Subject:
Title
First Amendment to the agreement with SAK Enterprises, Inc. for flood barriers and termination of agreement for cause with Engineering Inspection and Restoration Services, LLC.
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Recommended Action:
Recommended Action
Approval of the First Amendment to the agreement with SAK Enterprises, Inc. (SAK) for flood barriers.
It is further recommended that the Board of County Commissioners terminate the agreement for cause with Engineering Inspection and Restoration Services, LLC (EIRS) due to their inability to perform in accordance with the terms of the agreement.
• These agreements provide Pinellas County Utilities (PCU) with flood barrier protection at vulnerable wastewater and water treatment facilities throughout the County and were awarded to EIRS and SAK by the Board on December 16, 2025.
• The First Amendment revises the scope of work to include all flood barrier locations and reallocates the funding from the terminated agreement to SAK for a revised not-to-exceed total contract amount of $385,400.48.
• Additionally, staff recommends termination of the agreement for cause with EIRS as EIRS failed to perform in accordance with the terms of the agreement following issuance of two Notices to Cure.
• Termination of the EIRS agreement allows PCU to proceed with project implementation with SAK (second low bidder).
• Funding for this agreement is budgeted under South Cross Bayou Renewal and Replacement project 000847A, Water Facilities Annual Improvements project 003767A, and Pump Station Improvements project 000964A, included in the Fiscal Year (FY) 2027-FY32 Capital Improvement Plan, funded by the Water Renewal and Replacement Fund and the Sewer Renewal and Replacement Fund.
Contract 25-0689-ITB, reallocation of contract funds to SAK in the amount of 350,698.96 for a revised total not to exceed amount of $385,400.48; terminate agreement with EIRS; Authorize the Chairman to sign and Clerk of the Circuit Court to attest.
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Strategic Priorities:
Resilient Infrastructure and Environment
1.2 Maintain and enhance County infrastructure.
1.5 Strengthen resilience and adaption.
1.6 Ensure sustainable water management.
Summary:
Summary
The First Amendment revises the scope of work to include all flood barrier locations and reallocates the agreement funding to SAK.
Termination for cause is a result of EIRS failing to hold bid pricing and a request for advanced payment. Two “Notices of Cure” were delivered to EIRS to correct the deficiencies which EIRS failure to cure.
Cancellation of the agreement with EIRS allows the County to proceed with flood barrier installation through the secondary awarded vendor, SAK, ensuring the timely implementation of critical flood protection measures at PCU facilities.
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Background Information:
On December 16, 2025, the BCC awarded Contract No. 25-0689-ITB to both EIRS and SAK for the installation of flood barrier systems at water and wastewater facilities throughout Pinellas County.
Following award, EIRS requested an increase to its awarded pricing based on an alleged misunderstanding of project requirements. The County denied the request and issued a Notice to Cure on February 24, 2026, directing EIRS to perform in accordance with its submitted bid. EIRS subsequently indicated its willingness to proceed under the awarded pricing.
Upon issuance of a purchase order, EIRS requested a fifty percent (50%) advance payment prior to commencing work. This request was inconsistent with the agreement and County Standard Terms and Conditions, which require goods or services to be delivered or rendered prior to invoicing. A second Notice to Cure was issued on May 4, 2026, providing EIRS thirty (30) days to comply with the contract requirements and proceed with barrier installation. EIRS did not cure the identified default within the prescribed period.
To avoid further delays of this critical infrastructure protection project, PCU evaluated alternatives and determined that SAK could assume the remaining project locations. SAK's domestic manufacturing capabilities provide a significantly shorter lead time (2 weeks as opposed to 8 weeks), supporting accelerated project delivery.
Fiscal Impact:
Original contract award:
EIRS $350,726.00
SAK $ 34,701.52
Total award amount: $385,427.52
Revised contract expenditure:
SAK Original award not-to-exceed: $34,701.52
SAK First Amendment: $350,698.96
SAK Revised not-to-exceed: $385,400.48
First Amendment & Termination: -(27.04)
Funding for this agreement is not fully represented in the FY26 -31 Capital Improvement Plan (CIP) or the FY26 Operating Budget because the contract establishes a not to exceed value, with obligation occurring upon issuance of work order assignments (purchase orders). Funding is determined by the individual work order assignment sourced to the agreement, and actual expenditures are contingent upon work completed for various projects. The Department may appropriate the full not-to-exceed amount or less.
Staff Member Responsible:
Jeremy Waugh, Director, Utilities
Merry Celeste, Purchasing Division Director, Office of Management & Budget
Chris Rose, Director, Office of Management & Budget
Partners:
N/A.
Attachments:
First Amendment