Title
Discuss and consider action to approve a resolution with the caption reading: A RESOLUTION DETERMINING THAT THE COMPETITIVE SEALED PROPOSAL (REQUEST FOR PROPOSAL) PROCUREMENT METHOD FOR THE CENTRAL WASTEWATER TREATMENT PLANT EXPANSION PROJECT AND COMPONENTS THEREOF, INCLUDING EQUIPMENT SELECTION, PROVIDES THE BEST VALUE FOR THE CITY, AND DELEGATING AUTHORITY TO USE SAID METHOD IN ACCORDANCE WITH THE TEXAS GOVERNMENT CODE.
Summary
As the design of the WWTP expansion project has progressed and the major treatment components have been selected by City staff and the design team, the City’s engineering design consultant has recommended the preselection of several major treatment components in order to avoid issuing a construction plan set with alternate designs for multiple vendors, which could cause confusion during the construction bidding process and potentially lead to higher bid prices. Preselection of equipment will allow the consultant to finalize the design around a single process supplier while still taking advantage of the competitive bidding process for procurement of the equipment.
The equipment to be preselected includes the biological nutrient removal (BNR) treatment units, clarifiers, effluent filters and UV disinfection. The total cost estimates for the preselection equipment is $8.7 million. The total cost also includes BNR and clarifier equipment for Phase II of the expansion project which will occur in 2021. This Phase II equipment is being included in the preselection process so that the City can take advantage of the competitive bidding process prior to standardizing on equipment vendors for both Phase I and II.
Through discussion with the City’s design consultant and previous experience by City Staff, it was determined that the competitive sealed proposal (CSP) procurement method should be used for the preselection instead of the traditional hard bid process which requires selection based only on the lowest responsible bidder. While price is always important, the wastewater expansion project is unique and the CSP process allows the City to make a best value determination based on criteria deemed appropriate for the project such as proposed procurement cost, operation and maintenance costs, experience of offeror in providing similar goods, responsiveness and service and proposed procurement adherence to technical criteria.
The City’s design consultant and City Staff are also proposing the use of CSP for selecting a construction contractor for Phase I of the expansion project. Using CSP for construction is important so that the City can select a contractor with extensive wastewater treatment plant construction experience given the scope of the expansion project. The CSP procurement method will allow for consideration of price, experience and reputation of offerors, quality of goods and services, safety records and other relevant factors identified in a request for proposal, and will also allow for negotiation of both price and contract terms after proposals are submitted, thereby assuring that the City controls cost without sacrificing service or quality.
The City has used the competitive sealed proposal procurement method in the past for projects including the library, Stone Hill Park, Heatherwilde Elevated Storage Facility and previous animal shelter expansions.
Status
The procurement documents for the preselection of the major treatment components associated with the Wastewater Treatment Plant Expansion Project are nearing completion and are planned to be bid on October 31, 2018. The overall construction documents for Phase 1 construction are nearing 60% and will be bid in summer 2019.
Deadline for City Council Action
Action is requested on October 23, 2018 in order to maintain the project schedule.
Projected Future City Council Action
City Council will select the top proposers of major treatment components as well as a Phase 1 construction contractor for the project.
Fiscal Impact
Funding for this project is a combination of applicable wastewater impact fees and current and future bond funding.
Staff Recommendation
Staff recommends approval of the resolution authorizing the competitive sealed proposal procurement method for the preselection of major treatment components associated with the Wastewater Treatment Plant Expansion Project and selecting a construction contractor for Phase I of the Project.
Drafter
Amy Giannini
City Engineer
Recommended Action
Motion to approve the resolution authorizing the competitive sealed proposal procurement method for the preselection of major treatment components associated with the Wastewater Treatment Plant Expansion Project and selecting a construction contractor for Phase I of the Project.