were received
• The lowest responsive bid value was below the engineer’s estimate of
$13,700,000 for the project
• Temporary trailers have been installed for Police and Fire Departments’ staff to
move into next month and these staff members are prepared for the renovation
work
• Construction costs are currently increasing, and the contract approving the
contract now will likely cost less than if the project were delayed to a later date
Oct. 19, 2021 Item #1 Page 3 of 21
Cons
• None identified
2. Do not adopt a resolution accepting the bids received, awarding a contract to RAL in an
amount not to exceed $12,633,181 to provide construction services, authorizing an
appropriation of $13,000,000 for the Police and Fire Headquarters Renovation Project
and denying a bid protest from Spectrum.
Pros
• None identified
Cons
• Delays much needed work to upgrade the Police and Fire Headquarters for code
compliance and to optimize security and safety operations
• Renders previous work to install temporary electrical power and temporary
trailers on site obsolete, which is wasteful of previously authorized funds
• Authorizing this scope of work at a future date will likely require a greater
expenditure of funding
Staff recommend Option 1 for the City Council’s approval.
Fiscal Analysis
The total project cost for the Police and Fire Headquarters Renovation Project is projected to be
$21 million. Funding from the general capital construction and infrastructure replacement funds
have been appropriated for the project as shown below:
Police and Fire Headquarters Renovation Project,
Capital Improvement Program Project No. 4715
Total appropriation to date $7,966,550
Total expenditures/encumbrances to date $3,940,000
Total available balance $4,026,550
Contract for renovation work with RAL $12,633,181
Construction contingency (10%+) $1,310,219
Fixtures, furnishing and equipment estimate $1,868,400
Soft costs (inspection and testing, staff and consultant time) $1,214,750
Total remaining project costs $17,026,550
Additional appropriation needed $13,000,000
The Infrastructure Replacement Fund balance is sufficient to support the required $4,040,000
appropriation related to replacement and maintenance, and the General Capital Construction
Fund can fund the $8,960,000 request given its current, uncommitted fund balance. The fund
balances are shown in the chart below.
Oct. 19, 2021 Item #1 Page 4 of 21
General Capital
Construction
Infrastructure
Replacement
Fund balance at June 30, 2021 (unaudited) $41,840,000 $124,360,000
Total commitments to existing projects through FY 2021-22 ($35,513,000) ($42,507,000)
Council-approved transfer of FY 2020-21 General Fund surplus $7,780,000 -
Total available funding $14,107,000 $81,853,000
Construction upgrades and enhancements ($8,960,000) -
Replacement and maintenance of existing infrastructure - ($4,040,000)
Remaining available funding after appropriation $5,147,000 $77,813,000
Should the City Council support the recommended option, staff recommend the appropriation
of almost $9 million from the General Capital Construction Fund and over $4 million from the
Infrastructure Replacement Fund available fund balances for a total of $13 million to Capital
Improvement Program Project No. 4715 to complete the project.
Carlsbad Municipal Code Sections 3.28.040(C)(5) and 3.28.090(B) authorize the City Manager to
approve change orders in an amount equal to the contingency set at the time of contract award.
That amount for this project is $1,310,219.
Next Steps
Upon City Council approval and once contract documents are fully executed and a purchase
order is issued, staff will schedule a pre-construction meeting with RAL and issue a notice to
proceed. The duration of the project is expected to take up to two years, with an estimated
completion of renovation work in fall 2023.
Environmental Evaluation (CEQA)
The project is exempt from the California Environmental Quality Act under CEQA Guidelines
Section 15301(d) which applies to the restoration or rehabilitation of deteriorated or damaged
structures, facilities or mechanical equipment to meet current standards of public health and
safety. No exception to the exemption as set forth in CEQA Guidelines Section 15300.2 applies.
Public Notification and Outreach
This item was noticed in accordance with the Ralph M. Brown Act and available for viewing at
least 72 hours prior to the meeting.
Exhibits
1. City Council resolution
2. Location map
3. City of Carlsbad response letter dated Sept. 30, 2021, and PKEC Construction counsel letter
dated Sept. 15, 2021, with bid protest of Spectrum Construction Group, Inc.
Oct. 19, 2021 Item #1 Page 5 of 21
RESOLUTION NO. 2021-236
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, ACCEPTING BIDS RECEIVED, AUTHORIZING AWARD OF A
CONTRACT TO RAL INVESTMENT CORPORATION, A CALIFORNIA
CORPORATION, DBA SILVERSTRAND CONSTRUCTION, INC., FOR THE POLICE
AND FIRE HEADQUARTERS RENOVATION PROJECT, AUTHORIZING
ADDITIONAL APPROPRIATION, AND DENYING A BID PROTEST FOR THE
PROJECT
EXHIBIT 1
WHEREAS, on July 27, 2021, the City Council adopted Resolution No. 2021-178, approving the
plans, specifications and contract documents and authorizing the City Clerk to advertise a request for
bids on the city website for this portion of the Police and Fire Headquarters Renovation Project, Capital
Improvement Program, or CIP, Project No. 4715; and
WHEREAS, on Sept. 8, 2021, staff received eight construction bids for the renovation work; and
WHEREAS, staff determined that RAL Investment Corporation, a California corporation, dba
Silverstrand Construction Inc., or "RAL", submitted the lowest responsive and responsible bid for the
work in an amount not to exceed $12,633,181; and
WHEREAS, on Sept. 15, 2021, the second lowest bidder, Spectrum Construction Group, Inc., or
Spectrum, filed a bid protest which alleged that RAL's bid was non-responsive primarily because RAL:
(1) failed to name the lead personnel such as the superintendent, foreman and lead crew personnel in
their bid; (2) allegedly did not comply with state Department of Industrial Relations, or DIR, listing and
license status requirements for certain subcontractors listed in its bid; and (3) listed $0 for
demobilization/site restoration work in response to Line Item No. 23; and
WHEREAS, staff reviewed the bid protest and weighed those arguments against the substance
of RAL's bid; and
WHEREAS, staff determined that RAL did not receive a competitive or financial advantage over
other bidders by virtue of omitting the following from its bid: (1) the r:iames of lead personnel in its bid;
(2) certain subcontractor's license type, effective dates of license, and incorrect addresses for
subcontractors' businesses; and (3) a subcontractor's bid price, which was cured pursuant to Public
Contract Code section 4104(a)(3)(A); and
WHEREAS, a bid that "substantially conforms to a call for bids may, though it is not strictly
responsive, be accepted if the variance cannot have affected the amount of the bid or given a bidder
an advantage or benefit not allowed other bidders or, in other words, if the variance is
Oct. 19, 2021 Item #1 Page 6 of 21
EXHIBIT 1
inconsequential." Ghi/otti Construction Co. v. City of Richmond, (1996) 45 Cal. App. 4th 897, 904-05;
and
WHEREAS, staff determined RAL's bid of $0 in response to Line Item No. 23 was responsive
because it would not be unconscionable, unjust or unfair under M.F. Kemper Constr. Co. v. City of Los
Angeles, (Cal. 1951) 37 Cal. 2d 696, 702-703 to require RAL to perform demobilization/site restoration
work for this amount since the scope of this work was extremely small when compared to RAL's
$29,859 bid for "Mobilization and Temporary Facilities ... " and the overall amount of RAL's bid, which
totaled $12,633,181; and
WHEREAS, finding RAL's bid responsive is consistent with principles articulated in the case of
Ghilotti Construction Co. v. City of Richmond, (1996) 45 Cal. App. 4th 897, 908-09 where the court
instructed that bids must be "viewed in light of the public interest, rather than the private interest of
a disappointed bidder ... " and also warned of a disservice to the public if "a losing bidder were to be
permitted to comb through the bid proposal or license application of the low bidder after the fact,
[and] cancel the low bid on minor technicalities, with the hope of securing acceptance of his, a higher
. bid ... "; and
WHEREAS, Carlsbad Municipal Code Sections 3.28.080(() and 3.28.080(1)(6) require the City
Council's approval for all formally-bid contracts when the value exceeds $200,000, and this project is
subject to this requirement; and
WHEREAS, Carlsbad Municipal Code Sections 3.28.040(C)(5) and 3.28.090(B) authorize the City
Manager to approve change orders in an amount equal to the contingency set at the time of contract
award, which amounts to $1,310,219; and
WHEREAS, appropriation of additional funds in the amount of $13,000,000 from the General
Capital Construction Fund and Infrastructure Replacement and Maintenance Fund is required to award
the contract; and
WHEREAS, the City Planner has determined that the action to authorize a contract for
renovation work is exempt from the provisions of the California Environmental Quality Act pursuant to
Article 19, Section 15301(d) which applies to the restoration or rehabilitation of deteriorated or
damaged structures, facilities or mechanical equipment to meet current standards of public health and
safety.
Oct. 19, 2021 Item #1 Page 7 of 21
EXHIBIT 1
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as
follows:
1.
2.
3.
That the above recitations are true and correct.
That the bid protest submitted by the second lowest bidder, Spectrum Construction
Group, Inc., is denied.
That the lowest responsive and responsible bid of $12,633,181 submitted by RAL
Investment Corporation, a California corporation dba Silverstrand Construction Inc., for
the renovation work of the Police and Fire Headquarters Renovation Project is accepted
and the Mayor is hereby authorized to execute a contract for this work (attached as
Attachment A).
4. That the City· Manager is hereby authorized to approve construction change orders up
to the amount of $1,310,219 for the renovation work.
5. That the Deputy City Manager, Administrative Services, is authorized to appropriate
$8,960,000 from the General Capital Construction Fund and $4,040,000 from the
Infrastructure Replacement and Maintenance Fund to the Police and Fire Headquarters
Renovation Project, CIP Project No. 4715.
6. That the award of this contract is contingent upon RAL Investment Corporation, dba
Silverstrand Construction Inc., executing the required contract and submitting the
required bonds and insurance policies as described in the contract, within 20 days of
adoption of this Resolution. The City Manager may grant reasonable extensions of time
to execute the contract and assemble the required bonds and insurance policies.
Oct. 19, 2021 Item #1 Page 8 of 21
Attachment A
PWS22-1552FAC RAL Investment Corporation dba
Silverstrand Construction
(on file in the Office of the City Clerk)
Oct. 19, 2021 Item #1 Page 10 of 21
FARADAY AVE.
PALOMAR AIRPORT
RD.
E
L
C
A
M
I
N
O
R
E
A
LORIONST.WHIPTAIL
LOOPLOKERAVE.WE
S
T
E
A
S
T
SALK
AVE.
IMPALA DR.PALMERWY.GATEWAY RD.
SITE
PALOMAR
AIRPORT
EL
F
U
E
R
T
E
ST.RUTHERFORD
RD.
SITE LOKERAVE.
SAFETY CENTER
EXHIBIT 2
Oct. 19, 2021 Item #1 Page 11 of 21
September 30, 2021
Via Email armenak@pkec.law and First Class Certified Mail
Armenak Kavcioglu
Pierce Kavcioglu Espinosa & Cesar LLP
16055 Ventura Blvd., Suite 1200
Encino, CA 91436 ( City ofCarlsbad
Re: Response to Protest Letter Dated September 15, 2021 for Police and Fire Headquarters
Renovation Project Contract No. 4715 -PWS22-1552FAC
We have received your letter protesting the intent to possibly award the contract referenced
above to RAL Investment Corporation d.b.a. Silverstrand Construction ("RAL") which holds a
general building contractor "B" license. We reviewed your request to deem RAL's bid non
responsive and below provide the City of Carlsbad's (the "City") response to each of the matters
you raise in your letter.
Technical Ability and Experience
The bid protest letter alleges that RAL did not meet Item #2 of the City's Technical Ability and
Experience requirements. First, it is standard procedure at the City of Carlsbad to check
references provided and it was confirmed that for the listed projects, RAL has the necessary
experience work similar in scope to the advertised project. Moreover, the references also said
they were very happy with RAL's finished product, responsiveness and professionalism.
Second, the City reserves the right to reject any or all bids and to waive any minor irregularity or
informality in such bids as stated on page 9 of the bid documents. Given the positive references
received regarding RAL's past work, the absence of named individuals in RAL's bid for Item #2 did
not affect the dollar amount of RAL's bid and did not confer on them a material advantage over
any other bidder who bid on the project.
As mentioned in the bid protest, a bid that "substantially conforms to a call for bids may, though
it is not strictly responsive, be accepted if the variance cannot have affected the amount of the
bid or given a bidder an advantage or benefit not allowed other bidders or, in other words, if the
variance is inconsequential." (1996) Ghilotti Construction Co. v. City of Richmond, 45 Cal. App. 4th
897, 904-05. Based on the above information, the City will exercise its discretion to waive_ this
minor irregularity.
Line Item No. 23
The bid protest also alleges that the price RAL listed for Line Item No. 23, $0, was non-responsive.
The City disagrees with this characterization for several reasons. First, by bidding $0 for this line
Public Works Branch
Contract Administration 1635 Faraday Avenue I Carlsbad, CA 92008 I 760-602-4677 t
EXHIBIT 3
Oct. 19, 2021 Item #1 Page 12 of 21
item, it would not be unconscionable to require RAL to perform "Demobilization / Sight
Restoration" work for that amount. See M.F. Kemper Constr. Co. v. City of Los Angeles, (Cal. 1951)
37 Cal. 2d 696, 702-703. The scope of this line item of work is extremely small when compared
to other line items and the overall amount of RAL's bid, $12,633,181. This is further evidenced
by Spectrum's $50,000 bid for this line item, which amounts to::::: 0.0003867 of Spectrum's total
bid. In other words, it would not be unjust or unfair for the City to hold RAL to it's $0 bid for Line
Item No. 23. M.F. Kemper at 702-703.
Second, RAL did not inform the City after bids were opened that it's entry for Line Item No. 23
was a mistake or made the bid materially different than RAL intended it to be. Even if it did, given
the small dollar amount of this line item of work as described above, insertion of $0 for Line Item
No. 23 is more an error in judgment, or underestimating the cost of labor or materials, than a
clerical or mathematical mistake, and would not be grounds for relief under Public Contract Code
section 5100 et. seq.
Finally, the Ghi/otti case instructs that, in considering a $0 bid for work associated with Line Item
No. 23 in this context, these considerations:
"must be evaluated from a practical rather than a hypothetical standpoint,
with reference to the factual circumstances of the case. They must also be
viewed in light of the public interest, rather than the private interest of a
disappointed bidder. 'It certainly would amount to a disservice to the
public if a losing bidder were to be permitted to comb through the bid
proposal or license application of the low bidder after the fact, [and] cancel
the low bid on minor technicalities, with the hope of securing acceptance
of his, a higher bid. Such construction would be adverse to the best
interests of the public and contrary to public policy."' Ghilotti at 908-909
(internal citations omitted).
DIR Listing & License Status Matters
The bid protest alleged that RAL failed to comply with DIR listing and license status requirements
for certain subcontractors listed in its bid. However, all sub-contractor's licenses and DIR
registrations were reviewed, cross referenced and deemed valid before the bid closed. RAL
submitted the bid price for AR Plumbing Systems within the allotted time allowed pursuant to
section 4104 (a)(3)(A) California Public Contract Code.
Missing information such as a subcontractor's license type, effective dates of license, and wrong
addresses for a subcontractor's business in the subcontractor's profile in Planetbids does not give
RAL a monetary advantage over other bidders. The City confirmed the subcontractors referenced
in the bid protest were all properly licensed to perform their respective work before the bid
closed. The City will therefore exercise its discretion to waive these minor irregularities.
Based on the above information, RAL's bid is responsive. While it is our intention to award the
Police and Fire Headquarters Renovation project to RAL, we hope to receive future bids from
Spectrum Construction Group, Inc.
Public Works Branch
Contract Administration 1635 Faraday Avenue I Carlsbad, CA 92008 I 760-602-4677 t
Oct. 19, 2021 Item #1 Page 13 of 21
We understand the time and energy involved in participating in the bid process and we sincerely
appreciate your efforts.
Thank you for your interest in providing services to the City of Carlsbad.
,\.-��
�ean Hawney,
Contract Administrator
RC:jh
Attachment
cc: Steve Stewart, Municipal Projects Manager
Scott Chadwick, City Manager
Robby Contreras, Assistant City Attorney
Paz Gomez, Deputy City Manager, Public Works
File
Public Works Branch
Contract Administration 1635 Faraday Avenue I Carlsbad, CA 92008 I 760-602-4677 t
Oct. 19, 2021 Item #1 Page 14 of 21
PKEC Pierce Kavcioglu Espinosa & Cesar LLP
16055 Ventura Boulevard, Suite 1200
Encino, California 91436
(818)728‐4999
Construction Counsel
September 15, 2021
Armenak Kavcioglu(818) 728-4998armenak@pkec.law
VIA EMAIL AND FEDERAL EXPRESS
Janean Hawney
City of Carlsbad
Public Works/Contract Admin.
1635 Faraday
Carlsbad, CA 92008
janean.hawney@carlsbadca.gov
Scott Chadwick
City Manager
1200 Carlsbad Village Drive
Carlsbad, CA 92008
manager@carlsbadca.gov
Re: Bid Protest of Spectrum Construction Group, Inc.
Project: Policy and Fire Headquarters Renovation Project
Contract no. 4715
Dear Ms. Hawney and Mr. Chadwick:
My office represents Spectrum Construction Group, Inc. (“Spectrum”). Spectrum
submitted a bid for the City of Carlsbad (“the City”) contract number 4715, Police and Fire
Headquarters Renovation Project (“the Project”).
The purpose of this letter is to protest the award of the Project to any bidder other than
Spectrum, including a protest of any award to RAL Investment Corporation dba Silverstrand
Construction (“RAL”).
The bidding instructions did not indicate to whom protests should be addressed. If the
City requires that protest letters be sent to anyone other than you, please immediately let me
know to whom the protest should be sent.
Failure To Comply With Bidding Instructions Regarding Experience Requirements
The bidding instructions list the bid documents that must be filled out by each bidder.
The required documents include the Bidder’s Statement of Technical Ability and Experience.
Oct. 19, 2021 Item #1 Page 15 of 21
Ms. Janean Hawney Mr. Scott Chadwick
September 15, 2021 Page 2 of 7
The instructions go on to mandate exactly what is required in the Bidder’s Statement of
Technical Ability and Experience:
As shown in the excerpt above, the bidder must provide “lead personnel including
superintendent, foreman, and lead crew for the Contractor with three years experience.
Paragraph 2 goes on to state:
Oct. 19, 2021 Item #1 Page 16 of 21
Ms. Janean Hawney Mr. Scott Chadwick
September 15, 2021 Page 3 of 7
Thus, the instructions expressly require the names and experience of the designated
lead individuals.
RAL did not include the names and experience of lead individuals. RAL entirely failed to
comply with the instruction.
“A bid is responsive if it promises to do what the bidding instructions demand.” Taylor
Bus Service, Inc. v. San Diego Board of Education, 195 Cal. App. 3d 1331, 1341 (1987); see
also Gibbs & Hunt, California Construction Law, p. 149, § 2.02[G] (“To be responsive, a bid
must be in strict and full accordance with the material terms of the bidding instructions.”). Under
California law, a bid must conform to the material terms of the bid package. Menefee v. County
of Fresno, 163 Cal. App. 3d 1175 (1985).
“A public entity may waive an irregularity in a bid only if the irregularity is
inconsequential. Ghilotti Construction Co. v. City of Richmond (1996) 45 Cal.App.4th 897, 900.
“However, it is further well established that a bid which substantially conforms to a call for bids
may, though it is not strictly responsive, be accepted if the variance cannot have affected the
amount of the bid or given a bidder an advantage or benefit not allowed other bidders or, in
other words, if the variance is inconsequential. [Citations.]" Id. at 904. Consistent with the law,
the City’s bidding instructions reserve the City’s right to waive only “minor irregularities.” Bid
Documents, page 9.
Here, the experience requirements are neither minor nor inconsequential. Spectrum
complied with this requirement and submitted the names and qualifications of its lead personnel,
including Mr. Aljazzar, Mr. Edwards and Mr. Lopez.
The City must reject RAL’s bid for its failure to comply with the important requirement of
submitting the qualifications of its important personnel. The bidding instructions required such a
submission. RAL’s bid did not include the submission. RAL’s bid did not respond to the
instructions. If RAL’s bid is accepted despite non-compliance, RAL would be entitled to an
advantage not allowed other bidders.
Failure To Comply With Bidding Instructions By Failing To Provide Pricing For Bid Item
23
The bid form requires that the bidders list a price for each line item in the bid. RAL listed
$0 for bid item 23 (demobilization and site restoration).
RAL’s bid is non-responsive because RAL did not list a price for that bid item.
Oct. 19, 2021 Item #1 Page 17 of 21
Ms. Janean Hawney Mr. Scott Chadwick
September 15, 2021 Page 4 of 7
Additionally, it is unclear from RAL’s bid whether RAL intends to perform the site
restoration work if it listed no dollars for that work. The bid must be an unqualified offer to
perform the work in order to be responsive. RAL is not permitted to qualify its bid.
Lastly, the bid is non-responsive because by failing to include an amount for
mobilization, the bid is not balanced, and is necessarily front-loaded. Dement Construction
Co., B-192794, 78-2 CPD ¶ 399 (Comp. Gen. Dec. 8, 1978) (bids rejected because bidders
submitted front-loaded bids).
Failure To Comply With Bidding Instructions and Labor Code Regarding DIR Listing and
License Status Renders the Bid Non-Responsive
In addition to the foregoing, RAL appears to have made a series of mistakes in
connection with its DIR listing and regarding subcontractor license status.
Labor Code section 1771.1 provides that a subcontractor shall not be qualified to be
listed in a bid proposal or engage in the performance of any contract for public work unless the
subcontractor is registered by the DIR in accordance with Labor Code section 1725.5.
The law provides that the City of Carlsbad, as an “awarding body,” must require in its bid
invitations that bids shall not be accepted “without proof of the contractor’s or subcontractor’s
current registration …” Labor Code Section 1771.1(b).
The City has implemented the requirements of the Labor Code in its bidding instructions.
The bidding instructions require that the bidder provide active registration numbers with
the Department of Industrial Relations for each subcontractor that the bidder designates.
Oct. 19, 2021 Item #1 Page 18 of 21
Ms. Janean Hawney Mr. Scott Chadwick
September 15, 2021 Page 5 of 7
The bidding instructions also require each bidder to certify that “all Subcontractors listed
on the Subcontractor Designation form are the subject of current and active registrations …”
RAL’s bid is nonresponsive because RAL failed to comply with the bidding instructions
relating to DIR certifications in numerous ways.
However, Spectrum has reviewed the public available ebid information and found the
following irregularities in RAL’s bid.
1.A Good Roofer, Inc.
The information on the bid indicates an expired license.
2.AR Plumbing Systems.
The amount of the subcontractor’s work is shown as $0, however bid item 16 for
Plumbing is listed at $313,854.00. RAL did not list a license type or expiration
date for AR's contractor’s license.
3.Bayview Demolition.
RAL did not list a license type or expiration date for Bayview’s contractor’s
license.
RAL incorrectly listed the subcontractor’s name as Bayview Demolition and not
Bayview Demolition Services, Inc. as shown on its contractor’s license
information and their DBA information on the DIR website.
Oct. 19, 2021 Item #1 Page 19 of 21
Ms. Janean Hawney Mr. Scott Chadwick
September 15, 2021 Page 6 of 7
RAL incorrectly listed Bayview’s CADIR number as 100002529 instead of
1000002529.
RAL incorrectly listed Bayview’s address as 15535 Garfield Ave., Paramount, CA
90723 when the registered address for its DIR and contractor’s licens9e numbers
is 6925 San Leandro Street, Oakland, CA 94621
4.DFS Flooring LP
RAL incorrectly listed DFS Flooring’s address as 10178 Willow Creek Road, San
Diego, CA 92123, the address on file for both its DIR and contractor’s license
numbers is 15651 Saticoy St, Van Nuys, CA 91406
5.Infinite Technologies
RAL did not list a license type or expiration date for Infinite Technologies
contractor’s license.
6.JMG Security
RAL did not list a license type or expiration date for Infinite Technologies
contractor’s license. 7.PGC Construction Inc
RAL incorrectly listed PGC’s CADIR number as 100003614 instead of
1000036314
RAL did not list a license type for PGC’s contractor’s license
8.Queen City Glass Co.
RAL did not list an expiration date or license type for Queen City’s contractor’s
license
RAL incorrectly listed Queen City’s address as 42210 Roick Drive, Suite 6,
Temecula, CA 92590. The address listed for its DIR and contractor’s license
numbers is 30858 Wealth Street, Murrieta, CA 92563
9.Schindler Elevator Corporation
RAL incorrectly listed Schindler’s license as expiring on 06/30/2017.
RAL incorrectly listed Schindler’s address as PO Box 1935, Morristown, NJ 07962. The address on file for its CADIR number is 16450 Foothill Blvd., Ste 200,
Sylmar, CA 91342 and the address on file for its contractor’s license is 20
Whippany Road, Morristown, NJ 07960.
11. WR Robbins Company
RAL did not list a license type or expiration date for WR Robbin’s contractor’s
license.
Perhaps some of the irregularities regarding addresses or mistakes in DIR numbers, by
themselves, would be considered minor and waivable. But the sheer number of irregularities is
too many to waive.
The City Should Not Accept Additional Information
Responsiveness is determined from the face of the bid. The City cannot now permit
RAL from submitting the information that should have been submitted at the time of bid. This
issue was decided in Desilva Gates Construction, LP v. Department of Transportation, 242 Cal.
App. 4th 1409 (2015), in which the Court held that Caltrans erroneously awarded a contract to a
contractor who had failed to acknowledge all addenda (as required by the bidding instructions).
Caltrans allowed the bidder to cure its mistake after the fact by submitting late documentation
Oct. 19, 2021 Item #1 Page 20 of 21
Ms. Janean Hawney Mr. Scott Chadwick
September 15, 2021 Page 7 of 7
acknowledging the addenda. The Court ruled that Caltrans abused its discretion to waive
irregularities.
Summary
RAL’s bid is nonresponsive and must be rejected.
RAL failed to comply with the bidding instructions providing information regarding the
experience of its employees. Spectrum and other bidders were required to comply with that
provision. This ground alone requires rejection.
RAL wrote $0 for the line item of demobilization and site clearance. This item alone
should be rejected for three reasons. First, it is not responsive because it fails to provide an
amount for the bid item. Second, it is nonresponsive because it is not balanced and is
backloaded. Third, it is not an unqualified promise to perform the work required (such as site
clearing).
RAL’s bid appears (based on the e-bid information) to have multiple irregularities
regarding licensing and DIR registration.
This letter is a formal protest against any award of the contract to a bidder other than
Spectrum. Spectrum reserves the right to supplement this protest with additional facts after it
receives the requested information.
Spectrum also requests notice pursuant to Government Code section 54954.1 of all
meetings related to the award. Spectrum asks to be emailed all staff reports or
recommendations concerning this project as soon as they are available to the public. If this
letter is insufficient to accomplish any of these purposes, please let us know immediately what
else is required so we can comply.
Please also consider this a request for all communications between RAL and the City in
connection with any prior bids for the Project.
If you need any further information, don't hesitate to contact me.
Very truly yours,
Armenak Kavcioglu
PIERCE KAVCIOGLU ESPINOSA & CESAR LLP
Oct. 19, 2021 Item #1 Page 21 of 21
Acceptance of Bids, Award of Contract,
Authorization of Additional Funding for the
Police and Fire Headquarters Renovation
Project and Denying a Bid Protest
Steven Stewart, Municipal Projects Manager
Mickey Williams, Police Chief
Oct. 19, 2021
Insert photo of P&F
building here
{city of
Carlsbad
RECOMMENDED ACTION
Adopt a resolution:
•Accepting the bids received, awarding a contract to RAL Investment
Corporation, dba Silverstrand Construction for the Police and Fire
Headquarters Renovation Project, CIP Project No. 4715, in an amount
not to exceed $12,633,181
•Authorizing an appropriation of $13,000,000 from the General Capital
Construction and Infrastructure Replacement and Maintenance funds
•Denying Spectrum Construction Group, Inc’s Bid Protest
ITEM # 1 –POLICE AND FIRE
HEADQUARTERS RENOVATION
{city of
Carlsbad
BACKGROUND
•Design work for the Police and Fire HQ Renovation Project, inclusive of
structural upgrades for the EOC/Conference Room wing, has been
completed and permitted by the city
•City Council adopted Resolution No. 2021-178 on July 27, 2021,
approving the plans, specifications and contract documents for the
renovation work and authorizing staff to advertise the project
documents for bids
•On Sept 8, 2021, staff received eight bids for the renovation project,
and tonight, request City Council authorization of a contract with the
lowest responsive and responsible bidder so the building renovation
work can begin
ITEM # 1 –POLICE AND FIRE
HEADQUARTERS RENOVATION
{city of
Carlsbad
ITEM # 1 –POLICE AND FIRE
HEADQUARTERS RENOVATION
TRAILER
LAYOUT IN
PARKING LOT
"
=
21
L_
SAFETY CENTER
OJOJOJ □
,. \ ,.
'\' ,.
+
NEXT STEPS
•Staff will fully execute the contract and issue a
purchase order
•Once staff have been relocated into the temporary
trailers, a preconstruction meeting will be held with
the renovation contractor and a notice to proceed will
be issued for the renovation work
•The project work is expected to take up to two years
to complete and will be done in three renovation
phases
ITEM # 1 –POLICE AND FIRE
HEADQUARTERS RENOVATION
{city of
Carlsbad
RECOMMENDED ACTION
Adopt a resolution:
•Accepting the bids received, awarding a contract to RAL Investment
Corporation, dba Silverstrand Construction for the Police and Fire
Headquarters Renovation Project, CIP Project No. 4715, in an amount
not to exceed $12,633,181
•Authorizing an appropriation of $13,000,000 from the General Capital
Construction and Infrastructure Replacement and Maintenance funds
•Denying Spectrum Construction Group, Inc’s Bid Protest
ITEM # 1 –POLICE AND FIRE
HEADQUARTERS RENOVATION
{city of
Carlsbad
Thank you
{city of
Carlsbad