SFPUC approves $269 million contract for Millbrae campus construction management and building improvements

The San Francisco Public Utilities Commission voted unanimously to award contract WD‑2900 (Millbrae Campus Improvements) to Clark Construction Group, California, for a not‑to‑exceed total of $269,000,000, including up to $5,100,000 for preconstruction services.

Project manager Tracy Kale told the commission the contract will fund preconstruction collaboration and the phased buildout of a renovated and expanded Millbrae campus at 1000 El Camino Real. The completed campus is designed to consolidate laboratory and water enterprise staff (approximately 400 staff planned), modernize the main water quality laboratory, upgrade heating/ventilation, improve safety and security, and ensure the campus meets essential facility requirements for post‑earthquake operation. Staff said work will be phased into three stages to minimize disruption to ongoing operations and that the CM/GC will provide constructability input, cost estimating, sequencing and value‑engineering during preconstruction.

Kale said six firms responded to requests and three submitted proposals; Clark Construction received the highest evaluation score. The contracting monitoring division established a 20 percent LBE subcontracting requirement for both preconstruction and construction phases. Staff requested authorization to begin only preconstruction services initially and to return to the commission to authorize the construction‑phase notice to proceed after environmental review and design refinement.

Commissioners asked whether the stated "not‑to‑exceed" amount limits change orders and other potential costs; Kale said preconstruction work is intended to reduce risk and the not‑to‑exceed cap constrains the contract ceiling, and that staff will return with more refined schedules and estimates. Public commenter Jason Foster asked about contract change‑order protections and performance terms in light of recent audit findings; staff said many of those issues are addressed through preconstruction planning and future reporting.

The commission approved the award by roll call vote (President Stacy, Vice President Arce, Commissioner Jamdar and Commissioner Laverone voting aye). Staff said construction start is forecast for October 2026 and that the schedule will be refined as environmental review proceeds.

Ending: Staff will return for construction‑phase authorization after completing environmental review, and commissioners asked for ongoing oversight of cost and change‑order risk.