Title
Various Alleys In Phoenix (Fiscal Year 2026 Congestion Mitigation and Air Quality Alley Dustproofing) - Design-Bid-Build Services - ST87440029 (Ordinance S-53263) - Districts 4, 7, and 8
Description
Request to authorize the City Manager, or his designee, to accept VSS International, Inc. as the lowest-priced, responsive, and responsible bidder and to enter into an agreement with VSS International, Inc. for Design-Bid-Build Services for the Various Alleys in Phoenix (Fiscal Year 2026 Congestion Mitigation and Air Quality Alley Dustproofing) project. Further request to authorize the City Controller to disburse all funds related to this item. The fee for services will not exceed $4,670,120.
Report
Summary
The purpose of this project is to dustproof approximately 35.8 miles of unstabilized alleys within the City of Phoenix using a Fractured Aggregate Surface Treatment, which provides a single application of rubberized asphalt and pre-coated chips to existing dirt alleys.
VSS International, Inc.'s services include, but are not limited to: clearing, grubbing, and subgrade preparation, including removal, hauling, and disposal of deleterious materials and degraded asphalt millings.
Procurement Information
The selection was made using an Invitation for Bids procurement process set forth in Section 34-201 of the Arizona Revised Statutes. Three bids were received on September 9, 2026, and were sent to the Equal Opportunity Department for review to determine subcontractor eligibility and contractor responsiveness in demonstrating responsiveness to Small Business Utilization Commitment requirements.
The Opinion of Probable Cost and the three lowest responsive, responsible bidders are listed below:
- Opinion of Probable Cost: $4,788,093.25
- VSS International, Inc.: $4,670,120
- Cactus Transport II LLC: $4,999,662.03
- Sunland Asphalt & Construction, LLC: $5,076,848.91
The bid award amount is within the total budget for this project.
Due to volatile material costs and increased labor prices in the construction industry, a 10 percent contingency is being requested to allow for project uncertainties. The initial contract will be executed at the bid amount of $4,670,120. Use of the 10 percent contingency above the amount will not be allowed without the prior written consent of the of the Street Transportation Director and the City Engineer.
Contract Term
The term of the agreement is 360 calendar days from issuance of the Notice to Proceed. Work scope identified and incorporated into the agreement prior to the end of the term may be agreed to by the parties, and work may extend past the termination of the agreement. No additional changes may be executed after the end of the term.
Financial Impact
The agreement value for VSS International, Inc. will not exceed $4,670,120, including all subcontractor and reimbursable costs. A 10 percent contingency above the amount may be added upon the prior written consent of the Street Transportation Director and the City Engineer.
This project will utilize federal funds and is subject to the requirements of 49 Code of Federal Regulations Part 26 and the U.S. Department of Transportation DBE program. Funding is available in the Street Transportation Department's Capital Improvement Program budget. The Budget and Research Department will separately review and approve funding availability prior to execution of any amendments. Payments may be made up to agreement limits for all rendered agreement services, which may extend past the agreement termination.
Location
Various locations: north of Dobbins Road, south of Thomas Road, east of 59th Avenue, and west of 32nd Street
Council Districts: 4, 7, and 8
Department
Responsible Department
This item is submitted by Deputy City Manager Frank McCune, the Street Transportation Department and the City Engineer.