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CHANGE ORDER NO. ONE TO CONTRACT K-1718-2: BY AND BETWEEN THE CITY OF NORMAN, OKLAHOMA, AND SAC SERVICES, INC., DECREASING THE CONTRACT AMOUNT BY $180,919.92 FOR A REVISED CONTRACT AMOUNT OF $1,316,940.08 FOR THE 2016 URBAN CONCRETE PAVEMENT REPAIR BOND PROGRAM, FYE 2018 LOCATIONS; AND FINAL ACCEPTANCE OF THE PROJECT.
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BACKGROUND: In the Norman General Obligation Bond Election of April 2016, voters approved the 5-year Street Maintenance Bond Program. All bond projects are to be completed in five years or by 2021 under the approved program budget of $25,000,000. The program includes (4) four phases or categories of street maintenance projects as follows:
• Urban Asphalt Streets
• Urban Concrete Streets
• Rural Roads
• Urban Street Reconstruction
Locations throughout Norman to be maintained are determined prior to the bond election using the City’s pavement management system. The pavement management system uses field data to numerically rate each street in Norman. The streets with the lowest ranking have priority to be maintained. During each year of the 2016 Street Maintenance Bond Program the streets that were identified for that year will be maintained. The FYE 2018 Urban Concrete Street Rehabilitation Bond projects included 29 selected residential streets, in nine (9) different subdivisions located throughout the City of Norman.
DISCUSSION: Bid specifications and documents were advertised on May 16, 2017 and May 25, 2017. Six (6) paving contractors received a set of bid documents. The bid opening was conducted on June 1, 2017. On July 11, 2017, the City Council awarded the FYE 2018 Urban Concrete Street Rehabilitation Bond Project to SAC Services, Inc. of Oklahoma City, OK in the amount of $1,497,860, which was $78,610 or 5% less than the engineer’s estimate of $1,576,470.
On July 24, 2017, construction started on the FYE 2018 Urban Concrete Street Maintenance Bond projects.
All work, including the rehabilitation of 29 selected residential streets, in nine (9) different subdivisions, was completed per the contract specifications. A final pay application of $65,847 was submitted by the contractor on February 15, 2019.
The total work completed amounted to $1,316,940.08 leaving a balance of $180,919.92. This underrun of 12% is attributed to underruns of unit price bid items including: 1) sidewalk, and 2) concrete curb and gutter. These neighborhood concrete street rehabilitation projects are challenging to estimate quantities due to the unique conditions at each location. This will result in an overall savings to the 2016 Street Maintenance Bond Program.
RECOMMENDATION NO. 1: Staff recommends final acceptance of Contract K-1718-2, the 2016 Street Maintenance Bond Program, Urban Concrete Street Rehabilitation Project, FYE 2018 locations, and further recommends that final payment in the amount of $65,847 be directed to SAC Services Inc. of Oklahoma City, OK.
RECOMMENDATION NO. 2: Staff recommends approval of Change Order No. 1 (final) decreasing the contract by $180,919.92. If approved, the total contract amount with Silver Star Construction, Inc. of Moore will decrease to $1,316,940.08 from $1,497,860, a decrease of 12%.