Title
Fire Station 15 - Design-Bid-Build Services - FD57100031 (General Obligation Bond) (Ordinance S-52041) - District 5
Description
Request to authorize the City Manager, or his designee, to accept Danson Construction, LLC as the lowest-priced, responsive and responsible bidder and to enter into an agreement with Danson Construction, LLC for Design-Bid-Build Services for the Fire Station 15 General Obligation Bond project. Further request to authorize the City Controller to disburse all funds related to this item. The fee for services will not exceed $11,010,000.
Report
Summary
The purpose of this project is to build a new fire station to enable Phoenix Fire Department staff to support the surrounding community and create quicker response times to calls. The new one-story facility will be comprised of approximately 20,810 square feet and was designed per the City of Phoenix Fire Department building design standards and will incorporate environmental design principles similar to Leadership in Environmental and Energy Design to reduce energy consumption and enable water preservation.
Danson Construction, LLC’s services include, but are not limited to: providing complete construction services to build the proposed Phoenix Fire Station 15 facility to include four apparatus bays, 16 dormitories, a fitness room, a community room, a kitchen, and work/living spaces and other work as required for a complete 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. Thirteen bids were received on April 22, 2025 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 lowest responsive, responsible bidder is listed below:
- Opinion of Probable Cost: $15,850,133
- Danson Construction, LLC: $11,010,000
Bidders who were deemed non-responsive are listed below, in alphabetical order:
- BFL Construction Co., Inc.
- BPR Companies, LLC
The bid award amount is within the total budget for this project.
The reason for the variance from the Opinion of Probable Cost to the lowest, responsive, responsible bid is due to international tariffs and major budget cuts from state and cities causing many projects to be terminated or halted. The result of these impacts has created an incredibly competitive construction market currently with an influx of subcontractors looking for new work.
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 $11,010,000. Use of the 10 percent contingency above the amount will not be allowed without the prior written approval of the Fire Department Director and the City Engineer.
Contract Term
The term of the agreement is 395 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 Danson Construction, LLC will not exceed $11,010,000, including all subcontractor and reimbursable costs.
Funding is available in the Fire Department's Capital Improvement Program budget utilizing the General Obligation Bond 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
The City Council approved Architectural Services Agreement 160049 (Ordinance S-50589) on February 21, 2024.
Location
Southwest corner of 45th Avenue and Camelback Road on City-owned property
Council District: 5
Department
Responsible Department
This item is submitted by Assistant City Managers Lori Bays and Inger Erickson, the Fire Department and the City Engineer.