New Pre-Qualification Program & Other Reforms Aim to Ensure City Contracting Requirements are Met, Quality Construction Work is Delivered

The San Francisco Public Utilities Commission (SFPUC) today announced a new “pre-qualification” program that, effective immediately, will require prospective bidders on select SFPUC capital projects – including projects included in the $4.3 billion Water System Improvement Program (WSIP) to repair and seismically upgrade the Hetch Hetchy water delivery system – to demonstrate adequate levels of experience, skill, financial position and other criteria before submitting bids or proposals for SFPUC capital construction work. The new Pre-Qualification Program – the first of its kind for a San Francisco public agency – aims to attract the nation’s most qualified contractors to SFPUC projects while ensuring that bidders can meet all city requirements. The pre-qualification program is a major step in the SFPUC’s overall review and reform of agency contracting processes as it undertakes historic capital construction projects for water, wastewater and municipal power services.

“Our pre-qualification program will help identify and attract a global pool of the most qualified, responsible bidders for our major capital projects,” said Tony Irons, SFPUC Deputy General Manager for Capital Programs. “We must revamp and streamline our contracting process so we can ensure the best quality work delivered on time and on budget.”

The initial round of pre-qualification will focus on upcoming projects in San Francisco under the Water and Wastewater Enterprises, with contracts being let in Winter 2006 – 2007 for water pipelines, pump stations and local reservoirs (see attached list). The second round of pre-qualification will follow for regional contracts on dams, reservoirs, tunnels and treatment facilities to be let in Spring/Summer 2007.

A Pre-Qualification workshop for interested contractors will be held on Tuesday, October 17th at 10 a.m. at 1145 Market Street, 1st floor, in San Francisco. The workshop will review the new program, application and process, as well as discuss upcoming SFPUC projects and information on contracting requirements for the City and County of San Francisco. Contractors with questions about the program or wishing to RSVP for the workshop should contact Wendy Iwata at rfp@sfwater.org  or 415-554-3190. Pre-qualification applications and questionnaires are available on the SFPUC website at www.sfwater.org. Potential bidders are encouraged to submit pre-qualification applications as soon as possible so they may be notified of their pre-qualification status well in advance of upcoming projects.

Currently, under normal City and County of San Francisco contracting processes, the qualifications and experience of bidders is evaluated only after bids for major projects have been submitted and scored. The SFPUC’s new pre-qualification program seeks to eliminate unqualified bidders from the outset and reduce the likelihood of delays and increased costs during the contract evaluation and award period. Bidders will still be required to meet project-specific minimum qualifications. Contractors can request pre-qualification at any time for a variety of project types. Qualification status will remain in effect for a two-year period.

The establishment of a new pre-qualification program was a major recommendation arising from a task force formed by SFPUC General Manager Susan Leal, Deputy General Manager Irons and the City Attorney’s office to reform and expedite city contracting. The SFPUC is also moving to implement other recommendations to streamline decision-making and ensure accountability in contracting, including establishing a claims-avoidance unit to identify and resolve potential City-contractor claims, creating a centralized payment review unit within the SFPUC, identifying alternative contracting delivery methods and setting realistic goals for small and local business participation.

“The pre-qualification program is a major step towards our overall goal of making it easier for qualified contractors to do business with the SFPUC from contract award to project completion,” said Irons.