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CONSIDERATION OF AWARDING OF BID 1516-36, APPROVAL OF CONTRACT K-1516-86 BY AND BETWEEN THE NORMAN UTILITIES AUTHORITY AND JORDAN CONTRACTORS IN THE AMOUNT OF $1,725,750, PERFORMANCE BOND B-1516-38, STATUTORY BOND B-1516-39, AND MAINTENANCE BOND MB-1516-26 FOR THE WOODCREST INTERCEPTOR PROJECT AND BUDGET TRANSFER BETWEEN PROJECT ACCOUNTS.
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BACKGROUND: The Woodcrest Interceptor improvements were recommended by the Wastewater Master Plan (WWMP), adopted by the Norman Utilities Authority (NUA) in November 2001. The WWMP proposed the enlargement of interceptors to meet obligated and future capacity demands.
The Woodcrest Interceptor Project will replace and upsize the existing interceptor. It is located in north central Norman and runs from near Lift Station D south across Tecumseh Road, then SW to near Porter Avenue and Rock Creek Road (map attached). It consists of approximately 9,350 feet of new 24-inch and 15-inch sanitary sewer line.
DISCUSSION: An advertisement for bids was published in the Norman Transcript on January 14 and 21, 2016. Three (3) bids were received and opened on February 11, 2016. As shown in the attached letter from our design consultant, RJN Group, Jordan Contractors, Inc. of Tecumseh, OK was the low bidder at $1,725,750. Two (2) additional bids ranged up to $2,142,490. RJN and staff recommend the award to Jordan. Work should begin during March 2016, with 360 days contract completion time.
The Fiscal Year Ending 2016 budget for Woodcrest includes an unencumbered balance of $1,585,401 for Construction. The low bid plus a recommended ten percent (10%) contingency, yields a shortfall of $312,924. Another capital project, Lift Station D Expansion, is complete but funds are still available in its construction account. To fund award, staff recommends transfer of $312,924 from Lift Station D Expansion Construction (account 322-9382-432.61-01; project WW0303) to Woodcrest Interceptor Improvements Construction (account 322-9048-432.61-01; project WW0120).
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. 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 the NUA accept the bids received for Bid 1516-30, award the bid to Jordan Contractors, Inc. of Tecumseh, and transfer $312,924 as detailed above.
Staff further recommends approval of Contract K-1516-86 with Jordan in the amount of $1,725,750, Performance Bond B-1516-38, Statutory Bond B-1516-39, and Maintenance Bond MB-1516-26, each in the contract amount. Staff further recommends that the Utilities Director be allowed to approve the purchase of equipment and materials for the project directly from vendors at prices agreed to by the Contractor.