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CONSIDERATION OF AWARDING BID 1415-36, CONTRACT K-1415-91 BY AND BETWEEN THE NORMAN UTILITIES AUTHORITY AND URBAN CONTRACTORS, L.L.C., IN THE AMOUNT OF $2,873,020; PERFORMANCE BOND B-1415-56; STATUTORY BOND B-1415-57, AND MAINTENANCE BOND MB-1415-55 FOR THE SEWER MAINTENANCE PROJECT FYE 2013.
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BACKGROUND: In 2001, the citizens of Norman approved a five dollar per month maintenance fee providing for the systematic replacement of aged and deteriorating sewer lines throughout our system. The Sewer Maintenance Project FYE13 (SMP13) is rehabilitative in nature, generally bounded by Lindsey Street to the north, Bishop Creek to the west, Imhoff Road to the south, and 24th Avenue SE to the east (map attached). It will replace about 38,900 feet (7 miles) of sewer line and replace or rehabilitate about 170 manholes. The contractor will install high density polyethylene (HDPE) sewer pipe with a minimum diameter of eight inches (8"), primarily using the pipe-bursting technique.
DISCUSSION: An advertisement for bids was published in the Norman Transcript on February 5 & 12, 2015. Project bids were opened on February 26, 2015. As shown on the attached Bid Tabulation, five (5) bids were received and Urban Contractors, LLC was the low bidder at $2,873,020. Staff engineer's estimate was $4,217,275. Work should begin immediately with a contract completion time of 365 calendar days.
The current year budget for SMP13 includes an unencumbered balance of $4,090,521 for Construction (account 321-9338-432.61-01; project WW0200), which is sufficient to fund the Contract.
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 Utilities Authority (NUA) are also exempt from those taxes. A contractor and his subcontractors may exclude from their cost, sales tax 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.
STAFF RECOMMENDATIONS: Staff recommends that the NUA accept all bids meeting specifications received in response to Bid 1415-36 and award the bid in the amount of $2,873,020 to Urban Contractors, L.L.C., of Oklahoma City as the best bidder meeting specifications. Staff further recommends the NUA approve Contract K-1415-91 and the performance, statutory, and maintenance bonds with Urban Contractors, L.L.C., in the amount of $2,873,020. Staff further recommends that the NUA authorize execution of the contract and bonds and the Norman Utilities Authority as part of the contract to pay subcontractors for equipment and supplies for the Sewer Maintenance Project FYE 2013; and direct the filing of the bonds.