TO: Napa-Vallejo Waste Management Authority Board of Directors
FROM: Chris Celsi, Executive Director
REPORT BY: Chris Celsi, Executive Director
SUBJECT: Reject all Bids and Readvertise for Bids for Construction of C&D Facility
RECOMMENDATION
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The Executive Director requests approval to reject all bids for the new Construction & Demolition Facility at the Devlin Road Transfer Station and readvertise for new bids.
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EXECUTIVE SUMMARY
On June 3, 2025, the Napa-Vallejo Waste Management Authority (Authority) received seven bids for the construction of a new Construction & Demolition (C&D) Facility at the Devlin Road Transfer Station. Bids ranged from $31.8 million to $38.0 million. BHM Construction, the second-lowest bidder, submitted a bid protest (attached) alleging the lowest bidder underbid the project because it underestimated the size of the required photovoltaic (solar) system and did not timely acknowledge all the bid addenda issued by the Authority. Midstate Construction, the lowest bidder, submitted a response (attached) to the bid protest explaining that it is prepared to install the required photovoltaic system and that any late acknowledgement of the bid addenda is not significant enough to warrant rejection of its bid. Though not addressed in the protest, Midstate’s bid is significantly unbalanced by including nearly $8 million in its bid just for mobilization and demobilization. Such line item amounts cannot be renegotiated on low-bid projects, and unbalanced bids are usually rejected as non-responsive.
The Authority also received letters (attached) from two organizations who did not submit bids. The first was from a law firm representing the Construction Industry Force Account Council (CIFAC) arguing that all bids must be rejected because there is additional fiber optic work that must be included in the bids for the C&D Facility, and because there are design-build components of the project that preclude awarding the project on a strictly low-bid basis. The second letter is from NorCal Construction Industry Compliance (NCIC), a joint labor-management committee, arguing the low bid should be rejected because Midstate did not acknowledge receipt of all the bid addenda with its bid, and that Midstate is not a responsible bidder because of several alleged safety violations listed in the letter.
After reviewing the bid protest, the response to the bid protest, and the two letters, Authority staff believes that rejecting all bids and readvertising is in the best interest of the Authority. The bid documents will be updated to specify that the photovoltaic system must provide between 950 kW and 990 kW while using anti-reflective or anti-glare panels in consideration of the nearby Napa County Airport. Fiber optic trenching will be eliminated from the project scope and combined with a separate project to install communication lines between other buildings at the Transfer Station. References to design-build will be clarified to mean submittals of shop drawings or cut sheets, so bidders understand that they are not required to hire licensed architects or engineers. All bid documents, including acknowledgment of bid addenda, will be due on the same date.
Authority staff anticipates readvertising for bids on July 24, with bid opening to be held on August 26.
FISCAL & STRATEGIC PLAN IMPACT
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Is there a Fiscal Impact? |
No |
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Is it currently budgeted? |
Yes |
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Where is it budgeted? |
2025-2026 Approved Budget |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
Allows accurate and fair bidding. |
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Is the general fund affected? |
Yes |
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Consequences if not approved: |
Could lead to disputes during construction over what was intended by the bid documents. |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.