08 - Johnson Woods Drainage Construction Contract AwardItem No. 8
memorandum
TO: Mayor & City Council
John Godwin, City Manager
FROM: Carla Easton, City Engineer
SUBJECT: 2013 BOND FUND — JOHNSON WOODS DRAINAGE CONSTRUCTION
CONTRACT AWARD
DATE: April 1, 2019
BACKGROUND: The Johnson Woods Drainage Improvement project was planned and
scheduled as part of the 2013 Bond Fund for Water and Sewer Improvements. It includes
replacement of sanitary sewers and channel restoration along the drainage channel running from
Lamar Avenue to Clark Lane, located between Johnson Woods Drive and 31st St SE. AECOM
and Hayter Engineering Inc. prepared the construction drawings and specifications, and in 2015
the construction cost was estimated at $1 Million.
On June 27, 2017, the City opened bids for this project and only one (1) bid was received in the
amount of $1,908,978.00. Due to budget constraints and the limited number of bidders, Council
rejected the bid and asked Staff to consider options for completing the improvements.
During 2018, staff attempted to negotiate a change order to the Package 4 construction contractor
for completion of the Johnson Woods Drainage project, but no amicable agreement could be
reached.
STATUS OF ISSUE: On March 14, 2019, 4 bids were received for the project. The lowest bid
was submitted by Atkins Bros Equipment Co. from Midlothian, Texas, however four days after
the bid opening, Atkins withdrew their bid for this project, claiming critical errors by the
estimator. While this is their right, we intend to file a claim on the bid bond to recoup the added
cost of awarding a higher bid, which is the purpose of the required bid bond. The second lowest
bid was submitted by RBIS in the amount of $1,499,501.00. The bids were reviewed and
references checked in accordance with the contract documents, and the engineer of record has
submitted a recommendation of contract award to RBIS. The contract documents require this
project to be completed within 270 calendar days after issuance of the notice to proceed.
Construction is anticipated to begin in June. A summary of the bids received for this project is
as follows:
Bidder Bid Amount
Atkins Bros Equip Co. $1,391,720.00 (WITHDRAWN)
RBIS $1,499,501.00
Joe Funk Construction $1,550,150.00
Belt Construction $1,899,041.00
This contract is approximately $500,000 more than the original engineer's estimate prepared in
2015. To offset the additional cost, and to assure we have appropriate funds to finish the
ongoing projects, staff is recommending a reduction to the Package 4 construction contract by
removing the 12th St SE improvements from the project, which total approximately $1.0 Million.
We feel that these improvements have the potential for meeting future grant eligibility
requirements, and would be a suitable project for grant application, when available. By
removing these improvements from the Package 4 contract, we'll more than cover the overage
on the Johnson Woods Drainage project, and have appropriate contingencies to the water and
sewer utility fund for finishing all planned projects.
BUDGET: Funds are available in the 2013 Utility Bond Fund
RECOMMENDATION: Approve of a contract with RBIS to complete the Johnson Woods
Drainage construction project for an amount not to exceed $1,600,000.