REVISED_COST_PROPOSAL.pdf

This Revised Cost Proposal document pertains to the City of Palo Alto's 3-Year Water System Leak Detection Services contract (RFP #RFP194078). The proposal requires bidders to submit pricing for three primary tasks across a three-year period: Task A (Leak Detection Plan), which includes draft and final plan deliverables for each year; Task B (Leak Detection Work), billed as a lump sum annually; and Task C (Leak Detection Reporting), which encompasses both draft and final report submissions for each year. The project addresses the city's water distribution system, which spans 231 miles and includes pipes ranging from 4" to 24" in diameter composed of multiple materials. The proposal submission deadline is May 14, 2025, at 3:00 pm, with the project release date of March 19, 2025. The contract is structured on a fixed-fee basis with a maximum "not to exceed" amount, and progress payments will be distributed based on project completion percentage.

The cost proposal template provided contains blank fields for all pricing entries across the three-year term, requiring bidders to populate lump-sum amounts for each task and year component. The city is motivated by California Senate Bill 555, which mandates water loss analysis and reduction initiatives. Bidders must demonstrate financial stability through audited financial statements, reviewed financial statements, or a letter of good standing from a financial institution. Insurance requirements are substantial, mandating minimum coverage limits of $1,000,000 per occurrence across multiple coverage types, and contractors must maintain a California business license. The city currently experiences real water loss of 25.3 gallons per capita per day and seeks to reduce this to the regulatory standard of 16 gallons per capita per day by 2028 through this leak detection initiative.