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CONSIDERATION OF AWARDING OF BID-1819-44, APPROVAL OF CONTRACT K-1819-125 BY AND BETWEEN THE NORMAN UTILITIES AUTHORITY AND CENTRAL CONTRACTING SERVICES, INC.; IN THE AMOUNT OF $2,845,591, AMENDMENT NO. ONE MODIFYING WORK SCHEDULE AND TIMING OF ROAD CLOSURES AND REPLACING THE SPECIAL PROVISIONS SECTION OF THE CONTRACT, PERFORMANCE BOND B-1819-82, STATUTORY BOND B-1819-83, AND MAINTENANCE BOND MB-1819-62 FOR THE CONSTRUCTION OF THE ROBINSON STREET WATER LINE REPLACEMENT PROJECT, PHASE II, GENERALLY EXTENDING FROM BROOKHAVEN CREEK WEST ACROSS 36TH AVENUE N.W. TO THE BROOKHAVEN WATER TOWER AND BUDGET TRANSFER BETWEEN PROJECT ACCOUNTS.
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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.
Initially, the Robinson Waterline Under I-35 Project (Project WA0195) was created to replace and enlarge approximately 8,000 feet of the existing waterline along Robinson between 24th Avenue NW and the Robinson Water Tower; the estimated cost to complete this project is $7.1 million (M) continuing through the end of 2019. Later, the Robinson Waterline Replacement, 24th NW to WTP (Project WA0242) was created to complete the remainder of the replacement project; the estimated cost to replace waterlines along 4.5 miles of Robinson is $14.1 M over the next five years.
Request for Proposal (RFP) 1314-28 was distributed to consultants and the review team selected Alan Plummer Associates, Inc. (APAI), with offices in Oklahoma City and Fort Worth, Texas, as most qualified consultant for the project. On January 28, 2014, the NUA approved Contract K-1314-110 with APAI for preliminary design, surveying and geotechnical services associated with the construction of approximately 5,300 feet of waterline along Robinson, between 36th Avenue NW and 24th Avenue NW (extended) and crossing I-35. At completion of the preliminary design phase, NUA staff found it necessary to subdivide the original project scope into two sections (Phases I and II) due to constructability and to remain within the original project budget.
On October 14, 2014, the NUA approved Amendment No. 1 to Contract K-1314-110 authorizing APAI to provide final design, bidding and construction management for the Phase I waterline. The Phase I project installed approximately 4,400 feet of 30-inch, 100 feet of 24-inch and 3,900 feet of 12-inch and smaller waterline and associated appurtenances along Robinson generally between Brookhaven Creek and 24th Avenue NW (extended). The Phase I improvements were completed in April 2017 by McKee Utility Contractors, Inc. at a final cost of $3,364.057.
On November 10, 2015, the NUA approved Amendment No. 2 to Contract K-1314-110 authorizing APAI to provide final design, bidding and construction management of approximately 1,900 feet of 30-inch waterline crossing under Brookhaven Creek and 36th Avenue NW to Brookhaven Boulevard. On April 25, 2017, the NUA approved Amendment No. 3 to the contract authorizing APAI to provide these same services for an additional 1,800 feet of 30-inch waterline from Brookhaven Boulevard to the existing Brookhaven elevated water storage tank.
The Robinson Waterline Replacement Phase II project will include approximately 3,900 feet of 30-inch, 130 feet of 24-inch, 120 feet of 16-inch and 600 feet of 12-inch and smaller waterline and appurtenances, as well as numerous reconnections to existing waterlines at 36th Avenue NW; the project will also include reconstruction of about 2,900 feet of paving in the southern-most east bound lane of Robinson for the full extent of the project.
A permit from the City of Norman Floodplain Committee for the crossing of Brookhaven Creek was obtained on April 2, 2018. Design drawings and specifications for the Phase II improvements were submitted to the Oklahoma Department of Environmental Quality (ODEQ) on November 28, 2018 and were approved on January 4, 2019. The NUA noted receipt of ODEQ Permit No. WL000014181979 on February 12, 2019.
DISCUSSION: The advertisement for bids was published in the Norman Transcript on December 22, 2018 and January 3, 2019, and in several trade publications. Ten contractors attended the pre-bid conference on January 8, 2019 and bids were received from six contractors on February 14, 2019. The bidding documents included a Total Base Bid and an Alternate Bid.
The Total Base Bid assumed closure of the southern leg of the intersection of 36th Avenue NW and Robinson for up to 9.5 consecutive days and allowed incentive pay of $5,000 per half-day to the contractor for early completion. The maximum incentive of $50,000 could be obtained for completion within 4.5 days; this would generally require 24 hour per day construction activities by the contractor. As shown on the attached bid summary, Central Contracting Services, Inc. of Norman was the low bidder at $2,845,591 for the Total Base Bid; other bids ranged between $2,848,000 and $4,103,915; the difference between the low bid and second lowest bid was $2,409 or 0.085%; this was a very competitive bid.
The Alternate Bid eliminated full closure of the southern leg of the intersection by constructing two bores under 36th Avenue NW and increasing the waterline length by about 200 feet. Under the Alternate Bid, the incentive pay was eliminated and a minimum of two northbound and one southbound lane would be open at all times. As shown on the attached bid summary, H&H Plumbing and Utilities of Goldsby was the low bidder at $3,278,220 for the Alternate Bid; an increase of $432,629 over the Base Bid. Other bids ranged between $3,325,356 and $4,480,400.
The engineer’s estimate was $3,304,750 and $3,681,515 for the Total Base Bid and the Alternate Bid, respectively. Utilities staff and APAI recommend award of the Total Base Bid to Central Contracting Services, Inc. (Central) of Norman, Oklahoma. APAI’s letter of recommendation is attached.
Additional discussions regarding closure of 36th Avenue NW have occurred since the bid opening and both the Public Works Department and Central are agreeable to allowing closure of the southern leg of intersection only on weekends between 9:00 p.m. on Friday and 7:00 a.m. the following Monday. Central has also agreed to work only between 9:00 p.m. and 7:00 a.m. nightly for waterline construction in the area within Robinson and east of 36th Avenue NW; this will maintain two lanes of traffic eastbound during the normal work day. As such, attached Amendment No. 1 has been prepared which modifies the working schedule originally contained in the Special Provisions to the contract documents. Both the Public Works Department and NUA staff recommend approval of proposed Amendment No. 1. The contract amount and the contact duration will not change as a result of approval of Amendment No. 1.
The Streets Division of the Public Works Department has agreed to fund one-third of the asphalt replacement cost for the southern-most east bound lane of Robinson. The contractor will damage/remove about 8 feet of the 12-foot wide lane to install the waterline; the Streets Division will fund replacement of the remaining 4 feet to eliminate a longitudinal seam down the southern-most lane. The cost to install this 4-foot wide by 2,340 foot long segment of lane is estimated at $104,100 assuming 1,041 square yards (SY) of asphalt road replacement at the bid price of $100/SY.
The Fiscal Year Ending 2019 project budget for Robinson Waterline Replacement, Phase II (WA0195) currently includes an unencumbered balance of $3,058,686 in Construction (account 031-9360-462.61-01) and will fund $2,741,491 of the $2,845,591 contract. The remaining $104,100 will be funded by the Capital Fund, Asphalt Paver Patch, Materials (account 050-9692-431.63-01; project SC0648). After transfer the above funding, a contingency amount of $317,195 or 11.1% will remain in the Robinson Waterline Replacement, Phase II construction budget.
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.
Assuming contract approval on March 26, 2019, the contract time will start on April 8, 2019 with final completion within 240 calendar days or by December 4, 2019. We anticipate waterline construction to begin in early May with closures of the southern-most lanes of Robinson beginning in June 2019.
RECOMMENDATION 1: Recommend the NUA accept the bids received in response to Bid B-1819-44 and award the bid to Central Contracting Services, Inc. of Norman, Oklahoma.
RECOMMENDATION 2: Recommend the City of Norman/NUA authorize the transfer of $104,100 from the Capital Fund, E. Interstate Drive: Main to Robinson, Materials (050-9692-431.63-01; project SC0648) into Robinson Waterline Replacement, Phase II Construction (031-9360-462.61-01; Project WA0195).
RECOMMENDATION 3: Recommend the NUA authorize the Chairman to sign Contract K-1819-125 in the amount of $2,845,591 for the Total Base Bid to Central Contracting Services, Inc.
RECOMMENDATION 4: Recommend the NUA approve Amendment No. 1 to Contract K-1819-125 with Central Contracting Services, Inc. with no change to the contract time or duration.
RECOMMENDATION 5: Recommend the NUA approve Performance Bond B-1819-82, Statutory Bond B-1819-83, and Maintenance Bond MB-1819-62; all bonds being in the amount of the construction contract.
RECOMMENDATION 6: Recommend the NUA allow the Utilities Director to approve the purchase of equipment and materials directly from vendors at prices agreed to by the contractor.