Title
Northwest Wastewater Master Plan Package 4B - 51st Avenue Gravity Sewer - Design-Bid-Build Services - WS90500307 (Ordinance S-50639)
Description
Request to authorize the City Manager, or his designee, to accept Action Direct LLC dba Redpoint Contracting as the lowest-priced, responsive and responsible bidder and to enter into an agreement with Action Direct LLC dba Redpoint Contracting for Design-Bid-Build Services for the Northwest Wastewater Master Plan Package 4B - 51st Avenue Gravity Sewer project. Further request to authorize the City Controller to disburse all funds related to this item. The fee for services will not exceed $29,021,161, including any change orders.
Report
Summary
The purpose of this project is to install approximately 17,500 feet of 36-inch gravity sewer pipeline and manholes along 51st Avenue, from the Central Arizona Project (CAP) Canal south to Pinnacle Peak Road and then east to 47th Avenue terminating in a new junction structure constructed on an existing 36-inch sewer. The project also includes a bid alternate to jack and bore 405 feet of 60-inch steel casing and install 458 feet of 36-inch sewer under the CAP Canal at 51st Avenue.
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 Dec. 5, 2023, and were sent to the Equal Opportunity Department for review to determine subcontractor eligibility and contractor responsiveness in demonstrating responsiveness to Small Business Enterprise program requirements.
The Opinion of Probable Cost and the two lowest responsive, responsible bidders are listed below:
- Opinion of Probable Cost: $28,896,907.07
- Action Direct LLC dba Redpoint Contracting: $26,382,873
- McCarthy Building Companies: $36,981,790
Bidders who were deemed non-responsive are listed below, in alphabetical order:
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 $26,382,873. Use of the 10 percent contingency above the amount will not be allowed without the prior written approval of the Water Services Department Director and the City Engineer. The bid award amount is within the total budget for this project.
Contract Term
The term of the agreement is five years 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 initial agreement value for Action Direct LLC dba Redpoint Contracting will not exceed $26,382,873, including all subcontractor and reimbursable costs. The total agreement value, including any change orders, for Action Direct LLC dba Redpoint Contracting will not exceed $29,021,161, including all subcontractor and reimbursable costs.
Funding is available in the Water Services 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
51st Avenue from the Central Arizona Project Canal south to Pinnacle Peak Road then east to 47th Avenue.
Council District: 1
Department
Responsible Department
This item is submitted by Deputy City Managers Ginger Spencer and Alan Stephenson, the Water Services Department and the City Engineer.