Item Coversheet

CITY OF HOUSTON - CITY COUNCIL

Meeting Date: 9/17/2024
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Item Creation Date: 8/12/2024

HPW- 20PMO178 / Contract Award / Grava LLC

Agenda Item#: 34.


 
                               
Summary:

ORDINANCE appropriating $4,440,000.00 out of Water & Sewer System Consolidated Construction Fund; awarding contract to GRAVA, LLC for Westheimer Work Orders for Small Diameter Water Lines; 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 testing services, early completion bonus allowance, and CIP Cost Recovery relating to construction of facilities financed by the Water & Sewer System Consolidated Construction Fund

Background:

SUBJECT:  Contract Award for Westheimer Work Orders for Small Diameter Water Lines.

 

RECOMMENDATION: (SUMMARY) Reject low bid, return bid bond, award Construction Contract to the second low bidder, Grava LLC for Westheimer Work Orders for Small Diameter Water Lines and appropriate funds.

 

PROJECT NOTICE/JUSTIFICATION: This project consists of the construction of small diameter waterline extensions at various locations throughout the City of Houston excluding the Central Business District. New small diameter water lines will be built in neighborhoods where the systems are inadequate. It will also provide for the replacement of old, deteriorated substandard, and under capacity small diameter water lines. Replacement and extensions of small diameter lines will be made when requested by Houston Water. Water quality will be improved by using new small diameter water lines and increasing the potable water circulation.

DESCRIPTION/SCOPE: This contract is for construction of small diameter waterline extensions at various locations throughout the City of Houston excluding the Central Business District. The Contract duration for this project is 365 calendar days. This is a work order based contract with work orders assigned on an as-needed basis.

LOCATION: The projects are located throughout the City of Houston.

 

BIDS: This project was advertised for bidding on June 28, 2024 and July 5, 2024. Bids were received on July 25, 2024. The five (5) bids are as follows:

 

Bidder

Bid Amounts

1.

T Construction LLC (non-compliance submission)

2.120 (Non-Responsive)

2.

Grava, LLC

3.250

3.

Texkota Enterprises, LLC

3.312

4.

Reliance Construction Services, LP

3.945

5.

MC2 Civil, LLC

4.575

 

AWARD: The apparent low bidder, T Construction LLC, was considered non-responsive due to not submitting an acceptable bid. Therefore, it is recommended that this construction contract be awarded to the second low bidder, Grava LLC, with a bid of $4,000,000.00 (3.25 Adjustment Factor).

 

PROJECT COST: The total cost of this project is $4,440,000.00 to be appropriated as follows:

 

· Bid Amount

$4,000,000.00

· Early Completion Bonus Allowance

$90,000.00

· Testing Services

$150,000.00

· CIP Cost Recovery

$200,000.00

 

Testing Services will be provided by ECS Southwest, LLP under a previously approved contract.

 

Bonus for early completion allowance is $90,000.00. This represents the number of days between the contract substantial completion date and early completion date, 30 calendar days maximum, multiplied by $1,000.00 per day for 3 approved locations. The actual amount, if applicable, will be based on the early completion date.

 

HIRE HOUSTON FIRST: The proposed contract requires compliance with the City’s ‘Hire Houston First’ (HHF) ordinance that promotes economic opportunity for Houston business and supports job creation. In this case Grava LLC is a designated HHF company, but they were the successful awardee without application of the HHF preference.

 

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.

 

M/WSBE PARTICIPATION: The contractor has submitted the following proposed program to satisfy the  15.00% MBE goal, 8.00% WBE goal for this project.

 

 

MBE Name of Firms

Work Description

Amount

% of Contract

1.

Grava LLC

Water and Sewer Line

and Related Structures

Construction

$460,000.00

11.50%

2.

Texas Concrete Enterprise

Ready Mix, Inc.

Ready Mix Concrete

$70,000.00

1.75%

3.

Professional Traffic Control, LLC

Traffic Control Equipment

$70,000.00

1.75%

 

 

TOTAL

$600,000.00

15.00%

 

 

 

WBE Name of Firms

Work Description

Amount

% of Contract

1.

MVA Construction, LLC

Concrete Paving

$80,000.00

2.00%

2.

Triton Supply, Inc.

Fixtures, Electric Lighting

$80,000.00

2.00%

 

 

TOTAL

$160,000.00

4.00%

 

 

SBE Name of Firms

Work Description

Amount

% of Contract

1.

Ceballos Construction, LLC

Concrete Paving

$160,000.00

4.00%

 

 

TOTAL

$160,000.00

4.00%

 

 

 

 

 

 

 

CONTRACT TOTAL

$920,000.00

23.00%

 

FISCAL NOTE:  No significant Fiscal Operating Impact is anticipated as a result of this project.

 

 

 

__________________________________

Randall V. Macchi, Chief Operating Officer

Houston Public Works

 

WBS No. S-000700-0089-4

Amount and Source of Funding:

$4,440,000.00

 Water and Sewer System Consolidated Construction

Fund No. 8500

Contact Information:

Name

Service Line

Contact Number

Roberto Medina, Interim Chief of Staff

DO-HPW Government Relations

832.395.2456

Maria Perez, HPW Agenda Coordinator

DO-HPW Government Relations

832.395.2282

Michael Wahl, Assistant Director

HPW-TDO

832.395.2443


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