Item 4BCITY OF
SOUTHLAKE
MEMORANDUM
(February 7, 2012)
To: Shana Yelverton, City Manager
From: Robert H. Price, P.E., Director of Public Works
Subject: Award construction contract to Circle C Construction in the
amount of $6,739,020 for the construction of the T.W. King 30"
Water Transmission Main and Meter Station
Action
Requested: Award construction contract to Circle C Construction in the amount
of $6,739,020 for the construction of the T.W. King 30" Water
Transmission Main and Meter Station
Background
Information: The adopted Capital Improvements Program (CIP) includes funds
for the construction of the T.W. King 30" Water Transmission Main
and Meter Station within the City of Southlake and the Town of
Westlake. Freese and Nichols, Inc. has designed and prepared
construction plans for the project.
The project consists of approximately 19,665 linear feet of 30 -inch
water line on West T.W. King Road in Southlake, which continues
northwest on the south side of SH114. The line will turn south on
FM1938 and continue south to connect to the existing line in
Florence Road. The project also includes approximately 3,400
linear feet of 12 -inch water line from north of Beam Drive to
Florence Road, parallel to the 30 -inch water line.
Seven (7) bids were received on January 17, 2012. The bids have
been reviewed by Freese and Nichols, Inc. and city staff and are
tabulated as follows:
BIDDER BID AMOUNT
Circle C Construction
ARK Contracting Services
S.J. Louis Construction, Ltd
Lewis Contractors
North Texas Contracting, Inc
Merryman Excavation
Wright Construction Co., Inc.
$6,739,020.00
$7,191,365.00
$7,641,883.00
$7,996,010.00
$8,631,400.00
$10,048,302.00
$10,269,297.70
A breakdown of the major project components of the bid is as
follows
Description Cost
30" Water Transmission Main /12" Water Line $5,786,035
Meter Station $452,985
Potential Early Substantial
Completion Bonus $500,000
Total Cost $6,739,020
The substantial completion date for the T.W. King 30" water
transmission main and meter station is set in contract documents
as April 15, 2013. Final completion is required by 30 calendar
days after the substantial completion date.
The Contractor may earn a bonus of up to $500,000 if they meet
the early substantial completion requirements set in the contract
documents. Completion of the project before the April 15, 2013
substantial completion date would raise the city's level of
confidence that the 30" water line will be complete and functional
prior to the high water demand period.
The bonus payment schedule, below, is included in the contract
documents and shall not be subject to change for any reason,
including Owner, Engineer or Contractor created delays or claims.
Date of Certificate
Of Substantial Completion
After April 5,2013
April 5, 2013
March 29, 2013
March 22, 2013
March 15, 2013
March 8, 2013
March 1, 2013
February 22, 2013
February 15, 2013 or earlier
Total Bonus to
be Paid to Contractor
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$400,000
$500,000
The low bid was approximately 16% lower than the engineer's
estimate of $8,000,000. Freese and Nichols, Inc. recommends
award of the contract to the low bidder, Circle C Construction. The
City Staff concurs in this recommendation.
Financial
Considerations: The recommended contract award amount is $ 6,739,020. Funds
are available in the approved CIP project budget for the T.W. King
30" Water Transmission Line and Meter Station project. The
current available project budget for the water line and meter station
project is $9,000,000.
Strategic Link: The construction of the T.W. King 30" Water Transmission Main
and Meter Station links to the city's strategy map relative to focus
areas of Infrastructure and Performance Management and Service
Delivery. The specific corporate objectives that are met by this
construction project are to invest to provide and maintain high
quality public assets, and improve performance and delivery of
operational processes.
Citizen Input/
Board Review: N/A
Legal Review: This is the standard construction services contract that has been
previously reviewed by the City Attorney.
Alternatives: The Council may award the contract to Circle C Construction or
reject all bids.
Supporting
Documents: Location Map
Recommendation Letter
Bid Tabulation
Staff
Recommendation: Award construction contract to Circle C Construction in the amount
of $6,739,020 for the construction of the T.W. King 30" Water
Transmission Main and Meter Station
Staff Contact: Robert H. Price, P.E., Public Works Director
Gordon J. Mayer, Jr., P.E., City Engineer
Cheryl Taylor, P.E., Civil Engineer
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January 18, 2012
City of Southlake
Attn: Cheryl Taylor, P.E.
Assistant City Engineer
1400 Main Street, Suite 320
Southlake, Texas 76092
Re: T.W. King 30" Water Transmission Main and Meter Station
SOL09210
Recommendation of Award of Construction Contract
Dear Ms. Taylor:
On Tuesday January 17, 2012, the City of Southlake received and opened seven bids for the referenced
project, with total bid prices ranging from $6,739,020.00 to $10,269,297.70. Freese and Nichols'
estimate of probable construction cost was $8.0 million. The bid consisted of three main areas, the 30"
water transmission main, the meter station, and a potential bonus for early completion. This potential
bonus for early completion was set at $500,000.00 for all bidders, in compliance with the bonus
schedule indicated in the construction contract documents Section B — Notice for Bidders. A copy of this
bonus schedule is attached for reference.
We have reviewed the bids received and have prepared a tabulation of bids, which is attached with this
letter. Please note that math errors were found on two of the bids received, and the bid tabulation
provides the corrected amounts. Neither of the two bids with the corrected amounts were the
apparent low bid. The apparent low bidder was Circle C Construction with a total bid of $6,739,020.00,
which was broken down as follows:
30" Water Transmission Main = $5,786,035.00
Meter Station = $ 452,985.00
Potential Early Completion Bonus = $ 500,000.00
Total Price Bid = $6,739,020.00
Circle C Construction has performed construction on several projects for which we have been the
engineer of record, and has recently completed Line Segments A and F of this 30" Water Transmission
Main. Based upon our experiences with Circle C Construction, it is our opinion that they are qualified to
construct this project. We recommend award of this construction contract to Circle C Construction in
the amount of $6,239,020.00 for construction of the 30" Water Transmission Main and Meter Station,
plus a bonus of up to $500,000.00 if they meet the early substantial completion requirements indicated
in Section B — Notice for Bidders.
Your �;Zly,
,.;j
ice'' " (/
/Ron King,
Freese and Nichols, In .
2220 San Jacinto Blvd., Suite 330 • Denton, Texas 76205 • 940 - 387.4600 • fax 940 - 3874677 www.freese.coni
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TIME OF COMPLETION, LIQUIDATED DAMAGES, AND BONUS
Bidders must agree to commence work on or before a date to be specified in a written
"Notice To Proceed" of the Owner and to fully complete the project within the specified
time as stated in the proposal. Bidder must agree to pay liquidated damages, as per Item
1.36.1 of the "North Central Texas Council of Governments Standard Specifications for
Public Works Construction ", except that the liquidated damages shall be assessed at the
rate of $2,000 per day. Liquidated damages are also applicable to other specific
milestones. See Section 01030 —"Special procedures" for more detail.
A bonus will be paid by the Owner to the Contractor for early substantial completion (as
defined in the proposal) of the project, in accordance with the schedule below. The bonus
payment schedule shall not be subj ect to change for any reason, including Owner, Engineer
or Contractor created delays or claims.
Date of Certificate of
Substantial Completion
Total Bonus to be
Paid to Contractor
After April 5, 2013
$0
April 5, 2013
$50,000
March 29, 2013
$100,000
March 22, 2013
$150,000
March 15, 2013
$200,000
March 8, 2013
$250,000
March 1, 2013
$300,000
February 22, 2013
$400,000
February 15, 2013 or earlier
$500,000