Item Coversheet

CITY OF HOUSTON - CITY COUNCIL

Meeting Date: 10/7/2025
ALL
Item Creation Date: 4/24/2025

HPW – 20WWO1046 Contract Award / CZ Construction, LLC

Agenda Item#: 47.


 
                               
Summary:

ORDINANCE appropriating $5,567,954.00 out of Water & Sewer System Consolidated Construction Fund; awarding contract to CZ CONSTRUCTION, LLC for Wastewater Collection System Rehabilitation and Renewal; 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 CIP Cost Recovery relating to construction of facilities financed by the Water & Sewer System Consolidated Construction Fund, contingency, and testing services

Background:

SUBJECT: Contract Award for Wastewater Collection System Rehabilitation and Renewal.

 

RECOMMENDATION:  Award a Construction Contract to CZ Construction, LLC for Wastewater Collection System Rehabilitation and Renewal and appropriate funds.

 

PROJECT NOTICE/JUSTIFICATION: This project is part of the Neighborhood Sewer Rehabilitation Program and is required to renew/replace various deteriorated neighborhood collection systems throughout the City. The purpose is to reduce sanitary sewer overflows, which is accomplished by cleaning the sewer lines and television inspection to identify sewer lines in need of rehabilitation/renewal.

 

The work to be performed under this contract award is necessary to maintain compliance with Houston's wastewater consent decree with the EPA and TCEQ.

 

DESCRIPTION/SCOPE: This project consists of wastewater collection system rehabilitation and renewal. This is a work order driven project. Work Orders will be issued and prioritized based on factors that include, but not limited to sanitary sewer overflow and stoppage history, as set forth in the wastewater consent decree with the EPA and TCEQ.  The contract duration for this project is 730 calendar days.

 

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

 

PROPOSAL: This project was advertised for competitive sealed proposals on September 20, 2024. Proposals were received on October 17, 2024.  The proposals received are as follows:

 

  Proposer   Proposer Bid Price
1. T Construction, LLC  $4,919,268.01
2. CZ Construction, LLC  $4,925,413.13
3. Vortex Services, LLC  $4,986,181.54
4.  Lopez Utilities Contractor, LLC   $5,106,352.77
5.  PM Construction & Rehab, LLC   $8,340,051.42

 

AWARD: A Selection Committee was comprised of members from Houston Public Works. The Selection Committee reviewed the proposals and recommended that this construction contract be awarded to CZ Construction, LLC based on their total proposal price, experience, crew availability, references, years in business, safety, claims history and Hire Houston First with a total proposal bid price of $4,925,413.13 and that Rider Number 1 be made a part of this Contract.

 

PROJECT COST: The total cost of this project is $5,567,954.00 to be appropriated as follows:

 

· Proposal Amount

$4,925,413.13

· Contingencies

$   246,270.21

· Testing Services

$   150,000.00

· CIP Cost Recovery

$   246,270.66

 

Testing Services will be provided by HVJ Associates, Inc. under a previously approved contract.

 

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, CZ Construction, 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 has elected to pay into the Contractor Responsibility Fund in compliance with City policy.

 

M/WSBE PARTICIPATION: The Contractor has submitted the following proposed program to satisfy the 19.44% MBE goal and 9.17% WBE goal for this project.

 

 

MBE - Name of Firms

Work Description

Amount

% of Contract

1.

CZ Construction, LLC

Utility line (i.e., sewer, water), construction

$478,750.16

  9.72%

2.

C & A Construction, LLC

Water and sewer line related structures construction

$365,465.65

  7.42%

3.

Standard Cement Materials, Inc.

Ready-mix concrete manufacturing and distributing

$113,284.50

  2.30%

 

 

TOTAL

$957,500.31

19.44%

         
  WBE - Name of Firms Work Description  Amount  % of Contract
 1. J Macias Industries, LLC Utility line (i.e., sewer, water), construction  $254,643.86    5.17%
     TOTAL $254,643.86   5.17%
         
  SBE - Name of Firms Work Description  Amount % of Contract
 1. TB Environmental, Inc.  All other miscellaneous waste management services  $197,016.53    4.00% 
    TOTAL $197,016.53

  4.00%

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

 

All known rights-of-way, easements and/or right-of-entry required for the project have been acquired.

 

 

 

________________________________

Randall V. Macchi, JD

Director, Houston Public Works

 

WBS Nos. R-000266-0359-4

File No. 4259-30
Amount and Source of Funding:
$5,567,954.00 - Fund No. 8500 – Water and Sewer System Consolidated Construction Fund
Contact Information:

Name

Service Line

Contact No.

Roberto Medina, Assistant Director

DO-HPW Council Liaison Office

832.395.2456

Maria Perez, HPW Agenda Coordinator

DO-HPW Council Liaison Office

832.395.2282

Dr. Joseph G. Majdalani, P.E., Senior Assistant Director

HPW Houston Water

832.395.8530


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