Title
Bid Award - Annual Contracts for Asphalt Services for FY2005/2006 (B)
Explanation
On September 2, 2005, the Purchasing Department solicited bids from prospective vendors. Three (3) responded with bids. The Department has reviewed and finds all bids competitive and requests that contracts be awarded to all three (3) firms. Reasons for awarding multiple cotracts are rooted in scheduling and inflationary issues. The scheduling issue arises when Operations Division has section(s) ready for overlay and neither the primary or secondary vendor is available for several weeks or months due to work commitments. The preparation work is damaged and must be redone just before the vendor gets to the overlays. Having three (3) vendors will enhance the opportunity of getting more timely overlays.
Secondly, inflationary issues in the petroleum market increased the price of overlay by 76% from last year's prices. Also, the bids have a variety of methods to adjust the quoted prices as driven by market pressures. Hence, staff wishes to reserve the right to issue work orders to the vendor that has the lowest cost and meets the schedule requirements of the work order.
Contracted asphalt services are essential to the Public Works Department's programs to provide roadway and drainage facility maintenance and construction.
Fiscal Note
All purchases will be charged to the appropriate operating budget or capital improvement account.
Recommendation
The City Commission: 1) award a contract for asphalt services to the following vendors: V.E. Whitehurst & Sons, Inc., John C. Hipp Construction Company, and APAC - Southeast, Inc.; and 2) authorize the City Manager or designee to execute the contracts and all related documents with V.E. Whitehurst & Sons, Inc., John C. Hipp Construction Company, and APAC - Southeast, Inc., subject to approval from the City Attorney's office as to form and legality.