Title
Consider a memorandum/resolution authorizing the rejection of all received submissions for Bid No. 27-02, FY27 Annual Street Construction Materials.
Body
DATE: September 1, 2026
TO: Kent Cagle, Interim City Manager
FROM: Kristina Ramirez, Executive Director of Public Works
SUBJECT: Authorize the rejection of all received submissions for Bid No. 27-02, FY27 Annual Street Construction Materials
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.
The City’s current one (1) year Street Construction Materials bid was awarded on October 21, 2025 (Enactment Number 25-165R). 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. 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.
On July 22, 2026, Bid No. 27-02 was opened and read aloud for the City's procurement of the annual requirements of Street Construction Materials. The following three vendors submitted bids as summarized on the attached bid tabulation: Killeen Crushed Stone, Killeen Ready Mix, and Texas Materials Group, Incorporated. Bidders were instructed to bid items based upon estimated annual need per item and per item amounts.
THE ALTERNATIVES CONSIDERED:
Staff considered acceptance of the bids received. However, this resulted in some material items with only one vendor to provide services and others without any vendors.
Which alternative is recommended? Why?
Following an internal review, it has been determined that Bid No. 27-02 - FY27 Annual Street Construction Materials be rejected, and the bid solicitation be re-issued. This will allow for multiple vendors for each bid item and potentially at least one vendor per bid item. Material purchases will be covered by the existing 2025 contract in the interim.
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?
The cost of re-issuing the bid is a one-time expenditure within FY26 for under $500.00.
Is this a one-time or recurring revenue/expenditure?
The cost of re-issuing the bid is a one-time expenditure.
Is this revenue/expenditure budgeted?
Yes, funds are available for re-advertising in 100-54530-400-403-000000.
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 rejects all received submissions for Bid No. 27-02, FY27 Annual Street Construction Materials and that the bid solicitation be re-issued.
DEPARTMENTAL CLEARANCES:
Public Works
Purchasing
Finance
City Attorney
ATTACHED SUPPORTING DOCUMENTS:
Bid Tabulation
Presentation