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Board authorizes expedited contracting approach for America's Cup work after budget analyst recommendations

3005966 · April 16, 2025
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

The Board agreed to sit as a committee of the whole and approved an ordinance, with budget-analyst recommendations, to waive certain bidding rules so the Port can begin waterfront improvements needed for the 34th America's Cup. The Port and budget analysts said most work would still be competitively subcontracted.

The San Francisco Board of Supervisors on Tuesday voted to allow the Port to use an expedited procurement approach to begin waterfront improvements for the 34th America's Cup, including a proposed contract to install shoreside power at Pier 70.

Members first voted to sit as a committee of the whole to hold a public hearing on waiving specified bidding and contracting requirements. Port staff said the work — an estimated $20 million of improvements across port property to prepare waterfront sites — needs to start quickly to meet construction timelines for upcoming events.

Brad Benson, a Port special-projects manager, told the board the Port proposes to rely on a previously selected prime contractor and competitively bid subcontracts rather than run full competitive processes for each package, to compress schedule while preserving competitive pricing for most work. Benson said some work would use the contractor’s forces and Eaton Corporation was identified as an equipment subcontractor for electrical transformers in a specific agreement with BAE Systems to install shoreside power at Dry Dock No. 2 at Pier 70 for an amount not to exceed $5,700,000.

The Budget and Legislative Analyst prepared a rapid review and recommended removing demolition activities from the waiver’s scope (demolition could proceed under existing contracts) and asked port staff to report back with full cost details and compliance documentation (Local Business Enterprise, local-hire, and related contracting provisions) when the city considers debt issuance for the work.

Board members said the recommendations were reasonable guardrails for the expedited approach. President Chu moved to accept the analyst’s recommendations; the motion passed. The board then adopted the ordinance in first reading with those recommendations incorporated and directed the Port to provide follow-up reporting on costs and compliance.

On a related agenda item the board passed in first reading an ordinance authorizing the Port director to execute an agreement with BAE Systems to install shoreside power equipment at Dry Dock No. 2 at Pier 70 for an amount not to exceed $5,700,000 and exempting that agreement from certain contracting provisions of the Administrative and Environment Codes. The Port said the exemption would allow BAE to use its own forces for site installation while subcontracting specialized transformer work.

Port staff and analysts emphasized that the bulk of the project work would still be competitively bid at the subcontract level and that the waiver helped meet a compressed timeline. The board’s action permits the Port to proceed with procurement planning under the amended terms and requires follow-up reports on contract awards and compliance with local contracting rules.