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CONSIDERATION OF AWARDING BID 2021-18, APPROVING CONTRACT K-2021-11 BY AND BETWEEN THE NORMAN UTILITIES AUTHORITY AND HAMMER CONSTRUCTION IN THE AMOUNT OF $822,226.40 FOR THE 2015 WATER WELL LINES GENERALLY NEAR TECUMSEH ROAD AND 108TH AVENUE N.E. WATER WELL LIINES PROJECT, PERFORMANCE BOND B-2021-17, STATUTORY BOND B-2021-18, AND MAINTENANCE BOND MB-2021-9.
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BACKGROUND: The 2015 Water Well Lines project is a necessary component of the overall new water well project. It will connect the recently drilled water wells into the drinking water distribution system. Nine new water wells have been drilled and their accompanying well houses are currently being constructed. Well house completion is expected in December 2020.
Staff has separated the water transmission line segments into two separate projects. The NUA approved Contract K-1920-87 with Cardinal Engineering, LLC (Cardinal) November 12, 2019 to design one of the water line projects which is comprised of four segments. Segment 1 extends 5,200 feet north from Lakeview Park along 108th Ave NE. Segment 2 extends 1,600 feet east from Tecumseh Road and 108th Ave NE. Segment 3 extends 3,200 feet north from Tecumseh Road and 84th Ave NE. The final segment 4 extends 2,600 feet south from Tecumseh Road and 48th Ave NE. The proposed 12-inch water transmission lines were confirmed by staff utilizing our current water model. Cardinal completed the design July 2020.
DESCRIPTION: The advertisement for bids was published in the Norman Transcript on July 23, 2020 and July 30, 2020. Eleven contractors attended the mandatory pre-bid meeting held August 6, 2020. Project bids were opened on August 13, 2020 and seven (7) bids were received from the potential bidders. Hammer Construction of Norman, Oklahoma was the low bidder at $822,226.40. The bid results are shown in the attached letter from Cardinal; the engineering estimate was $1,374,325. Both staff and Cardinal recommend award to Hammer Construction.
The City of Norman is exempt from the payment of any sales or use taxes. Pursuant to Title 68 O.S., Section 1356 (10) and as allowed by Oklahoma Tax Commission Rules Part 27 Trust Authority 710:65-13-140, direct vendors to the NUA are also exempt from those taxes. A bidder and his subcontractors may exclude from their bid sales taxes on appropriate equipment, materials, and supplies that will not have to be paid while acting on behalf of the NUA. To minimize project costs, the NUA will make payment directly to vendors supplying equipment and materials to Hammer Construction for incorporation into the project.
The Fiscal Year Ending 2021 (FYE21) budget for 2015 Water Wells / Water Lines currently has an unencumbered balance of $4,366,764 in Construction (account Org 31993345 Object 46101; Project WB0212).
Work should begin within two weeks after NUA approval of the contract and will continue for 180 calendar days. Assuming start in September, the project will be complete by March 2021.
RECOMMENDATION: Staff recommends the NUA award Bid 2021-18 to Hammer Construction for the 2015 Water Well Lines, generally near Tecumseh Road and 108th Ave NE, water line project in the amount of $822,226.40; approve Contract K-2021-11 and associated performance, statutory, and maintenance bonds in the amount of the bid; and authorize the NUA to purchase equipment and supplies of behalf the contractor for incorporation into the project.