Title
Consider a memorandum/resolution awarding Bid No. 25-09, Street Construction Materials, to Asphalt Inc, LLC dba Lone Star Paving, Crafco Inc, DIJ Construction, Killeen Crushed Stone and Killeen Ready Mix, in a total amount not to exceed $1,000,000.
Body
DATE: February 18, 2025
TO: Kent Cagle, City Manager
FROM: Jeffery Reynolds, Executive Director of Public Works
SUBJECT: Authorize the Award of Bid No. 25-09, Street Construction Materials to Various Vendors
BACKGROUND AND FINDINGS:
The City of Killeen solicits street construction material bids on an annual basis to procure materials needed for maintenance projects. Materials from these bids are utilized by various departments and divisions throughout the City on construction projects, repair of roadways, parking areas, water mains, etc.
On December 04, 2024, Bid No. 25-09 was opened and read aloud for the City's procurement of the annual requirements of Street Construction Materials. The City’s previous Street Construction Materials contract expired January 31, 2025, with a 60-day grace period. Under the proposed agreements, the total purchase of materials will not exceed $1,000,000 City-wide in Fiscal Year 2025 and will be based on the approved budget and subject to City Council approval.
The following five (5) vendors were selected based on the attached bid tabulation: Asphalt Inc, LLC dba Lone Star Paving, Crafco Inc, DIJ Construction, Killeen Crushed Stone, and Killeen Ready Mix. Bidders were instructed to bid items based upon estimated annual need per item and per item amounts.
Line items numbers 40-49, were added to the invitation to bid for use at the Killeen Regional Airport. However, no bids were received for those line items. Currently, vendors are not interested in “gallon” pricing per contract as it is not beneficial. Therefore, these items will have to be purchased on a per project basis.
The Transportation Division, 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 that the City’s 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 all vendors.
Due to fluctuating market conditions of the materials, the bid solicitation requires that bidder’s prices remain firm during the entire twelve (12) months of the contract. The contract term is for a one (1) year period. After the exhaustion of the entire contract term, the City may request up to an additional sixty (60) days past any contract term to advertise and award a new bid for such items without any pricing adjustments.
THE ALTERNATIVES CONSIDERED:
N/A
Which alternative is recommended? Why?
N/A
CONFORMITY TO CITY POLICY:
This item conforms with State Law and local policies.
FINANCIAL IMPACT:
What is the amount of the revenue/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 be significantly lower and will not exceed departmental budgets. The final fiscal impact will be based upon the allocated budget and workload for the year. Future year expenditures will be based on the approved budget. The total expenditures will not exceed $1,000,000 in Fiscal Year 2025.
Is this a one-time or recurring revenue/expenditure?
The purchases will occur on an individual and recurring basis under the terms of the contracts as projects are scheduled.
Is this revenue/expenditure budgeted?
Yes, funds are available in the following funds, departments, and accounts: General Fund - Parks Department accounts 100-52100-300-306, Public Works Department accounts 100-53415-400-403, Street Maintenance Fund - Public Works Department accounts 225-53430-400-403, Solid Waste Fund- Public Works Department accounts 540-53415-400-412, Water and Sewer Fund - Public Works Department accounts 550-53430-400-404 and 550-53430-400-405, Drainage Utility Fund - Public Works Department accounts 575-53415-400-403 and 575-53415-400-407 and any other city departments.
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:
That the City Council authorize the City Manager, or his designee, to award Bid No. 25-09 Street Construction Materials to Asphalt Inc, LLC dba Lone Star Paving, Crafco Inc, DIJ Construction, Killeen Crushed Stone, and Killeen Ready Mix; authorize the City Manager to execute agreements with those vendors in a total amount not to exceed $1,000,000; and authorize the City Manager, or his designee, to execute any and all amendments or change orders within the amounts set by State and Local law.
DEPARTMENTAL CLEARANCES:
Public Works
Purchasing
Finance
Legal
ATTACHED SUPPORTING DOCUMENTS:
Agreements
Bid Tabulation
Certificates of Interested Parties
Presentation