Title
Sub-Regional Operating Group Salt River Outfall Interceptor Rehabilitation Project E - Design-Bid-Build Services - WS90160095 (Ordinance S-45724)
Description
Request to authorize the City Manager, or his designee, to accept B & F Contracting, Inc. as the lowest-priced, responsive and responsible bidder and to enter into an agreement with B & F Contracting, Inc. for Design-Bid-Build Services for the Sub-Regional Operating Group (SROG) Salt River Outfall Interceptor Rehabilitation - Project E project. Further request to authorize the City Controller to disburse all funds related to this item. The fee for services will not exceed $2,692,810.97.
Report
Summary
The Salt River Outfall (SRO) extends from the confluence of the Indian Bend Wash and Tempe Town Lake and traverses across the southern portion of Phoenix to the 91st Avenue Wastewater Treatment Plant. The SRO is approximately 23 miles in length and has pipe that ranges from 54 inches to 84 inches in diameter. In addition, the SRO has approximately 191 manholes and structures. A condition assessment of the SRO was completed in 2014. The 2014 report divided the recommended rehabilitation into five projects; A, B, C, D, and E. The purpose of this project is to provide construction services for only Project E, which involves rehabilitation of approximately 105 manholes along the length of the entire SRO.
B & F Contracting, Inc.’s services include, but are not limited to: rehabilitation of 82 active sanitary sewer manholes or structures; abandon one sanitary sewer manhole; restore surface area of the construction sites to pre-existing conditions; provide traffic control during construction; coordinate with City of Phoenix Aviation Department for access on Phoenix Sky Harbor International Airport landside property; coordinate with City of Tempe for access on City of Tempe property; obtain all required permits from Union Pacific Railroad, Arizona Department of Transportation, Maricopa County Department of Transportation, and the City of Phoenix Annual Facilities Program; installation of temporary sulfide and odor control treatment systems; and diversion of sewage flows from Salt River Outfall to the Southern Avenue Interceptor via an existing diversion structure located within the City of Tempe.
The SRO is owned by the SROG, and operated by the City of Phoenix.
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 March 26, 2019, 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 Engineer's Estimate and the three lowest responsive, responsible bidders are listed below:
Engineer's Estimate: $2,204,564.00
B & F Contracting, Inc.: $2,692,810.97
Achen Gardner Construction, LLC: $3,723,530.00
Action Direct LLC dba Redpoint Contracting: $4,409,535.00
Although the bid exceeds the Engineer’s Estimate by more than 10 percent, it has been determined the bid represents a fair and reasonable price for the required work scope. Additionally, the bid award amount is within the total budget for this project.
The reason for the variance from the Engineers Estimate to the lowest, responsive, responsible bid is substantially related to traffic control scheduling and the developing market for structural inserts, which could account for the increase in unit costs across all bidders.
Contract Term
The term of the agreement is 330 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 B & F Contracting, Inc. will not exceed $2,692,810.97, 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.
Concurrence/Previous Council Action
The SROG Advisors approved the project on April 18, 2019.
Location
The manholes are located all along the alignment of the SRO, which starts at the convergence of Indian Bend Wash and Tempe Town Lake and ends at the 91st Avenue Wastewater Treatment Plant.
Council Districts: 6, 7 and 8
Department
Responsible Department
This item is submitted by Deputy City Managers Karen Peters and Mario Paniagua, the Water Services Department, and the City Engineer.