TITLE
Consider a memorandum/resolution awarding Bid 19-17, for a contract with D.I.J. Construction for pavement marking services.
SUMMARY
DATE: April 02, 2019
TO: Ronald L. Olson, City Manager
FROM: Danielle Singh, Interim Executive Director of Public Works
SUBJECT: Authorize the award of a contract to D.I.J. Construction for pavement marking services, Bid 19-17
BACKGROUND AND FINDINGS:
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 communicate the information to road users like no other traffic control device. They provide information to road users related to the roadway alignment, vehicle positioning, and other important driving related tasks. The Street Operations Division requested bids for pavement marking services on Killeen roadways.
Two (2) vendors submitted bids: D.I.J. Construction and TRP Construction Group LLC. Bidders were instructed to bid items based upon an estimated quantity and various line items.
The lowest responsive and responsible bidder for the estimated quantities is outlined in the bid tabulation sheet.
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. The contract may be extended for an additional four (4), six (6) month period(s), if so agreed by both parties.
THE ALTERNATIVES CONSIDERED:
Which alternative is recommended? Why?
The following alternatives were considered with this item:
1) Defer pavement marking maintenance to future fiscal years;
2) Perform pavement marking repairs in house with City Employees and equipment; or
3) Award a contract for pavement marking services
City staff recommends Alternative 3 because it allows for the most efficient use of available funding to address this item.
CONFORMITY TO CITY POLICY:
This item conforms to state and local policies and regulations.
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 may be significantly lower and will not exceed Departmental budgets. The final fiscal impact will be based upon the allocated budget and work load for the year.
Is this a one-time or recurring expenditure?
The purchases will be recurring expenditures with fixed prices for the two (2) year period of the contract. The contract term for the award shall be two (2) year period, with firm pricing the first twelve (12) months with the option of price increase for the latter twelve (12) months with a limited increase as a result of cost increase in manufacturing along with appropriate documentation, and may be extended for an additional four (4), six (6) month period(s), if so agreed by both parties.
Is this expenditure budgeted?
Yes, all purchases are budgeted within the Department’s budgets in account #234-3445-434.42-38 and 248-3445-434.42-38.
If not, where will the money come from?
N/A
Is there a sufficient amount in the budgeted line-item for this expenditure?
Funds are available.
RECOMMENDATION:
City staff recommends that City Council authorize the City Manager, or designee, to enter into a Standard Contract / Agreement with D.I.J. Construction for pavement marking services, and that the City Manager, or designee, is expressly authorized to execute any and all changes within the amounts set by State and Local law.
DEPARTMENTAL CLEARANCES:
Public Works
Purchasing
Finance
Legal
ATTACHED SUPPORTING DOCUMENTS:
Agreement
Bid Tabulation
Certificate of Interested Parties