Sewer Lateral Replacement Project

The City of Palo Alto, California, located in Santa Clara County, is soliciting competitive bids through Invitation for Bid No. IFB197641 for a Sewer Lateral Replacement Project, a capital improvement program designed to replace approximately 210 deteriorated public sewer laterals identified through comprehensive maintenance records analysis. The project aims to improve wastewater collection system reliability and reduce sanitary sewer overflow risks by replacing laterals with high-frequency maintenance records or documented structural integrity issues. The scope of work spans three years with approximately 70 public sewer laterals to be replaced annually using either pipe bursting or open-cut installation methods depending on site-specific conditions, invert depths ranging from less than 8 feet to greater than 12 feet, and pipe diameters of 4 or 6 inches. Deliverables include removal and replacement of sewer lateral pipes, excavation support design and installation, lateral abandonment, pre- and post-construction Closed-Circuit Television (CCTV) inspections with water introduction at controlled flow rates, GPS surveying, asphalt concrete pavement storage and disposal, and landscaping restoration. Required qualifications include a valid Class A General Engineering Contractor license, a minimum of 5,000 linear feet of pipe bursting installation experience and 5,000 linear feet of open-cut installation experience within the past three years, registration with the California Department of Industrial Relations (DIR) for public work authorization, and compliance with California prevailing wage requirements. A pre-bid meeting is scheduled for April 30, 2026, at 10:00 am via non-mandatory Microsoft Teams, with written questions and clarifications due by May 5, 2026, at 1:00 pm, and sealed bids due electronically through the City's procurement portal by May 19, 2026, at 3:00 pm. The anticipated project commencement date is August 1, 2026, with a required completion timeline of 780 days from the Notice to Proceed, and liquidated damages of $3,200 per day are assessed for unexcused delays.

The City will award the contract to the lowest responsive and responsible bidder and reserves the right to reject all bids or award multiple contracts; no specific set-aside designations or restrictions limiting participation to disadvantaged enterprises are identified in the available procurement documents. Contractors must submit a 10% bid security bond (Bid Bond) for bids exceeding $25,000 and are required to obtain and maintain a Performance Bond and Payment Bond, each equal to 100% of the contract sum, within ten days of Notice of Award. General liability insurance requirements include minimum limits of $1,000,000 per occurrence and $1,000,000 aggregate, with the City of Palo Alto named as an additional insured, along with workers' compensation, automobile liability, and professional liability coverage. The City will retain 10% of all monthly progress payments until final completion due to project complexity, and contractors must provide certified payroll records and maintain detailed as-built documentation with a one-year guarantee to repair period following completion. Specific contract value and award ranges are not disclosed in the bid documents; however, the project structure includes base bid items applicable to all three years plus supplemental unit pricing items for contingent work such as soil disposal at various landfill classes, deep-depth lateral replacements exceeding 12 feet, and open-cut work in paved and unpaved areas, with payment based on actual quantities completed rather than estimated amounts. No incumbent vendors or existing infrastructure integration requirements are specified in the available documentation.