Title
Consider a memorandum/resolution authorizing the award of Bid No. 24-18, Pavement Marking Services to D.I.J. Construction, Inc. in an amount not to exceed $350,000 for FY24.
Body
DATE: January 09, 2024
TO: Kent Cagle, City Manager
FROM: Jeffery Reynolds, Executive Director of Public Works
SUBJECT: Authorize the award of Bid No. 24-18, Pavement Marking Services to D.I.J. Construction, Inc.
BACKGROUND AND FINDINGS:
The City solicits Pavement Marking Service bids every two (2) years in order to procure needed services for various pavement marking projects throughout the City. Services from this bid are utilized by various departments and divisions throughout the City of Killeen. Pavement markings are intended to increase the safety and efficiency of roadway traffic by delineating the roadway path and specific traffic lanes. Pavement markings can provide information to road users related to the roadway alignment, vehicle positioning, and other important driving related tasks.
While city crews have been maintaining and installing pavement markings and will continue to do so, an Invitation to Bid (ITB) was issued for Pavement Marking Services for the larger areas on City roadways, parking areas, airports, bike lanes, etc.
On December 06, 2023, bids were opened and read aloud for the City’s procurement of the annual requirements of Pavement Marking Services. The City’s previous pavement marking services contract will expire January 12, 2024. The total purchase of services will not exceed $350,000 City-wide in FY24 and future year expenditures will be based on the approved budget and will be subject to City Council approval.
Two (2) vendors submitted bids: Traffic Highway Maintenance and D.I.J. Construction, Inc. Bidders were instructed to bid items based upon estimated annual need per item and per item amounts.
Transportation, along with Purchasing, evaluated each bid’s conformance with the bid information and instructions. Each bidder is ranked in accordance with the best value procedures and represents the best value to the City taking into consideration the qualifications, references, and cost of the Bidder, in accordance with the Bid General Terms and Conditions. The bid tab attached shows pricing as received from both vendors; D.I.J. Construction, Inc. and Traffic Highway Maintenance.
Due to fluctuating market conditions of the materials, the bid solicitation requires that the contract term for the award shall be a two (2) year period, with firm pricing the first twelve (12) months with the option of a limited price increase for the latter twelve (12) months in the event of a cost increase in manufacturing. The price increase would be accompanied with appropriate documentation to justify increased costs. After the exhaustion of the entire contract term, the City may request up to an additional sixty (60) days to advertise and award a new bid for such items without pricing adjustments.
THE ALTERNATIVES CONSIDERED:
1. Reject all bids, make purchases on a “per order / project” basis;
2. Authorize award of Bid No. 24-18, Pavement Marking Services to D.I.J. Construction, Inc. in an amount not to exceed $350,000 citywide in FY24 and not to exceed amounts approved in the budget for future years.
Which alternative is recommended? Why?
Alternative two (2) is recommended; Authorize award of Bid No. 24-18, Pavement Marking Services to D.I.J. Construction, Inc. in an amount not to exceed $350,000 citywide in FY24 and not to exceed amounts approved in the budget for future years. This will allow the City to obtain services for the maintenance of streets and other critical infrastructure.
CONFORMITY TO CITY POLICY:
Per Purchasing Policy and Texas State law, purchase of $50,000 or more must conform with the competitive procurement process. The ITB uses the competitive sealed bid method. Requirements are clearly defined, negotiations are not necessary, and best value methods are the major determining factor for selection.
FINANCIAL IMPACT:
What is the amount of the expenditure in the current fiscal year? For future years?
Projected expenditures are utilized for the City to obtain the best rate per unit pricing covering multiple City Departments and fiscal years. Actual costs per fiscal year for each department may significantly be lower and will not exceed departmental budgets. The final fiscal impact will be based upon the allocated budget and workload for the year. Future expenditures will be based on the approved budget. The total will not exceed $350,000 City-wide for FY24.
Is this a one-time or recurring expenditure?
The purchases will occur on an individual basis under terms of the contract as projects are scheduled.
Is this expenditure budgeted?
Yes, funds are available in the following fund - department accounts:
Street Maintenance Fund - Public Works Transportation accounts 234-3445-434.42-38 and 234-3445-434.42-65
Child Safety Fund - Public Works Transportation account 234-3445-434.42-38
Aviation Fund - Killeen Regional Airport (GRK) account 525-0505-521.42-06
Aviation Fund - Skylark Field (ILE) account 525-0507-521.42-06
If not, where will the money come from?
N/A
Is there a sufficient amount in the budgeted line-item for this revenue/expenditure?
Yes
RECOMMENDATION:
City Council authorize the award of Bid 24-18 Pavement Marking Services to D.I.J. Construction, Inc. in an amount not to exceed $350,000 Citywide in FY24 and not to exceed amounts approved in the budget for future years; authorize the City Manager, or designee, to execute a contract and furthermore, execute any and all change orders within the amount set by State and Local law.
DEPARTMENTAL CLEARANCES:
Public Works
Purchasing
Finance
Legal
ATTACHED SUPPORTING DOCUMENTS:
Agreement
Bid Tabulation
Certificate of Interested Parties
Presentation