Title
MOTION TO APPROVE AN AGREEMENT WITH H&R PAVING, INC., FOR THE MILLING AND RESURFACING OF THE FOLLOWING LOCATIONS: NW 172ND AVE AND PINES BLVD, THE TRAILS (SW 207TH TER AND NW 199TH AVE), AND WALDEN LAKE, UTILIZING PRICING ESTABLISHED BY THE CITY OF MIAMI IFB NO. 1115382, FOR AN AMOUNT NOT TO EXCEED $1,162,830.22, WHICH INCLUDES $4,266.00 FOR PAYMENT AND PERFORMANCE BONDS, AND A 10% OWNER'S CONTINGENCY IN THE AMOUNT OF $105,324.02, AND TO APPROVE AN AGREEMENT WITH WEEKLEY ASPHALT PAVING, INC., FOR THE MILLING AND RESURFACING OF THE FOLLOWING LOCATIONS: HIATUS RD FROM PINES BLVD TO PEMBROKE RD, JOHNSTON ST FROM FLAMINGO RD TO HIATUS RD, AND JOHNSON ST FROM HIATUS RD TO PALM AVE, UTILIZING PRICING ESTABLISHED BY THE BROWARD COUNTY IFB NO. PNC2124420B1, FOR AN AMOUNT NOT TO EXCEED $1,951,543.89, WHICH INCLUDES $9,436.44 FOR PAYMENT AND PERFORMANCE BONDS, AND A 10% OWNER'S CONTINGENCY IN THE AMOUNT OF $176,555.22, PURSUANT TO SECTION 35.18(C)(5) OF THE CITY’S CODE OF ORDINANCES.
Summary Explanation and Background
PROCUREMENT PROCESS TAKEN:
- Chapter 35 of the City’s Code of Ordinances is titled “PROCUREMENT PROCEDURES, PUBLIC FUNDS.”
- Section 35.18 of the City's Code of Ordinances is regarding "COMPETITIVE BIDDING OR COMPETITIVE PROPOSALS REQUIRED; EXCEPTIONS."
- Section 35.18(C) states that "Only the following situations are exempt from the competitive bid and competitive proposal requirements of this section:"
- Section 35.18(C)(5) of the City’s Code of Ordinances, “Commodities or services that are the subject of contracts with the state its political subdivisions or other governmental entities including the United States Government, are exempt from the competitive procurement process.”
- 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. The City’s Engineering Division intends to mill and resurface the following locations: Hiatus Rd from Pines Blvd to Pembroke Rd, Johnston St from Flamingo Rd to Hiatus Rd, Johnson St from Hiatus Rd to Palm Ave, NW 172nd Ave and Pines Blvd, The Trails (SW 207th Terr and NW 199th Ave), and Walden Lake.
2. On March 11, 2021, the City of Miami awarded IFB No. 1115382 "Pavement Resurfacing and Roadway Repair Services”, to H&R Paving, Inc. The initial contract period expired March 21, 2024, but the contract has been renewed for a new period expiring March 21, 2026. The contract has one additional renewal option from March 22, 2026, through March 21, 2028.
3. Similarly, Broward County awarded IFB No. PNC2124420B1 “Pavement Resurfaces and Repairs” to Weekley Asphalt Paving, Inc. with an effective date of October 4, 2022, for an initial one-year period with two additional one-year renewal terms. The initial contract period expired October 3, 2023, and Broward County exercised both renewal options, extending the contract through October 3, 2025. Broward County further extended the agreement, pursuant to the solicitation and agreement’s terms and conditions, to January 1, 2026.
4. During the initial preparation of the agenda item, the City’s intent was to split the award between H&R Paving, Inc. and Weekley Asphalt Paving, Inc. based on the lowest pricing per location. However, the Finance Department’s Contracts Division understood, based on earlier discussions with the City Attorney’s Office, that the Broward County contract being piggybacked (IFB No. PNC2124420B1) would need to remain active for the entire duration of the City’s construction project. Under that interpretation, a split award including Weekley did not appear permissible due to the County contract’s scheduled expiration on January 1, 2026.
After additional review and clarification with the City Attorney’s Office, it was confirmed that the City may award the contract to Weekley Asphalt Paving, Inc. prior to January 1, 2026, so long as the City fully executes the agreement with Weekley before that date, and a formal Notice to Proceed is issued upon timely entering into the agreement. Weekley has also confirmed that they will promptly submit all required documents, including Payment and Performance Bonds and insurance, immediately following Commission approval to ensure execution prior to the expiration deadline.
Furthermore, Broward County staff verbally advised the City on December 9, 2025, that they intend to extend the County’s contract on a month-to-month basis prior to the January 1, 2026 expiration date, which provided additional assurance that the City could proceed with a dual-award structure. This clarification allowed City Administration to reinstate the split-award approach originally contemplated.
5. H&R Paving, Inc. and Weekley Asphalt Paving, Inc. have provided quotes for milling and resurfacing of the previously mentioned areas utilizing pricing established by the aforementioned contracts. Below are the pricing of their quotes without the cost for Payment and Performance Bonds:
|
|
Location Description |
H&R Paving |
Weekley |
Difference |
|
A |
Hiatus Rd - Pines Blvd to Pembroke Rd |
$655,115.00 |
$645,433.75 |
($9,681.25) |
|
B |
Johnson St - Flamingo Rd to Hiatus Rd |
$518,788.20 |
$498,806.60 |
($19,981.60) |
|
C |
Johnson St - Hiatus Rd to Palm Ave |
$635,686.20 |
$621,311.88 |
($14,374.32) |
|
D |
NW 172nd Ave & Pines Blvd |
$268,419.20 |
$273,591.25 |
$5,172.05 |
|
E |
The Trails (SW 207 Terr & NW 199 Ave) |
$432,179.60 |
$472,203.00 |
$40,023.40 |
|
F |
Walden Lake |
$352,641.40 |
$366,219.30 |
$13,577.90 |
|
|
Total |
$2,862,829.60 |
$2,877,565.78 |
$14,736.18 |
6. H&R Paving, Inc. submitted the lowest overall pricing, which was $14,736.18 lower than the pricing submitted by Weekley Asphalt Paving, Inc. However, after reviewing the itemized quotes for each location, the Procurement Department and Engineering Division determined that the most cost-effective approach was to split the award by site and award each location to the vendor offering the lowest price for that specific work.
7. Pursuant to Florida Statute 255.05, a payment and performance bond is required for construction projects over $200,000.
8. H&R Paving, Inc. and Weekley Asphalt Paving, Inc. updated their quotes to include the cost of Payment and Performance bonds covering 100% of the work for each of the proposed work sites. The updated quotes including the Payment and Performance bonds are as follows:
|
|
Location Description |
Vendor |
Base Pricing |
P&P Bonds |
Total |
|
A |
Hiatus Rd - Pines Blvd to Pembroke Rd |
Weekley |
$645,433.75 |
$3,404.00 |
$648,837.75 |
|
B |
Johnson St - Flamingo Rd to Hiatus Rd |
Weekley |
$498,806.60 |
$2,743.44 |
$501,550.04 |
|
C |
Johnson St - Hiatus Rd to Palm Ave |
Weekley |
$621,311.88 |
$3,289.00 |
$624,600.88 |
|
D |
NW 172nd Ave & Pines Blvd |
H&R |
$268,419.20 |
$1,088.00 |
$269,507.20 |
|
E |
The Trails (SW 207 Terr & NW 199 Ave) |
H&R |
$432,179.60 |
$1,750.00 |
$433,929.60 |
|
F |
Walden Lake |
H&R |
$352,641.40 |
$1,428.00 |
$354,069.40 |
|
|
Total |
|
$2,818,792.43 |
$13,702.44 |
$2,832,494.87 |
In addition, the Engineering Division would like to add a 10% owner's contingency to the agreements. The agreement with H&R Paving, Inc. will include an owner’s contingency of $105,324.02 and the agreement with Weekly Asphalt Paving, Inc. will include a contingency of $176,555.22.
Splitting the award between both vendors will result in total savings of $46,320.43, including payment and performance bonds and owner’s contingency, compared to awarding the entire project to a single vendor.
9. H&R Paving, Inc. and Weekley Asphalt Paving, Inc. will complete these projects within 90 calendar days from the notice to proceed.
10. Request City Commission to approve the agreement with H&R Paving, Inc. for the milling and resurfacing of NW 172nd Ave and Pines Blvd, The Trails (SW 207th Ter and NW 199th Ave), and Walden Lake, utilizing pricing established by the City of Miami IFB No.1115382, for an amount not to exceed $1,162,830.22, which includes $4,266.00 for Payment and Performance Bonds, and a 10% owner's contingency in the amount of $105,324.02, and to approve the agreement with Weekley Asphalt Paving, Inc., for the milling and resurfacing of Hiatus Rd from Pines Blvd to Pembroke Rd, Johnston St from Flamingo Rd to Hiatus Rd, and Johnson St from Hiatus Rd to Palm Ave, utilizing pricing established by the Broward County IFB No. PNC2124420B1, for an amount not to exceed $1,951,543.89, which includes $9,436.44 for payment and performance bonds, and a 10% owner's contingency in the amount of $176,555.22, pursuant to Section 35.18(C)(5) of the City’s Code of Ordinances.
Financial Impact
FINANCIAL IMPACT DETAIL:
a) Initial Cost: $3,114,374.11
b) Amount budgeted for this item in Account No: Funds are available in account # 100-541-6002-546164-0000-000-0000- (R&M Resurfacing)
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.