Title
20th Street: Grand Canal to Highland Avenue - Design-Bid-Build Services - ST87600136 (Ordinance S-52740) - Districts 4 & 6
Description
Request to authorize the City Manager, or his designee, to accept AJP Electric, Inc., as the lowest-priced, responsive and responsible bidder and to enter into an agreement with AJP Electric, Inc., for Design-Bid-Build Services for the 20th Street: Grand Canal to Highland Avenue project. Further request to authorize the City Controller to disburse all funds related to this item. The fee for services will not exceed $7,420,889.
Report
Summary
The purpose of this project is to construct bicycle improvements along 20th Street from Grand Canal to Highland Avenue.
AJP Electric’s services include, but are not limited to: removing and replacing existing traffic signal poles, mast arms, signal heads, buffered bicycle lanes, narrowing travel lanes, streetlight upgrades, and intersection improvements at Highland Avenue, Campbell Avenue, Indian School Road, and Osborn Road.
The selection was made using an Invitation for Bids process set forth in section 34-201 of the Arizona Revised Statutes. One bid was received on February 10, 2026, and was sent to the Equal Opportunity Department for review to determine subcontractor eligibility and contractor responsiveness to Disadvantaged Business Enterprise (DBE) program requirements. A DBE goal has not been established for this project.
The Opinion of Probable Cost and the one lowest responsive, responsible bidder is listed below:
Opinion of Probable Cost: $8,093,248
AJP Electric, Inc.: $6,746,263
The bid award amount is within the total budget for this project.
The reason for the variance of the Opinion of Probable Cost to the lowest, responsive, responsible bid is the Engineer's Estimate included a conservative allowance reflecting federal-aid documentation and coordination requirements and included a higher risk assumption for coordination and removal complexity. The contractor's bid reflects current competitive market pricing, favorable production, and market conditions.
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 $6,746,263. Use of 10 percent contingency above the amount will not be allowed without prior written approval of the Street Transportation Department Director and the City Engineer.
Contract Term
The term of the agreement is 540 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 AJP Electric, Inc., will not exceed $7,420,889, including all subcontractor and reimbursable costs.
This project will utilize federal funds and is subject to the requirements of 49 Code of Federal Regulations Part 26 and the U.S. Department of Transportation. Funding is available in the Street Transportation 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.
Location
20th Street: Grand Canal to Highland Avenue
Council Districts: 4 and 6
Department
Responsible Department
This item is submitted by Deputy City Managers Frank McCune and Amber Williamson, the Street Transportation Department and the City Engineer.