COUNCIL COMMUNICATION
TO: Honorable Mayor and Council
FROM: W. Mark Clark, Maintenance Services Manager
SUBJECT:Title
Award Bid for Redi-Mix Concrete Products to Campbell Redi-Mix
Body
FUNDING SOURCE:
Various Departments
PURPOSE:
The Lake Havasu City Operations Department, Maintenance Services Division, is requesting the award of the above-mentioned Invitation to Bid (ITB). This procurement consists of supply and delivery of approximately 2,630 cubic yards of various types of redi-mix concrete products and as needed full and half-size reinforced concrete blocks. The redi-mix concrete products are used by the Maintenance Services Division, Water Division, and Wastewater Division for daily work and special projects, such as in driveway approach sections, curbs, gutter, and sidewalks. The Maintenance Services Division utilizes reinforced concrete blocks along wash lengths as a flood control application for mitigating erosion caused by storm water runoff.
BACKGROUND:
On June 8, 2017, only one bid was received and opened from Campbell Redi-Mix, of Lake Havasu City, Arizona, in the amount of $221,750.39 including applicable sales tax. Campbell Redi-Mix has been the awarded supplier of redi-mix concrete materials and reinforced concrete block on as as-needed basis for many years.
Five (5) potential bidders were formally notified in addition to bidders that subscribe to DemandStar by Onvia, an online bid notification service provider. Campbell Redi-Mix has been the sole bidder for this price agreement since FY 2010-11. We are satisfied with their service and the quality of their products.
Over the past several years, demand for cement products across the nation has resulted in vendors passing some of those cost increases to users. Staff has reviewed the bid prices and compared them to last year’s pricing and costs have not risen. Over the lifetime of the previous contract (since 2014) costs did increase 8.2% but have remained stable the last year. Staff is confident that this represents a fair and reasonable bid by Campbell Redi-Mix and savings would not be realized by attempting to rebid.
COMMUNITY IMPACT:
Procuring redi-mix concrete products from the local supplier saves on the cost of products being transported from outside the city, which can also affect the quality of the mixed product. City forces and contracted labor are able to complete work with a quality assured product, and without experiencing delivery delays.
FISCAL IMPACT:
Funds for redi-mix products and reinforced concrete blocks have been included in the each of the divisional budgets for FY 2017-18: HURF has $150,000 in account 221-5110-403.52-23; General Fund has $10,000 in 110-3220-401.52-46; and Water has $200,000 in 521-4110-421.43-31.
ATTACHMENTS:
FY 2017-18 Redi-Mix Concrete Products Bid Tabulation
SUGGESTED MOTION:Recommended Action
I move to award a three year multi-term purchase order price agreement for supply and delivery of Redi-Mix Concrete Products to Campbell Redi-Mix for the itemized unit prices as listed on the attached ITB-B17-OP-006-2626, FY 2017-18 bid tabulation, plus applicable sales tax.
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