Title
Pine Towers Apartments Phase II Large Studio Renovations and Community Room Improvements, Design-Bid-Build - AH10150006-D & AH10150006-E (Ordinance S-44186)
Description
Request to authorize the City Manager, or his designee, to accept G & G Specialty Contractors, Inc., as the lowest-priced, responsive and responsible bidder and to enter into an agreement with G & G Specialty Contractors, Inc., for construction services for the Pine Towers Apartments - Phase II Large Studio Renovations and Community Room Improvements project in the bid amount of $2,678,723. Further request authorization for the City Controller to disburse all funds related to this item. There is no impact to the General Fund.
Report
Summary
G & G Specialty Contractors, Inc., will provide construction services in support of the Housing Department's public housing community, Pine Towers Apartments - Phase II Large Studio Renovations and Community Room Improvements project. Work includes, but is not limited to: remodeling 45 large studio units within the existing 156-unit community; remodeling the existing community building with new finishes, new ADA access doors and energy-efficient windows, new lighting, reconfiguration of the mechanical system; an addition for a new laundry room and storage area; and other associated work required to complete the project.
Procurement Information
Three bids were received according to section 34-201 of the Arizona Revised Statutes by the Street Transportation Department on Nov. 14, 2017. The three bids were sent to the Housing Department for review of general contractor responsiveness. All three bidders were deemed responsive.
The bids ranged from a low of $2,678,723 to a high of $2,931,000. The lowest responsive, responsible bid was more than ten percent higher than the engineer’s estimate. The engineer’s estimate was $2,144,406. The difference in cost was attributed to the current market conditions and climate such as the tight labor market locally, and escalating material and labor prices due to the recent national natural disasters. City staff has made a determination that the bid price is fair and reasonable.
The Engineer's estimate and the three lowest responsive, responsible bidders are listed below:
Engineer's Estimate: $2,144,406
G & G Specialty Contractors, Inc.: $2,678,723
Skyline Builders & Restoration, Inc.: $2,690,912.10
LOR Construction, Inc.: $2,931,000
Contract Term
The term of the contract is expected to be completed within 270 calendar days from the date of issuance of the Notice to Proceed. Contract work scope identified and incorporated into the contract prior to the end of the contract may be agreed to by the parties, and work may extend past the termination of the contract. No additional contract work scope changes may be executed after the end of the contract term.
Financial Impact
The total amount of $2,678,723 is available in the Housing Department's federal Public Housing Capital Funds. Contract payments may be made up to contract limits for all rendered contract services, which may extend past the contract termination. No General Funds will be used for this project.
Although the low bid exceeds the engineer's estimate by greater than 10 percent, it has been determined that the low bid represents a fair and reasonable price for the required contract work. Additionally, the low bid is within the total project budget.
Small Business Outreach
The funding agency has determined that no Small Business Enterprise goal will be established for this project.
Location
2936 N. 36th St.
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Managers Deanna Jonovich and Mario Paniagua, the Housing Department, and the City Engineer.