What follows is a timeline of these bidding processes and anticipated next steps.
- August 27, 2021: The City advertised three as-needed, low-bid paving projects with total engineer’s estimated value of $30.5 million: Project 1006103, $13.5m; Project 1006104, $13.5m; and Project 1006105, $5.1m. The third, smaller contract was bid out based on feedback that perhaps a smaller contract could lead to a different competitive outcome.
- September 30, 2021: The City received 10 bids as part of the three as-needed paving projects (Project 1006103: 3 bids, 1006104: 3 bids & 1006105: 4 bids).
- November 8, 2021: Analysis performed by the City’s Department of Workplace and Employment Standards (DWES) in November 2021 found that none of the 10 bids on the three projects achieved full conformance with the LBE/SLBE program, which calls for 50% LBE (any size) overall participation (exclusive of specialty items), 25% Small / Very Small Local Business Enterprise (S/VSLBE) overall participation (exclusive of specialty items), and 50% LBE (any size) trucking participation. The compliance memos for all three projects are in a single PDF document and can be found here.
- December 2021: OakDOT (Oakland Department of Transportation) staff worked to develop a proposal that would award contracts to the lowest bidders as well as other bidders willing to match the low bid for Project 1006103. This proposal was consistent with past practice, providing the benefit of having multiple contracts issued, protection against contractor performance issues, and higher overall capacity to deliver paving in spring and summer 2022.
- January 18, 2022: City Council considered the staff recommendation (documentation available on Legistar here). City Council did not take action on the recommendations for contract awards, instead directing staff to return to the Council with a resolution rejecting all bids as composed at the time, and authorizing staff to negotiate with the bidders to achieve bids compliant with the L/SLBE program requirements.
- Week of January 24, 2022: Upon further review, it was recognized that the prior City analyses did not accurately account for “specialty items.'' Specialty items are those in which a "rule of three" applies: if there are not more than 3 vendors or suppliers to provide the service or material supply, the City’s L/SLBE program excludes the bid total for these specialty items from the L/SLBE participation calculations. The City’s L/SLBE program excludes this material from the calculations, assessing the percentage of L/SLBE participation against the total contract bid amount, less the specialty items (effectively: the denominator in calculating the percentage). The November 8, 2021 analyses only considered one of the two items identified as specialty items in the bid documents. These items (asphalt concrete and asphalt concrete for base repair) should have both been deducted from the bid totals. Instead, L/SLBE contracting participation was measured against an incorrectly large total denominator, giving an erroneously lowered participation percentage. With this error corrected, DWES reviewed all bids closely and determined that one of the original bid was responsive to the City's L/SLBE policy. In this case, that term largely refers to asphalt and concrete material. In the November 2021 analyses, there were two lines of specialty items, one of which was included in error as contributing to that denominator – so that local contracting participation was measured against an incorrectly large total denominator, giving an erroneously lowered participation percentage. DWES reviewed all bids closely and determined that one of the bidders met all requirements. Revised compliance memos were issued by DWES on January 28, 2022. Links to those memos can be found here (Project 1006103), here (Project 1006104), and here (Project 1006105).
- Week of January 31, 2022: Staff then followed City Council direction to negotiate with the two remaining non-L/SLBE program compliant bidders with a goal to produce revised bids compliant with the participation goals.
- February 2022: City staff are working to expeditiously bring the results of Council-authorized negotiation to completion, and will return to Council to consider next steps and recommendations. Staff anticipate this item to be agendized for either the February 15, 2022 meeting or the March 1, 2022 meeting of the City Council. Finalized documents will be posted here and the City’s Legistar system as they are completed.