SUBJECT: Accept Work for FY2020 Drainage Rehab (SWAT) Work Orders #3.
RECOMMENDATION: (SUMMARY) Pass a motion to approve the final Contract Amount of $216,566.45 or 94.59% under the original Contract Amount, accept the Work and authorize final payment.
PROJECT NOTICE/JUSTIFICATION: This project was part of the Storm Water Action Team program and provided work authorizations on a location by location basis, as needed, to preserve, repair, rehabilitate or reconstruct the storm water drainage asset to such a condition that it may be effectively used for its designated functional purpose.
DESCRIPTION/SCOPE: This Citywide Program provided construction services to resolve localized storm water drainage problems. The project scope was established by each work authorization. The project was awarded to Persons Services Corp. with 730 calendar days allowed for construction and an original Contract Amount of $4,000,000.00.
LOCATION: The projects are located in Council Districts G and I.
CONTRACT COMPLETION AND COST: The Contractor, Persons Services Corp., has not completed the work under the subject Contract. The underutilization of the contract was primarily due to the limited issuance of work orders during the COVID-19 pandemic, followed by a significant escalation in costs. As a result, the contract was no longer feasible for the contractor to continue. Therefore, the City and the contractor mutually agreed not to proceed with any future work under this contract. The final cost of the project, including overrun and underrun of estimated unit price quantities is $216,566.45, a decrease of $3,783,433.55 or 94.59% under the original Contract Amount and under the 5% contingency amount.
M/WSBE PARTICIPATION: The advertised M/WBE contract goals for this project were 7.00% MBE and 2.00% WBE. The M/W/SBE goals approved for this project were 15.51% MBE, 2.10% WBE and 0.52% SBE. According to the Office of Business Opportunity, the actual participation achieved on this project was 18.87% MBE, 9.37% WBE and 0.00% SBE. The MWSBE performance on this project was rated Satisfactory Due to Good Faith Efforts for the following reasons: At the time of their decision to remove themselves from the project, the Prime was exceeding the MBE and WBE goals while goal credits subcontractors were utilized to the extent possible. For the reasons listed, the MWSBE performance meets the good faith efforts requirements mandated by the City's MWSBE Program.
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Randall V. Macchi, JD
Director, Houston Public Works
WBS No. M-430006-0008-4