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CONSIDERATION OF AWARDING BID-2021-26, THE NORMAN UTILITIES AUTHORITY’S APPROVAL OF CONTRACT K-2021-52 WITH G & L SANDBLASTING AND COATINGS, L.L.C., IN THE AMOUNT OF $79,400; PERFORMANCE BOND B-2021-44; STATUTORY BOND B-2021-45; AND MAINTENANCE BOND MB-2021-29 FOR THE CASCADE TOWER RESURFACING PROJECT.
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BACKGROUND: The Norman Utilities Authority (NUA) typically budgets funds for resurfacing of water towers on a 10-year frequency. The Cascade Water Tower was originally painted in 1999 and this original coating system has held up far beyond the typical useful life of similar systems. However, during the last year, the exterior coating has commenced showing signs of minor deterioration. For this reason, a Purchase Order was issued to Dunham Engineering, LLC (Dunham) to perform an inspection of the tank interior and exterior and, based on their findings, make recommendations for needed repairs.
On May 15, 2020, Dunham performed a comprehensive inspection of the interior and exterior coating systems on the Cascade Tower. Based on their findings, they recommended spot repairs and spot priming of damaged areas on the tank interior followed by a complete overcoat of all interior surfaces. On the exterior, they recommended removal of rust and spot priming of small areas showing minor corrosion, followed by a pressure wash of the entire exterior of the tower and concluding with an overcoat of all exterior surfaces. It is Dunham’s professional opinion that the described repairs would return the tank to “like new” condition and would result in good corrosion protection for at least the duration of the 10-year window NUA typically uses between budgeting funds to resurface its tanks. On June 20, 2020, a contract was executed with Dunham to prepare complete construction documents as well as provide bidding and construction management services for resurfacing of Cascade Tower as per the findings in their May 15, 2020 inspection report. Bidding documents were completed in August 2020.
DESCRIPTION: The Invitation to Bid for Bid-2021-26 for Project WA0189 - Cascade Tower Resurfacing was published in the Norman Transcript on September 3 and 10, 2020. No Pre-Bid Meeting was required and no Addenda were issued. Bids were opened on September 24, 2020, and a total of eleven (11) contractors submitted bids.
The Bids ranged from $79,400 to $423,930, but it should be noted the high bid of $423,930 was nearly twice as high as the next highest bid price of $228,380. Excluding the highest bid, the ten lowest bids ranged from $79,400 to $228,380, which compares favorably to the engineer’s estimate of $175,000. References of the low bidder were checked. Both staff and Dunham (letter attached) recommend award to G & L Tank Sandblasting and Coatings LLC for the Bid amount of $79,400.
Funding will be from the within the WA0189 Cascade Tower Resurfacing Construction account (Org 31993345 - Object 46101). This account has an unencumbered balance of $559,832.38.
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 for incorporation into the project.
Work on the project will commence shortly after NUA approval of the contract and will continue for approximately one hundred (100) calendar days, which will allow work to be completed and Cascade Tower returned to service before the start of the summer peak demand season.
RECOMMENDATION: Staff recommends the NUA accept bids meeting project specifications; award Bid-2021-26 to G & L Tank Sandblasting and Coatings LLC for WA0189 - Cascade Tower Resurfacing in the amount of $79,400; approve Contract K-2021-52 and associated performance, statutory, and maintenance bonds in the amount of the bid; and 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.