Title
MOTION TO AWARD IFB # PSUT-25-07 “WASTEWATER TREATMENT PLANT UNIT 1 REHABILITATION” TO THE MOST RESPONSIVE/RESPONSIBLE BIDDER, RAZORBACK, LLC, IN AN AMOUNT NOT TO EXCEED $3,092,186, WHICH INCLUDES A $80,766 PAYMENT AND PERFORMANCE BOND, A 10% OWNER’S CONTINGENCY OF $269,220, AND A $50,000 OWNER’S ALLOWANCE.
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."
- 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 35.21 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 18, 2025, the City Commission authorized the advertisement of PSUT-25-07, “Wastewater Treatment Plant Unit 1 Rehabilitation,” which was advertised on June 25, 2025.
2. The purpose of the solicitation was to obtain bids from qualified contractors to furnish all labor, materials, equipment, tools, and related services necessary to perform the rehabilitation and painting of Wastewater Treatment Unit 1 at the City’s Wastewater Treatment Plant.
3. On August 12, 2025, two (2) bids were received in response to the solicitation. The bids, inclusive of the required Payment and Performance (P&P) Bonds, were submitted by the following firms:
|
Vendor Name |
Cost |
P&P |
Total with P&P |
|
Razorback LLC |
$2,692,200.00 |
3% |
$2,772,966.00 |
|
Conti LLC |
$4,397,660.00 |
1% |
$4,441,636.60 |
4. The final project cost reflects the base bid submitted by Razorback, LLC, the cost for the vendor to provide the required payment and performance bonds, an owner’s allowance, and a 10% owner’s contingency as outlined in the breakdown below.
The Owner’s Allowance has been incorporated to provide the project managers with the resources to address structural repairs that are anticipated for this project but that cannot be fully quantified in areas that are currently inaccessible or submerged.
The Owner’s contingency, similarly, provides the project managers the flexibility to address unknown conditions that may arise during the course of construction, particularly in areas that are currently inaccessible or submerged, thereby mitigating potential delays and supporting the timely and efficient execution of the project.
|
Razorback, LLC |
|
|
|
Bid Total |
|
$2,692,200 |
|
Payment & Performance |
3% |
$80,766 |
|
Contingency |
10% |
$269,220 |
|
Allowance |
|
$50,000 |
|
Total |
|
$3,092,186 |
5. Following a comprehensive review of all proposals, the Utilities Department determined that Razorback LLC is the most responsive and responsible bidder. This recommendation is based on the firm’s submission of the lowest price, as well as favorable references confirming successful completion of similar rehabilitation projects within the past three (3) years.
6. In accordance with the City’s procurement requirements, Razorback LLC has completed the Equal Benefits Ordinance Compliance Form and affirmed that the firm is currently in compliance with the City’s Equal Benefits Ordinance.
7. Staff recommends Commission approval to award IFB # PSUT-25-07 “Wastewater Treatment Plant Unit 1 Rehabilitation,” to the most responsive/responsible bidder, Razorback LLC, in an amount not to exceed $3,092,186 which includes $80,766 for the payment and performance bonds, a 10% owner’s contingency of $269,220, and a $50,000 owner’s allowance.
Financial Impact
FINANCIAL IMPACT DETAIL:
a) Initial Cost: $3,092,186
b) Amount budgeted for this item in Account No: 471-535-6022-663183-0000-000-0000-00834 (Sewer Treatment Rehabilitation)
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