Item 4B CITY OF
SOUTHLAKE Item 4B
MEMORANDUM
(February 21, 2017)
To: Shana Yelverton, City Manager
From: Rob Cohen, Director of Public Works
Subject: Award construction contract to Wilson Contractor Services,
LLC, for Sanitary Sewer and Storm Drain Improvement
projects at various locations within the City in an amount not
to exceed $2,016,561
Action
Requested: Award construction contract to Wilson Contractor Services, LLC, for
Sanitary Sewer and Storm Drain Improvement projects at various
locations within the City in an amount not to exceed $2,016,561
Background
Information: In November 2014, with the approval of City Council, Baird,
Hampton & Brown Inc. initiated the design of the sanitary sewer
system improvement project. This project consists of the
construction of sanitary sewer at four different locations in the City -
Summerplace Lane, Commerce Street and Market Loop, North
Carroll Avenue and East Highland Street, North Carroll Avenue and
Casey Court.
The first two locations involved rehabilitation and reconstruction of
existing sanitary sewer facilities while the next two involved new
construction. The existing sanitary sewer requires reconstruction to
overcome several deficiencies such as size, shallow depth, sags
and flat slopes resulting in the need for frequent maintenance by
the City staff. Altogether, approximately 5,500 LF of 8-inch sanitary
sewer pipe is proposed to be constructed with this project. In
addition to the above listed work, a deteriorating and undersized
corrugated metal storm sewer line at Summerplace Lane is
proposed to be replaced with a new 36-inch reinforced concrete
pipe (RCP).
These projects were lumped together into one contract with the
expectation of economies of scale, resulting in a better bid price
and reduced overall project costs associated with engineering,
administration, construction and inspection.
Item 413
The design and project specifications were completed in April 2016
and were first advertised to bid in May 2016. One (1) bid was
received as tabulated below:
BIDDER BID AMOUNT OPCC
Wilson Contractor Services $1 ,934,897 $1 ,381 ,000
The Opinion of Probable Construction Cost (OPCC) prepared by
the consulting engineer was underestimated by approximately 40%.
The total allocated funds for these projects was $1 ,775,000. The
bid was rejected by the City Council at the June, 07 2016 meeting
due to insufficient funds.
Upon City staff's recommendation, the City Council approved an
additional $600,000 in the FY 2017 budget bringing total funding to
a total of $2,375,000 for this initiative. An important change was
introduced into the specifications allowing the city to select the
bidder based on "Best Value" rather than simply low bid. The best
value determination factors included in the specification for
evaluation were purchase price - 70%, reputation - 10%, quality -
10% and past relationship with city — 10%.
The project was re-advertised to bid in December 2016 with minor
modifications to the plans and specifications. One of the common
comments the City received from contractors who picked up plans
but failed to submit a bid last time was insufficient time to put
together a bid for a project of this magnitude. One month
timeframe, rather than two and half weeks, was given to the
contractors to compile their bid for the second solicitation. The bids
were opened in January 17, 2017. Two (2) bids were received as
shown below:
BIDDER BID AMOUNT OPCC
Wilson Contractor Services $2,016,561 $1 ,411 ,000
BSK USA, LLC $1 ,005,242
Wilson Contractor Services was selected based on their overall
score based on the best value criteria.
Wilson Contractor Services has worked with the City in the past
and performed satisfactorily. Other cities also report being pleased
with their performance and services. Therefore, the City staff and
the Engineer recommend awarding the contract to Wilson
Contractor Services.
150 working days is allocated to complete this project.
Item 413
Financial
Considerations: The total funding available for this project is $2,375,000.
Funding for the 8-inch Sewer Line along North Carroll Avenue from
Highland Street to Whispering Lane was approved in the FY2014 &
FY 2017 Utility Fund totaling $970,000 while funding for the 8-inch
sewer line along Summerplace Lane from Highland Street to Dove
Creek Trail was approved in FY2014 totaling $485,000.
The funding for the 8-inch sewer line along Market Loop and Bank
Street was approved in the FY2015, FY 2016 and FY 2017 Sanitary
Sewer Impact Fee totaling $700,000. Funding for Summerplace
drainage improvements was approved in the FY2016 Storm Sewer
Utility System in an amount of $70,000. Finally, funding for the 8-
inch sewer Line on N. Carroll Ave at Casey Ct was approved in the
FY 2017 Utility Fund in an amount of$150,000.
Strategic Link: This project links to the City's strategy map relative to the focus
area of Infrastructure. The specific corporate objectives that are
met include: F2- Invest to provide and maintain high quality public
assets.
Citizen Input/
Board Review: N/A
Legal Review: No review required.
Alternatives: The City council may reject all bids.
Supporting
Documents: Location Map
Bid Tabulation
Staff
Recommendation: Award construction contract to Wilson Contractor Services, LLC, for
Sanitary Sewer and Storm Drain Improvements projects at various
locations within the City in an amount not to exceed $2,016,561 .
Staff Contact: Rob Cohen, Director of Public Works
Kyle D. Hogue, P.E, City Engineer
Om Gharty-Chhetri, P.E, Civil Engineer
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BAIRD, HAMPTON &BROWN, INC. 13 - ENGINEERING & SURVEYING
February 3rd, 2017
Mr. Om Chhetri, PE, (Via email ochhetri@ci.southlake.tx.us)
Public Works Administration & Engineering
City of Southlake
1400 Main Street
Southlake, TX 76092
Tel 817-748-8089
RE: CONSTRUCTION BID RESULTS for SANITARY SEWER SYSTEM IMPROVEMENTS AT
SUMMERPLACE LN.,CARROLL AVE., E. HIGHLAND ST.,COMMERCE ST.,MARKET LOOP&
CASEY CT.,AND STORM DRAIN IMPROVEMENTS AT SUMMERPLACE LN.
BHB No 14.724.000
Mr. Chhetri:
As you know,the second Bid Opening for the above referenced project occurred Tuesday,January 17,2017
at the City of Southlake.There were two bids received,with a low bid of$1,005,242 by BSK-USA, LLC;and a
high bid of $2,016,560 by Wilson Contractor Services. We believe the continued high level of local
construction activity is attributed to the repeat of a low bidder turn-out.
We've not previously worked with either of the Contractors but understand Wilson Contractor Services has
previous utility installation experience in the City of Southlake. According to the Texas Business Registration
website, BSK-USA, LLC recently registered their corporation in Benbrook, Texas in September of 2016.
Therefore, we suspect their experience in the metroplex is limited.
For your reference, we've enclosed a detailed tabulation of the bid. The following is a bid summary:
Wilson
Engineer's BSK-USA, Contractor
Bid Proposal Item Description OPC LLC Services
Summerplace Ln. Sanitary Sewer $209,000 $ 174,612 $245,753
N. Carroll Ave. & E. Highland St. Sanitary Sewer $474,000 $ 306,342 $ 585,796
Market Loop &Commerce St. Sanitary Sewer $ 555,000 $ 372,930 $ 961,685
N. Carroll Ave. &Casey Ct. Sanitary Sewer $ 82,000 $ 70,451 111,589
Sanitary Sewer Improvements Total $ 1,320,000 $ 924,336 $ 1,904,825
Summerplace Ln. Storm Drain Improvements Total $ 91,000 $ 80,906 111,735
Project Construction Total $ 1,411,000 $1,005,242 $2,016,560
BSK-USA, LLC is twenty-nine(29%)less than our Opinion of Probable Cost. However, BSK failed to provide
requested information about their firm&experience. A proper investigation of their firm was unable to occur.
Therefore, their bid has been rejected.
Wilson Contractor Services bid is high but similar to their previous bid from May of 2016. Wilson's bid is forty-
three (43%) percent higher than our Opinion of Probable Cost. The most significant cost factor are Wilson's
bid items for sewer main construction by open trenching and boring operations.
The contract documents stipulate a "Best Value Bidder" review shall be conducted by the Contractor
Selection Committee. However, this process has become irrelevant since the rejection of BSK's bid.
4550 SH 360,Ste 180,Grapevine,Texas 76051 1 Tel:817-251-8550 1 Fax:817-251-8810
TBPE Firm#44 1 TBPLS Firm#10011302 1 www.bhbinc.com
Construction Bid Results for SS&SD Improvements
February 3, 2017
Page 2
We've not previously worked with Wilson Contractor Services but have received information from Wilson
which states their business was founded in 1953. Currently,Wilson has five(5)projects in construction which
vary from$0.6 million to$2.3 million. In the recent past,Wilson completed about ten(10)projects which vary
from$0.5 million to$5.7 million. Information on forty-four(44)total completed projects has been provided by
Wilson. Their firm has a permanent place of business in Denton, Texas and they've submitted financial
statements which show the company has good equity.
Wilson plans to provide two Project Managers, a Superintendent, and two crew Foremen for this project.
Dakota Utility Contractors, Inc. would be performing the trenchless sanitary sewer installations. We've
contacted several municipalities Wilson's worked for in the past. The feedback we received is good... the
references we talked to are pleased with the final/constructed projects and their overall experience with Wilson
is good.
We recognize a re-bid of the project did not result in a cost saving.We therefore recommend this project be
awarded to Wilson Contractor Services. Our recommendation considers a project goal to complete sewer
construction on N. Carroll Ave. before the end of the '17 summer, while school is out. This goal is more
achievable if the contract is awarded immediately.
As written, the contract documents stipulate that the City is responsible for compaction and pavement
testing... for these efforts, please anticipate and additional$40k+/- in expenses. Furthermore, the
potentiality for change orders is always present and we typically suggest budgeting approximately five
(5%)percent for this possibility. The total construction budget should therefore be set at$2.16
million.
Please contact us with questions or concerns.
Thank you,
BAIRD, HAMPTON & BROWN, INC. BAIRD, HAMPTON & BROWN, INC.
elaP
ps, P Konstantine Bakintas, P.E.
Project Manager, Civil Engineer President, Civil Engineer
Enclosure: Bid Tabulation—Sanitary Sewer System &Storm Drain Improvements
Submitted Documents from Wilson Contractor Services
4550 SH 360,Ste 180,Grapevine,Texas 760511 Tel:817-251-85501 Fax:817-251-8810
TBPE Firm#44 1 TBPLS Firm#10011302 1 www.bhbinc.com
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