Title
Resolution to Award a Construction Contract to P.K. Contracting, Inc. for Pavement Marking Maintenance ($405,451.25; Bid No. ITB No. 4532)
Memorandum
Attached for your review and consideration for approval, please find a resolution to authorize the award of a unit price contract to P.K. Contracting, Inc. in the amount of $405,451.25 for the maintenance of pavement markings throughout the City. Available funds and needed replacements are the basis of the contract amount.
The City advertised for bid the proposed work on its website and on the Michigan Inter-Governmental Trade Network (MITN) website with the bidding documents being available to interested contractors. The City received one (1) bid and publically opened it on July 27, 2018. The bid received from P.K. Contracting, Inc. for $405,451.25 is approximately 11.8% below the Engineer’s Estimated Opinion of Costs.
Staff anticipated that only a single bid would be received for this work, as P.K. Contracting is typically the only company in the area that provides these services. Staff thoroughly evaluated the submitted bid to determine that the unit prices are fair and acceptable. Following this evaluation, staff recommends awarding the contract to P.K. Contracting, Inc. Attached is a summary of the bid results.
Budget/Fiscal Impact
Funding for this work is available in the adopted FY 2019 Public Services Area, Major and Local Street Funds Operation and Maintenance Budget. Operationally, these pavement marking improvements will benefit the safety of patrons using the City’s motorized and non-motorized transportation systems.
The work under this contract is expected to begin in mid to late September 2018, and is required to be complete by June 30, 2019. There is an option to extend this contract for one one-year period to allow for pavement marking maintenance in FY 2020. This extension is subject to the availability of funding, the same contract terms and unit prices as the original contract, and the approval of City Council.
P.K. Contracting, Inc. is in compliance with the requirements of the City’s Non- Discrimination and Living Wage ordinances.
Staff
Prepared by: Nicholas Hutchinson, P.E., City Engineer
Reviewed by: Craig Hupy, Public Services Area Administrator
Approved by: Howard S. Lazarus, City Administrator
Body
Whereas, It is appropriate to replace pavement markings throughout the City to help maintain a safe environment on the City’s roadways;
Whereas, Bids were received by the Purchasing Services Office on July 27, 2018, and P.K. Contracting, Inc. was the lone responsible bidder with a submitted bid of $405,451.25;
Whereas, The Public Services Area staff recommends approval of a contract with P.K. Contracting, Inc.;
Whereas, Funding is available in the adopted FY 2019 Public Services Area, Major Streets and Local Streets Maintenance Budget;
Whereas, P.K. Contracting, Inc. is in compliance with the requirements of the City’s Non-Discrimination and Living Wage ordinances; and
Whereas, It is now appropriate to enter into a contract with P.K. Contracting, Inc. for the proposed work;
RESOLVED, That City Council approves the award of a contract with P.K. Contracting, Inc. in the amount of $405,451.25 (ITB No. 4532) for the maintenance of pavement markings throughout the City;
RESOLVED, That the Mayor and City Clerk be authorized and directed to execute said contract after approval as to form by the City Attorney, and approval as to substance by the City Administrator;
RESOLVED, That a contingency amount of $40,550.00 be established within the project budget, and that the City Administrator be authorized to approve additional change orders/contract modifications to the pavement marking contract with P.K. Contracting, Inc., not to exceed $45,550.00 in order to satisfactorily complete the project; and
RESOLVED, That the City Administrator be authorized to take the necessary administrative actions to implement this resolution including approval of needed Traffic Control Orders, night work authorizations, and other similar administrative approvals to allow the work of the project to proceed without delay.