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Water & Wastewater Commission Review and Recommendation Health and Environment June 2, 2021 Commission Meeting Date: Council Meeting Date: Department: Capital Contracting Office June 10, 2021 COA Strategic Direction: Client: Shay Ralls Roalson Agenda Item Recommend approval to award and execute a construction contract with Mechanical & Process Systems, LLC (MBE), for the Davis Water Treatment Plant Gas Heater Replacements project in the amount of $377,777 plus a $37,777.70 contingency, for a total contract amount not to exceed $415,554.70. (District 10) Funding is available in the Fiscal Year 2020-2021 Capital Budget of Austin Water. Amount and Source of Funding Sole bid received through a competitive Invitation for Bid solicitation. Solicitation Documents. N/A June 2, 2021 — To be reviewed by the Water and Wastewater Commission. This contract will be awarded in compliance with City Code Chapter 2-9A (Minority Owned and Women Owned Business Enterprise Procurement Program) through the achievements of Good Faith Efforts with 69.20% MBE and 1.74% WBE participation. Purchasing Language: Prior Council Action: Boards and Commission Action: MBE/WBE: The Davis Water Treatment Plant (WTP) has a rated treatment capacity of 120 million gallons per day. The plant draws water from the Colorado River. It was constructed in 1954 and expanded in 1961 and 1973. Much of the existing natural gas Heating Ventilation Air Conditioning (HVAC) systems, natural gas water heating equipment, and natural gas distribution infrastructure at Davis WTP has exceeded its useful life. The integrity of certain components has been compromised by corrosion and age. Replacement of the existing natural gas equipment is necessary to restore reliability and safety to Davis WTP operations. The buildings addressed in the scope of this project are the chlorine and ammonia building, the maintenance building, the chemical building, and the centrifuge building. This project consists of the replacement of gas fired HVAC systems and water heating equipment with electric heating systems. Also included is the disconnection of the natural gas distribution infrastructure, demolition of the existing natural gas piping, and proper capping and abandonment of all buried natural gas piping. This item includes one allowance. The allowance of $10,000 will be used for restoration of back up natural gas heating for the plant during construction, if needed. An allowance is an amount that is specified and included in the construction contract or specifications for a certain item(s) of work whose details are not yet determined at the time of bidding. A non-mandatory pre-bid meeting and site visit was held but only one bidder attended and subsequently submitted a bid. The relatively low project budget may have contributed to only one bid being received. There will be no impact to the public as work will occur entirely within the plant property. Failure to construct this project in a timely manner may result in unplanned equipment failures, which could directly affect the plant’s ability to treat water. Due to the potential for unknown conditions when working in an operating water treatment facility and the need to minimize construction duration and equipment downtime, a 10% contingency in funding has been included to allow for the expeditious processing of any change orders. A contingency is an additional amount of money added to the construction budget to cover any unforeseen construction costs associated with the project. By authorizing the additional contingency funding, Council is authorizing any change orders within the contingency amount. The contract allows 180 calendar days for completion of this project. This project is located within zip code 78703 (District 10). Mechanical & Process Systems, LLC (MBE/MA) is located in Round Rock, TX. MBE/WBE Summary Public notice was given for this solicitation, CLM841 Davis Water Treatment Plant Gas Heater Replacements, through the City’s Vendor Connection web portal. One bid was received and opened on March 25, 2021. The one bid received was from an MBE/WBE certified firm. Mechanical & Process Systems, LLC submitted the only bid including an allowance of $10,000: Mechanical & Process Systems, LLC, Round Rock, TX (MBE/MA) The contractor’s choice of work methodology provides for three areas of subcontracting opportunities which are listed below. Participation specific subgoals stated in the solicitation were 2.19% African American; 2.70% Hispanic; 1.92% Native/Asian; 2.18% WBE. Total participation is estimated on the base bid amount: $377,777 Base Bid Base Bid + Allowance $367,777 Base Bid: $ 367,777.00 PRIME MBE TOTAL (MA) Mechanical & Process Systems, LLC, Round Rock, TX $ 254,514.18 69.20% WBE TOTALS - SUBCONTRACTORS (FW) Stephanie Braun Clayton, LLC, Austin, TX (Construction Photography) $ $ 6,400.00 6,400.00 1.74% 1.74% NON MBE/WBE TOTALS - SUBCONTRACTORS Morsco Supply, Austin, TX (Commercial Water Heaters) T. Morales Company Electric and Controls, Ltd., Florence, TX (Electrical) $ $ $ 106,862.82 8,560.82 98,302.00 29.06% 2.33% 26.73% The Contractor submitted an MBE/WBE Compliance Plan that demonstrated a Good Faith Effort and was approved by the Small and Minority Business Resources Department. 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