ORDINANCE awarding contract to DM ELECTRICAL AND CONSTRUCTION L.L.C. for Electrical Services for Various Departments; providing a maximum contract amount - 3 Years with 2 one-year options - $14,073,531.75 - General, Enterprise and Other Funds

Formal Bids Received December 1, 2022 for P14-L32390 - Approve an ordinance awarding a contract to DM Electrical and Construction, LLC in an amount not to exceed $14,073,531.75 for electrical services for various departments.

Specific Explanation:

The Chief Procurement Officer recommends that City Council approve an ordinance awarding a three-year contract, with two one-year options to DM Electrical and Construction, LLC on its low bid for electrical services in the maximum Contract amount of $14,073,531.75 for the Houston Airport System, Parks and Recreation Department, Houston Public Works, Solid Waste Management and General Services departments.

The scope of work requires the contractor to provide all labor, materials, supplies, equipment, tools, transportation, permits and insurance necessary to perform electrical repairs, minor construction, and new installations at various City buildings. The Contractor shall also provide preventative maintenance from time to time, which will be defined at the time of request.

This project was advertised in accordance with the requirements of the State of Texas bid laws.  Seventeen (17) prospective bidders downloaded the solicitation document from SPD's e-bidding website, and seven (7) bids were received as outlined below:

M/WBE Subcontracting:

This invitation to Bid was issued as a goal-oriented contract with a 9% M/WBE participation level.  DM Electrical and Construction, LLC has designated the below-named company as its certified M/WBE subcontractor.

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 has elected to pay into the Contractor Responsibility Fund 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, while supporting job creation.  In this case, DM Electrical and Construction, LLC is a designated HHF company, but they were the successful awardee without the application of the HHF preference.

Fiscal Note:

Funding for this item is included in the FY2024 Adopted Budget.  Therefore, no Fiscal Note is required as stated in the Financial Policies.

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Jedediah Greenfield, Chief Procurement Officer

Finance/Strategic Procurement Division

$1,885,198.92 – Maintenance, Renewal and Replacement Fund (2105)

$3,086,650.53 – HAS Revenue Fund (8001)

$5,939,785.81 – Water & Sewer System Operating Fund (8300)

$3,161,896.49 – General Fund (1000)

$14,073,531.75 - Total