Subject:
Title
Increase to the contract with Southern Precast Concrete Corporation for pipe, reinforced concrete, precast slabs, and related materials to match increases in the Producer Price Indexes.
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Recommended Action:
Recommended Action
Approval by the County Administrator of an increase to the contract with Southern Precast Concrete Corporation for pipe, reinforced concrete, precast slabs, and related materials to match increases in the Producer Price Indexes (PPI).
• This contract provides the Public Works Department with reinforced concrete pipe, precast concrete slabs and related materials pertaining to the maintenance and repair of stormwater infrastructure throughout the unincorporated County.
• The contract allows for a price adjustment on reinforced concrete pipes and slabs identified in the bid for the remaining twenty-four (24) months of the contract.
• The PPI for Metals and Metal Products, Item: Concrete Reinforcing Bar, Carbon Series Id: WPU10170405 had an increase of 31.8327%. An additional $35,150.00 is requested to offset the increase.
• The County Administrator originally awarded this on September 29, 2018, the County Administrator approved the award of bid to two (2) vendors: County Materials for groups 1 through 5 and Southern Precast for groups 6 and 7. After the award, County Materials could not meet the County’s insurance requirements. Southern Precast was awarded the additional groups 1 through 5 for a total award amount of $581,202.45
Contract No. 178-0476-B(AJM) increase in the amount of $35,150.00 for a revised contract value of $616,352.45; with an estimated annual amount of $123,270.49, effective through September 28, 2023.
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Strategic Plan:
Practice Superior Environmental Stewardship
3.3 Protect and improve the quality of our water, air, and other natural resources
Foster Continual Economic Growth and Vitality
4.4 Invest in infrastructure to meet current and future needs
Deliver First Class Services to the Public and Our Customers
5.2 Be responsible stewards of the public’s resources
Summary:
This request is outlined in the contract terms and conditions. The unit prices were fixed for the initial thirty-six (36) months. There is one (1) price adjustment allowed for the remaining twenty-four (24) months in an amount not to exceed the average of the PPI for Metals and Metal Products Series Id: WPU10170405, Not Seasonally Adjusted, for the thirty-six (36) months prior, as appropriate for Groups 1, 2, 4, 5 and 7. Per the Business of Labor and Statistics (BLS) this is an increase of 31.8327%.
Background/Explanation:
The County Administrator originally awarded this On September 29, 2018; the County Administrator approved the award of bid to two (2) vendors: County Materials for groups 1 through 5 and Southern Precast for groups 6 and 7. After the award, County Materials could not meet the County’s insurance requirements. Southern Precast was awarded the additional groups 1 through 5 for a total award amount of $581,202.45
Fiscal Impact:
Sixty (60) month term approved expenditure not to exceed: $581,202.45
Increase expenditure not to exceed amount: $ 35,150.00
Revised expenditure not to exceed: $616,352.45
Annual expenditure not to exceed: $123,270.49
Funding is derived from the Public Works Department’s operating budget.
Delegated Authority:
Authority for the County Administrator to approve this increase is granted under Code Section 2-188(a).
Staff Member Responsible:
Kelli Hammer Levy, Director, Public Works
Merry Celeste, Division Director, Purchasing & Risk, Administrative Services
Joe Lauro, Director, Administrative Services
Partners:
N/A
Attachments:
N/A