To: Board of Supervisors
From: Warren Lai, Public Works Director/Chief Engineer
Report Title: Construction Contract for the Oak Grove Center at 1034 Oak Grove Road in Concord.
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
(1) APPROVE the plans, specifications and design for the above Project.
(2) ACCEPT the request of Bjork Construction Company Inc. (Bjork), the apparent low bidder, to withdraw its bid.
(3) DETERMINE that the bid submitted by D.L. Falk Construction Inc. (Falk) complies with all requirements of the Project specifications, including the requirements of the County’s Outreach Program.
(4) WAIVE any minor irregularities in Falk’s bid.
(5) FURTHER DETERMINE that Falk submitted the lowest responsive and responsible bid for this Project.
(6) CONFIRM the rejection and denial of the bid protest submitted by Falk, said bid protest having been found moot as the result of the withdrawal its bid by the apparent lowest bidder, Bjork.
(7) AWARD the construction contract for the above Project to Falk in the listed amount ($7,494,000) submitted in the bid, and DIRECT the Public Works Director, or designee, to prepare the contract.
(8) DIRECT that Falk shall submit two good and sufficient security bonds (performance and payment bonds) in the amount of $7,494,000 each.
(9) DIRECT that, as a condition of contract award, Falk and its subcontractors shall execute a Project Labor Agreement for this Project, as required by the Project specifications.
(10) ORDER that, after Falk, has signed the contract and returned it, together with the bonds, evidence of insurance, and other required documents, and the Public Works Director has reviewed and found them to be sufficient, the Public Works Director or designee, is authorized to sign the contract for this Board.
(11) ORDER that, in accordance with the Project specifications and upon signature of the construction contract by the Public Works Director or designee, any bid bonds posted by the bidders are exonerated and any checks or cash submitted for bid security shall be returned.
(12) AUTHORIZE the Public Works Director or designee, to sign any escrow agreements prepared for this Project to permit the direct payment of retention into escrow for the substitution of securities for monies withheld by the County to ensure performance under the contract, pursuant to Public Contract Code Section 2230.
(13) AUTHORIZE the Public Works Director, or designee, to order changes or additions to the work pursuant to Public Contract Code Section 20142 in a total amount not to exceed $749,000 (i.e. 10% of the contract award amount).
(14) DELEGATE, pursuant to Public Contract Code Section 4114, to the Public Works Director, or designee, the Board’s functions under Public Contract Code Sections 4107 and 4110.
(15) DECLARE that, should the award of the contract to Falk be invalidated for any reason, the fails to furnish required bonds or insurance (see Public Contract Code Sections Board would not in any event have awarded the contract to any other bidder, but instead would have exercised its discretion to reject the bids received. Nothing in this Board Order shall prevent the Board from re-awarding the contract to another bidder in cases where the successful bidder establishes a mistake, refuses to sign the contract, or 5100-5107).
FISCAL IMPACT:
$1,000,000 will be funded through a Health Resources and Services Administration (HRSA) Federal grant and the remainder will be funded through Measure X.
BACKGROUND:
The Contra Costa County Health Services Department (Behavioral Health Services) proposes the renovation of two existing buildings located at 1034 Oak Grove Road, Concord to be used as a Crisis Hub Center to enhance mental health support services in the County. The Crisis Call Center will be used as a dispatch center for County staff and providers contracted with the County to assist residents and direct them to the appropriate County services.
The Project site includes two structures built at different periods: one constructed and expanded between 1959 and 1964, and the other erected between 1993 and 2002. The larger building will undergo extensive renovation to accommodate three main functions: a Crisis Call Center, a "Recharge" Center, and a drop-in day clinic. The smaller building will primarily serve as a meeting space for group and individual counseling sessions.
Site work will include landscaping, fencing, parking lot adjustments, onsite storm drainage and utility improvements. Existing landscaping will be preserved, with new irrigation and lighting installations planned. Sidewalks will be replaced to comply with applicable accessibility standards and the existing parking lot will be resurfaced and restriped.
Because the larger of the existing buildings was constructed over 50 years ago, the environmental review process requires that a historical evaluation be conducted to determine the building’s historical significance and a determination be made on its eligibility for listing on the National Register of Historic Places or the California Register of Historic Resources. The completed evaluation determined that the building is not eligible for listing on either register. The evaluation report was submitted to the California State Historic Preservation Officer (SHPO) for review and concurrence. The SHPO concurred with the finding.
As part of the SHPO process, the County notified Native American tribes of the proposed Project and one tribe, the Wilton Rancheria, requested consultation regarding the planned soil excavation work. The Wilton Rancheria tribe requested that they provide training in Native American cultural resources to the construction crew prior to soil excavation work commencing on-site. In addition, they provided an Inadvertent Discovery Treatment Plan to be used as a guide by the construction contractor should there be a discovery of cultural resources materials during excavation work on the site.
Permits for the Project have been issued by Contra Costa County Fire Protection District and Department of Conservation and Development.
On June 4, 2024, this Board approved the design and bid documents for the construction of this Project and authorized the solicitation of bids in accordance with Public Contract Code Section 22037.
The Construction cost estimate was $6,145,000. General prevailing wage rates will be the minimum rates paid on this Project. Nine bids were received and opened by the Public Works Department on July 18, 2024, and the bid results are as follows:
|
BIDDER |
BID AMOUNT |
|
Bjork |
$7,481,500 |
|
Falk |
$7,494,000 |
|
Arana Group |
$8,370,882 |
|
Plant Construction |
$8,538,620 |
|
FRC, Inc. |
$8,670,882 |
|
WE Lyons Construction |
$8,753,770 |
|
MVP Construction LLC. |
$9,000,000 |
|
Buhler Commercial |
$9,150,000 |
|
Dowdle & Sons, Mechanical Inc. |
$10,527,000 |
Following the receipt of bids by the County on July 23, 2024, the second lowest bidder, Falk, whose bid was $12,500 higher than the low bid, filed a bid protest with the Public Works Department contesting the low bid submitted by Bjork. On July 24, 2024, Bjork withdrew their bid based on a significant math error which resulted in a bid which was $203,000 lower than needed to perform the work. Public Contract Code Section 5103 provides that a contractor may obtain relief from the responsibility to perform on a bid for a public contract if it can establish that:
(a) A mistake was made;
(b) The contractor gave the public entity written notice within five days after the opening of the bids of the mistake, specifying in the notice in detail how the mistake occurred;
(c) The mistake made the bid materially different than intended; and
(d) The mistake was made in filling out the bid and not due to an error in judgment or to carelessness in inspecting the site of the work, or in reading the plans or specifications.
The Public Works Department reviewed the request and supporting documents submitted by Bjork and agreed that the multiplier error in the bid table resulted in a significant math error in the bid total. As a result, the Public Work Department has found Falk to be the lowest bidder for the Project.
CONSEQUENCE OF NEGATIVE ACTION:
Without Board of Supervisors approval, the Project will not be constructed, and the County will not be able to provide planned expanded services to vulnerable residents struggling with mental health and addiction issues. In addition, the County will not be able to centrally locate its Crisis Call Center which is intended to reduce the volume of calls to the 911 system.