From
Bryce Davis, Purchasing Manager
Title
Renew the price agreement with Santos Construction for Concrete Paving and approve a monetary increase of 2.95%, increasing the estimated annual amount to $10,616,626.; renew the price agreement with McMahon Contracting for Concrete Paving and approve a monetary increase of 3.64% increasing the estimated annual amount to $9,924,275.02; renew the price agreement with New Star Grading & Paving and approve a monetary increase of 6.8% increasing the estimated annual amount to $12,174,780
Presenter
Bryce Davis, Purchasing Manager
Recommended Action
Approve
Analysis
On March 22, 2016 City Council awarded RFB# 16040 to Santos Construction, McMahon Contracting, New Star Grading & Paving, and NACC, Inc. Since this time the City has terminated its contract with NACC, Inc but is satisfied with the performance of the other three vendors.
These price agreements are currently utilized for large concrete pavement repairs and replacements to maintain the City's streets and roadways. It should be noted that the total amount for each contract does not represent the total actual amount that will be spent but is the total amount of the price agreements if all items were actually done by all three contractors. By pricing for every item with each vendor, we have the flexibility of using any one of the three for our repair and constriction needs since the availability of the vendors varies and much of our work requires response in a short time frame. The actual amount spent on the street sales tax program will not exceed the street sales tax receipts (usually less than $10 million), however, these vendors are often used as well for other projects in other Departments with other funding sources due to the flexibility in not having to take individual bids on projects.
Due to an escalation of concrete aggregate materials and rising market trends, each concrete paving vendor has requested a price redetermination increasing the cos...
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