Item 07: Traffic Signal Construction and Maintenance Contract

[COSM_Admin]

Consider approval of Resolution 2021-148R, awarding an Indefinite Delivery Indefinite Quantity contract for Traffic Signal Construction and Maintenance to Austin Traffic Signal Construction Company, Inc. on an as needed basis in the annual not-to-exceed amount of $130,000.00 and authorizing two additional annual renewals for a total contract price of $390,000; authorizing the City Manager or his designee to execute the contract on behalf of the City; and declaring an effective date.

 

[JHughson]

Staff feels that this price is reasonable?
Concerned that we are paying too much to a sole bidder.
Why would the others not complete the bid process?

 

[COSM_Admin]

Response to Mayor Hughson, provided by Sabas Avila (Interim Director of Public Works) and Lynda Williams (Purchasing Manager):
Staff feels that this price is reasonable?
Staff has reviewed the costs and compared these costs with TxDOT and other City average bid costs. The City’s bid costs are consistent with TxDOT and surrounding cities.

Why would the others not complete the bid process?
Contractors may not bid on contracts for a variety of issues including:

• Specialized Work – Traffic signal construction is a specialized construction industry. Subsequently, there are fewer contractors qualified to do this work. Most traffic signal contractors are located in larger cities where they can employ specialized employees.
• Location of Work – Traffic signal work requires on-site mobilization. Mobilization costs of personnel, material, and equipment increase as the project distance increases. Subsequently, some contractors may choose not to bid on projects that are located far from their offices. No traffic signal contractors reside in the City of San Marcos.
• Quantity of Work – Some specialty contractors prefer not to bid on smaller contracts. The San Marcos Traffic Signal IDIQ at a cost of $385,650 is a small contract compared to contracts for TxDOT and other large cities that range in the millions of dollars.

Solicitation Efforts: The solicitation was issued on May 30, 2021 and bids were due on July 1st. The city takes great effort in advertising and posting in numerous outlets such as the State Electronic Business Daily, BidNet, Social Media such as Facebook and Twitter, City Web and City eProcurement, the San Marcos Daily Record, and numerous construction trade associations who upload the bid documents for their members. Approximately 11 contractors and suppliers downloaded the bid documents.