RECOMMENDATION: (Summary)
Reject low bid, return bid bond, award construction contract to second low bidder and appropriate the necessary funds.
PROJECT NOTICE/JUSTIFICATION: This project will provide a work order based contract to repair water lines up to 16-inches in diameter in the distribution system on an emergency basis throughout the City.
DESCRIPTION/SCOPE: Work shall include the improvement and/or new installation of main water lines and service lines. The main lines range in diameter up to 16-inches and the water service lines range in size from ¾-inch to 2-inches in diameter. The contract duration for this project is 365 calendar days. This is a work order based contract with work orders assigned on an as-needed basis.
LOCATION: The project area is generally bounded by the City Limits.
BIDS: Bids were received on September 29, 2016. The six (6) bids are as follows:
Bidder Bid Amount
1. Grava, LLC $1,779,973.76 (Reject, Failed to use Addendum No.1)
2. Reytec Construction Resources, Inc. $1,940,052.55
3. T Construction, LLC $2,097,771.34
4. Nerie Construction, LLC $2,115,295.65
5. Middle East Engineering, LLC $2,133,417.00
6. D. L. Elliott Enterprises, Inc. $2,273,014.44
AWARD:
The apparent low bidder, Grava, LLC, with a bid of $1,779,973.76, failed to bid on the bid form included in Addendum No. 1. All bidders submitted bid forms stating that all Addenda have been received, modifications to Bid Documents have been considered and all related costs are included in the Total Bid Price. The apparent low bidder Grava, LLC, did not consider modifications to the bid form as stated in Document 00410A, Bid Form Part A. Therefore, it is recommended that the bid be rejected and this construction contract be awarded to Reytec Construction Resources, Inc., with a low bid of $1,940,052.55.
PROJECT COST: The total cost of this project is $2,097,055.18 to be appropriated as follows:
FY 17 FY 18 Total
Bid Amount $1,125,230.48 $814,822.07 $1,940,052.55
Contingencies $56,261.53 $40,741.10 $97,002.63
Engineering and Testing Service $34,800.00 $25,200.00 $60,000.00
Subtotal $1,216,292.01 $880,763.17 $2,097,055.18
Engineering and Testing Services will be provided by Gorrondona & 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 businesses and supports job creation. In this case, Reytec Construction Resources, Inc. 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 to eligible employees in compliance with City policy.
M/WBE PARTICIPATION: The low bidder has submitted the following proposed M/WBE participation to satisfy the 12.00% MBE goal, and 8.00% WBE goal for this project.
MBE-Name of Firm Work Description Amount % of Contract
Castec Construction LLC Valves, Fire Hydrant and
Concrete Replacement $58,201.57 3.00%
Reyes Pineda Construction Inc. Valves, Fire Hydrant and
Concrete Replacement $174,604.73 9.00%
MBE TOTAL $232,806.30 12.00%
WBE-Name of Firm Work Description Amount % of Contract
Access Data Supply Concrete Ready Mix and
Plumbing Materials $155,204.20 8.00%
WBE TOTAL $155,204.20 8.00%
No significant Fiscal Operating impact is anticipated as a result of this project.
Dale A. Rudick, P.E., Director
Department of Public Works and Engineering