HomeMy WebLinkAbout00_NBIL(537)_2011-05_GFE Evaluation
MEMORANDUM
To: PROJECT FILE Dune Palms Road Bridge Date: 10/11/2022
Federal-Aid Project #: BR-NBIL(537)
Bid Opening Date: October 5, 2022
Bidder: Ortiz Enterprises, Inc. (hereinafter called “Low Bidder”)
Type of Work: New four-lane bridge (replace low-water crossing)
Bid Amount: $21,635,759.60
From: City of La Quinta
EVALUATION OF GOOD FAITH EFFORTS
The City of La Quinta established a Disadvantaged Business Enterprise (DBE) goal of 21 % for this construction
contract. The Low Bidder commits 17.19 % DBE participation.
The City of La Quinta’s evaluation of the apparent low bidder’s Good Faith Efforts is based on Section 9.9 of the
Local Assistance Procedures Manual and Appendix A in Part 26 of Title 49 of the Code of Federal Regulations.
The efforts of the Low Bidder were reviewed by the City of la Quinta Public Works Department from the
information provided in Exhibit 15-H: Proposer/Contractor Good Faith Efforts signed and submitted by Jeff Ortiz,
Secretary of Ortiz Enterprises, Inc..
The City of La Quinta determined that the Low Bidder did demonstrate Good Faith Efforts to meet the DBE
participation goal of this project for the reasons cited in this evaluation.
EVALUATION
A. Items of work the bidder made available to DBE firms
The Low Bidder did make 100 % of the total scope of work available for DBE’s to participate in the
bidding. 46.7 % were tasks which the Low Bidder usually subcontracts, but 53.3 % were tasks which the Low
Bidder usually performs by himself (Exhibit ‘C’ from Low Bidder’s Good Faith Efforts documentation).
The tasks were offered per bid item to the DBE’s (152 units) to facilitate a wide range of DBE participation
and to even enable smaller DBE’s to participate.
B. Solicitation effort documentation
The Low Bidder contacted initially more than 250 DBE’s and followed up with emails and phone calls to
check if they are planning to bid or if they would need assistance in any sort in respect to providing a bid
(Exhibit ‘B’ – contact log, from Low Bidder’s Good Faith Efforts documentation).
The Low Bidder solicited through electronic media and direct phone contact.
The Low Bidder searched for qualified DBE’s according to specific work codes within but not limited to
southern California (https://ucp.dot.ca.gov/querySubmmit.htm) and made the appropriate work items for the
respective DBE’s available. The search in the CUCP database returned 259 DBE records for the respective
work codes. The RFQ was publicly advertised 9/8/2022.
All of the DBE’s received the initial solicitation email on 9/8/2022.
The Low Bidder followed up by phone and / or email in between 9/20 and 10/3/2022 with 115 of the DBE’s.
He reached 64 directly, left voice messages or got a busy signal with 43 of them, and he sent 8 follow up
emails. As a result to this reminder 21 DBE’s said that they would bid and 5 answered “maybe”.
C. Rejected DBE documentation
The Low Bidder received fifteen (15) quotes whereof he accepted eight (8) DBS’s as a subcontractors and
as service and / or material supplier (see table below).
A total of seven (7) DBE’s were rejected due to significant price differences (from 20 to 60% higher)
compared to the respective non-DBE subcontractors or suppliers (Exhibit ‘D’ from Low Bidder’s Good Faith
Efforts documentation). In relation to the total bid amount selecting these DBE’s would have increased the
construction costs by $1,116,417.00 (5.2%) to a total of $22,754,176.60.
Bid item Name of Firm DBE Total Difference to low
1, 77-90 SRK Engineering YES $1,121,227.00
25, 26, 28, 3, 34, 68, 71,
72, 73
Integrity Steel
LA Steel*
DRS
Marvela Steel
NO
YES
YES
YES
$1,943,250.00
$2,288,515.00*
$2,323,461.00
$2,596,975.00
$345,265.00
$380,211.00
$653,725.00
*Ortiz decided to spend $1,000,000.00 to utilize partial DBE through 2nd tier sub LA Steel
47, 49, 51-54, 56, 109,
111-114, 132
Griffith Landscaping
Diversified Landscape
NO
YES
$140,786.00
$226,727.00
$85,941.00
29-31, 33-35, 118 R. Dugan YES $119,513.00
18-24, 27, 69,101-106,
122, 133
Universal Construction YES $392,272.00
1, 42, 44, 45, 50, 75, 76,
125, 129-131, 138-145
Mendoza Business
Enterprise
YES $1,045,777.00
67 partial Bridge Rubber Bearing YES $20,000.00
Fence Supplies Triumph Geo-Synthetics YES $18,612.00
SWPP Reporting SWPP Queen YES $10,275.00
37-40, 43, 74, 123, 124 Trinity Fence
Alcorn Fence
NO
YES
$986,713.00
$1,248,274.00
$261,561.00
1, 61, 62 Foundation Pile
Geo-Structural
Mahaffey
NO
YES
YES
$1,295,830.00
$1,719,480.00
$1,905,420.00
$423,650.00
$609,590.00
No quotes were rejected for being only marginally higher.
D. Publication effort made to advertise the projects to include DBE participation
The Low Bidder used the following publications for his request for DBE participation for this (Exhibit ‘A’
from Low Bidder’s Good Faith Efforts documentation):
Publications Dates of Advertisement
Construction Update 9/15/2022; 9/22/2022
Minority Bidders Bulletin 9/12/2022; 9/19/2022; 9/26/2022
Contractors Estimate Focus 9/8/2022 to bid date
Copies of the publications were provided in Low Bidder’s Good Faith Efforts documentation.
E. Agencies, organizations, or groups contacted to provide assistance in contacting, recruiting and using
DBEs
The Low Bidder contacted twelve (12) minority organizations by email per below table (Exhibit ‘G’ from
Low Bidder’s Good Faith Efforts documentation).
Name of Agency / Organization Method / Date of Contact
1 American Indian Chamber of Commerce of California Email 9/8/2022
2 Asian Business Association Email 9/8/2022
3 Asian Business Association of Orange County Email 9/8/2022
4 Chinese American Construction Professionals Email 9/8/2022
5 Filipino American Society of Architects and Engineers Email 9/8/2022
6 Greater Los Angeles African American Chamber of Commerce Email 9/8/2022
7 Hispanic Chamber of Commerce of Orange County Email 9/8/2022
8 Korean Chamber of Commerce of Orange County Email 9/8/2022
9 National Association of Minority Contractors Email 9/8/2022
10 Associated General Contractors of California Email 9/8/2022
11 American Indian Chamber of Commerce Email 9/8/2022
F. Efforts to provide information about the plans, specifications, and contract requirements
The Low Bidder did offer to provide information, plans and contract requirements upon request in his
advertisements. A sample from his information distributed on 9/8/2022:
“Plans/Specifications and Standard Subcontract Agreement are available for viewing at Ortiz – please call to
arrange. You may also view and/or download plans/specifications/ Invitation to bid/Standard Subcontract
Agreement at our FTP site: www.ortizplans.com username: 22-025, password: ORTIZ. Please check the site
for updates. …”
G. Assistance with bonding, lines of credit, insurance, equipment, supplies, materials, and/or services
The Low Bidder did offer assistance with bonding, lines of credit, insurance, equipment, supplies, materials,
and/or services. A sample from his information distributed on 9/8/2022:
“Ortiz Enterprises Inc. estimating staff is available to assist subcontractors in obtaining bonding, Lines of
credit, Insurance, necessary Equipment, Supplies, Material, or related assistance or services requested. …”
H. Additional data to support a demonstration of Good Faith Effort
The Low Bidder has submitted very detailed documentation of his effort towards DBE’s (communication,
outreach and offer for assistance).
Below summary shows that neither the 3rd nor the 4th lowest bidder reached the DBE Goal, their goals were
even lower than the one from the Low Bidder.
Engineer’s Estimate $16,496,244.50 DBE Goal 21.00 %
#1 Ortiz Enterprises (Low Bidder) $21,635,759.60 DBE Goal 17.19 %
#2 MCM Construction $22,069,640.00 DBE Goal 21.36 %
#3 Griffith Company $23,450,459.50 DBE Goal 11.4 %
#3 Riverside Construction $23,489,250.50 DBE Goal 9.0 %
FINDING OF THE CITY OF LA QUINTA
The City of La Quinta finds that the Low Bidder did demonstrate Good Faith Efforts to meet the DBE contract
goal for the reasons cited in this evaluation. He achieved a reasonable balance between project cost and trying to
meet the DBE goal.
Submitted by: Approved by:
Lorissa Gruehl, PE Bryan McKinney, P.E.
(Senior Engineer) (Public Works Director / City Engineer)