TO: Board of Supervisors
FROM: Steven Lederer, Director of Public Works
REPORT BY: Sydney Barclay, Associate Engineer
SUBJECT: Reject all Bids and authorize the Director of Public Works to re-advertise the “South Campus Building 4 HVAC Upgrades” Project, PW 23-10.
RECOMMENDATION
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Reject all Bids and authorize the Director of Public Works to re-advertise for sealed bids and opening of the bids at a time, date, and location to be published by the Director of Public Works pursuant to Sections 20150.9 and 20150.8, respectively, of the Public Contract Code for the South Campus Building 4 HVAC Upgrades Project (Project 23018). (No Fiscal Impact)
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BACKGROUND
The South Campus Building 4 Air Handler Units (AHUs) 1, 2, and 10, the building’s hydronic boiler system, and control system have exceeded their useful service lives and have required frequent and increasingly costly maintenance and repairs in recent years. In addition, the age and deterioration of AHUs 1, 2, and 10 have resulted in rainwater intrusion through the units and into the second floor of the building, causing interior damage. After completion of the construction project, interior repairs will be completed under a separate project. The Facilities Master Plan Program has identified this project as a high priority and funding was allocated in fiscal year 2025-26 to complete the design and construct improvements.
The construction contract includes a Project Labor Agreement, otherwise known as a Community Workforce Agreement. The agreement is intended to support a stable workforce, reduce the risk of work disruptions, and help ensure the project is completed safely, on schedule, and with a qualified local workforce. Some electrical work is specified as sole sourced to be compatible with the Napa County Public Works Property Management existing Siemens global control system.
Following approval of the construction contractor’s submittals, the AHUs are anticipated to take approximately four (4) to six (6) months to fabricate, test, and deliver to the project site. Other related construction efforts, including the boiler replacement and HVAC controls replacements, are anticipated to occur concurrently and work is expected to continue until project completion in early 2027.
The South Campus Building 4 HVAC Upgrades Project was advertised on February 10, 2026. The Department of Public Works opened seven (7) bids on March 10, 2026. The bid results of the three (3) lowest bidders are listed below:
Turnkey HVAC Hayward, CA $3,349,835
Lawson Mechanical Contractors, LLC Sacramento, CA $3,521,385
Intech Mechanical Company LLC Roseville, CA $3,570,125
Turnkey HVAC (Turnkey) was the apparent lowest bidder. On March 16, 2026, the County received a formal bid protest from Lawson Mechanical Contractors, LLC (Lawson) of Sacramento, CA. The bid protest asserted that Turnkey’s bid was non-responsive due to the inclusion of a zero-dollar value for Bid Item No. 11, “New Domestic Hot Water Boilers (Lochinvar-FBN-1501)”, and that the bid did not set forth pricing for each item of work as required by the Instructions to Bidders.
Turnkey provided a written explanation stating that costs associated with the boilers were included under Bid Item No. 12, “New Boiler System Hydronic Pumps and Piping System”, based on their interpretation of the project Plans, Specifications, and standard industry distinctions between hydronic heating systems and domestic hot water systems. Turnkey indicated that its bid was intended to include all required work and that the allocation of costs among bid items reflected its interpretation of the contract documents.
County staff, in consultation with County Counsel, reviewed the bid submissions, the protest, and the explanations provided by Turnkey. This review identified inconsistencies between the bid item descriptions, the project Plans, and the Technical Specifications, including different terminology and references to the boiler system. These inconsistences created the potential for varying interpretations by bidders regarding the scope and allocation of costs among bid items. As a result, bid pricing was not presented on a consistent or comparable basis across all bidders.
Therefore, staff determined that the County cannot clearly establish the lowest responsive and responsible bidder based on the bids received. Staff further determined that revisions to the bid documents are necessary to clarify the scope and intent of specific bid items to align the bid schedule with the Plans and Specifications, and provide a uniform bidder understanding. Staff recommends rejecting all bids and re-advertising the project with revised bid documents to maintain the integrity of competitive bidding and ensure fair and equitable competition.
Requested Actions:
1. Reject all bids and authorize the Director of Public Works to re-advertise for sealed bids and opening of the bids at a time, date, and location to be published by the Director of Public Works pursuant to Sections 20150.9 and 20150.8, respectively, of the Public Contract Code for the South Campus Building 4 HVAC Upgrades Project, PW 23-10.
FISCAL IMPACT
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Is there a Fiscal Impact? |
No |
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Is it currently budgeted? |
No |
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Where is it budgeted? |
Design cost for this project are in Project 23018. Construction funds will be reallocated from the Facilities Master Plan (FMP) Project. |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
This project will improve the HVAC system for part of South Campus Building 4 and will ensure proper function of the existing system. It will provide proper working conditions for those already working in the building and will provide additional usable space for future County needs. |
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Is the general fund affected? |
No |
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Future fiscal impact: |
Construction will begin in FY 2025-26 and will be completed in FY 2026-27. |
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Consequences if not approved: |
The project will not move forward into the construction phase. |
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Additional Information |
Strategic Initiative: Build Healthy, Connected Communities. |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: Rejecting all bids and re-advertising is not a project as defined by 14 California Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable. The HVAC Upgrades to South Campus Building 4 is categorically exempt from CEQA pursuant to CEQA Guidelines section 15301, as the repair and maintenance of existing public facilities involving negligible or no expansion of existing or former use.