ORDINANCE appropriating $3,165,200.00 out of Water & Sewer System Consolidated Construction Fund; awarding contract to ALSAY INCORPORATED for Rehabilitation of existing Water Wells at various sites; setting a deadline for the bidder’s execution of the contract and delivery of all bonds, insurance, and other required contract documents to the City; holding the bidder in default if it fails to meet the deadlines; providing funding for CIP Cost Recovery, design services during construction, construction management and contingencies relating to construction of facilities financed by the Water & Sewer System Consolidated Construction Fund - DISTRICTS A - STARDIG; F - LE; G - TRAVIS; J - LASTER and K - GREEN

SUBJECT: Contract Award for Rehabilitation of Existing Water Wells at Various   Sites, WBS Nos. S-000200-0023-3 and S-000200-0023-4.

RECOMMENDATION:  (Summary)  Reject low bid, return bid bond, award Construction Contract to the second low bidder and appropriate funds.

PROJECT NOTICE/JUSTIFICATION: This project is part of the City’s program to upgrade and rehabilitate ground water production facilities. It will meet the area’s water demand and ensure compliance with the Texas Commission on Environmental Quality regulations.

DESCRIPTION/SCOPE: The proposed rehabilitation contract is for the rehabilitation of existing water wells to restore reduced pumping capacity from the wells due to wear of the pumps or plugging of the well screens.  The rehabilitation efforts can involve removing the pumping equipment from the wells, assessing the conditions of the wells, performing mechanical and chemical cleaning of the wells, repairing any structural damage to the wells and repair or replacement of the pumping equipment.  The extent of the rehabilitation can be as minimal as pump repair or replacement or as extensive as requiring structural repairs to the well.  The contract also has provisions for above ground piping and electrical repairs, if needed.  The City of Houston Drinking Water Operations section provides information for wells that have declining pumping capacity or other issues that require rehabilitation to maintain production capacities at the water plants to provide a reliable supply of water to the customers.  The goal of the rehabilitation efforts is to restore or maximize the pumping capacity from each of the wells rehabilitated.  The contract duration for this project is 420 calendar days. This project was designed by LBG-Guyton Associates.

LOCATION:  This project is located as follows:

BIDS:   This project was advertised for bidding on May 20, 2016.  Bids were received on June 16, 2016.  The three (3) bids are as follows:

            Bidder                                                              Bid Amount

1.   Layne Christensen Co.                                   $2,661,600.00  (Non-Responsive)

2.   Alsay Incorporated                                          $2,685,339.00 

3.   Weisinger Incorporated                                   $2,949,551.00

AWARD:  The low bid of $2,661,600.00 was submitted by Layne Christensen Co.  The low bidder, Layne Christensen Co., was considered non-responsive as per the City of Houston Code of Ordinances, Sec. 15.85 due to not submitting an MWBE plan.  Therefore, it is recommended that this construction contract be awarded to the second low bidder, Alsay Incorporated, with a bid of $2,685,339.00.

PROJECT COST:   The total cost of this project is $3,165,200.00 to be appropriated as follows:

·                            Bid Amount                                          $2,685,339.00

·                            Contingencies                                        $134,266.95

·                            CIP Cost Recovery                                  $80,594.05

·                            Design Services During Construction     $50,000.00

·                            Construction Management                    $215,000.00

Design Services during Construction will be provided by LBG-Guyton Associates under a previously approved contract.

Construction Management Services will be provided by LBG-Guyton Associates under a previously approved contract.

HIRE HOUSTON FIRST: The proposed contract requires compliance with the City’s ‘Hire Houston First’ (HHF) ordinance that promotes economic opportunity for Houston business and supports job creation.  In this case, Alsay Incorporated is a designated HHF company, but they were the successful awardee without application of the HHF preference.

PAY OR PLAY PROGRAM:  The proposed contract requires compliance with the City’s ‘Pay or Play’ ordinance regarding health benefits for employees of City contractors. In this case, the contractor provides health benefits to eligible employees in compliance with City policy.

M/WSBE PARTICIPATION:  The low bidder has submitted the following proposed program to satisfy the 8% MBE goal and 3% WBE goal for this project.

ESTIMATED FISCAL OPERATING IMPACT: 

No significant Fiscal Operating impact is anticipated as a result of this project.

All known rights-of-way, easements and/or right-of-entry required for the project have been acquired.

$3,165,200.00  Total Cost

Ravi Kaleyatodi, P.E., CPM

Phone: (832) 395-2326