Fremont City

Staff Report

DEVELOPMENT SERVICES CENTER BUILDING IMPROVEMENTS - Approval of Plans and Specifications and Award of Contract to Matrix HG, Inc. in the amount of $1,709,821.00 for the Development Services Center HVAC & Roof Replacement (PWC8942); Exempt from Environmental Review per CEQA Guideline Section 15301 (Existing


Department:Public WorksSponsors:
Category:Agreements and Contracts

Item Discussion

Executive Summary: The purpose of this report is to facilitate improvement to the Development Services Center building which includes replacing the roof and the heating, ventilation, and air conditioning (HVAC) systems.


BACKGROUND: The Development Services Center is an approximately 71,000 square foot, two-story, City of Fremont building constructed in 1983 and located at 39550 Liberty Street. The building is utilized by staff from the City’s Community Development, Community Services and Public Works departments.  The existing two HVAC (75 ton) units and the roof have reached the end of their life cycle and are in need of replacement. 


DISCUSSION/ANALYSIS: The proposed replacements will improve the indoor environmental quality and water tightness of the structure, and will reduce the high demand for maintenance staff services in response to equipment failures and roof leaks. The work will be performed while the building is occupied.


The project was advertised for bids in the Tri-City Voice on April 23, 2019 and April 30, 2019. The engineer’s estimate was $1,789,000. Five responsive bids were received and opened on May 22, 2019, as shown below.


Contractor                                                                                                                Bid Amount

1.     Matrix HG, Inc.                                                                                                  $1,709,821.00

2.     Stronger Building Services                                                                       $1,865,000.00

3.     Southwest Construction & Property Management                            $1,916,482.00

4.     Commercial Waterproofing Systems, Inc.                                          $1,998,960.00

5.     Brazos Urethane, Inc.                                                                                    $2,534,246.00


The low bidder Matrix HG, Inc. submitted a responsive bid. The contractor is a responsible bidder experienced in this type of work and has satisfactorily completed contracts of a similar nature.


Project Cost and Funding: 

Estimated Project Costs:

Project Administration                                                                                                  $183,737

Construction Cost                                                                                                          $1,709,821

Roofing Materials – Through US Communities                                                        $219,009

Construction Administration                                                                                                  $170,982

Project Contingency                                                                                                                 $256,473

Estimated Total Project Costs:                                                                                  $2,540,022


Source of Funding

PWC 8942 – 502 Cost Center Reserves                                                                                 

Funds Available for the Project                                                                                 $3,000,000


Based on the contract amount and the project cost estimates, there are sufficient funds budgeted for this project.


Bid Protest: Stronger Building Services, Inc., the second apparent low bidder, has submitted a bid protest within the applicable time period (see attached letter). Matrix HG, Inc. (Matrix) has responded to the bid protest (see attached letter). Staff has reviewed the bid protest and, as discussed below, finds it without merit. Therefore, Staff recommends Council reject the bid protest and award the contract to Matrix.


The Stronger Building Services, Inc. protest letter states Matrix’s bid failed to list Syserco Inc. on the subcontractors list as required by City contract documents and Public Contract Code Section 4107.  Matrix’s response letter states Syserco will be providing onsite services to Matrix, at a cost which is less than one-half of 1% of the total contract amount.  Accordingly, Matrix was not required to list Syserco on its subcontractor list and the failure to do so does not render Matrix’s bid defective.


For the reason set forth above, Staff recommends that the City Council reject Stronger Building Services, Inc.’s bid protest as without merit, and award the contract to Matrix HG, Inc. as the lowest responsive and responsible bidder.


FISCAL IMPACT: The estimated project cost of $2,540,022 is funded from sources in the adopted Capital Improvement Program (PWC8942). 


ENVIRONMENTAL REVIEW:  The project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA guidelines section 15301, as a repair or modification of an existing facility involving negligible or no expansion of use.

Document Comments

RECOMMENDATION: Approval of the following actions related to the Development Services Center HVAC & Roof Replacement Project (PWC 8942):

1.              Find the project is exempt from the CEQA review pursuant to CEQA Guideline section 15301 as a repair or modification of an existing facility involving negligible or no expansion of use.

2.              Approve Plans and Specifications for the Development Services Center HVAC & Roof Replacement Project.

3.              Accept the Bid and award the construction contract to the lowest responsive and responsible bidder Matrix HG, Inc. in the amount of $1,709,821.00 and authorize the City Manager or designee to execute the contract.