HomeMy WebLinkAboutStaff Report 8519City of Palo Alto (ID # 8519)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 10/16/2017
City of Palo Alto Page 1
Summary Title: Approval of Blanket PO for Asphalt Concrete Products
Title: Approval of a Blanket Purchase Order With Granite Rock Company for
$380,760 Each Year and Granite Construction Company for $90,000 Each Year,
both for a Three-Year Term, From October 17, 2017 Through June 30, 2020 for
Asphalt Concrete Products
From: City Manager
Lead Department: Public Works
Recommendation
Staff recommends that Council:
1)Approve and authorize the City Manager or his designee to execute a blanket
purchase order with Granite Rock Company as a primary supplier of asphalt
concrete products in an amount not to exceed $380,760 each year for a period
of three years;and
2)Approve and authorize the City Manager or his designee to execute a blanket
purchase order with Granite Construction as a secondary supplier of asphalt
concrete products in an amount not to exceed $90,000 each year for a period
of three years.
Background
Between Public Works and Utilities Departments, three work groups use asphalt
concrete. Public Works uses asphalt concrete to repair damaged sections of
roadway, sidewalk, and bicycle paths, while Utilities uses asphalt concrete to
repair streets following underground services work. The projects related to
roadway repair contribute significantly to the City’s Pavement Condition Index
(PCI) score.
Suppliers chiefly utilize batch plant or drum plant equipment to produce asphalt
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concrete. A batch plant has the ability to mix asphalt on demand, as specified, and
in small quantities. A drum plant does not have the same flexibility; consequently
whatever mix is being produced that day is all that is available.
The City requires primary suppliers of asphalt concrete to produce their product
in a batch plant, as this allows staff to order on short notice, control quality and
manage schedule modifications to efficiently complete jobs. In addition, suppliers
must be located within 10 miles of the Municipal Services Center (MSC) as staff
utilize City vehicles to pick up and deliver asphalt concrete to job sites and have to
consider known traffic patterns and unexpected events that may impact the
quality of asphalt being delivered if waylaid.
Discussion
Staff recommends approval of purchase orders for a primary supplier as well as a
secondary supplier of asphalt concrete to ensure a job is not jeopardized in the
unlikely event the primary supplier is down for scheduled maintenance or
unforeseen equipment failure.
Bid Process
On August 30, 2017, a notice inviting formal quotations (RFQ)for Asphalt
Concrete Materials was posted at City Hall and sent to 10 builder’s exchanges
through the City’s eProcurement system.The bidding period was 14 calendar
days.Bids were received from two qualified contractors on September 13,2017
as listed on the attached Bid Summary (Attachment A).
Summary of Bid Process
Bid Name/Number Asphalt Concrete Materials
RFQ #169813
Proposed Length of Project Three years
Total Days to Respond to Bid 14
Pre-Bid Meeting No
Number of Bids Received:2
Base Bid Price Range $770,000.00 to $1,142,280.00
The criteria used to determine the primary supplier were the distance from the
MSC, the supplier’s ability to produce asphalt concrete in a batch plant, and their
ability to supply all necessary asphalt concrete products.
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Since Granite Rock is the only supplier able to meet all of the requirements to be
the primary supplier of asphalt, staff is recommending that Council approve and
authorize a blanket purchase order for asphalt concrete with Granite Rock as a
primary supplier. The City has previously had a blanket purchase order with
Granite Rock, and staff has consistently received product that met both state and
the City’s standards for consistent temperature and aggregate size.
Staff is recommending that Council approve and authorize a blanket purchase
order for asphalt concrete with Granite Construction as a secondary supplier.
Resource Impact
Funding for the purchase of material under this purchase order is available in the
Fiscal Year 2018 operating budgets of Public Works and Utility Departments.
Funding for contract years two and three are contingent upon Council approval of
subsequent year’s operating budgets for each department.
Policy Implications
Authorization of the blanket order does not represent any change to the existing
policy.
Environmental Review
The blanket order being supplied is in conformance with all applicable emissions
laws and regulations. This purchase is exempt from the California Environmental
Quality Act under the CEQA guidelines (Sections 15061 and 15301(c)).
Attachments:
·Attachment A -RFQ #169813 Bid Tables
RFQ #169813 Results
Company
Bidding
Meets
Criteria
to be
Primary
Supplier
of
Asphalt
Meets
Criteria to
be
Secondary
Supplier of
Asphalt
Cost – Year
1
Year 2 Year 3
Granite Rock Yes Yes $380,760.00 $380,760.00 $380,760.00
Granite
Construction
No Yes $253,000.00 $259,000.00 $265,000.00
A detailed bid breakdown is available here:
Bid Results by Line Item - Graniterock
Bid
Item
QTY Description Item
Price
Year 1
Total Year 1 Total Year 2 Total Year 2
01 1,000
Tons
Asphalt
Concrete,
3/4”
medium
$93.40 $93,400.00 $93,400.00 $93,400.00
02 2,000
Tons
Asphalt
Concrete,
1/2” fine
$95.90 $191,800.00 $191,800.00 $191,800.00
03 100
Tons
Asphalt
Concrete
3/8” fine
$96.90 $9,690.00 $9,690.00 $9,690.00
04 700
Tons
Asphalt
Concrete
1/4” fine
$97.90 $68,530.00 $68,530.00 $68,530.00
05 100
Tons
Asphalt
Concrete,
Sheet
Asphalt
$98.90 $9,890.00 $9,890.00 $9,890.00
06 1,000 Tack Coat $7.45 $7,450.00 $7,450.00 $7,450.00
Gallo
ns
SS-1H
Yearly Total $380,760.00 $380,760.00 $380,760.00
Three-Year Total $1,142,280
Bid Results by Line Item – Granite Construction
Bid
Item
Quantity Description Item
Price
Year 1
Total Year 1 Total Year 2 Total Year 2
01 1,000
Tons
Asphalt
Concrete,
3/4”
medium
$83.00 $83,000.00 $85,000.00 $87,000.00
02 2,000
Tons
Asphalt
Concrete,
1/2” fine
$85.00 $170,000.00 $174,000.00 $178,000.00
03 100 Tons Asphalt
Concrete
3/8” fine
No Bid $0 $0 $0
04 700 Tons Asphalt
Concrete
1/4” fine
No Bid $0 $0 $0
05 100 Tons Asphalt
Concrete,
Sheet
Asphalt
No Bid $0 $0 $0
06 1,000
Gallons
Tack Coat
SS-1H
No Bid $0 $0 $0
Yearly Total $253,000.00 $259,000.00 $265,000.00
Three-Year Total $770,000.00