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CONSIDERATION OF AWARDING BID-2021-31, THE NORMAN UTILITIES AUTHORITY’S APPROVAL OF CONTRACT K-2021-61 WITH CIMARRON CONSTRUCTION COMPANY L.L.C., IN THE AMOUNT OF $1,413,030; PERFORMANCE BOND B-2021-48; STATUTORY BOND B-2021-49; AND MAINTENANCE BOND MB-2021-37 FOR INTERSTATE DRIVE WATER LINE REPLACEMENT PROJECT AND BUDGET TRANSFER.
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BACKGROUND: The restaurants and businesses along Interstate Drive have experienced various line ruptures that were disruptive to their business. This project will upgrade approximately 8,600 feet of old ductile iron water line with new C-900 polyvinyl chloride (PVC) water line along Interstate Drive from Sooner Fashion Mall north to Northwest Blvd, and along Copperfield Drive from Northwest Boulevard to Interstate Drive, with an extension west into the Springbrook Addition. The contractor will install approximately 3,200 linear feet (LF) of 12-inch, 1,800 LF of 8-inch, and approximately 740 LF of 6-inch by open cut method. In addition, approximately 1,180 LF of 12-inch and 1,500 LF of 8-inch fusible PVC pipe will be installed by directional boring method.
On February 26, 2019, the Norman Utilities Authority (NUA) approved Contract K-1819-72 with Cardinal Engineering of Norman, Oklahoma, in the amount of $90,400, to provide surveying, design, and construction services associated for approximately 7,500 feet of 12- inch PVC pipe along North Interstate Drive, along Copperfield Drive, and an extension into the Springbrook Addition. On August 27, 2019, the NUA approved Amendment No. 1 to Contract K-1819-72 with Cardinal in the amount of $18,000 (total contract of $108,400) to provide additional engineering, design, bidding and construction management services associated with approximately 1,700 additional feet of waterline.
DISCUSSION: The Invitation to Bid for Bid-2021-31 for the Interstate Drive Waterline Replacement Project (WA0245) was published in the Norman Transcript on November 5 and November 12, 2020, and contained alternates A and B to complete a portion of the project with open trench or direction drilling, respectively. Ten contractors attended the mandatory pre-bid meeting held on November 16, 2020. Bids were opened on December 3, 2020, and five contractors submitted bids. The bids ranged from $1,516,390 to $2,075,100 for Alternate A, and $1,413,030 to $1,858,150 for Alternate B. WEB Construction Company was the low bid for Alternate A, while Cimarron Construction Company, LLC was the low bid for Alternate B. The bid results are shown in the attached bid tabulation. Both staff and Cardinal (letter attached) recommend award to Cimarron Construction Company, LLC since Alternate B with directional drilling was the lowest cost overall and will minimize disruptions to the restaurants and businesses in the area.
Funding for the project is from the Water Fund (031) with funding from one project account with a budget transfer from another project account will be necessary to fully fund the project. Sufficient funds are available from the Segment D 24” Phase IV Project. Funding for the proposed project is as follows:
1. Interstate Drive Waterline Replacement, Construction (account 31993360-46101; project WA0245) - $1,318,732.21
2. Requested Transfer from Segment D 24” Waterline, Phase IV, Design (account 31993360-46201; project WA0239) - $180,000
With the fund transfer, the total funding proposed is $1,498,732.21. This will provide sufficient funds for the contract award plus approximately six percent of contingency for the project.
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 Norman Utility Authority 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 for incorporation into the project.
Work on the project will commence in early 2021 after NUA approval of the contract and will continue for approximately ten months.
RECOMMENDATION: Staff recommends the NUA accept bids meeting project specifications; award Bid-2021-31 to Cimarron Construction Company, LLC for Interstate Drive Waterline Replacement in the amount of $1,413,030; approve Contract K-2021-61 and associated performance, statutory, and maintenance bonds in the amount of the bid; authorize execution of the contracts and bonds and the NUA to purchase equipment and supplies on behalf of the contractor for incorporation into the project; and authorize budget transfer of $180,000 from Project WA0239, Segment D 24” Water Line, Phase IV, Design (31993360-46201) to Project WA0245, Interstate Drive Water Line Replacement, Construction (31993360-46101) - $1,318,732.21.