CC SR 20260203 05 - CIP Procurement Policies and Vendor Management (with links)
CITY COUNCIL MEETING DATE: 02/03/2026
AGENDA REPORT AGENDA HEADING: Regular Business
AGENDA TITLE:
Consider a report on the City’s procurement policies and vendor management practices
for Capital Improvement Program (CIP) projects.
RECOMMENDED COUNCIL ACTION:
(1) Receive and file a report on the City’s procurement policies and vendor
management practices for Capital Improvement Program (CIP) projects .
FISCAL IMPACT: There is no fiscal impact to receive and file this report.
Amount Budgeted: N/A
Additional Appropriation: N/A
Account Number(s): N/A
ORIGINATED BY: Ramzi Awwad, Director of Public Works
REVIEWED BY: Vina Ramos, Director of Finance VR
APPROVED BY: Ara Mihranian, AICP, City Manager
ATTACHED SUPPORTING DOCUMENTS:
A. Request for Proposals Template and Instructions (Page A-1)
B. Proposal Scoring Sheet Template (Page B-1)
C. Cost Estimating Tools for Reviewing PSA Fees (Page C-1)
D. Professional Services Agreement Template (Page D-1)
E. Detailed Cost Estimating Training (Page E-1)
F. Project Status Report Template (Page F-1)
G. Construction Daily Report Sample (Page G-1)
H. Change Order Template (Page H-1)
I. Hardy & Harper Contract Supporting Documents (Page I-1)
J. Malcolm Drilling Company Contract Supporting Documents (Page J-1)
K. Geo-Logic Associates Contract Supporting Documents (Page K-1)
L. Hout Construction Services Contract Supporting Documents (Page L-1)
M. Geosyntec Consultants Contract Supporting Documents (Page M-1)
N. Clarke Contract Supporting Documents (Page N-1)
O. Iteris Contract Supporting Documents (O-1)
P. Alfaro Communications Contract Supporting Documents (Page P-1)
Q. Chapman Coast Roof Contract Supporting Documents (Page Q-1)
R. AMG Associates Contract Supporting Documents (Page R-1)
EXECUTIVE SUMMARY:
At the November 4, 2025 City Council meeting, Councilmember George Lewis requested
a report outlining the City’s procurement policies and vendor management practices for
Capital Improvement Program (CIP) projects, including when competitive bidding is used,
with examples of the application of those policies on recent large purchases , as
summarized below:
• The Rancho Palos Verdes Municipal Code and the California Uniform Public
Construction Cost Accounting Act governs the method of procurement based on the
type of work and value.
• Professional services (such engineering, surveying, construction management, etc.)
are competitively procured by advertising a Request for Proposals and selecting the
proposal of most qualified firm (based on experience and skill), then negotiating a fair
and reasonable fee through a detailed evaluation of the proposed tasks and
associated compensation.
• Public projects (such as construction, reconstruction, alteration, etc.) are competitively
procured based on the value of the work
▪ Level 1 – up to $75,000 – two to three informal verbal or written quotes.
▪ Level 2 – $75,000 to $220,000 – minimum of three informal verbal or written bids.
▪ Level 3 – $220,000 or more – formal bids.
• Emergency work (such as a situation requiring that a public facility be repaired or
replaced to permit continued operation or to avoid danger to life or property) is
competitively procured based on best value.
• Staff perform an internal or contracted third -party independent cost estimate to
determine that vendor’s proposed cost is fair and reasonable before recommending
award of an agreement.
• Staff manage vendors using a variety of tools including deploying on -site construction
managers/inspectors to document work performed, enforce contract requirements,
and review and verify that the work purported to have been performed in an invoice
was satisfactorily performed before making payment.
• As a local government agency, the City is subject to an annual independent audit
whereby the City’s independent auditor reviews the City’s internal control processes
and related financial transactions; including the City’s RFP process and contract
awards. The audit results year-over-year demonstrate that the City is consistently in
compliance with its established policies.
BACKGROUND:
At the November 4, 2025 City Council meeting, Councilmember George Lewis requested
a report outlining the City’s procurement policies and vendor management practices for
Capital Improvement Program (CIP) projects, including when competitive bidding is used,
with examples of the application of those policies on recent large purchases.
Councilmember Lewis stated that such a report could show the public how the City makes
purchasing and vendor management decisions, along with contract management and
oversight practices, with the City’s fiscal interest in mind.
Most CIP projects, especially larger ones, are developed and implemented by the Public
Works Departments. Therefore, this report is written for the City’s Public Works CIP
projects.
DISCUSSION:
Procurement Policies
The City’s purchasing policy is set forth in Rancho Palos Verdes Municipal Code
(RPVMC) Chapter 2.44 – Purchasing Ordinance. The ordinance states that “it shall be
the policy of the city to secure services, supplies and equipment at the lowest possible
cost commensurate with quality needed, to exercise positive financial control over
purchases and to assure the quality of purchases”.
The ordinance was also adopted pursuant to the Uniform Public Construction Cost
Accounting Act, codified as § 22000 et seq. of the California Public Contracts Code
(UPCCAA). The UPCCAA provides specific procedures for the bidding of public projects
based on the dollar amount for the project. The ordinance states the procedures for “public
projects” means “construction, reconstruction, erection, alteration, renovation,
improvement, demolition, installation, and repair work involving any publicly owned,
lease, or operate facility”, and explicitly excluding maintenance work, shall be governed
by RPVMC Chapter 2.42 – Public Projects.
The application of these sections of Chapter 2 of the RPVMC to CIP projects results in a
division of purchasing into three major categories:
• Professional Services
• Public Projects (Construction/Reconstruction/Renovation)
• Emergency Work
A summary chart of the procedures, also including the procurement of supplies and
maintenance services, has been developed by the Finance Department for use by Staff
in all departments and is shown on the following page:
continued on the next page
Summary of Purchasing Ordinance 618
Professional Services
Professional services are generally defined as land surveying, engineering, architectural,
environmental, project management, construction management, construction inspection,
and similar and related services for the purposes of the CIP.
When procuring professional services, Staff recognize that the cheapest professional
service firm may have a lower up-front cost; however, the total life-cycle cost of a project
designed by the cheapest firm may be significantly higher because lower technical
expertise may lead to higher construction costs, additional change orders, and lower
overall quality with increased maintenance burdens. Therefore, the City practices
Qualifications Based Selection (QBS), which is a competitive process whereby
professional services are procured based on qualifications and experience, at a fair and
reasonable price.
RPVMC § 2.44.070 states that the procedures of RPVMC § 2.44.050 shall not apply to
the procurement of specific professional services such as architects, engineers, or other
similarly licensed professionals and that due to the nature of the services, bidding is not
likely to result in the greatest benefit to the City. Therefore, QBS conforms to RPVMC.
Additionally, QBS conforms to California Government Code Chapter 10: Contracts with
Private Architects, Engineering, Land Surveying, and Construction Project Management
Firms [Section 4525 – 4529.5]; because it states that selection for professional services
of architects, engineers, and similar professionals shall be on the basis of demonstrated
competence and on the professional qualifications necessary for satisfactory
performance of the services at a fair and reasonable price.
Minimum
Requirements
Supplies &
Equipment Maintenance Professional
Services
Other Professional
& Misc. Services Public Projects
Purchase Order (PO)$3,000
and above
$3,000
and above
$3,000
and above
$3,000
and above
$3,000
and above
Informal Bid $3,000 - $25,000 $3,000 - $25,000
$3,000 - $25,000
Specific Licensed
Services are
Exempt
$3,000 - $25,000
Specific Licensed
Services are
Exempt
Level 1:
up to $75,000
(no bid)
Level 2:
$75,000-$220,000
(informal bid)
Formal Bid Level 3:
above $220,000
Contracts
$3,000 - $25,000
(Use PO as the
City's Contract)
Contract verified
by the City
Attorney
City Council Approval -
Purchases and
Contracts
Above $25,000 per vendor, per fiscal year
Contract verified by the City Attorney
May require RFP or RFQ (see Ordinance 618, Section 2.44.050)
$3,000 - $25,000
City Manager Authority
May use PO/Short Form/Long Form verified by the City
*Formal Bids refer to Public Projects under Section 22032 of the Public
Contract Code governmed by the State Controller or the State Legislature.
*Exceptions to competitive bidding may apply in emergencies for repairs necessary to avoid danger to life or property, in
accordance with the City's Purchasing Ordinance No. 18 and Section 22035 of the CA Public Contract Code.
The competitive procurement process for professional services is outlined in the steps
below. The overall process typically has a duration of three to four months, barring
unusual circumstances.
1. Prepare Request for Proposals (RFP)
The competitive procurement process begins with Staff preparing an RFP stating the
project objective, scope of work, resultant deliverables, schedule expectation,
qualifications and selection criteria with weights, and special requirements. Standard
language in the City’s RFP template states that prospective proposers should include
in their proposal any modifications, additions, or innovations that they believe will best
result in accomplishing the project objective . To ensure that the City issues high
quality RFPs, Public Works Staff are trained on RFPs and are required to use a
template that includes instructions (Attachment A).
2. Issue RFP
To ensure robust responses to RFPs; Staff advertise RFPs on a website used by local
government agency vendors for solicitations, PlanetBids. Additionally, Staff issue
RFPs to vendors that have expressed interest in related services, are otherwise
known to perform similar scopes of work. For minor projects, the distribution list may
be smaller and more focused so that the process can be completed more quickly. If
an insufficient number of proposals are received; Staff may reach out to industry to
learn why firms did not submit proposals and accordingly revise the proposal for re-
issuance until sufficient proposals are received, or an exception can be justified.
3. Evaluation of Proposals
Staff then form a selection committee, typically consisting of three to five members, to
score the submitted proposals. The selection committee is typically comprised of
subject matter experts within the relevant department that can judge a firm’s
experience on prior similar projects; but can also include managers from other
departments, City leadership, or even external partners (such as Caltrans) to assure
that stakeholder perspectives or political priorities are appropriately factored into the
selection process.
The selection committee members independently score each proposal according to
the criteria and weights listed in the RFP using a standardized scoring sheet
(Attachment B). The selection committee then meets as a group to discuss the
proposals and scores. Each selection committee member may then adjust their score
based on insights from the other members. The scores for each selection criterion are
multiplied by the relative weight of that criterion to calculate the highest scoring firm.
For larger or more complex projects, the selection committee may interview a group
Prepare
Request for
Proposals
(RFP)
Issue RFP Evaluate
Proposals
Negotiate
Fee w/ Top
Firm
Present
Agreement
to City
Manager or
Council for
Approval
of firms whose weighted scores distinguish them as a higher tier than the other firms.
After the interviews, each panel member may again adjust their score based on
information learned in the interviews. The final weighted scores are calculated, and
the highest scoring firm is identified.
4. Negotiate Fee
Staff meet with the highest scoring firm to refine the scope of work and deliverables
based on any modifications indicated in the selected proposal. Once the scope is
finalized, the highest scoring firm is then requested to submit a fee proposal to perform
the work. The fee proposal is required to include sufficient detail such that a
mathematical evaluation can be made as to whether the fee is fair and reasonable.
Typically, this means a breakdown of staffing and hours proposed for each task/sub-
task. Staff then evaluate whether the appropriate levels of staff and the appropriate
number of hours are applied to each task /sub-task. For example, Staff will judge
whether a particular activity requires a senior engineer or whether it could be
performed by a junior engineer; and whether the number of hours needed is
appropriate for the task. Finally, Staff compare the rates for each proposed personnel
category to determine if it is consistent with market rates as seen from other vendors
working for the City or nearby jurisdictions under similar personnel categories.
Public Works Staff have been trained in reviewing professional services fees based
on the attached guideline document (Attachment C). For certain projects, especially
larger and more complex projects, outside firms specializing in independent cost
estimating are used to evaluate professional services fees. If Staff determine that a
proposed fee is not fair and reasonable based on a mathematical analysis, the
proposing firm is asked to revise their fee proposal. Staff may approve a proposal
where some tasks are above market rate when they are offset by other tasks that are
below market rate. If an acceptable revision to the fee proposal is not made, Staff will
then negotiate a fee with the next highest scoring firm and continue the process until
a firm provides fair and reasonable fee proposal.
Staff notes that there is particular emphasis on an impartial analysis of the proposed
cost estimate of a vendor where the initial proposed fee is not simply accepted. Staff
or a contracted consultant perform a detailed review of the proposed fee and negot iate
accordingly. The City’s goal is to achieve the best possible price for the City without
compromising the quality of the work product.
5. Execution of Professional Services Agreement
The final step in procuring professional services is the preparation and execution of a
type of contractual agreement, called a professional services agreement (PSA). The
PSA will detail the scope of services, deliverables, schedule, fee , and any special
conditions. The vendor may not exceed the contractual budget stated in the PSA
without prior written authorization from the City, which is only given when conditions
not previously known arise as detailed in the Vendor Management section of this
report. A City Attorney approved template is used for PSAs (Attachment D). For any
agreement with a sum of $25,000 or more in one fiscal year, the agreement is
presented to the City Council for consideration and approval. RVPMC authorizes the
City Manager to enter into agreements valued under $25,000 per fiscal year per
vendor.
Public Projects
Public projects are generally defined as the construction, reconstruction, alteration,
renovation, or improvement of any publicly owned or operated facility such as a building,
structure, utility system, street and highway, or other public work improvement.
Unlike professional services, Public Contract Code § 22000 requires local government
agencies to award public projects to the lowest bidder, with limited exceptions. Whereas
each vendor may have a unique approach to professional services; public projects must
be completed by any vendor in accordance with the exact same engineering drawings,
specifications, and conditions. As such, the price of each bidder will be for the same exact
end-product. Therefore, public bidding can reduce the likelihood of corruption, misuse of
public funds, or collusion; and can facilitate market competition.
RPVMC Chapter 2.42 – Public Projects states that there are three levels to public
projects, each with distinct requirements based on the total value of the work as
categorized in Public Contract Code §§ 22032 and 22037. Following are the levels and
their requirements:
Level 1: Projects Up to $75,000
RPVMC states that these projects may be awarded by negotiated contract or purchase
order without competitive bidding. However, it is the practice of the Public Works
Department to follow Level 2 requirements (see below) for all but the smallest Level 1
projects, typically $25,000 or less. For these smaller Level 1 projects, Staff typically
perform an independent cost estimate (ICE) to assure that the proposed price is fair and
reasonable. The ICE may consist of comparing the price to recent similar work or
preparing an independent estimate of the labor, materials, and equipment needed to
complete the work. Public Works Staff have received specialized training in how to
analyze the construction costs with reference materia l. (Attachment E)
A contract award or purchase order to the lowest bidder is recommended for
consideration (to the City Manager for contracts under $25,000 and to the City Council
for contracts above $25,000) if the Public Works Director determines that such action is
in the best interest of the City. The City may reject all bids or waive any irregularities or
informalities in any bid or bidding.
Level 2: Projects Between $75,000 to $220,000
These projects require informal bidding by competitive oral or written bidding, unless only
one or two sources are available for the project type.
For oral bidding, a minimum of three bids is solicited and a memorandum to file is
prepared documenting the identity of bidders and the bid amounts.
For written bidding, a notice inviting informal bids with specifications of the work is issued
to a minimum of three prospective bidders who have expressed interest or are otherwise
known to perform similar public projects. For Level 2 projects, a notice inviting bids is
often advertised on the website, PlanetBids, commonly used by local government agency
vendors for solicitation documents.
A contract award to the lowest bidder is recommended for consideration (to the City
Manager for contracts under $25,000 and to the City Council for contracts above $25,000)
if the Public Works Director determines that such action is in the best interest of the City.
The City may reject all bids or waive any irregularities or informalities in any bid or bidding.
Level 3: Projects Above $220,000
With the exception of emergency situations requiring a public facility to be repaired or
replaced to avoid danger to life or property, projects in this category are required to follow
the formal bidding process as outlined in the steps below:
1. Prepare Bid Documents
The bidding process begins with the preparation of engineered plans detailing the
components, locations, dimensions, etc. of the project and technical specifications
prescribing materials and installation requirements . The plans and specifications are
used to calculate the estimated quantity of work by category. Together, these three
documents are typically called the plans, specifications, and estimates (PS&E).
Next, General provisions such as bonding and insurance requirements, applicable
codes/laws, schedules, work hours, etc. are added to the PS&E set along with special
provisions such as construction logistics constraints.
Finally, the cover sheet, instructions to bidders, bid form where each bidder provides
their price in the exact same manner, and construction contract to be signed by the
successful bidder are compiled to complete the bid documents package.
2. Advertise Notice Inviting Bids
A formal public Notice Inviting Bids is advertised, typically on PlanetBids, a website
used by local government agency vendors for solicitation documents. Additionally, the
Notice Inviting Bids is sent to vendors that have expressed interest or are otherwise
known to perform similar public projects. Bids are typically advertised for around 30
days; however, that could be shorter (but no less than 10 days) or longer in rare
circumstances. Prospective bidders are afforded an opportunity to ask questions if
any elements of the PS&E or conditions are not clear. Responses to clarifications are
issued publicly so that all prospective bidders have the same exact information.
Prepare Bid
Documents
Advertise
Notice Inviting
Bids
Recieve &
Evaluate Bids
Present
Contract to City
Council for
Approval
3. Receive and Evaluate Bids
Bids must be received by the advertised deadline to be accepted so that all
prospective bidders are afforded the exact same amount of time to prepare their bids.
A bid tabulation is performed whereby the total bid of each bidder is compared in order
to identify the lowest bidder. The bid of the lowest apparent bidder is then further
evaluated to ensure that it adheres to the submission requirements such as minimum
project experience with references, debarment status, etc.
4. Award Contract
Finally, the bid results are presented to the City Council for their consideration, and if
approved, the lowest bidder is required to enter into a construction contract, in a form
approved by the City Attorney, for the project.
Emergency Work
RPVMC § 2.42.060 – Exceptions to Competitive Bid Requirement states that if an
emergency situation requires that a public facility be repaired or replaced to permit the
continued conduct of the operation or services of the City or to avoid danger to life or
property, the City Council may proceed to replace or repair the facility in accordance with
the provisions of the Public Contract Code § 22035 or any successor statute thereto.
Public Contract Code § 22035 allows the governing body to replace or repair any public
facility without giving notice for bids in cases of emergency. It also requires the City
Manager and Director of Public Works to report to the City Council at its next regular
meeting the reasons justifying why the emergency existed and why action outside of the
normal bidding process was necessary to respond to the emergency. Furthermore , it
states that the City Council shall, at every regularly scheduled meeting thereafter,
consider and reaffirm that there is a need to continue to remediate the emergency until
the authorized emergency repairs have been completed by 4/5 vote.
Staff recognize that it is possible certain vendors may seek to take advantage of an
emergency situation by charging unreasonable prices. Therefore, e ven in cases of an
emergency, Staff do not simply accept a vendor’s price.
In emergency situations, Staff will first attempt to use an existing emergency contract from
another jurisdiction. For example, Los Angeles County Public Works has emergency
contracts with certain vendors for certain services such as emergency drainage pipe
repair/replacement. When available in a timely manner, a vendor with an existing
competitively procured contract with established rates is used.
When an existing emergency contract with another jurisdiction is not available, Staff will
attempt to solicit proposals from multiple vendors for both price and response time. Staff
will perform an independent cost estimate (ICE) of proposals to ensure that they are fair
and reasonable. The ICE may consist of comparing the price to recent similar work;
preparing an independent estimate of the labor, materials, and equipment needed to
complete the work; or hiring a third-party company to analyze the cost. Staff also consider
response time because if a vendor has a lower price but cannot respond in an acceptable
time frame, the higher priced proposal may be selected – so long as it is fair and
reasonable as per the ICE.
For longer-term emergency responses such as the Greater Portuguese Bend -Ancient
Altamira Landslide Emergency Stabilization effort, other factors may be considered. This
includes assigning work to multiple vendors within similar price ranges so the City is not
reliant on only one vendor and can be sure to have a roster of engaged vendors that can
perform work in a timely manner when needed. The assignments are based on on-call
contracts approved by the City Council on July 1, 2025 for various work categories. This
means that when the need for certain work arises, such as re -drilling of a sheared
dewatering well, Staff will request proposals from multiple vendors awarded on -call
contracts by the City Council and assign the work based on the lowest cost, appropriate
availability, and continued engagement of multiple vendors.
Vendor Management Practices
Staff proactively manage the purchasing process using internal controls processes as
well as best practices in project management and record keeping. Additionally, the
purchasing ordinance includes certain approval requirements for changes to contractual
agreements approved by the City Manager or City Council.
Internal Control Process
In accordance with generally accepted accounting principles, the City has established an
internal control process for all purchases, using the purchasing ordinance as the basis for
the review and approval process.
The approval process begins at the departmental level, with purchasing requirements
reviewed and verified by the Finance Department. Approval authority is determined based
on established dollar thresholds for purchase orders. All purchase orders and invoic e
payments are then reviewed and verified through the City’s established workflow controls.
As a local government agency, the City is subject to an annual independent audit. As
part of the annual audit, the City’s independent auditor reviews the City’s internal control
processes and related financial transactions. The City’s RFP process and contract
awards are included in audit testing to verify with the City’s internal control process is
being followed. The audit results year-over-year demonstrate that the City is consistently
in compliance with its established policies.
Project Management
As part of proactive project management, Staff track the progress of the vendor’s work to
make sure that the project is progressing on schedule and within budget. Regular tracking
is essential to identifying problems as early as possible so there is an opportunity to
intervene before it is too late. It is Public Works’ practice to document project status at
regular intervals (typically on a weekly basis) using the Project Status Report template
(Attachment F), or another approved similar form. The P roject Status Report focuses on
schedule and budget information. When a project is in construction, daily construction
reports are also required to detail conditions and work performed (Attachment G).
Change Orders
Vendors are only paid the compensation amount in the signed contractual agreement
even if they underestimated the level of effort, were inefficient, or for some other reason
could not perform the work for the agreed upon fee.
There may be cases where additional work is needed that were not envisioned when the
scope of work was developed. This can be when the City determines that it is beneficial
to carry out related work that was not previously included. For example, a project may be
replacing certain components of a traffic signal and Staff may find that they overlooked
replacing another component that could also benefit from an upgrade for optimal overall
signal function. However, additional work is most often needed because conditions
emerge that were not apparent at the time the scope was developed. Typically, this
happens during construction, especially when subsurface conditions that were not
previously known are discovered. For example, when excavating to install proposed
infrastructure, it may become apparent that soils are unsuitable and need to be replaced.
In such cases, a change to the contractual agreement is required, which is called a
“change order”.
Any additional compensation to a vendor due to a City-initiated scope change or verified
unknown condition, a fully executed change order is required before any work is
performed; and the change order amount must be within the contingency limit set by the
City Manager or City Council upon contract award. Change orders require the approval
of the Contract Officer, Public Works Director, Finance Director, and City Manager per
contract award.
The City uses a change order package template consisting of three components, and
staff have been trained in its use (Attachment H):
• Change Order Memo – creates a record of the new work with a justification of why it
is needed, mathematically analyzes the cost to make sure it is fair and reasonable,
and assesses the impact on the schedule to make sure that any schedule extensions
are allowable. Staff will perform an independent cost estimate (ICE) of proposed
change orders to ensure that the cost is fair and reasonable.
• Change Order Form – formalizes the change order and incorporates it into the contract
by reference.
• Summary Sheet – summarizes all change orders to date including cost and schedule
so that the remaining contingency can be monitored.
When Staff desire to expand the scope of a contract, or when an unknown condition
results in a cost increase above the contingency amount authorized by the City Council,
a contract amendment approved by the City Council is required.
Invoice Payment
As vendors complete work, they typically submit applications for payment of the portion
of the work completed. Before approving payment, Staff scrutinize invoices to ensure that
the line-item quantities and prices correspond to the contractual agreement. Staff also
review the work product to ensure that the work purported to have been performed has
been satisfactorily performed and that the deliverables have been received. Staff approve
invoices for payment only after approving the work, verifying the amounts claimed, and
ensuring that other elements of the invoice are correct.
Contract Close-out
Once all work is complete and all final deliverables are received to the satisfaction of the
City, the vendor will apply for final payment. In cases of public projects approved by the
City Council, a Notice of Completion is filed to inform the City Council that the contract
will be closed once the City is assured there are no outstanding claims for the contract.
Application of Procurement Policies and Vendor Management Practices on Recent
Large Purchases
To provide examples of the application of procurement and vendor management
practices on recent Council-approved large purchases, Staff identified the vendors from
which the largest CIP purchases were made over the past few years. Considering the
magnitude of the Landslide Emergency Stabilization effort, the largest purchases over the
past few years have been related to that work. Therefore, to provide representative
sample, the list of large purchases was adjusted to include some examples beyond the
Landslide Emergency Stabilization effort. Below is list of each of those vendors along with
a description of the purchases and how procurement policies and vendor management
practices were applied.
Palos Verdes Drive South Emergency Repairs
• Description of Work: Palos Verdes Drive South emergency repairs in the landslide
area
• Vendor: Hardy & Harper, Inc.
• Value of Purchase: Not-to-Exceed $2,200,000 (work is in progress)
• Purchase Type: Emergency Work (Maintenance)
• Solicitation Method: Best value maintenance
• Method of Determining Fair & Reasonable Cost: The proposed prices for the most
commonly used line items were compared to recent work performed in the City and
found to be lower; therefore, the cost was determined to be fair and reasonable.
(Attachment I-1)
• Vendor Management: An on-site construction manager/inspector is deployed during
active construction to document work performed, enforce the contract requirements,
and review and verify that invoices (Attachment I-2) are in accordance with the
contract.
Landslide Emergency Stabilization Dewatering Wells and Winterization
• Description of Work: Installation of DDWs 1 through 5 and installation of piezometer
monitoring wells P-1 through 3.
• Vendor: Malcolm Drilling Company, Inc.
• Value of Purchase: Lump Sum $1,617,487
• Purchase Type: Emergency Work Contract
• Solicitation Method: On May 7, 2024, the City Council approved entering into a public
works agreement with this vendor. This approval was supported by the City’s
Engineering Geologist Consultant evaluating the qualifications and schedule of
multiple vendors. (Attachment J-1)
• Method of Determining Fair & Reasonable Cost: The City hired a consultant estimator
to perform an ICE, make recommendations, and document findings. When the
contractor’s proposed price was 5% higher than the ICE, the City project team entered
further negotiations with the contractor until the price difference was within the above-
described margin. The contracted construction manager, in coordination with the
Public Works Deputy Director, prepared a memo documenting the procurement and
the cost controls employed to demonstrate that the City project team negotiated a fair
and reasonable price for the work (Attachment J-2).
• Vendor Management: An on-site construction manager/inspector was deployed
during active construction to document work performed, enforce the contract
requirements, and review and verify that invoices (Attachment J-3) were in
accordance with the contract.
Portuguese Bend Landslide Remediation Final Engineering
• Description of Work: Preparation of final engineering, environmental documents, and
related services for construction of the Portuguese Bend Landslide Remediation
Project
• Vendor: Geologic Associates, Inc. (GLA)
• Value of Purchase: Lump sum $460,685 with contingency of $69,103 (work is in
progress)
• Purchase Type: Professional Services
• Solicitation Method: On December 18, 2018, after a qualifications based competitive
procurement, the City Council awarded a PSA to Daniel B. Stephens & Associates,
Inc., a subsidiary of GLA, who then prepared concept plans for the Portuguese Bend
Landslide Remediation Project. Subsequently, GLA prepared emergency stabilization
measures given their unique knowledge of the project area . On August 19, 2025
(corrected on September 16, 2025), the City Council awarded a PSA to GLA for final
engineering of the revised Portuguese Bend Landslide Remediation project on the
basis of their lower cost as well as their ability to complete the final engineering most
quickly due to their unique knowledge of the project area current conditions due to
their work on emergency stabilization.
• Method of Determining Fair & Reasonable Cost: The City hired a consultant estimator
to perform an ICE, make recommendations, and document findings. The consultant
estimator concluded that although the costs for certain line items were higher than
recommended, this was balanced out by other line items, and the total lump sum price
was found to be fair and reasonable. (Attachment K-1)
• Vendor Management: Meetings are held with the vendor on at least a monthly basis,
interim work product is reviewed, and invoices are reviewed (Attachment K-2) to
ensure that work purported to have been performed was satisfactorily performed
before payment is made.
Landslide Emergency Stabilization Construction Management and Inspection
• Description of Work: Construction Management and Inspection Services for Landslide
Emergency Stabilization in Fiscal Year 2024-25
• Vendor: Hout Construction Services, Inc.
• Value of Purchase: Not-to-Exceed $641,128 including contract amendments
• Purchase Type: Professional Services
• Solicitation Method: On February 15, 2022, the City Council awarded a PSA supported
by a QBS competitive procurement of professional services for Landslide Program
Management as detailed in the February 15, 2022 City Council staff report. This
competitive solicitation was continued for Landslide Emergency Stabilization
professional services including construction management because this vendor was
uniquely positioned to effectively provide construction management services given
their in-depth knowledge of the Landslide Complex having served as the program
manager for several years up to that time.
• Method of Determining Fair & Reasonable Cost : Staff compared proposed rates
provided with similar services for construction management and inspection services
on the City’s on-call construction management and inspection services contract.
(Attachment L-1). Additionally, Staff confirmed that the hours projected were
appropriate for the construction scope and schedule for which these services would
be used. The final negotiated rates are reflected in the agreement.
• Vendor Management: Staff held weekly meetings (at minimum) with the vendor to
monitor progress and the level of effort of all project activities. Staff reviewed monthly
invoices to confirm the rates listed were in accordance with the agreement, and hours
charged were appropriate based on the construction contractor activity and tasks
assigned by City staff (Attachment L-2).
Landslide Hydrology and Hydraulics Study
• Description of Work: Hydrology and hydraulics study of landslide complex
• Vendor: Geosyntec Consultants, Inc. (Geosyntec)
• Value of Purchase: Lump Sum $1,100,200 with contingency of $165,030 (work is in
progress)
• Purchase Type: Professional Services
• Solicitation Method: On September 16, 2025, the City Council awarded a PSA to
Geosyntec for a landslide hydrology and hydraulics study after a qualifications based
competitive procurement process. The solicitation process is detailed in the May 6,
2025 City Council staff report.
• Method of Determining Fair & Reasonable Cost: The City hired a consultant estimator
to perform an ICE, make recommendations, and document findings. The consultant
estimator concluded that although the costs for certain line items were higher than
recommended, this was balanced out by other line items, and the total lump sum price
was found to be fair and reasonable. (Attachment M-1)
• Vendor Management: Meetings are held with the vendor at least every two weeks,
progress reports are submitted by the vendor, interim work product is reviewed, and
invoices are reviewed (Attachment M-2) to ensure that work purported to have been
performed was satisfactorily performed before payment is made.
Landslide Emergency Stabilization Winterization
• Description of Work: Altamira Canyon Winterization for Fiscal Year 2025-26
• Vendor: Clarke Contracting Corporation
• Value of Purchase: Lump Sum $1,152,772.00 (work is in progress)
• Purchase Type: Emergency Work On-Call Contract
• Solicitation Method: Proposals for the scope of work were solicited by Staff from
multiple on-call emergency work contractors. The contractor was selected based on
responsiveness to bid proposal requirements and best value to the City including
ability to meet schedule, as documented in a Record of Selection. (Attachment N-1)
Staff notes that there are currently only two capable contractors willing to perform this
type of work within the Landslide Complex, whereas there are many contractors for
other capital projects outside of the Landslide Complex.
• Method of Determining Fair & Reasonable Cost: Market rate determined by comparing
two quotes considering the totality of the proposal, especially the hourly rates
considering the high likelihood of significant unknown conditions, which is documented
in a Record of Selection. (Attachment N-1)
• Vendor Management: An on-site construction manager/inspector is deployed during
active construction to document work performed, enforce the contract requirements,
and review and verify that invoices (Attachment N-2) are in accordance with the
contract.
Western Avenue Traffic Flow Improvements Final Engineering
• Description of Work: Final engineering, construction bidding, construction support,
and associated services for the Western Avenue Traffic Flow Improvements project.
• Vendor: Iteris, Inc. (Iteris)
• Value of Purchase: Not-to-exceed $508,820 with $76,323 contingency (work is in
progress)
• Purchase Type: Professional services
• Solicitation Method: On November 19, 2024, the City Council awarded a PSA to Iteris
for final engineering and construction support for the Western Avenue Traffic Flow
Improvements project after a qualifications based competitive procurement process .
The solicitation process is detailed in the November 19, 2024 City Council staff report.
• Method of Determining Fair & Reasonable Cost: The City’s contracted project
manager performed an analysis of the proposed fee, negotiated the cost against the
scope, and concluded with a recommendation to proceed with a not-to-exceed
contract amount. (Attachment O-1)
• Vendor Management: Meetings are held with the vendor at least every two weeks,
progress reports are submitted by the vendor, interim work product is reviewed, and
invoices are reviewed to ensure that work purported to have been performed was
satisfactorily performed before payment is made. (Attachment O-2)
Hawthorne at Eddinghill/Seamount Left Turn Arrow
• Description of Work: Construction of a left-turn arrow signal for Hawthorne Boulevard
at the intersection with Eddinghill Drive/Seamount Drive.
• Vendor: Alfaro Communications Construction, Inc. (Alfaro)
• Value of Purchase: Lump Sum $570,968 with contingency of $57,097
• Purchase Type: Formal bid
• Solicitation Method: On March 4, 2025, the City Council awarded a construction
contract to Alfaro, the lowest responsive and qualified bidder, after a formal notice
inviting bids was advertised on PlanetBids for construction of the left turn arrow signal
for Hawthorne Boulevard at the intersection with Eddinghill Drive/Seamount Drive and
associated signal improvements. The solicitation process is detailed in the March 4,
2025 City Council staff report.
• Method of Determining Fair & Reasonable Cost: Sealed low bid
• Vendor Management: An on-site construction manager/inspector was deployed
during active construction to document work performed, enforce the contract
requirements, and review and verify that invoices were in accordance with the
contract. (Attachment P-1)
Hesse Park Roof Replacement
• Description of Work: Replacement of the roof at Hesse Park
• Vendor: Chapman Coast Roof Co, Inc. (Chapman)
• Value of Purchase: $421,940 with a contingency of $42,194
• Purchase Type: Formal bid
• Solicitation Method: On February 4, 2025, the City Council awarded a construction
contract to Chapman, the lowest responsive and qualified bidder, after a formal notice
inviting bids was advertised on PlanetBids for construction of the replacement of the
Hesse Park roof and associated work. The solicitation process is detailed in the
February 4, 2025 City Council staff report.
• Method of Determining Fair & Reasonable Cost: Sealed low bid
• Vendor Management: An on-site construction manager/inspector was deployed
during active construction to document work performed, enforce the contract
requirements, and review and verify that invoices were in accordance with the
contract. (Attachment Q)
Ladera Linda Community Park
• Description of Work: Construction of the new Ladera Linda Community Park
• Vendor: AMG & Associates, Inc. (AMG)
• Value of Purchase: $13,721,000 with a contingency of $1,029,075
• Purchase Type: Formal bid with pre-qualified vendors
• Solicitation Method: On March 1, 2022, the City Council awarded a construction
contract to AMG, the lowest responsive and qualified bidder, after a formal notice
inviting bids was advertised for construction of the new Ladera Linda Community Park.
The solicitation process is detailed in the March 1, 2022 City Council staff report.
• Method of Determining Fair & Reasonable Cost: Sealed low bid
• Vendor Management: An on-site construction manager was deployed during active
construction to document work performed, enforce the contract requirements, and
review and verify that invoices were in accordance with the contract. (Attachment R)
ADDITIONAL INFORMATION:
On-Call Pre-Qualified Professional Services Agreements
The City often requires very similar professional services which can lead to a significant
amount of staff time being spent on repeated procurements for similar services.
Therefore, establishing a competitively procured pre -qualified on-call list of vendors for
commonly used professional services reduces staff time spent soliciting proposals,
reviewing qualifications, evaluating proposals, negotiating fees and contract terms, and
awarding contracts for each individual work assignment . This allows Staff to instead use
its limited time to focus on project delivery by significantly reducing repeated solicitations
of proposals for similar work.
Establishing a pre-qualified on-call list does not obligate the City at any time to request
any work from any company nor expend any funds. On-call contracts cannot be used
unless the City Council first appropriates a project budget or operating budget. These
contracts are only a mechanism for Staff to procure work once the Council has approved
funding.
The Public Works Department currently uses on-call agreements that were competitively
procured using the procedures outlined earlier in this report and approved by the City
Council for the following services:
• General Civil Engineering
• Transportation/Traffic Engineering
• Project Management
• Construction Management and Inspection
CONCLUSION:
At the November 4, 2025 City Council meeting, Councilmember George Lewis requested
a report outlining the City’s procurement policies and vendor management practices for
CIP projects, including when competitive bidding is used, with examples of the application
of those policies on recent large purchases. Based on the foregoing, the City Council is
being asked to receive and file a report on the City’s procurement policies and vendor
management practices for Capital Improvement Program (CIP) projects .
ALTERNATIVES:
In addition to Staff recommendation, the following alternative actions are available for the
City Council’s consideration:
1. Identify the need for additional information and direct staff to return at a future
meeting.
2. Take other action as the City Council deems appropriate.