Title
Van Buren Street: 7th Street to 24th Street Signal and Pedestrian Improvements - Design-Bid-Build Services - ST89320161 (Ordinance S-53120) - District 8
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 Van Buren Street: 7th Street to 24th Street Signal and Pedestrian Improvements project. Further request to authorize the City Controller to disburse all funds related to this item. The fee for services will not exceed $16,473,258.
Report
Summary
The purpose of this project is to upgrade eight existing traffic signals located on Van Buren Street between 7th Street and 24th Street.
AJP Electric, Inc.’s services include, but are not limited to: reconstructing existing sidewalks, driveways, and curb ramps, installing new landscaping and irrigation, adding and upgrading new streetlights, and upgrading eight existing traffic signals.
The selection was made using an Invitation for Bids procurement process set forth in Section 34-201 of the Arizona Revised Statutes. Two bids were received on May 5, 2026, 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: $11,542,300.89
AJP Electric, Inc.: $14,975,689.10
Granite Construction Company: $20,128,258
Although the bid exceeds the Engineer’s Opinion of Probable Cost by more than 10 percent, it has been determined that 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 the recent global events that increased the prices of certain construction materials.
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 $14,975,689.10. Use of the 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 548 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 AJP Electric, Inc., will not exceed $14,975,689.10, 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.
Public Outreach
Public outreach will be conducted by a public information officer.
Location
Van Buren Street between 7th Street and 24th Street
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Managers Frank McCune and Amber Williamson, the Street Transportation Department and the City Engineer.