TITLE
Recommendation to adopt Specifications No. R-7131 and award contracts to All American Asphalt, of Corona, CA, and Sully-Miller Contracting Company, of Brea, CA, for as-needed major and secondary highway construction services, in an annual aggregate amount not to exceed $30,000,000, for a period of one year, 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 contracts, including any necessary amendments. (Citywide)
DISCUSSION
City Council approval is requested to enter into contracts with All American Asphalt and Sully-Miller Contracting Company for providing as-needed major and secondary highway construction services. The contracts provide the City with fixed unit pricing for arterial street improvements. Work performed under these contracts include the repair and replacement of street pavement, curb and gutters, curb ramps, parking lot pavement, airport taxiway pavement, and other asphalt-related improvements.
These are on-call contracts where work is only done by the contractor based on individual work orders issued by the City and does not include any guaranteed minimum payment or retainer fee. Payment to contractors will be based on the number of the work orders issued by the City and fully completed by the contractors. The maximum aggregate dollar amount that can be issued in work orders under these two on-call contracts is $30,000,000 annually. Passage of the City’s Measure A, Senate Bill 1, and Los Angeles County’s Measure M has made additional funding available for street repairs. These contracts will enable the City to utilize all funds allotted for this purpose. Multiple vendors are necessary to ensure timely completion of on-call projects.
While the Public Works Department will be responsible for administrative control and monitoring of the contracts, the contracts may be used by other departments on a variety of street, parking lot, and airport-related projects.
The bid was advertised in the Long Beach Press-Telegram on January 25, 2019, and 4,682 potential bidders specializing in street construction services were notified of the bid opportunity. Of those bidders, 64 downloaded the bid via the City’s electronic bid system. The bid document was made available by the Purchasing Division, located on the seventh floor of City Hall, and on 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 28 local, minority, and women-owned business groups. Four bids were received on February 28, 2019. Of those four bidders, none were Women-owned Business Enterprises (WBEs) or Disadvantaged Business Enterprises (DBEs), one was a Minority-owned Business Enterprise (MBE), one was a certified Small Business Enterprise (SBE), and one was a Long Beach business (Local). All American Asphalt, of Corona, CA (not a MBE, WBE, SBE, or Local) and Sully-Miller Contracting Company, of Brea, CA (not a MBE, WBE, SBE, or Local), were the lowest responsible bidders.
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 PlanetBids database to download the bid specifications. Through outreach, 377 Long Beach vendors were notified to submit bids, of which five downloaded, and one submitted a bid. The Purchasing Division is committed to continuing to perform outreach to local vendors to expand the bidder pool.
This matter was reviewed by Deputy City Attorney Amy R. Webber on March 28, 2019, and by Purchasing and Business Services Manager Sandy Tsang-Palmer and Budget Analysis Officer Julissa Jose-Murray on April 8, 2019.
TIMING CONSIDERATIONS
City Council action to adopt Specifications No. R-7131 and award contracts concurrently is requested on April 23, 2019, to ensure the contracts is in place expeditiously.
FISCAL IMPACT
The annual aggregate amount of the contracts will not exceed $30,000,000, and is estimated based on current and anticipated projects within various City departments, primarily the Public Works Department (PW), Airport Department (AP) and Energy Resources Department (ER). Any work not currently budgeted will only proceed at such time that appropriations have been approved by the City Council. Each work order will be funded by the requesting department prior to the work order being issued to the contractor. This recommendation is not expected to require additional staff hours beyond the normal budgeted scope 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.
BODY
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Respectfully Submitted,
CRAIG A. BECK
DIRECTOR OF PUBLIC WORKS
APPROVED:
PATRICK H. WEST
CITY MANAGER