Title
CONSIDERATION OF AWARDING BID NO 1415-43, APPROVAL OF CONTRACT K-1415-98 BY AND BETWEEN THE NORMAN UTILITIES AUTHORITY AND INSITUFORM TECHNOLOGIES, L.L.C., IN THE AMOUNT OF $362,844; PERFORMANCE BOND B-1415-62, STATUTORY BOND B-1415-63, AND MAINTENANCE BOND MB-1314-58; FOR THE LINDSEY STREET SANITARY SEWER REHABILITATION PROJECT.
Body
BACKGROUND: As a part of the Lindsey Street Widening Project, the Norman Utilities Authority (NUA) will fund multiple projects to reduce the probability of future water or sewer repairs once the new roadway is constructed. The NUA has already awarded construction of approximately 6,000 feet of new 24-inch water transmission main on the south side of Lindsey between Berry Road and 24th Avenue SW. These improvements will be constructed concurrently with the relocation of other water and sewer lines by the Department of Public Works to provide the required clearances for the new roadway. Additionally, other existing utilities such as telephone, electric, gas, cable are being relocated.
The proposed Lindsey Street Sanitary Sewer (SS) Rehabilitation Project will replace or rehabilitate about 2,900 linear feet of 21- inch sewer interceptor, generally between McGee and Berry on the south side of Lindsey, as shown on the attached map. Funding for this project is provided by the five dollar per month ($5/month) Sewer Maintenance Rate approved by the citizens of Norman in 2001 for the systematic replacement of aged and deteriorating sewer lines.
This 21-inch sewer interceptor was constructed of vitrified clay pipe (VCP) in about 1960; television inspection indicates the VCP to be in fair condition and with adequate capacity. However, the interceptor generally lies beneath the future southern-most lane of the Lindsey Street Widening Project. In an effort to greatly reduce the probability of future sewer repairs and maintain the integrity of the new roadway, the sewer interceptor will be "slip-lined". Slip-lining is a process where a flexible, resin-impregnated fiberglass tube or "sock" is inserted into the existing host pipe and expanded by forcing high pressure steam into the sock. The sock expands to the shape of the host pipe, cures and quickly hardens, improving flow characteristics and providing structural stability for the existing sewer. Smaller sewer collector lines crossing Lindsey will also be replaced using the pipe-bursting technique.
On January 13, 2015, the NUA approved Contract K-1415-92 authorizing RJN Group, Inc. (RJN) to perform the design, bidding and construction administration phases of the Lindsey Street SS Rehabilitation Project. The time frame for the design work was compressed in order to allow the construction to be completed prior to or concurrent with other utility relocations. NUA staff approved the contract documents in mid-February 2015.
DISCUSSION: The advertisement for bids was published in the Norman Transcript on February 19 and February 26, 2015, and in several trade publications. Three prime contractors attended the pre-bid conference held on March 3, 2015 and bids were received from two contractors on March 12, 2015. As shown on the attached bid tabulation, Insituform Technologies, LLC was the low bidder at $362,844. The other bid was $562,131 and the engineer's estimate was $783,816.
As noted in its letter of March 16, 2015, RJN recommends award to Insituform Technologies, LLC of Chesterfield, Missouri. The Utilities Department also recommends award and believes the low bid is competitive and represents a fair bid.
The Fiscal Year Ending 2015 (FYE15) budget for Lindsey Street SS Rehabilitation Project (WW0207) includes an unencumbered balance of $1,069,000 in Construction (account 321-9338-432.61-01) and is adequate to fund the contract. We anticipate a contract start date of April 27, 2015 with final completion within 90 calendar days or by July 26, 2015.
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 City of Norman 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 City of Norman. To minimize project costs, the NUA will make payment directly to vendors supplying equipment and materials for incorporation into the project.
RECOMMENDATION 1: Staff and our consultant have reviewed the bids and recommend acceptance of the bids received in response to Bid 1415-43 for the Lindsey Street SS Rehabilitation and award the bid to the low bidder, Insituform Technologies, LLC of Chesterfield, Missouri, for $362,844.
RECOMMENDATION 2: Upon award of the bid for the Lindsey Street SS Rehabilitation project, staff further recommends that the Mayor be authorized to sign Contract K-1415-98 with Insituform Technologies, LLC, Performance Bond B-1415-62, Statutory Bond B-1415-63, and Maintenance Bond MB-1415-58 all in the contract amount of $362,844.
RECOMMENDATION 3: Staff further recommends that the NUA allow the Utilities Director to approve the purchase of equipment and materials directly from vendors at prices agreed to the Contractor.