Title
Large Diameter Sanitary Sewer Rehabilitation Grade 5 and 4 Manholes - North - Zones 3 and 4 - Design-Bid-Build Services - WS90500273 (Ordinance S-50999)
Description
Request to authorize the City Manager, or his designee, to accept Degan Construction, LLC as the lowest-priced, responsive and responsible bidder and to enter into an agreement with Degan Construction, LLC for Design-Bid-Build Services for the Large Diameter Sanitary Sewer Rehabilitation Grade 5 and 4 Manholes - North - Zones 3 and 4 project. Further request to authorize the City Controller to disburse all funds related to this item. The fee for services will not exceed $4,509,585, including any change orders.
Report
Summary
The purpose of this project is to rehabilitate 99 active sanitary sewer manholes or structures, identified by the Large Diameter Sanitary Sewer Condition Assessment Report. Rehabilitation may include installation of corrosion coating systems, structural inserts, and liner repairs in all parts of the existing manholes. There will be bypass pumping for select manholes identified and use of small diameter flow-through plugs may need to be utilized to complete work.
Degan Construction, LLC's services include, but are not limited to: providing all materials, equipment, and labor necessary to perform the work, lighting, odor control, personnel facilities, traffic control, pavement replacement, manhole rehabilitation, noise control and safety and health equipment.
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 April 2, 2024, 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 three lowest responsive, responsible bidders are listed below:
Opinion of Probable Cost: $3,549,810
- Degan Construction, LLC: $4,099,622
- Arrowmark LLC dba Local Underground Construction: $5,089,560
- Hunter Contracting Co.: $5,668,267
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 $4,099,622. 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 300 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 initial agreement value for Degan Construction, LLC will not exceed $4,099,622, including all subcontractor and reimbursable costs. The total agreement value, including any change orders, for Degan Construction, LLC will not exceed $4,509,585, 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.
Department
Responsible Department
This item is submitted by Deputy City Managers Ginger Spencer and Inger Erickson, the Water Services Department and the City Engineer.