TRANSMITTAL LETTER FOR BOARD MEETING OF APRIL 4, 2019
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Authority to award Contract 19-690-11, Beneficial Reuse of Biosolids from LASMA, CALSMA and the Egan Water Reclamation Plant, Group A, to Stewart Spreading, Inc., in an amount not to exceed $9,622,905.60, and Group B, to Synagro Central, LLC, in an amount not to exceed $2,248,783.28, Account 101-66000-612520, Requisition 1494623
Body
Dear Sir:
On November 1, 2018, the Board of Commissioners authorized the Director of Procurement and Materials Management to advertise for bids, Contract 19-690-11 Beneficial Reuse of Biosolids from LASMA, CALSMA and the Egan Water Reclamation Plant.
In response to a public advertisement of January 9, 2019, a bid opening was held on February 5, 2019. The bid tabulation for this contract is:
GROUP A - LAWNDALE AVENUE SOLIDS MANAGEMENT AREA
STEWART SPREADING, INC. $9,622,905.60
GROUP B - CALUMET SOLIDS MANAGEMENT AREA AND EWRP
SYNAGRO CENTRAL, INC. $2,248,783.28
STEWARD SPREADING, INC. $2,372,621.02
Three hundred sixty-four (364) companies were notified of this contract being advertised and ten (10) companies requested specifications.
Stewart Spreading, Inc., the sole bidder for Group A, is proposing to perform the contract in accordance with the specifications. The estimated cost for Group A of this contract was $8,100,000.00, placing the bid of $9,622,905.60, approximately 18.8 percent above the estimate.
Synagro Central, LLC, the lowest responsible bidder for Group B, is proposing to perform the contract in accordance with the specifications. The estimated cost for Group B of this contract was $2,100,000.00, placing the bid of $2,248,783.28, approximately 7.1 percent above the estimate.
The Multi-Project Labor Agreement (MPLA) was not included in this contract because of the specialized nature of the work, which includes the beneficial reuse of biosolids, which is customarily performed within the farming industry rather than within the jurisdiction of local unions.
The Affirmative Action Ordinance, Revised Appendix D goals for Groups A and B of this contract are 20% Minority Business Enterprise (MBE), 13% Women Business Enterprise (WBE) and 10% Small Business Enterprise (SBE). Affirmative Action goals apply to only the hauling portion in Groups A and B, Items A1, A3, B1, B3, B5, B6, B7, B8 and B9.
Stewart Spreading, Inc., is in compliance with the Affirmative Action Ordinance, Revised Appendix D as indicated on the attached report. The MBE, WBE, and SBE utilization goals for Group A of this contract are 20 percent MBE, 13 percent WBE, and 10 percent SBE.
Synagro Central, LLC is in compliance with the Affirmative Action Ordinance, Revised Appendix D as indicated on the attached report. The MBE, WBE, and SBE utilization goals for Group B of this contract are 20 percent MBE, 13 percent WBE, and bidder offers MBE and WBE credits to satisfy SBE participation.
The contract will require approximately 45 people for the services.
In view of the foregoing, it is recommended that the Director of Procurement and Materials Management be authorized to award Contract 19-690-11, Group A, to Stewart Spreading, Inc., in an amount not to exceed $9,622,905.60, and Group B, to Synagro Central, LLC, in an amount not to exceed $2,248,783.28, subject to the contractors furnishing a performance bond in form satisfactory to the Law Department and approved by the Director of Procurement and Materials Management.
The Contractor shall commence work upon approval of the Contractor’s bond and terminate December 31, 2021, or upon expenditure of available funds, whichever occurs sooner.
For Group A, funds for the 2019 expenditure, in the amount of $2,239,000.00, are available in Account 101-66000-612520. The estimated expenditures for 2020 are $2,702,000.00, and for 2021 are $4,681,905.60. Funds for the 2020 and 2021 expenditures are contingent on the Board of Commissioners’ approval of the District’s budget for those years.
For Group B, funds for the 2019 expenditure, in the amount of $700,000.00, are available in Account 101-66000-612520. The estimated expenditures for 2020 are $775,000.00 and 2021 are $773,783.28. Funds for the 2020 and 2021 expenditures are contingent on the Board of Commissioners’ approval of the District’s budget for those years.
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management, DAL:SEB:cm
Respectfully Submitted, Barbara J. McGowan, Chairman, Committee on Procurement
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for April 4, 2019
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