TITLE
Recommendation to adopt Specifications No. ITB GO16-168 (G-332) and award a contract to ARB, Inc., of Lake Forest, CA, for as-needed pipeline construction projects, in an annual amount not to exceed $2,500,000, for a period of two years, with the option to renew for two 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 thereto, including increases to unit pricing as specified in the contract (not to exceed 5 percent in year two, 5 percent in year three, and 5 percent in year four). (Citywide)
DISCUSSION
City Council approval is requested to enter into a contract with ARB, Inc., for as-needed pipeline construction projects. This is an annual construction contract providing LBGO with fixed unit prices to replace and relocate aging steel gas pipelines with plastic 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 LBGO. 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.
The contract specifications allow for an extension of the contract for up to two additional one-year periods. In the event that a renewal option is exercised, LBGO will provide advance notification to the contractor and require proposed price increases to be submitted to LBGO for approval at leas...
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