REPORT TO COUNCIL
SUBJECT
Title
Reject All Bids Received for Plaza Del Sol Phase II Project (PW26-02)
Report
STAFF RECOMMENDATION
Recommendation
Approval is requested to reject all bids received in response to Invitation for Bids PW26-02 for the Plaza Del Sol Phase II Project so that the bid specifications can be adjusted to meet project requirements.
Report
BASIS FOR RECOMMENDATION
An Invitation for Bids for the Plaza Del Sol Phase II Project (No. PR-21-26) was posted on the PlanetBids public procurement network and distributed to local Bay Area Builder’s Exchanges on May 15, 2026. Fifty-seven (57) contractors requested bid documents with five (5) sealed bids received and opened on June 10, 2026. S&H Construction, Inc. submitted the lowest bid in the amount of $2,968,600 (Attachment 1, Bid Summary).
On July 2, 2026, two (2) bid protests were submitted by W.E. Lyons Construction Co. to contest the apparent low bidder’s and second low bidder’s qualifications to perform the waterproofing installations. The waterproofing specifications required that the contractor, or the subcontractor performing the waterproofing membrane installation, be a qualified, manufacturer-certified installer.
The waterproofing section of the technical specifications identified one waterproofing product as the basis of design but did not include additional “approved” equivalent products or specifically state “or equivalent product” which would allow contractors to request approval of substitute products with comparable quality and performance. As written, the specifications effectively required bidders to use a sole-sourced waterproofing system and did not provide sufficient information for bidders to determine whether alternative products would be accepted. To promote competition and ensure that all bidders compete on the same basis, the specifications will be revised to identify multiple acceptable equivalent waterproofing products and clearly state the applicable product and installer qualification requirements.
Pursuant to Section 2.09.140(b) of the Sunnyvale Municipal Code, the City Council may reject bids or proposals received in response to formal competitive bid solicitations. This Code section also provides that if all bids are rejected, the City can re-advertise.
Staff recommends that the City Council reject all bids and allow staff to re-bid this project with consideration for changes to the product and qualification requirements.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” with the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(4) in that it is a fiscal activity that does not involve any commitment to any specific project which may result in a potential significant impact on the environment.
FISCAL IMPACT
Rejecting all bids received for the Plaza Del Sol Phase II Project has no fiscal impact.
PUBLIC CONTACT
Public contact was made by posting the Council meeting agenda on the City's official-notice bulletin board at City Hall, at the Sunnyvale Public Library and in the Department of Public Safety Lobby. In addition, the agenda and this report are available at the City Hall reception desk located on the first floor of City Hall at 456 W. Olive Avenue (during normal business hours), and on the City's website.
Levine Act
LEVINE ACT
The Levine Act (Gov. Code Section 84308) prohibits city officials from participating in certain decisions regarding licenses, permits, and other entitlements for use if the official has received a campaign contribution of more than $500 from a party, participant, or agent of a party or participant in the previous 12 months. The Levine Act is intended to prevent financial influence on decisions that affect specific, identifiable persons or participants. For more information see the Fair Political Practices Commission website: www.fppc.ca.gov/learn/pay-to-play-limits-and-prohibitions.html
An “X” in the checklist below indicates that the action being considered falls under a Levine Act category or exemption:
SUBJECT TO THE LEVINE ACT
___ Land development entitlements
___ Other permit, license, or entitlement for use
___ Contract or franchise
EXEMPT FROM THE LEVINE ACT
_X_ Competitively bid contract*
___ Labor or personal employment contract
___ Contract under $50,000 or non-fiscal
___ Contract between public agencies
___ General policy and legislative actions
* "Competitively bid" means a contract that must be awarded to the lowest responsive and responsible bidder.
Staff
Prepared by: David Battaglia, Purchasing Officer
Reviewed by: Matthew Paulin, Director of Finance
Reviewed by: Aaron Bert, Director of Public Works
Reviewed by: Sarah Johnson-Rios, Assistant City Manager
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. Bid Summary