Title
Consider a memorandum/resolution awarding Bid No. 26-05, Street Construction Materials to select vendors, for Fiscal Year 2026, in an amount not to exceed $1,000,000.00.
Body
DATE: October 21, 2025
TO: Kent Cagle, City Manager
FROM: Jeffery Reynolds, Assistant City Manager
SUBJECT: Authorize the award of Bid No. 26-05, Street Construction Materials to selected 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, and pavement markings within the city airport, roadways, parking areas, etc. Bidders were instructed to bid items based upon estimated annual need per item and per item amounts.
On September 3, 2025, Bid No. 26-05, for the City's annual procurement of Street Construction Materials was opened and read aloud. The Transportation Division, along with Purchasing Department, evaluated each bid's conformance with the bid information and instructions. Each bid was ranked in accordance with the best value procedures and represents the best value that 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 all vendors.
Six (6) vendors were selected based on the bid tabulation: Asphalt Inc, LLC dba Lone Star Paving, Crafco, Inc., D.I.J. Construction, Inc., Killeen Crushed Stone, Killeen Ready Mix and Texas Materials Group, Inc. The total purchase of materials will not exceed $1,000,000 in Fiscal Year 2026. Line items #40 - #49, received one (1) bid. However, after consideration, it was determined that other vendors, like Lowes, sell the material at a lower cost per gallon. Therefore, these items will be purchased on a per project basis.
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 a (1) one 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 local and state policy.
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 2026.
Is this a one-time or recurring revenue/expenditure?
The purchases will occur on an individual basis under the terms of the contracts as projects are scheduled.
Is this revenue/expenditure budgeted?
Yes
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, sufficient budgets are in the following accounts city-wide:
• General Fund
o 100-52100-300-306-000000; 100-53415-400-403-000000
• Street Maintenance Fund
o 225-53430-400-403-000000
• Solid Waste Fund
o 540-53415-400-412-000000
• Water & Sewer Fund
o 550-53430-400-404-000000; 550-53430-400-405-000000
• Drainage Utility Fund
o 575-53415-400-403-000000; 575-53415-400-407-000000
• Aviation Fund
o 525-53415-600-601-000000; 525-53415-600-602-000000
RECOMMENDATION:
Authorize the City Manager, or his designee, to award Bid 26-05 Street Construction Materials to selected vendors in an amount not to exceed $1,000,000 in Fiscal Year 2026; and authorize the City Manager, or his designee, to execute any and all amendments within the amounts set by State and Local law.
DEPARTMENTAL CLEARANCES:
Public Works
Purchasing
Finance
Legal
ATTACHED SUPPORTING DOCUMENTS:
Bid Tab
Agreements
Certificate of Interested Parties
Presentation