Title
Water Main Replacement Area Bounded By: Mountain View Road to Peoria Avenue and 19th Avenue to 15th Avenue - Design-Bid-Build Services - WS85509031 WIFA (Ordinance S-52136) - District 3
Description
Request to authorize the City Manager, or the City Manager's designee, to accept FPS Civil, LLC as the lowest-priced, responsive and responsible bidder and to enter into an agreement with FPS Civil, LLC for Design-Bid-Build Services for the Water Main Replacement Area Bounded By Mountain View Road to Peoria Avenue and 19th Avenue to 15th Avenue Project. Further request to authorize the City Controller to disburse all funds related to this item. The fee for services will not exceed $11.7 million, including any change orders.
Report
Summary
The purpose of this Project is to install approximately 29,000 linear feet (LF) of water main.
FPS Civil, LLC’s services include, but are not limited to: construction of water main installation of approximately 29,000 LF of Main (500 LF of 4-inch main, 20,700 LF of 6-inch main, 2,600 LF of 8-inch main, and 5,200 LF of 12-inch main), 45 fire hydrants, 20 cut and plugs, and 520 services.
The selection was made using an Invitation for Bids procurement process set forth in section 34-201 of the Arizona Revised Statutes. Eight bids were received on April 2, 2025 and were sent to the Equal Opportunity Department for review to determine subcontractor eligibility and contractor responsiveness in demonstrating responsiveness to Disadvantaged Business Enterprise (DBE) program requirements.
The Opinion of Probable Cost and the lowest responsive, responsible bidders are listed below:
Opinion of Probable Cost: $8,126,925.00
FPS Civil, LLC: $11,423,796.87
Talis Construction Corporation: $11,612,325.00
Degan Construction, LLC: $12,166,967.00
TF Contracting Services: $12,503,040.00
Achen-Gardner Construction, LLC: $13,351,666.00
Hunter Construction Co.: $13,495,465.20
Loenbro Industrial, LLC dba Revolution Industrial, LLC: $13,508,141.74
Sellers & Sons Inc.: $17,400,377.50
Although the bid exceeds the Opinion of Probable Cost by more than 10 percent, it has been determined the bid represents a fair and reasonable price for that required work scope. Additionally, 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 that the project was put on hold, and when the project was permitted and bid, changing market conditions and inflation were not captured to a sufficient degree. Between the mentioned reasons and contractor availability, the growing threat of tariffs, and market volatility, the Opinion of Probable Cost fell short of the apparent lowest bidder.
Due to volatile material costs and increased labor prices in the construction industry, a $276,203 contingency is being requested to allow for project uncertainties. The initial agreement will be executed at the bid amount of $11,423,796.87. Use of the $276,203 contingency above the amount will not be allowed without the prior written approval of the Water Services Department Director and the City Engineer.
Contract Term
The term of the agreement is 450 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 FPS Civil, LLC will not exceed $11.7 million, including all subcontractor and reimbursable costs.
This project will utilize federal funds and is subject to the requirements of 40 Code of Federal Regulations Part 33, 49 Code of Federal Regulations Part 26, and the U.S. Department of Transportation DBE program. Funding is available in the Water Services Department's Capital Improvement Program. 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
Mountain View Road to Peoria Avenue and 19th Avenue to 15th Avenue
Council District: 3
Department
Responsible Department
This item is submitted by Assistant City Manager Inger Erickson, Deputy City Manager Ginger Spencer, the Water Services Department and the City Engineer.