Item 4BCITY OF
SOUTHLAKE
MEMORANDUM
(February 19, 2013)
To: Shana Yelverton, City Manager
From: Robert H. Price, P.E., Director of Public Works
Subject: Award construction contract to HQS Construction, LLC for the
improvements to the McPherson Branch channel in the
amount of $507,815
Action
Requested: Award construction contract to HQS Construction, LLC for the
improvements to the McPherson Branch channel in the amount of
$507,815
Background
Information: In 2007, City Council approved a design contract for the
McPherson Branch Connector Road. The reason for this contract
was to provide shared access for the two shopping centers
between Village Center Drive and Kimball Avenue because of
altered traffic patterns as a result of the FM 1709 median project.
The intent was to have the two shopping centers participate in the
construction of the connector road. To date, the shopping centers
have not been willing to make the commitment.
Part of the connector road design is to extend the box culverts and
improve the drainage channel between the two centers. Public
Works would like to move forward with the drainage and channel
improvements. These improvements will allow room for the
connector road when and if the two shopping centers are willing to
participate in the cost of construction for the connector road as well
as provide aesthetic improvements to the area.
The channel improvements consist of the following major project
components: extension of the 5 span 8-foot x 4-foot box culvert,
articulate concrete block armoring of the channel sides and bottom
and landscape and irrigation
Six (6) bids were received on January 29, 2013. The bids have
been reviewed by Halff Associates, Inc. and city staff and are
tabulated as follows:
BIDDER BID AMOUNT
HQS Construction, LLC $507,815.00
Canary Construction $536,335.00
Humphrey & Morton Construction $585,587.00
Fain Group $625,128.00
2L Construction $630,787.00
North Star Construction $677,675.00
The low bid was approximately 3% lower than the engineer's
estimate of $523,865. Halff Associates, Inc. recommends award of
the contract to the low bidder, HQS Construction, LLC. The City
Staff concurs in this recommendation
Financial
Considerations: The recommended contract award amount is $ 507,815. Funds are
available in the Stormwater Utility Fund for the McPherson Branch .
The current available project budget for the channel improvements
is $624,000.
Strategic Link: The improvements to the McPherson Branch Channel 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 HQS Construction, LLC or
reject all bids.
Supporting
Documents: Location Map
Recommendation Letter
Bid Tabulation
Staff
Recommendation: Award construction contract to HQS Construction, LLC for the
improvements to the McPherson Branch channel in the amount of
$507,815
Staff Contact: Robert H. Price, P.E., Public Works Director
Gordon J. Mayer, Jr., P.E., City Engineer
Steven D. Anderson, P.E., CFM, Civil Engineer
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February 6, 2013
AVO 27045
Mr. Steve Anderson, P.E.
City Engineer
City of Southlake
1400 Main Street, Suite 320
Southlake, Texas 76092
McPherson Branch Drainage Channel Improvement Project
Dear Mr. Anderson,
Bids were opened on the above -referenced project on Tuesday, January 29, 2013 at the City of
Southlake. Six (6) bids were received, and they ranged from a low bid of $507,815.00 to a high bid
of $677,675.00. HQS Construction submitted the low bid, and Canary Construction was second
with a bid of $536,335.00.
We contacted Renee Burke with the City of Plano, Stephen Brainerd with the City of McKinney,
and Chris Flannigan with the City of Allen to verify HQS Construction qualifications. Ms. Burke
and Mr. Brainerd are currently with their respective city's Parks Department, and Mr. Flannigan is
with the City of Allen Engineering Department.
One issue of concern is that none of the above references knew of HQS Construction. When I
mentioned that Hashim Rasul submitted the Bid Proposal, all of the people we contacted knew him
from the business "Irracon". It is unclear whether they simply changed the name of their company
or were acquired by HQS. We called their banking reference, Shobhu Karia with BBVA Compass
Bank, and she stated that they have been in good standing with the bank for approximately 20 years
and she knew of them as both Irracon and HQS.
Ms. Burke stated that they had performed well on their projects in Plano, the issues that arose were
"not their fault" and that they had adapted well. Mr. Flannigan stated that it had been 8 to 10 years
since he had worked with Irracon, and in fact had worked with Hashim's father Shahid. He
remembered them doing a good job, and taking responsibility and initiative in areas where the
construction plans they were working with were lacking. Mr. Brainerd had the only semi -negative
report, stating that they had completed their project on time but it took extra City effort to ensure
this. None of the references had any liquidated damages against Irracon.
Lastly, Halff contacted Hashid Rasul and asked him if his company had resources available to start
work around the middle of March and achieve substantial completion within the 90 days specified
HALFF ASSOCIATES, INC.
4000 FOSSIL CREEK BLVD TEL (817) 847-1422 WWW HALFFCOM
FORT WORTH, TX 76137-2720 FAX (817) 232-9784
in the contract. Mr. Rasul assured us they were ready to go and did not anticipate any problems
meeting that schedule.
In conclusion, aside from the Irracon/HQS name oddity, we did not receive any report that leads us
to believe HQS cannot successfully complete the project. Based on our research, it is the opinion
of HalffAssociates, Inc. there is no apparent reason to disqualify the bid proposal of HQS
Construction for the McPherson Branch Channel Improvements.
Please call me at (817) 847-1422 if you have any questions or comments.
Sincerely,
HALFF ASSOCIATES, INC.
Josh Logan, PE
Design Engineer
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