Item 10: Change Order to IDIQ Contract for Street Materials

[COSM_Admin]

Consider approval of Resolution 2021-112R, approving a Change Order to the Indefinite Delivery/Indefinite Quantity contract with Lone Star Paving to increase the contract in the not-to-exceed amount of $259,472.75 for asphalt street overlay materials; authorizing the City Manager or his designee to execute the appropriate documents relating to the Change Order on behalf of the City; and declaring an effective date.

 

[COSM_Admin]

Questions asked by Mayor Hughson, response provided by Assistant City Manager Joe Pantalion and Procurement Program Administrator Veronica Bradshaw:

Mayor Hughson:
Do we always have to INCREASE an IDIQ contract for payments?
Are these the people we didn't particularly like due to claims of damaging trees but we awarded the contract because they were so cheap?
Are they raising the prices on us?

Response: There was a previous Council meeting/ agenda item where there were tree damage complaints lodged against this vendor.

Please see the following points to help provide some background on the contract:

• IDIQ Contract – Work Orders are issued as projects are identified.
• Street Asphalt Overlay program for 2020 exceeded the estimated $2,000,000.
• While the Overlay Program was scheduled, additional and expanded scope caused the estimated amount to be exceeded.
• Benefit to IDIQ contract form is that unit prices which are bid are set in place and do not change.
• Quantities do change as they are estimated quantities only.
• The work described in this agenda item was required to be completed in order to say on schedule with 2020 overlay program.

Contract #217-159 for IDIQ for Street Overlay expired on April 30, 2021. The item before City Council on the July 6 agenda is to approve the final payment to Asphalt, Inc., dba Lone Star Paving for services rendered prior to the expiration of contract #217-159 that exceeded the initially approved contract amount.

Contract #221-015 supersedes the previous contract and was approved by City Council on March 2, 2021, with Res 2021-45R.

 

[COSM_Admin]

Additional Response provided by Sabas Avila, Interim Director of Public Works:
1. No, we do not always have to increase an IDIQ contract for payments. Item 10 is necessary to make final payment and close the old Lonestar Paving contract originally awarded in 2017 and effective through March 2021. The contract included indefinite quantities with an “estimated” total cost of $2.8 M. The final quantities exceeded the “estimated” amount. So, the change order finalizes all quantities in order to make final payment and close the contract.
2. This is the same contractor that broke a small, low-hanging branch in front of a citizen's house. Since this issue, the City is pre-trimming all low-hanging tree limbs that do not meet minimum code height requirements prior to paving work. Based on the City’s experience with other paving contractors, this contractor performs superior paving work.
3. No. The prices reflected on this change order represent the same prices in the original 2017 contract.