ORDINANCE appropriating $12,598,671.75 out of Water & Sewer System Consolidated Construction Fund awarding contract to VEOLIA WATER TECHNOLOGIES, INC for 69th Street Wastewater Treatment Plan Tertiary Filtration System for the Department of Public Works; setting a maximum contract amount and providing funding for contingencies relating to the project financed by the Water & Sewer System Consolidated Construction Fund - 3 Years

S63-N25846 - Approve an ordinance authorizing the appropriation of $12,598,671.75 out of the Water & Sewer System Consolidated Construction Fund (8500) and award a contract to Veolia Walter Technologies, Inc. 69th Street Wastewater Treatment Plant Tertiary Filtration System for the Department of Public Works and Engineering.

Specific Explanation:
The Director of the Department of Public Works and Engineering and the Chief Procurement Officer recommend that City Council approve an ordinance authorizing the appropriation of $12,598,671.75 out of the Water & Sewer System Consolidated Construction Fund (8500) and award a three-year contract, to Veolia Water Technologies, Inc. on its best value bid in the amount of $11,998,735.00 and contingencies (for unforeseen changes within the scope of work) in an amount of $599,936.75 for a total amount not to exceed $12,598,671.75 for a tertiary filtration system for the Department of Public Works and Engineering (PW&E). The City may terminate this contract at any time upon 30-days written notice to the manufacturer.

This project was advertised in accordance with the requirements of the State of Texas bid laws. Prior to issuing the solicitation, the Strategic Procurement Division canvassed the City’s registered vendor data base, as well as the market, to identify potential bidders who could possibly provide the type of equipment/services needed. As a result, one hundred twelve potential bidders were identified and notified of the Best Value Bid (BVB) and pre-qualification requirements. One-hundred seven prospective bidders downloaded the solicitation document from SPD’s e-bidding website. Two bids were received, and both met the pre-qualification requirements necessary to participate in the bid process, and are outlined below.

The scope of work requires the manufacturer to furnish and deliver a tertiary filtration system and related appurtenances for replacement of the existing automatic backwash (ABW) sand filters at the City of Houston’s 69th Street Wastewater Treatment Plant (WWTP) located at 2525 S. Sgt. Macario Garcia Dr., Houston, TX 77020. In addition, the manufacturer will also provide all field services required to ensure that the filtration system is properly installed and functioning as required. The existing ABW sand filters cannot process the current permitted flow with high total suspended solids (TSS) during high flows, the existing ABW sand filter basins are often flooded, resulting in solids bypassing filter basins and causing high TSS discharge in the plant effluent. The new tertiary filtration system will allow the 69th Street WWTP to be in compliance with the Texas Commission on Environmental Quality requirements on TSS discharge in the plant effluent. The life expectancy for the units is twenty (20) plus years; manufacturer will provide a five (5) year filter system equipment warranty and a ten (10) year filter media warranty as a part of this agreement.

Hire Houston First:
The proposed contract requires compliance with the City’s “Hire Houston First” (HHF) ordinance that promotes economic opportunity for Houston businesses and supports job creation. In this case Veolia Water Technologies, Inc. does not meet the requirements for HHF designation; no HHF firms were within three percent.

M/WBE Subcontracting:
M/WBE Zero Percentage Goal document approved by the Office of Business Opportunity.

Fiscal Note:
Funding for this item is included in the FY 2018 Adopted Budget. Therefore, no Fiscal Note is required as stated in the Financial Policy Ord. 2014-1078 .

$12,598,671.75 – Water & Sewer System Consolidated Construction Fund (8500)