ORDINANCE appropriating $987,936.00 out of Water & Sewer System Consolidated Construction Fund; awarding contract to NERIE CONSTRUCTION, LLC for Wastewater Collection System Rehabilitation and Renewal (Force Main); 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 engineering and testing, and contingencies relating to construction of facilities financed by the Water & Sewer System Consolidated Construction Fund

SUBJECT: Contract Award for Wastewater Collection System

Rehabilitation and Renewal (Force Main)

WBS# R-000035-0016-4

RECOMMENDATION: (Summary)

Accept low bid, award construction contract, and appropriate funds

SPECIFIC EXPLANATION: This project is part of the Neighborhood Sewer Rehabilitation Program and is required to renew/replace various deteriorated neighborhood collection systems throughout the City.

DESCRIPTION/SCOPE: This project consists of sanitary sewer rehabilitation by point repair method.  The contract duration for this project is 730 calendar days.

LOCATION:  The work order project area is generally bounded by the City Limits.

BIDS:  Three (3) bids were received on August 21, 2014 for this project as follows:

Bidder Bid Amount

1. Nerie Construction, LLC $912,320.00

2. Reliance Construction Services, L.P. $984,354.56

3. T Construction, LLC $993,440.00

AWARD:  It is recommended that this construction contract be awarded to Nerie Construction, LLC, with a low bid of $912,320.00.

PROJECT COST:  The total cost of this project is $987,936.00 to be appropriated as follows:

. Bid Amount $912,320.00

. Contingencies    $45,616.00

. Engineering Testing Services    $30,000.00

Engineering Testing Services will be provided by Tolunay-Wong Engineers, Inc. under a previously approved contract.

HIRE HOUSTON FIRST:  Hire Houston First does not apply to this expenditure, because it involves the use of federal funds and is subject to specific procurement rules of the federal government.

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 benefits for some employees but will pay into the Contractor Responsibility Fund for others, in compliance with City policy.

M/WSBE PARTICIPATION:  The contractor has submitted the following proposed program to satisfy the 12.94% MBE goal, and 8.72% WBE goal for this project.

MBE - Name of Firms: Work Description Amount      % of Contract

Posey's Construction &

Development Inc. Point Repairs $118,054.21 12.94%

TOTAL $118,054.21 12.94%

WBE - Name of Firms     Work Description Amount      % of Contract

H & E Aggregate, LLC     Supplies $52,184.70  5.72%

Advantage Manhole

& Concrete Services       Manhole $27,369.60  3.00%

Rehabilitation

TOTAL $79,554.30  8.72%

All known rights-of-way and easements required for this project have been acquired.

Amount and Source of Funding: $987,936.00 from Water and Sewer System Consolidated Construction Fund (8500).

This project is eligible for low interest funding through a State Revolving Fund (SRF) Equivalency loan.

Jason Iken, P.E.                                                          

Senior Assistant Director                

Phone:  (832) 395-4989