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CONSIDERATION OF AWARDING BID 2021-33, APPROVAL OF CONTRACT K-2021-68 WITH PM CONSTRUCTION & REHAB, L.L.C., IN THE AMOUNT OF $1,077,778 FOR THE FYE 2021 STORMWATER PIPE REPLACEMENT PROJECT, VICKSBURG AVENUE/SAWGRASS DRIVE/BUCKHORN DRIVE, PERFORMANCE BOND B-2021-54, STATUTORY BOND B-2021-55, MAINTENANCE BOND MB-2021-42 AND RESOLUTION R-2021-64 GRANTING TAX EXEMPT STATUS AND BUDGET TRANSFER BETWEEN PROJECT ACCOUNTS.
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BACKGROUND: During routine maintenance of the City of Norman’s stormwater infrastructure, Stormwater Maintenance staff identified corrosion, cracks and other deficiencies in a corrugated metal pipe located along Vicksburg Drive to the south side of Chalmette Drive (see attached map). Also, in response to citizen complaints regarding recurring sinkholes in their yards due to leaking stormwater pipes, pipes located between houses at 1302 and 1312 Sawgrass Drive and 3432 and 3436 Buckhorn Drive were found to be in need of replacement or relining. Over the years, attempts to patch these pipes in various locations and address sinkholes as they occur have been made, but it ultimately reached the point where patching was no longer a viable option for these locations. The pipes need to be replaced or relined. Due to staffing constraints, contracting this work is the most efficient method to complete this project. In 2019, the Public Works Stormwater Division began working with Cardinal Engineering, now Parkhill, to develop plans and bid documents for replacement of these pipe segments.
DISCUSSION: In order to complete this project in a timely manner, it is necessary to use private contracting services. On September 6, 2019, using the Agreement for On-Call Engineering Services between City of Norman/Norman Utilities Authority and Parkhill, Contract K-0910-62, Parkhill was authorized in the amount of $6,950 to prepare a plan set and bid documents for this project.
The bid documents for this project included a Base Bid for each location using a traditional open trench method. In this method, the existing stormwater pipes are dug up, removed, and replaced using traditional excavation procedures. With this method, the ground surface above the pipe is disturbed to expose the pipe. This may include removing driveways, road sections, trees, and other items that are located over the pipe and within the construction area as well as relocating any other utilities that may interfere with the pipe removal and replacement. Because this method can cause significant inconvenience to neighboring property owners, businesses and schools, an Alternate Bid for trenchless pipe rehabilitation methods was included in the bid documents to see if an economical alternative to the Base Bid was available but to still allow the project to proceed if it wasn’t.
The bid opening was conducted on January 7, 2021, and five (5) contractors submitted bids for an open trench method Base Bid and/or a trenchless method Alternate Bid. The Engineer’s Estimate for the Base Bid is $967,774.74. The lowest bid for the Base Bid in the amount of $987,675.00 submitted by Matthews Trenching is $19,900.26 (2.05% percent) above the estimate. The other bid received for the Base Bid was significantly higher than the Engineer’s Estimate. The Engineer’s Estimate for the Alternate Bid is $1,758,069.50. The lowest bid for the Alternate Bid in the amount of $1,077,788 submitted by PM Construction & Rehab, LLC, is $680,281.50 (38.7% percent) below the estimate. The other three (3) bids received for the Alternate Bid were also lower than the Engineer’s Estimate, with an average of the three (3) bids at 1,381,561.27.
Parkhill reviewed all six (6) bids, found PM Construction & Rehab, LLC, bid and qualification to be competent to complete the project, and recommended award of the contract to PM Construction & Rehab, LLC (see attached recommendation letter). Based on this information, staff recommends rejecting all Base Bids and awarding the contract to the lowest and best bidder, PM Construction & Rehab, LLC, for the Alternate Bid. If approved, construction will begin on this project in March 2021 and will be completed by June 2021.
Budgeted capital funds in the amount of $785,000 are available for this project in Account (50599967-46101) Construction, Project DR0067, for the FYE 2021 Pipe Replacement Project. Capital funds in the amount of $200,000 are also available in Account (50599967-46201) Design, Project DR0067. Every year, several annual drainage projects, which are typically reported to staff via citizen requests, are not constructed because they have not been funded. Project DR0067 was established to fund these annual drainage projects. The remaining amount necessary to complete this project, $95,000, is available in Account (50599906-46301) Materials, Project SC0660, which is the FYE 2019 Force Account Drainage program that funds projects to address smaller stormwater drainage problems around the city as they are discovered. Staff requests approval to transfer funds in the amount of $200,000 from Account (50599967-46201) Design, Project DR0067, and $95,000 from Account (50599906-46301) Materials, Project SC0660, to Account (50599967-46101) Construction, Project DR0067, for completion of this project.
RECOMMENDATION NO 1: Staff has reviewed the bids and recommends that Bid 2021-33 for the FYE 2021 Pipe Replacement project, be awarded to the low bidder, PM Construction & Rehab, LLC, in the amount of $1,077,778.
RECOMMENDATION NO 2: Staff further recommends that the following contract and bonds be approved:
Contract K-2021-68
Performance Bond B-2021-54
Statutory Bond B-2021-55
Maintenance Bond MB-2021-42
RECOMMENDATION NO 3: Staff further recommends that Resolution R-2021-64 be adopted authorizing PM Construction & Rehab, LLC, as project agent.
RECOMMENDATION NO 4: Staff requests approval to transfer funds in the amount of $200,000 from Account (50599967-46201) Design, Project DR0067, and $95,000 from Account (50599906-46301) Materials, Project SC0660, to Account (50599967-46101) Construction, Project No. DR0067, for completion of this project.