L32556.A1 - Approve an amending ordinance to Ordinance No. 2023-511 (approved June 28, 2023) to increase the maximum contract amount to $41,486,952.50 for Contract No. 4600017720 between the City of Houston and Industrial TX Corp. for sludge dewatering and drying equipment maintenance and repair services for Houston Public Works.
Specific Explanation:
The Director of Houston Public Works and the Chief Procurement Officer recommend that the City Council approve an amending ordinance to increase the maximum contract amount to $41,486,952.50 for Contract No. 4600017720 between the City of Houston and Industrial TX Corp., for sludge dewatering and drying equipment maintenance and repair services for Houston Public Works (HPW).
The original contract was awarded on June 28, 2023, by Ordinance No. 2023-511, for a three-year term, with two one-year options in the amount of $33,189,562.00. Expenditures to date total $23,843,993.12. This funding request is driven by the urgent need to rehabilitate all sludge dryers at the City of Houston’s wastewater facilities to meet the requirements outlined in the Consent Decree. Further compounding the issue, the cost of essential equipment has increased substantially. These price escalations have accelerated the depletion of available contract funds more rapidly than originally anticipated.
The scope of work requires the contractor to provide all supervision, labor, parts, tools, materials, equipment, supplies, test equipment, and facilities necessary to provide maintenance and precision repair services for the sludge dewatering and drying systems and supporting equipment at various City of Houston Wastewater Operations facilities.
MWBE Participation:
The contract was awarded with a 12% goal participation level. Industrial TX Corp. is currently attaining 42.6%. The Office of Business Opportunity will continue to monitor this contract.
Fiscal Note:
Funding for this item is included in the FY26 Adopted Budget. Therefore, no Fiscal Note is required as stated in the Financial Policies.
_____________________________________ _________________________________
Jedediah Greenfield, Chief Procurement Officer Randall V. Macchi, Director
Finance/Strategic Procurement Division Houston Public Works
ESTIMATED SPENDING AUTHORITY
|
Department
|
FY2026
|
Out-Years
|
Amount
|
|
HPW
|
$8,297,390.50
|
$0.00
|
$8,297,390.50
|