Title
CONSIDERATION OF AWARDING OF BID 1718-1; CONTRACT K-1718-2 WITH SAC SERVICES, INC., IN THE AMOUNT OF $1,497,860; PERFORMANCE BOND B-1718-3, STATUTORY BOND B-1718-4, AND MAINTENANCE BOND MB-1718-2 FOR THE URBAN CONCRETE PAVEMENT REPAIR 2016 BOND PROGRAM, FYE 2018 LOCATIONS, AND PROJECT AGENT RESOLUTION R-1718-2.
Body
BACKGROUND: In the Norman General Obligation Bond Election of April 2016, voters approved the Street Maintenance Bond Program. All bond projects are to be completed in a five-year, 4-phase program under the approved program budget of $25,000,000. The program includes four (4) phases or categories of street maintenance projects as follows:
• Urban Asphalt Streets
• Urban Concrete Streets
• Rural Roads
• Urban Street Reconstruction
Nine (9) neighborhood additions with 29 locations were identified for the fiscal year 2017-2018 (FYE 2018) program Urban Concrete Street repair program. A list of locations and associated maps are attached.
DISCUSSION: Bid specifications and documents were advertised on May 16, 2017 and May 25, 2017. Six (6) paving contractors obtained a set of Bid Specifications and Bid documents. If approved, the base bid for this project will complete the FYE 2018 locations in the Urban Concrete Streets portion of the 2016 Street Maintenance Bond Program. The bid opening was conducted on June 1, 2017, and seven (7) contractors submitted bids. The lowest bid in the amount of $1,497,860 was submitted by SAC Services Inc. of Oklahoma City, OK. The low bid is less than the engineer’s estimate of $1,576,470 by $78,610 (4.99% percent). The next lowest bid was $49,440 higher than the low bid. The average of the seven (7) bids is $1,741,838. SAC has previously not worked for the City of Norman, but the firm received favorable references from other cities on similar projects.
The project is funded in Urban Concrete Pavement-Bond, Construction (account 050-9393-431.61-01; project numbers BP0380 through BP0389). The account has sufficient funds to complete all pavement repair projects for FYE 2018. If approved, construction will begin on these projects in early July 2017 and be completed by the end of May 2018.
RECOMMENDATION NO. 1: Staff has reviewed the bids and recommends that Bid 1718-1 for the Urban Concrete Streets 2016 Bond Program, FYE 2018 locations, be awarded to the low bidder, SAC Services Inc. in the amount of $1,497,860.
RECOMMENDATION NO. 2: Staff further recommends that, upon approval of Bid 1718-1, the following contract and bonds be approved:
Contract K-1718-2
Performance Bond B-1718-3
Statutory Bond B-1718-4
Maintenance Bond MB-1718-2
RECOMMENDATION NO. 3: Staff further recommends that, upon approval of Contract K-1718-2, that Resolution R-1718-2 be adopted authorizing SAC Services Inc. as project agent for tax exemption on project-related material purchases