Title
MOTION TO AWARD IFB # PSPW-23-14 "SITE WORK FOR EQUIPMENT AND MACHINERY BUILDING" TO THE MOST RESPONSIVE/RESPONSIBLE BIDDER, SO CAL SHAKER PLATES & CONSTRUCTION SITE SERVICES LLC DBA NATIONAL SWPPP SERVICES, IN THE AMOUNT NOT TO EXCEED $723,250, WHICH INCLUDES AN OWNER'S CONTINGENCY IN THE AMOUNT OF $33,250.
Summary Explanation and Background
PROCUREMENT PROCESS TAKEN:
- Chapter 35 of the City’s Code of Ordinances is titled “PROCUREMENT PROCEDURES, PUBLIC FUNDS.”
- Section 35.15 defines an Invitation for Bid as “A written solicitation for competitive sealed bids with the title, date and hour of the public bid opening designated therein and specifically defining the commodities or services for which bids are sought. The invitation for bid shall be used when the city is capable of specifically defining the scope of work for which a service is required or when the city is capable of establishing 15 precise specifications defining the actual commodities required. The invitation for bid shall include instructions to bidders, plans, drawings and specifications, if any, bid form and other required forms and documents to be submitted with the bid.”
- Section 35.18 of the City's Code of Ordinances is titled "COMPETITIVE BIDDING OR COMPETITIVE PROPOSALS REQUIRED; EXCEPTIONS.
- Section 35.18(A) states, "A purchase of or contracts for commodities or services that is estimated by the Chief Procurement Officer to cost more than $25,000 shall be based on sealed competitive solicitations as determined by the Chief Procurement Officer, except as specifically provided herein."
- Section 35.19 of the City's Code of Ordinances is titled "SEALED COMPETITIVE BIDDING PROCEDURE."
- Section 35.19(A) states "All sealed competitive solicitations as defined in § 35.18 shall be presented to the City Commission for their consideration prior to advertisement."
- Section 35.19(E) is titled "Bid opening procedure."
- Section 35.19(E)(5) states "The city reserves the right to waive any irregularities in the bids, as determined by the Chief Procurement Officer and approved by the City Manager."
- Section 35.21 of the City's Code of Ordinances is titled "AWARD OF CONTRACT."
- Section 35.21(A) of the City's Code of Ordinances is titled "City Commission approval.
- Section 35.21(A)(1) states, "An initial purchase of, or contract for, commodities or services, in excess of $25,000, shall require the approval of the City Commission, regardless of whether the competitive bidding or competitive proposal procedures were followed."
SUMMARY EXPLANATION AND BACKGROUND:
1. On June 21, 2023, the City Commission authorized the advertisement of IFB # PSPW-23-14 "Site Work for Equipment and Machinery Building", which was advertised on July 11, 2023.
2. The purpose of the solicitation was to supply all labor, equipment, and material for the site work of the Utilities/Public Services Equipment and Machinery building, in accordance with the terms, conditions, and specifications contained in this solicitation. This project will ensure compliance with SBDD drainage requirements and facilitate traffic and access to the equipment storage building.
3. On August 8, 2023, the City opened four (4) proposals from the following vendors, listed below in ascending order:
|
Vendor |
Total Cost |
|
National SWPPP Services |
$690,000 |
|
Sun Up Enterprises |
$713,860 |
|
Bejar Construction, Inc. |
$759,390 |
|
Weekley Asphalt Paving, Inc. |
$894,732 |
4. The Public Services Department reviewed the bids and verified National SWPPP Services submittal by requesting a schedule of values and verifying all the items from the bid were accounted for. After this review, the Public Services Department deemed National SWPPP Services the most responsive/responsible bidder.
5. National SWPPP Services submitted the Non Collusive Affidavit, however, it was missing a text field. National SWPPP Services has since revised the Non Collusive Affidavit, therefore, the Procurement Director is recommending to waive this irregularity, pursuant to Section 35.19(E)(5) of the City's Code of Ordinances.
6. In addition, National SWPPP Services has completed the Equal Benefits Certification Form and has stated that the "Contractor will comply with the conditions of this section at the time of contract award."
7. On September 20, 2023, the Public Services Department presented, to the City Commission, an agenda item for the recommendation to award for IFB # PSPW-23-14 "Site Work for Equipment and Machinery Building" to the most responsive/responsible bidder, So Cal Shaker Plates & Construction Site Services LLC DBA National SWPPP Services, in the amount not to exceed $723,250, including an Owner's Contingency in the amount of $33,250.
8. The City Commission approved a motion to defer the item in order for the Public Services Department to come back to the City Commission with an explanation on why the proposed award is so much higher than the original estimate of $310,000 that was originally listed in the bid package.
9. In reviewing the original cost estimate created by the Public Services Department and Engineering Division, it was determined that a big portion of the discrepancy is within the Earthwork portion of the project. The Engineering Division stated that they had limited cost estimates and information on recent earthwork projects as the City is fairly built-out, as a result they utilized information that they were able to gather from a project that was two years old. After further review, we researched information provided by the Florida Department of Transportation including information contained in their latest "Construction Cost Indicator Report" (See Attached, Exhibit # 5 - Page 7), which indicated various price increase in the market along with the following information price increases related to Earthwork:
|
|
|
$ Increase |
% Increase |
|
|
Cost per |
from Initial |
from Initial |
|
Period |
Cubic Yard |
Period |
Period |
|
Q3 2021 |
$8.43 |
N/A |
N/A |
|
Q2 2023 |
$15.46 |
$7.03 |
83.39% |
|
Q3 2023 |
$47.04 |
$38.61 |
458.01% |
In addition, the FDOT Construction Cost Indicator Report notes stated that trucking and labor costs are the main market influences in the Earthwork sector, and intensive infrastructure demand supports higher prices. In addition, low quantity (comparatively speaking) earthwork projects, like this project result in higher unit pricing.
10. Based on the updated information and market conditions, the Public Services Department and Engineering Division believe that the proposed pricing is fair and reasonable and recommends for the City Commission to award IFB # PSPW-23-14 "Site Work for Equipment and Machinery Building" to the most responsive/responsible bidder, So Cal Shaker Plates & Construction Site Services LLC DBA National SWPPP Services, in the amount not to exceed $723,250, which includes an owner's contingency in the amount of $33,250.
Reviewed by Commission Auditor.
Financial Impact
FINANCIAL IMPACT DETAIL:
a) Initial Cost: $723,250. (Base price is $665,000, plus a 5% owner's contingency in the amount of $33,250, and a Payment and Performance Bond cost of $25,000, for a total contract value of $723,250).
b) Amount budgeted for this item in Account No: Funds are available in account # 001-519-6001-546152-0000-000-0000 (R&M - Land Bldg - Major Projects).
c) Source of funding for difference, if not fully budgeted: Not Applicable.
d) 5 year projection of the operational cost of the project Not Applicable.
e) Detail of additional staff requirements: Not Applicable.
FEASIBILITY REVIEW:
A feasibility review is required for the award, renewal and/or expiration of all function sourcing contracts. This analysis is to determine the financial effectiveness of function sourcing services.
a) Was a Feasibility Review/Cost Analysis of Out-Sourcing vs. In-House Labor Conducted for this service? Not Applicable.
b) If Yes, what is the total cost or total savings of utilizing Out-Sourcing vs. In-House Labor for this service? Not Applicable.