HomeMy WebLinkAbout16. Rescind a construction contract to Always Paving, Inc.; award instead to Morgan-Bonanno, Inc. for District-wide Patch Paving servicesItem 16.
BOARD OF DI RECTORS
POSIT ION PA PER
M E E T ING D AT E:J A NUA RY 19, 2023
S UB J E C T: R E S C I ND AW A R D O F A C O NS T R UC T I O N C O NT R A C T TO A LWAYS
PAV I NG, I NC., D B A G E NE R A L C O NS T R UC T I O N, F O R D I S T R I C T-W I D E
PAT C H PAV I NG; AWA R D T HE C O NS T R UC T I O N C O NT R A C T I N A N
A MO UNT NO T TO E X C E E D $745,780 F O R T HE S E S E RV I C E S TO
MO R G A N-B O NA NNO, I NC.; A ND A UT HO R I Z E UP TO A 30-P E R C E NT
C O NT I NG E NC Y
S UB M I T T E D B Y:
J A S O N D E G R O O T, S E NI O R E NG I NE E R
I NI T I AT I NG D E PART M E NT:
O P E R AT I O NS-C O L L E C T I O N S YS T E M-F I E L D
O P E R AT I O NS
RE V IE WE D B Y:PA UL S E I T Z , C O L L E C T I O N S YS T E M O P E R AT I O NS D I V I S I O N MA NA G E R
R oger S . B ailey
General Manager
IS S UE
T he B oard of D irectors (B oard) must determine whether to award to the second lowest and responsible
bidder, Morgan-B onanno D evelopment, I nc. (B onanno) and authorize the General Manager to execute the
contract documents subject to submittal requirements and include up to a 30-percent contingency.
Approval by the B oard is required to release the bid security provided by the lowest bidder, A lways Paving,
I nc. dba General Construction (A lways Paving).
B AC K G RO UND
On November 17, 2022, the Board awarded the District-W ide P atch P aving project to A lways Paving and
authorized the General Manager to execute the contract documents subject to submittal requirements. On
D ecember 7, 2022, Always P aving informed C entral San they would like to withdraw their bid due to a
mistake in the bid prices. C entral San has the right to obtain or release the bid security when the awarded
contractor cannot execute the contract. T he bid security is $10,268.
Bonanno was the second lowest responsive and responsible bidder, with a bid amount of $149,155.50
from three sealed bids opened on October 13, 2022. B onanno has indicated in writing that they will honor
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the bid prices. A summary of the bids received is shown in A ttachment 1. C entral San will have the option
to extend the contract for four additional one-year periods.
T his matter was reviewed with the District Counsel and he agreed with the staf f recommendation.
C alifornia E nvironmental Quality Act (C E Q A)
At the November 17, 2022 Board meeting, the C entral San B oard of D irectors independently found that
the project is exempt f rom C E Q A.
ALT E RNAT I V E S /C O NS I D E RAT IO NS
R eject all bids and rebid the contract, which is not recommended.
F I NANC IAL I M PAC T S
Approximately $149,156 this year with the option to extend for four additional one-year periods, totaling a
minimum of $745,780 for five years. I n addition, the contract includes provisions to allow f or pricing
adjustments based on the C onsumer Price I ndex (C P I ) or the price of oil or asphalt. Central S an can
authorize price adjustments every year or terminate the contract if pricing is not f avorable to the D istrict. A
total contingency budget of $223,735, or $44,747 per year, will be budgeted to cover additional paving
needs or D istrict authorized pricing adjustments.
C O M M I T T E E RE C O M M E ND AT IO N
T he E ngineering and Operations Committee reviewed this matter at its J anuary 5, 2023 meeting and
recommended approval.
RE C O M M E ND E D B O ARD AC T I O N
Staf f recommends the following B oard actions:
1. R escind award to A lways Paving, I nc., dba General C onstruction;
2. Authorize the release of the bid security provided by A lways Paving, I nc., dba General C onstruction;
3. Award a Construction Contract in the amount of $745,780 to Morgan-B onanno D evelopment, I nc.,
the second lowest responsive and responsible bidder f or District-W ide P atch P aving; and
4. Authorize the General Manager to execute the contract documents subject to submittal
requirements, and include up to a 30-percent contingency.
Strategic Plan Tie-I n
G O A L S I X: I nfrastructure Reliability
Strategy 1 - Manage assets optimally
AT TAC HM E NT S :
D escription
1. S ummary of B ids
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January 19, 2023 Regular Board Meeting Agenda Packet - Page 101 of 319
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