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CONSIDERATION OF AWARDING BID- 2021-1, APPROVAL OF CONTRACT K-2021-1 BY AND BETWEEN THE NORMAN UTILITIES AUTHORITY AND GARNEY COMPANIES, INC., IN THE AMOUNT OF $1,978,875; PERFORMANCE BOND B-2021-1; STATUTORY BOND B-2021-2; MAINTENANCE BOND MB-1920-1 FOR ROBINSON WATER LINE REPLACEMENT PROJECT, PHASE III.
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BACKGROUND: The Robinson Waterline Replacement project will ultimately replace over 6 miles of 16, 24 and 30-inch deteriorated and undersized waterlines between the Brookhaven Elevated Water Storage Tank and the Water Treatment Plant (WTP). This waterline is generally constructed of cast iron or ductile iron pipe installed in the 1960’s and early 1970's; the waterline has had numerous leaks resulting in significant loss of water and damage to the overlying or adjacent roadway. Repairs to this large diameter water line are very expensive, time consuming for Norman Utilities Authority (NUA) and Norman Public Works staff and are disruptive to traffic in the area as repairs are completed.
The initial phase of this project from 24th Avenue NW under Interstate 35 to west of Rambling Oaks Drive was completed in 2017. Phase II extended further west from the completion of Phase I to the west to the Brookhaven water tower and was completed May 2020. Additionally, the segment from the Water Treatment Plant along Robinson to 24th Avenue NE was completed in May 2020. This project, Phase III, will extend along Robinson from 24th Avenue NW to the east to Flood Avenue. Future phases will complete the remaining segments of this overall project.
On August 28, 2018, Contract K-1819-06 with Alan Plummer Associates, Inc., was executed by the Norman Utilities Authority (NUA). This contract provided for preliminary and final design, bidding, and construction administration services for the Robinson WL Replacement Project Phase III (project WA0242) which includes approximately 6,800 feet of 30-inch and 2,100 feet of 12-inch waterline between 24th Avenue NW and Flood Avenue. On May 12, 2020, Amendment No. 1 to Contract K-1819-06 was executed by the NUA to provide funding for additional survey required for completion of the project along a new alignment that was required due to significant utility conflicts.
DESCRIPTION: The Invitation to Bid for Bid-2020-1 for Robinson Water Line Replacement Phase III (project WA0242) was published in the Norman Transcript on May 14 and 21, 2020. A non-mandatory pre-bid meeting was held on June 1, 2020. For the 12-inch replacement portion of the project, alternate bids were proposed to determine if an open-cut installation or a trenchless installation would be the best option. Addenda 1 and 2 were issued to plan holders on June 8, 2020, and June 9, 2020, respectively.
Bids were opened on June 14, 2020, and six contractors submitted bids. The total Base Bids ranged from $1,400,090 to $3,018,523.10. Alternate 1 was for the open-cut installation of the 12-inch water line and bids ranged from $577,823 to $774,950. The combined bids including the Base Bid plus Alternate 1 bid ranged from $1,977,823 to $3,894,515.61. Alternate 2 was for the trenchless installation of the 12-inch water line and bids ranged from $578,785 to $809,600. The combined bids including the Base Bid plus Alternate 2 bid ranged from $1,978,875 to $3,724,775.61.
Garney Companies, Inc. was the low bid for the Base Bid, the Base Bid plus Alternate 1, the Base Bid plus Alternate 2, and the Alternate 2 bid. McKee Utility Contractors, Inc. was the low bid for Alternate Bid 1. Both staff and Plummer (letter attached) recommend award to Garney Companies, Inc. for the combined Base Bid plus Alternate 2 bid in the amount of $1,978,875. The use of trenchless installation along Robinson Avenue will reduce the impacts to citizens and traffic by reducing driveway impacts and the duration of lane closures within Robinson Avenue. Additionally, a re-bid of the open-cut 12-inch installation may not result in the low bid received due to less economy of scale (no adjacent work for the 30-inch line).
Funding will be from the Robinson WL: 24th NW-WTP Construction account (Org 31996683 - Object 46101; project WA0242). This account has an available balance of $3,018,083.76
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 by avoiding the payment of sales tax on materials purchases, the NUA staff 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 nine months.
RECOMMENDATION: Staff recommends the NUA accept bids meeting project specifications; award Bid No. 2021-1 to Garney Companies, Inc. for the Robinson Water Line Replacement Phase III project in the amount of $1,978,875; approve Contract K-2021-1 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 to avoid the payment of sales taxes on materials purchases.