ORDINANCE awarding contract to TIMES CONSTRUCTION, INC for Asphaltic Pavement Repair Services Citywide for the Public Works & Engineering Department; providing a maximum contract amount - $7,500,000.00 - one year, with four one-year options - Dedicated Drainage & Street Renewal Fund

The Director of the Public Works and Engineering Department and the City Purchasing Agent recommend that City Council approve an ordinance awarding a one-year contract, with four one-year options to extend, for a total five-year term to Times Construction, Inc. on its low bid in an amount not to exceed $7,500,000.00 for asphaltic pavement repair services citywide for the Public Works and Engineering Department (PW&E). The City Purchasing Agent may terminate this contract at any time upon 30-days written notice to the contractor. This work order contract will be used to assist PW&E’s street maintenance personnel in repairing residential streets citywide.

This project was advertised in accordance with the requirements of the State of Texas bid laws. Eighteen prospective bidders downloaded the solicitation document from SPD’s e-bidding website and two bids were received. Prior to issuing the solicitation, the Strategic Procurement Division canvassed the City’s registered vendor database, as well as the market, to identify potential bidders who could possibly provide the type of services needed. As a result, twenty-four potential bidders were identified and notified of the Invitation to Bid (ITB). Subsequent to receipt of the bids, prospective bidders were contacted to determine the reason for the limited response to the ITB. Some potential respondents advised that the size of the project was beyond the capabilities of their company and others advised that the MBE/WBE goal was too high and the annual bonding amount would have constrained their company from bidding other projects. Therefore, they elected not to submit a bid. 
 
         Company                                         Total Amount
1. Times Construction, Inc.                    $ 7,500,000.00
2. Level Infrastructure, Inc.                       $13,623,175.04

• Due to the disparity between the bids, representatives from the Strategic Procurement Division and the Public Works and Engineering Department met with the president of Times Construction, Inc. to discuss its bid prices and review the scope of work for this project. Times Construction, Inc.’s president stated that its bid includes all costs associated with performing the work called for in the bid specifications. Based on the aforementioned, the Strategic Procurement Division and the participating department are confident that the recommended company can perform the specified work for the price bid.

The scope of work requires the construction contractor to furnish all labor, equipment, materials, supervision and transportation necessary for asphaltic pavement repair services citywide. The work will consist of using asphaltic material to repair pavement failures, filling excavated or damaged areas of roadway to mitigate pavement hazards and to improve existing pavement surfaces. Materials and workmanship for this project are warranted for one year upon completion and acceptance of each work order.

MBE and WBE Subcontracting:
This invitation to bid was issued as a goal-oriented contract with 12% MBE and 7% WBE participation levels. Times Construction, Inc. has designated the below-named companies as its MBE and WBE subcontractors.

Name                                 Type of Work             Dollar Amount             Percentage
El Dorado Services, LLC    Demolition and            $ 900,000.00                  12% MBE 
                                            Asphalt Services

MVA Construction, LLC     Demolition and             $ 525,000.00                    7% WBE

Asphalt Services

Total:                                                                     $1,425,000.00                   19%

The Mayor’s Office of Business Opportunity will monitor this contract.

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.

Hire Houston First:
The proposed contract requires compliance with the City’s ‘Hire Houston First’ Ordinance that promotes economic opportunity for Houston businesses and supports job creation. In this case, the proposed contractor meets the requirements of Hire Houston First. 

David Guernsey            PWE        832-395-3640

Ray DuRousseau         SPD         832-393-8726

Art Lopez                      SPD         832-393-8731