S10-T26485-A4 – Approve an amending ordinance to Ordinance No. 2018-0347 (Passed April 25, 2018, as amended by Ordinance No. 2019-0086, Passed February 13, 2019, further amended by Ordinance No. 2021-0014, Passed January 6, 2021, and further amended by Ordinance No. 2021-0531, Passed June 22, 2021) to increase the maximum contract amount from $40,083,707.92 to $68,083,707.92 for Contract No. 4600014833 between the City of Houston and DRC Emergency Services, LLC for the continuing Hurricane Harvey disaster debris removal services for Solid Waste Management Department; Declaring the City’s intent to seek reimbursement from the Federal Emergency Management Agency (FEMA) and other eligible sources for such expenditures.
Specific Explanation:
The Director of Solid Waste Management Department, the Chief Recovery Officer and the Chief Procurement Officer recommend that City Council approve an amending ordinance to increase the maximum contract amount from $40,083,707.92 to $68,083,707.92 for the contract between the City of Houston and DRC Emergency Services, LLC for outstanding payments for post-Hurricane Harvey collection and disposal of debris from waterways, as well as future dredging activities for Solid Waste Management Department (SWMD).
This pre-positioned contract was awarded on April 25, 2018 by Ordinance No. 2018-0347, for a three-year term with two, two-year options and was later amended on February 13, 2019, by Ordinance No. 2019-0086, for Council-approved de-allocation of funds totaling $22,139,461.17. Subsequent funds of $15,000,000.00 was amended by Ordinance No. 2021-0014, Passed January 6, 2021 and Ordinance 2021-0531, passed June 22, 2021 adding $2,944,246.75 for the continuation of clean-up efforts.
Expenditures as of August 19, 2021 totaled $40,083,707.42. The contract incurred expenditures at a rate higher than anticipated due to continuing clean-up efforts from the impact of Hurricane Harvey, as ongoing debris operations occurring on Lake Houston with silt remediation surrounding the East and West Forks on the San Jacinto River. The dredging activities are anticipated to be funded/reimbursed by the Federal Emergency Management Agency (FEMA), Harris County using funds authorized by a Texas Water Development Board Grant and Harris County Flood Control District using funds from the county 2018 Bond Program. Therefore, an increase to the maximum contract amount is needed to ensure that these services continue through its fruition.
The scope of work requires the contractor to provide all labor, material, expendable supplies, vehicles, tools, equipment, and supervision necessary to load and haul debris from the public rights-of-way to debris management sites (formerly called temporary debris storage and reductions sites), and/or approved landfills following a hurricane or other natural or manmade disasters in a timely, efficient, safe and lawful manner.
M/WBE Subcontracting:
The contract was awarded with a 20% M/WBE participation goal. DRC Emergency Services, LLC is currently achieving 7.7% of the required M/WBE goal. Due to the difficulty in locating certified subcontractors for this contract, the Office of Business Opportunity is working extensively with the contractor on improving participation including the addition of a mentoring program. (See attached memo.) The Office of Business Opportunity will continue to monitor this contract to ensure maximum M/WBE participation.
Fiscal Note:
No Fiscal Note is required on Grant Items.
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Jerry Adams, Chief Procurement Officer
Finance/Strategic Procurement Division
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Department Approval Authority
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Estimated Spending Authority
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DEPARTMENT
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FY2022
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OUT YEARS
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TOTAL
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Solid Waste Management
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$14,000,000.00
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$14,000,000.00
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$28,000,000.00
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