Title
Longview Playground Construction CDBG Rebid - Design-Bid-Build Services - PA75200620 (Ordinance S-46016)
Description
Request to authorize the City Manager, or his designee, to accept Stratton Restoration, LLC dba Stratton Builders as the lowest-priced, responsive and responsible bidder and to enter into an agreement with Stratton Restoration, LLC dba Stratton Builders for Design-Bid-Build Services for the Longview Playground Construction Community Development Block Grant (CDBG) project. Further request to authorize the City Controller to disburse all funds related to this item. The fee for services will not exceed $424,031.
Report
Summary
The purpose of this project is to construct site improvements related to a new playground area at the existing Longview Park. New sidewalks, chilled drinking fountain, picnic tables, benches, trash receptacles, LED security lighting, irrigation system and plant material will be installed as part of this project.
Stratton Restoration, LLC dba Stratton Builders’ services include, but are not limited to: installing sidewalks, chilled drinking fountain, picnic tables, benches, trash receptacles, LED security lighting, irrigation system and plant material, and other work as required for the project.
Procurement Information
The selection was made using an Invitation for Bids procurement process set forth in section 34-201 of the Arizona Revised Statutes. Two bids were received on July 16, 2019, and were sent to the Parks and Recreation and Neighborhood Services departments for review to determine CDBG program compliance.
The Engineer's Estimate and the two lowest responsive, responsible bidders are listed below:
Engineer's Estimate: $268,866.46
Stratton Restoration, LLC, dba Stratton Builders: $424,031
G & G Specialty Contractors, Inc.: $434,248.50
Although the bid exceeds the Engineer’s Estimate by more than 10 percent, it has been determined the bid represents a fair and reasonable price for the required work scope. Additionally, the bid award amount is within the total budget for this project.
The reason for the variance from the Engineer’s Estimate to the lowest, responsive, responsible bid is possibly due to high local construction resource demand, higher unit pricing due to labor shortages, higher unit pricing due to material price premiums especially concrete, and a premium to mobilize and work on a relatively small project.
Contract Term
The term of the agreement is 60 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 Stratton Restoration, LLC dba Stratton Builders will not exceed $424,031, including all subcontractor and reimbursable costs.
Funding is available in the Parks and Recreation Department's Capital Improvement Program budget and the Neighborhood Services Department Capital Improvement Program budget with CDBG funds. 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.
Previous Council Action
- On June 5, 2019, City Council approved rejection of the bids received on Sept. 25, 2018 because the lowest bid received exceeded the Engineer's Estimate by more than 70 percent and exceeded the budget for this project.
Location
4040 N. 14th St.
Council District: 4
Department
Responsible Department
This item is submitted by Acting Deputy City Manager Toni Maccarone and Deputy City Manager Mario Paniagua, the Parks and Recreation and Neighborhood Services departments, and the City Engineer.