File #: 23-2562   
Type: Ordinance-S Status: Adopted
Meeting Body: City Council Formal Meeting
On agenda: 12/6/2023 Final action: 12/6/2023
Title: Steel Tank Rehabilitation and Concrete Reservoir Program - Job Order Contracting Services - 4108JOC219 (Ordinance S-50365)
District: Citywide

Title

Steel Tank Rehabilitation and Concrete Reservoir Program - Job Order Contracting Services - 4108JOC219 (Ordinance S-50365)

 

Description

Request to authorize the City Manager, or his designee, to enter into separate master agreements with the two contractors listed below to provide Steel Tank Rehabilitation and Concrete Reservoir Job Order Contracting (JOC) services citywide for the Water Services Department. Further request to authorize execution of amendments to the agreements as necessary within the Council-approved expenditure authority as provided below, and for the City Controller to disburse all funds related to this item. The total fee for all services will not exceed $65 million.

 

Additionally, request to authorize the City Manager, or his designee, to take all action as may be necessary or appropriate and to execute all design and construction agreements, licenses, permits, and requests for utility services relating to the development, design, and construction of the project. Such utility services include, but are not limited to: electrical, water, sewer, natural gas, telecommunications, cable television, railroads and other modes of transportation. Further request the City Council to grant an exception pursuant to Phoenix City Code 42-20 to authorize inclusion in the documents pertaining to this transaction of indemnification and assumption of liability provisions that otherwise should be prohibited by Phoenix City Code 42-18. This authorization excludes any transaction involving an interest in real property.

 

Report

Summary

The JOC contractors’ services will be used on an as-needed basis to provide Steel Tank Rehabilitation and Concrete Reservoir services to support services for tank shut-down, start-up, and minor repair work associated with tank inspection and find and fix activities to ensure an efficient, consistent, and seamless approach for different activities within the program. Additionally, the JOC contractors will be responsible for fulfilling Small Business Enterprise program requirements.

 

Procurement Information

The selections were made using a qualifications-based selection process set forth in section 34-604 of the Arizona Revised Statutes (A.R.S.). In accordance with A.R.S. section 34-604(H), the City may not publicly release information on proposals received or the scoring results until an agreement is awarded. Four firms submitted proposals and are listed below.

 

Selected Firms

Rank 1: Hunter Contracting, Co.

Rank 2: MGC Contractors, Inc.

 

Additional Proposers

Rank 3: Professional Piping Systems, LLC

Rank 4: MMI Tank & Industrial Services, INC

 

Contract Term

The term of each master agreement is up to five years, or up to $32.5 million, whichever occurs first. Work scope identified and incorporated into the master agreement prior to the end of the term may be agreed to by the parties, and work may extend past the termination of the master agreement. No additional changes may be executed after the end of the term.

 

Financial Impact

The master agreement value for each of the JOC contractors will not exceed $32.5 million, including all subcontractor and reimbursable costs. The total fee for all services will not exceed $65 million.

 

Request to authorize the City Manager, or his designee, to execute job order agreements performed under these master agreements for up to $4 million each. In no event will any job order agreement exceed this limit without Council approval to increase the limit.

 

Funding is available in the Water Services Department’s Capital Improvement Program. The Budget and Research Department will review and approve funding availability prior to issuance of any job order agreement. Payments may be made up to agreement limits for all rendered agreement services, which may extend past the agreement termination.

 

Department

Responsible Department

This item is submitted by Deputy City Managers Ginger Spencer and Alan Stephenson, the Water Services Department and the City Engineer.