ORDINANCE awarding contract to CSI CONSOLIDATED, LLC dba CLEAN SERVE, LLC. for Large Diameter Sanitary Sewer Inspection Using Robotic Technology; 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 contingencies relating to construction of facilities financed by the Water and Sewer System Operating Fund (WW4277-92) - $2,247,026.00 - Enterprise Funds

SUBJECT:  Contract Award for Large Diameter Sanitary Sewer Inspection Using Robotic Technology, File No. WW 4277-92.

RECOMMENDATION:  (Summary)  Reject low bid, return bid bond, award construction contract to next low bidder and allocate funds.

SPECIFIC EXPLANATION:  This project is part of the Neighborhood Sewer Rehabilitation Program and is required to renew/replace various deteriorated neighborhood collection systems throughout the City.

DESCRIPTION/SCOPE: This project consists of large diameter sanitary sewer inspection using robotic technology. The contract duration for this project is 730 calendar days. 

LOCATION:  The work order project area is generally bounded by the City Limits.

BIDS: Three (3) bids were received on  February 11, 2016 for this project as follows:

        Bidder                                                                                            Bid Amount

1. Specialized Maintenance Services, Inc.                                           $2,127,300.00 (reject)

2. CSI Consolidated, LLC dba Clean Serve, LLC                                 $2,140,025.00

3. Huffman Southwest Corp. DBA Professional Pipe Services             $3,092,550.00

AWARD: The apparent low bidder, Specialized Maintenance Services, Inc., with a bid of $2,127,300.00, failed to make the requisite good faith efforts to meet the advertised MWBE goal in compliance with the City’s written Good Faith Efforts Policy. Therefore, it is recommended that Specialized Maintenance Services, Inc. bid be rejected and this construction contract be awarded to CSI Consolidated, LLC dba Clean Serve, LLC, with a low bid of $2,140,025.00.

PROJECT COST:  The total cost of this project is $2,247,026.00 to be appropriated as follows:

                                                      FY16                            FY17                         FY18

·        Bid Amount                         $89,167.71                 $1,070,012.50            $980,844.79

·        Contingencies                       $4,458.37                      $53,500.50              $49,042.13

                                      Total        $93,626.08                $1,123,513.00          $1,029,886.92

HIRE HOUSTON FIRST: The proposed contract requires compliance with the City’s ‘Hire Houston First’ (HHF) ordinance that promotes economic opportunity for Houston businesses and supports job creation. In this case, the proposed contractor 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 for some employees but will pay into the Contractor Responsibility Fund for others, in compliance with City policy.

M/WSBE PARTICIPATION:  The contractor has submitted the following proposed program to satisfy the 3.20% MBE goal, and 1.18% WBE goal for this project.

All known rights-of-way and easements required for this project have been acquired.

     $93,626.08    from Water and Sewer System Operating Fund No. 8300 (Allocating in FY 16)

$1,123,513.00    from Water and Sewer System Operating Fund No. 8300 (Allocating in FY 17)

$1,029,886.92    from Water and Sewer System Operating Fund No. 8300 (Allocating in FY 18)

Jason Iken, P.E.

Senior Assistant Director