AGENDA CAPTION:
Title
Consider approval of Resolution 2021-143R, awarding two Indefinite Delivery Indefinite Quantity agreements to Alterman Energy Services, Inc., in the not-to-exceed annual amount of $3,000,000 and Rural Electric, Inc., in a not-to-exceed annual amount of $2,000,000 to assist San Marcos Electric Utility with multiple capital improvement projects on an as needed basis for a term of two years and authorizing three additional one year terms; authorizing the City Manager or his designee to execute the contracts on behalf of the City; and declaring an effective date.
Body
Meeting date: August 3, 2021
Department: Utility Department - Tyler Hjorth, Interim Director (by Lynda Williams, Purchasing Manager)
Amount & Source of Funding
Funds Required: $5,000,000 annually
Account Number: 21006316.52230
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Fiscal Note:
Prior Council Action: March 2, 2021, Resolution 2021-46R to reject the sole bid received from Denbow Company, Inc. in response an Invitation for Bids for San Marcos Electric Utility Civil IDIQ.
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Background Information:
The City intends to contract with two (2) contractors to assist San Marcos Electric Utility with a multiple capital improvement projects with large electrical underground components over the next five years.
On January 21, 2021, the City received one sole bid from Denbow Company, Inc. in the amount of $18,680.485.00, which was significantly higher than the engineer’s estimate of $6,000,000.00, in response to Invitation for Bid 221-034 for SMEU Civil Indefinite Delivery Indefinite Quantity (IDIQ). The City rejected the bid as permitted by the bidding and contract documents.
Staff re-evaluated the estimated construction cost and clarified the scope before issuing Invitation for Bid 221-128 SMEU Civil IDIQ Rebid on April 11, 2021. On May 27, 2021 the City received five (5) bids in response to the rebid. Rural Electric, Inc. miscalculated their unit prices making their corrected bid total $7,160,457.00. Alterman Energy Services, Inc., submitted the lowest bid at $4,073,547.00.
The City requests to award contracts to the first and second lowest bidders as follows: Alterman Energy Services, Inc., for a contract amount not to exceed $3,000,000.00 annually and Rural Electric, Inc., for a contract amount not to exceed $2,000,000.00 annually. The initial IDIQ Contract term is effective for a base period of two (2) years with three (3) additional one-year periods. The City will issue individual Work Orders against each contract on a project-by-project basis.
Council Committee, Board/Commission Action:
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Recommendation:
Staff recommends approval to award contracts to Alterman Energy Services, Inc. for a not to exceed annual amount of $3,000,000 and Rural Electric, Inc. for a not to exceed annual amount of $2,000,000.