ORDINANCE appropriating $7,538,900.00 out of Water & Sewer System Consolidated Construction Fund; awarding contract to INDUSTRIAL TX CORP. for Rehabilitation of Distribution Pumps, Motors, Valves, Piping and Pump Station Buildings at various facilities - Package B; 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 engineering testing, CIP Cost Recovery and contingencies relating to construction of facilities financed by the Water & Sewer System Consolidated Construction Fund - DISTRICTS A - STARDIG; F - LE and J - LASTER

SUBJECT:  Contract Award for Rehabilitation of Distribution Pumps, Motors, Valves, Piping and Pump Station Buildings at Various Facilities – Package B, WBS No S-001000-0046-4.

RECOMMENDATION:  (Summary)  Reject low bid and second low bidder, return bid bond, award construction contract to the third low bidder and appropriate funds.

PROJECT NOTICE/JUSTIFICATION:  This project is part of the City’s improvements of various groundwater treatment plants and is required to meet the Texas Commission on Environmental Quality regulations.  Also this project will improve the operability, maintainability and reliability of the plants.

DESCRIPTION/SCOPE:  This project consists of various improvements at four existing groundwater treatment plants and pumping facilities including replacement of pumps, motors, valves, piping and buildings, electrical improvements and SCADA upgrades. The contract duration for this project is 550 calendar days.  This project was designed by Klotz Associates, Inc.

LOCATION:  The project sites are as follows:

BIDS:  This project was advertised for bidding on September 18, 2015.  Bids were received on October 22, 2015.  The four (4) bids are as follows:

AWARD:  The low bid of $6,447,780.00 was submitted by A Status Construction, LLC and the second low bid of $6,591,488.00 was submitted by CYMI Industrial, Inc.  The low bidder, A Status Construction, LLC, was considered non-responsive as per the City of Houston Code of Ordinances, Sec. 15.85 due to not submitting an acceptable MWBE plan.  The second low bidder, CYMI Industrial, Inc., was considered non-responsive as per paragraph 14.0 of Section 00200 – Instruction to Bidders, in that the bidder improperly completes information required by the bid documents.  Therefore, it is recommended that this construction contract be awarded to the third low bidder, Industrial TX Corp., with a bid of $6,650,780.00 and that addendum No. 1 and No. 2 be made a part of this contract.

PROJECT COST:  The total cost of this project is $7,538,900.00 to be appropriated as follows:

·                            Bid Amount                                          $6,650,780.00

·                            Contingencies                                        $332,539.00

·                            Engineering and Testing Services           $90,000.00

·                            CIP Cost Recovery                                $465,581.00

Engineering and Testing Services will be provided by Tolunay-Wong Engineers, 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, Industrial TX Corp. 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 benefits for some employees but will pay into the Contractor Responsibility Fund for others, in compliance with City policy.

MBE/WSBE PARTICIPATION:  The low bidder has submitted the following proposed program to satisfy the 13% MBE goal and 7% WBE goal for this project.

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

$7,538,900.00

Water and Sewer System Consolidated Construction Fund

Fund No. 8500.

Ravi Kaleyatodi, P.E., CPM

Phone: (832) 395-2326