TITLE
Recommendation to adopt specifications No. R-7196 and award a contract to All American Asphalt, of Corona, CA, for as-needed major and secondary highway construction services, in an annual amount not to exceed $50,000,000, for a period of two years, with the option to renew for three additional one-year periods, at the discretion of the City Manager; and authorize City Manager, or designee, to execute all documents necessary to enter into the contract, including any necessary amendments. (Citywide)
DISCUSSION
City Council approval is requested to enter into a contract with All American Asphalt for as-needed major and secondary highway construction services, such as repair and replacement of street pavement, slurry seal, construction and replacement of alley intersections, sidewalks, driveway approaches, curbs, gutters, curb ramps, bus pads, catch basins, traffic signage, traffic striping, landscaping, irrigation, and related improvements.
This is an on-call contract where work is performed based on individual work orders issued by the City of Long Beach (City) and does not include a guaranteed minimum payment or retainer fee. Payments to the contractor will be based on the number of work orders issued by the City and fully completed by the contractor. The maximum annual dollar amount that can be issued in work orders under this on-call contract is $50,000,000 annually.
While the Public Works Department will be responsible for administrative control and monitoring of the contract, the contract may be used by other City departments on a variety of street, public park, parking lot, and airport-related projects.
The bid was advertised in the Long Beach Press-Telegram on January 26, 2023, and 170 potential bidders specializing in street construction services were notified of the bid opportunity. Of those bidders, 11 downloaded the bid via the City’s electronic bid system. The bid announcement was made available from the Purchasing Division located on the sixth floor of City Hall, and the Division’s website at www.longbeach.gov/purchasing <http://www.longbeach.gov/purchasing>. A bid announcement was also included in the Purchasing Division’s weekly update of Open Bid Opportunities, which is sent to 42 local, minority, and women-owned business groups. One bid was received on February 22, 2023. The only bidder, All American Asphalt of Corona, CA was responsive and responsible, is not Women-owned Business Enterprise (WBE), Disadvantaged Business Enterprises (DBE), Minority-owned Business Enterprises (MBE), or certified Small Business Enterprises (SBE), and not a Long Beach business (Local).
Local Business Outreach
In an effort to align with the City’s outreach goal, Long Beach businesses are encouraged to submit bids for City contracts. The Purchasing Division also assists businesses with registering on the Long Beach Buys database to download the bid specifications. Through outreach,13 Long Beach vendors were notified to submit bids, of which 1 downloaded and 0 submitted a bid. The purchasing Division is committed to perform outreach to local vendors to expand the bidder pool.
This matter was reviewed by Deputy City Attorney Vanessa S. Ibarra and Purchasing Agent Michelle Wilson on March 16, 2023, and by Budget Management Officer Nadar Kaamoush on March 20, 2023.
SUSTAINABILITY
Asphalt material used under this contract will include recycled rubber tires, and concrete removed under this contract will be recycled as base rock for street construction and diverted from landfills.
TIMING CONSIDERATIONS
City Council action to adopt Specifications No. R-7196 and award contract concurrently is requested on April 11, 2023, to ensure the contract is in place expeditiously.
FISCAL IMPACT
The annual contract authority will not exceed $50,000,000 for the two-year term and is based on current and anticipated projects within various City departments, primarily in the Public Works Department. Each work order will be funded by the requesting department prior to the work order being issued by the contractor. Any work not currently budgeted will only proceed at such time as appropriation has been approved by the City Council. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. The number of additional local jobs created by the award of this contract will not be known until the contractor completes hiring and construction has commenced.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
ERIC LOPEZ
DIRECTOR OF PUBLIC WORKS
APPROVED:
THOMAS B. MODICA
CITY MANAGER