Title
Street Improvements Areas Bounded By 15th Avenue to 7th Avenue From Mountain View Road to Peoria Avenue - Design-Bid-Build Services - ST87750144 (Ordinance S-49729)
Description
Request to authorize the City Manager, or his designee, to accept AJP Electric, Inc. as the responsive and responsible bidder and to enter into an agreement with AJP Electric, Inc. for Design-Bid-Build Services for the Street Improvements Areas Bounded By 15th Avenue to 7th Avenue from Mountain View Road to Peoria Avenue project. Further request to authorize the City Controller to disburse all funds related to this item. The fee for services will not exceed $2,929,507.75.
Report
Summary
The purpose of this project is to provide construction services for proposed improvements to include new sidewalks, sidewalk ramps, driveways and driveway retrofits to meet current American Disabilities Act (ADA) guidelines.
AJP Electric, Inc.’s services include, but are not limited to: saw cutting and removing existing pavement, removal of existing vegetation, removal of existing miscellaneous hardscape and property walls/fences within the right-of-way in conflict with proposed improvements, relocation of mailboxes, relocation of utilities and utility poles, new four foot sidewalk on local streets, ADA ramp construction, new driveway and driveway retrofits, and new sidewalk drainage crossings.
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 21, 2023, 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 two lowest responsive, responsible bidders are listed below:
- Opinion of Probable Cost: $1,594,425.35
- AJP Electric, Inc.: $2,929,507.75
- Combs Construction Company, Inc.: $4,479,382.00
Bidders who were deemed non-responsive are listed below, in alphabetical order:
- Lincoln Constructors, Inc.
Although the bid exceeds the Engineer’s Opinion of Probable Cost 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 Opinion of Probable Cost to the lowest, responsive, responsible bid is based upon the latest comparable bids on City of Phoenix major streets and adjusted for the market conditions and rapid inflation experienced at an unpredictable rate over the past several years.
Contract Term
The term of the agreement is 120 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 $2,929,507.75, 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 DBE program. 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.
Public Outreach
Planned resident notification will be provided prior to construction.
Location
Areas bounded by 15th Avenue to 7th Avenue from Mountain View Road to Peoria Avenue
Council District: 3
Department
Responsible Department
This item is submitted by Deputy City Manager Alan Stephenson, the Street Transportation Department and the City Engineer.