REPORT TO THE CITY COUNCIL
FROM: SCOTT L. MOZIER, P.E., Director
Public Works Department
BY: BRIAN E. RUSSELL, Assistant Director
Public Works Department, Streets, Landscape, and Graffiti Divisions
MARK A. RIVAS, Senior Management Analyst
Public Works Department, Streets, Landscape, and Graffiti Divisions
SUBJECT
Title
Actions pertaining to the award of a requirements contract to Builders Concrete Inc. of Fresno, California in the amount up to $1,275,442.03 for the purchase of Ready Mix Concrete. (Bid File 12300757)
Body
RECOMMENDATION
Staff recommends that the City Council award a requirements contract in the amount up to $1,275,442.03 plus a 20% contingency, per year for one (1) year with the option for four (4) one-year extensions to Builders Concrete Inc. of Fresno, California, as the lowest responsive and responsible bidder for the purchase of Ready Mix Concrete; and to authorize the Public Works Director or designee to sign the contract on the City’s behalf.
EXECUTIVE SUMMARY
The Public Works Department, Street Maintenance Division utilizes a requirements contract to purchase ready mix concrete material. This material is used by City crews for the maintenance and repair of sidewalks, curbs, gutters, and ADA curb ramps. The prior contract expired on August 23, 2022. Staff is currently purchasing materials utilizing a 6-month extension of this contract. A re-bid was initiated to establish a new requirements contract on November 25, 2022. Funding for this contract is included in the FY2023 budget.
BACKGROUND
Ready Mix Concrete materials are used by City crews for the maintenance and repair of concrete street infrastructure throughout the City of Fresno. Funding for concrete repair is included in the annual Fiscal Year 2023 Street Maintenance budget, which is funded with State Gas Tax, SB1 and Measure C revenues.
The execution of a requirements contract establishes a firm price, secured through competitive bidding, for a specified time and allows the City to make material purchases as needed. The specifications were prepared for a new requirements contract using the average annual quantities of ready mix concrete used over the life of the prior contract, which is consistent with current future projections.
The Purchasing Division began advertising on November 28, 2022, which involved posting a notice inviting bids on PlanetBids, the Business Journal, and five different building exchanges. Bid specifications were distributed to seven separate prospective bidders. A public bid opening was held on January 10, 2023, and only one bid was received. Builders Concrete Inc. was the sole bidder with a bid amount of $1,275,442.03. Builders Concrete Inc. had the previous contract with the City and performed in a satisfactory manner. Staff has analyzed and determined that the proposed bid price is competitive with industry standards.
Historically, staff has had difficulty obtaining bids for the Ready Mix Concrete contract. The two most recent contracts (2013 and 2017) were awarded to sole bidders. Staff worked with Purchasing to elicit feedback from prospective bidders in an effort to increase the number of bids for this cycle. The Notice Inviting Bids was subsequently published in the Business Journal and 647 vendors were notified by Planet Bids. Many of whom have stated in the past that they were not interested in bidding this contract because they were fully committed to other large local construction projects such as High Speed Rail and various residential and commercial developments. In spite of these outreach efforts, the City once again received only a sole bid. However, staff feels the bid was priced competitively, and because it was submitted by our current vendor, staff is confident the City will continue to be provided with quality product and service.
Council may reject all bids. However, the City would be without a Ready Mix Concrete contract for approximately sixty days while the contract rebid, which could have a significant impact on the concrete repairs currently planned throughout the City.
Staff recommends that the City Council award a requirements contract in the amount up to $1,275,442.03 plus a 20% contingency for one (1) year per year with the option for four (4) one-year extensions to Builders Concrete Inc. of Fresno, California, as the lowest responsive and responsible bidder for the purchase of Ready Mix Concrete materials and to authorize the Public Works Director or designee to sign the contract on the City’s behalf.
ENVIRONMENTAL FINDINGS
This contact is not subject to environmental findings due to the fact that this contract is for the purchase of materials and is not a project.
LOCAL PREFERENCE
The sole bid received is from a local business.
FISCAL IMPACT
Award of this requirements contract will not have an impact on the General Fund. Appropriations in the FY2023 budget are funded through State Gas Tax, SB1 and Measure C.
Attachments:
Bid Evaluation
Fiscal Impact Statement