TITLE
Recommendation to adopt Specification No. ITB GO 15-118 (G-331) for as-needed pipeline construction projects; award the contract to ARB, Inc., of Lake Forest, CA, in an annual amount not to exceed $5,500,000; and authorize City Manager, or his designee, to execute a contract and any necessary amendments thereto, including increases to unit pricing as specified in the agreement (not to exceed 5 percent in year two, 5 percent in year three, and 5 percent in year four), for a term of two years, with the option to renew for two additional one-year periods at the discretion of the City Manager. (Citywide)
DISCUSSION
City Council approval is requested to enter into a contract with ARB, Inc., for as-needed pipeline construction projects. The Long Beach Gas and Oil Department (LBGO) is requesting approval of specifications and construction activities identified in bid G-331. This is an annual construction contract providing LBGO with fixed unit prices to replace and relocate steel gas pipelines. The work complies with federal regulations by addressing priorities identified in LBGO’s Distribution Integrity Management Plan, which classifies system weaknesses and specific measures necessary to ensure the safe and efficient delivery of natural gas to LBGO customers.
This is an on-call contract where work is only done by the contractor based on individual work orders issued by the City. Payment to the contractor under this contract will be based on the number of work orders issued by LBGO and fully completed by the contractor. The contract does not include any guaranteed minimum payment or retainer fee to the contractor. These specifications anticipate $2,500,000 of annual work by LBGO for gas distribution integrity projects and approximately $3,000,000 of annual relocation work by LBGO for projects that will be funded from sources other than LBGO, including the Port of Long Beach, California Department of Transportation, and Orange County Transit Authority...
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