TRANSMITTAL LETTER FOR BOARD MEETING OF MAY 21, 2026
COMMITTEE ON PROCUREMENT
Mr. John P. Murray, Executive Director
Title
Authority to award Contract 21-092-3P, Battery E Activated Sludge Facility, O’Brien Water Reclamation Plant (OWRP), to Michels Construction, Inc., in an amount not to exceed $389,933,408.76, plus a five (5) percent allowance for change orders in an amount of $19,496,670.44, for a total amount not to exceed $409,430,079.20, Account 401-50000-645650, Requisition 1639807
Body
Dear Sir:
On July 17, 2025, the Board of Commissioners authorized the Director of Procurement and Materials Management to advertise for bids Contract 21-092-3P, Battery E Activated Sludge Facility, OWRP.
In response to a public advertisement of September 17, 2026, a bid opening was held on April 21, 2026. The bid tabulation for this contract is:
MICHELS CONSTRUCTION INC $389,933,408.76
OHLA CENTRAL INC $403,500,000.00
F.H. PASCHEN IHC JV VII $446,600,000.00
WALSH CONSTRUCTION CO II LLC $488,703,169.56
Michels Construction, Inc. (Michels), the lowest responsible bidder, is proposing to perform the contract in accordance with the specifications. The estimated cost range for this contract is between $308,754,750.00 and $373,755,750.00, placing their bid of $389,933,408.76 approximately 4.3% above the high range of the engineer’s estimate.
Michels has executed the Multi-Project Labor Agreement (MPLA) Certificate as required. It is anticipated that the following trades will be utilized on this contract: brick mason, carpenter, cement mason, electrician, glazier, iron worker, laborer, millwright, operating engineer, painter, piledriver, pipefitter, plumber, roofer, sheet metal worker, steel erector, and truck driver. The list of construction trades is not intended to confer any rights or jurisdiction upon any union or unions.
The associated goals for this contract are: 20% Minority-owned Business Enterprises (MBE), 10% Women-owned Business Enterprises (WBE), and 3% Veteran-owned Businesses (VBE) policy goal.
Michels is in compliance with the Affirmative Action Ordinance Revised Appendix D and Appendix V as indicated on the attached report. The bidder has committed to the following utilization goals for this contract: 20.04% MBE and 10.01% WBE. Bidder provided 3.02% for VBE participation.
The contract will require approximately one thousand three hundred sixty-three (1,363) people for the services.
The contractor shall commence the work 30 calendar days after approval of the Contractor’s Bond and complete the work within 1460 days thereafter.
In view of the foregoing, it is recommended that the Director of Procurement and Materials Management be authorized to award Contract 21-092-3P to Michels, in an amount not exceed $389,933,408.76, plus a five (5) percent allowance for change orders in an amount of $19,496,670.44, for a total amount not to exceed $409,430,079.20, subject to the contractor furnishing a performance bond in form satisfactory to the Law Department and approved by the Director of Procurement and Materials Management.
Funds are available in Account 401-50000-645650.
Requested, Catherine A. O’Connor, Director of Engineering
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management, DAL:SEB:gv
Respectfully Submitted, Precious Brady-Davis, Chairperson, Committee on Procurement
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for May 21, 2026
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