TO: Indian River County Board of County Commissioners
THROUGH: John A. Titkanich, Jr, County Administrator
Sean C. Lieske, Director of Utility Services
Jennifer Hyde, Purchasing Manager
FROM: Howard G. Richards, PE, Manager - Capital Projects
DATE: March 19, 2025
SUBJECT: Award of Bid No. 2025018 to Lawrence Lee Construction Services, Inc. for Phase 2 of Upper Floridan Aquifer S1R Well Head & Raw Water Main, IRCDUS Project ID 11.22.503
_________________________________________________________________________________________
BACKGROUND
Indian River County Department of Utility Services (IRCDUS) owns and operates the South County Wellfield comprising of seven (7) Upper Floridan Aquifer (UFA) source water wells that provide raw water to the Oslo Water Treatment Plant (WTP). Well no. S1 is being replaced with a new well, S1R, due to its collapse sometime in 2021 which was deemed unsalvageable.
Construction of the S1R Project, referred to as Upper Floridan Aquifer S1R Well Head & Raw Water Main (IRCDUS Project ID 11.22.503), is being implemented in two (2) phases: Phase 1 is the drilling of the new well, and Phase 2 is construction of the wellhead and new raw water main (RWM) to Oslo WTP.
On February 15, 2022, the Indian River County Board of County Commissioners (BCC) approved Work Order No.8 (WO 8) to Kimley-Horn and Associates, Inc. (KHA) pursuant to the Agreement for Professional Services for Water Plant and Water Resources Engineering Services (RFQ 2019070), dated November 5, 2019, to provide design, permitting, bid, and construction phase services for the S1R Project.
On January 23, 2024, the BCC approved the award of Bid 2024024 to Florida Design Drilling, Inc. (FDD) for Phase 1 of the S1R Project. Phase 1 is now complete, and the project is transitioning to Phase 2. On October 8, 2024, KHA’s WO 8 was amended to provide additional engineering services for bid and construction phase services, wildlife site survey, extended hydrogeologist work hours, and final project deliverables.
ANALYSIS
Upon completion of design for Phase 2 of the S1R Project, the Purchasing Division, on behalf of IRCDUS, advertised Invitation to Bid (ITB) 2025018 on December 1, 2024. A non-mandatory pre-bid meeting was held at the project site for prospective bidders on December 9, 2024. Three addenda were subsequently issued on December 20, 2024, December 31, 2024, and January 3, 2025. A second site visit opportunity was also scheduled for December 31, 2024, to encourage more bidders.
Two (2) bids were received on January 23, 2025, which were publicly opened and read aloud. After initial reviews by Purchasing and IRCDUS staff for compliance with the bid submittal requirements, both bids were reviewed by KHA for completeness and accuracy relative to the bid plans and specifications with respect to the lowest, responsive, responsible bidder. Final bid results are as follows:
1. Lawrence Lee Construction Services, Inc. $2,317,000.00
2. Florida Design Drilling, LLC $2,357,000.00
Due to the potential for scope variability (i.e., known risks) or owner-directed changes (e.g., value engineering), staff propose an additional 10%, or $231,700.00, in project reserves to cover such additional expenses. These additional expenses may become necessary to complete the project (resolve issues) or meet departmental objectives (explore opportunities). The project reserve will be managed by IRCDUS’ Capital Projects Manager for the sole purpose of covering such costs over and above the contractor’s bid price.
With the proposed project reserve included, the proposed budget for Phase 2 of the S1R Project is $2,548,700.00. A budget amount of $3,280,099.00 for this project is included in the proposed Fiscal Year 2024/2025 Potable Water and Sanitary Sewer Capital Improvements Sub-Elements (CIE) of the Indian River County 2030 Comprehensive Plan, yielding a potential budget savings of $731,399.00.
BUDGETARY IMPACT
Expenses, in the amount of $2,548,700.00, for this project will be recorded in the Utilities/WIP/South WTP Well S1 account, number 471-169000-22503. Since this is an operating capital project, the funds will come from fund balance. Operating funds are derived from water and sewer sales.
|
Account Description |
Account Number |
Amount |
|
Utilities/WIP/South WTP Well S-1R |
471-169000-22503 |
$2,548,700.00 |
PREVIOUS BOARD ACTIONS
There are no previous Board actions for the specific request in this staff report (i.e., award of bid 2025018).
POTENTIAL FUTURE BOARD ACTIONS
Potential changes for scope variability (known risks) or owner directed changes (value engineering) where the cumulative cost exceeds 10% of the award amount.
STRATEGIC PLAN ALIGNMENT
Infrastructure: Planning, constructing, managing, and maintaining critical public infrastructure in response to our current needs, future demands, and the expectations of our community; embracing innovation, technology, and resiliency.
OTHER PLAN ALIGNMENT
None noted.
STAFF RECOMMENDATION
Recommended Action
Staff recommends that the Indian River County Board of County Commissioners award Bid No. 2025018 to Lawrence Lee Construction Services, Inc. for Phase 2 of the Upper Floridan Aquifer S1R Well Head & Raw Water Main project for $2,317,000.00 and authorize the Chairman to execute the attached sample agreement after review and approval by the County Attorney as to form and legal sufficiency. Staff also request authorization to hold $231,700.00 in project reserves for potential changes due to scope variability or owner directed changes for a total budget of $2,548,700.00. So long as there are no increases to the budget dollar amount approved, upon adequate completion of the work, staff is directed to make final payment and release any retainage to Lawrence Lee Construction Services, Inc.