SR 05-22-2018 3L
City Council
Report
City Council Meeting: May 22, 2018
Agenda Item: 3.L
1 of 3
To: Mayor and City Council
From: Susan Cline, Director, Public Works, Street & Fleet Services
Subject: Award Bid to Associated Ready Mixed Concrete, Inc. for Concrete Materials
Recommended Action
Staff recommends that the City Council:
1. Award Bid #4313 to Associated Ready Mixed Concrete, Inc., a California-based
company, for the purchase and delivery of mixed concrete materials; and
2. Authorize the Purchasing Services Manager to issue a purchase order with
Associated Ready Mixed Concrete, Inc. for the purchase and delivery of mixed
concrete materials in the amount not to exceed $80,730 (includes a 15%
contingency) for one year, with four additional one-year renewal options to
extend at a 5% increase per year, for a total amount not to exceed $446,085,
with future year funding contingent on Council budget approval.
Executive Summary
The City utilizes mixed concrete materials for various street maintenance projects,
including the repair and replacement of sidewalks, alleys, driveways, curbs, and gutters,
as well as for various emergency repairs to the public right-of-way. Staff recommends
issuing a purchase order with Associated Ready Mixed Concrete, Inc. for the purchase
and delivery of mixed concrete materials for a total amount not to exceed $446,085
(includes a 15% contingency) over a five-year period.
Discussion
On June 9, 2016, the City awarded bid #51942-OG to Associated Ready Mixed
Concrete, Inc. to supply and deliver concrete materials for a period of five years,
through June 8, 2021, with the stipulation that the total amount may not exceed
$175,000, as it was an informal bid. Current expenditures with Associated Ready Mixed
Concrete, Inc. are at $128,700, as of April 11, 2018, and the remaining amount of
$46,300 is not sufficient for the purchase of concrete materials through the next fiscal
year.
2 of 3
The use of concrete is required in the City’s standard detail design drawings for alley,
driveway, curb, and gutter construction. The use of concrete material by Street
Maintenance staff is approximately 560 cubic yards annually.
Vendor Selection
On February 14, 2018, the City published Notices Inviting Bids to furnish and deliver
concrete materials in accordance with City specifications. The bid was posted on the
City’s on-line bidding site, and notices were advertised in the Santa Monica Daily Press
in accordance with City Charter and Municipal Code provisions. Fifteen vendors
downloaded the bid. Two bids were received and publicly opened on March 1, 2018.
Submitted Bids:
Associated Ready Mixed Concrete, Inc. $58,545.00
Logans Marketing $73,409.90
Bids were evaluated based on the criteria in SMMC 2.24.072, including price, previous
experience, ability to deliver, quality of product, and compliance with City specifications.
Associated Ready Mixed Concrete, Inc. has consistently delivered a high quality
concrete product, and submitted the lowest overall pricing, along with a lower annual
price escalation of 5%, versus 6% by the other bidder. Based on these criteria,
Associated Ready Mixed Concrete, Inc., the lowest bidder, is recommended as the best
bidder. Based on the current amount spent since the award of the last bid, which
equates to approximately $70,200 per year, the 15% contingency, plus 5% annual price
escalation, over the bid price is based on the following factors:
1. Street Maintenance staff is replacing damaged or deformed rubber sidewalk
pavers with traditional concrete sidewalks, balancing the current unavailability of
the rubber paver product with the need to keep the walkways safe. This requires
more concrete than would normally be purchased.
2. 560 cubic yards per year is an average usage. The amount used does not
remain constant.
3 of 3
3. More concrete material is needed for repair work following heavy rain events,
which the division is anticipating over the life of the contract.
Financial Impacts and Budget Actions
The purchase order to be awarded to Associated Ready Mixed Concrete, Inc. is for an
amount not to exceed $446,085. Funds of $22,256 are available in the FY 2017-18
budget in the Public Works Department and in the FY 2017-18 Capital Improvement
Program budget. The purchase order will be charged to the following accounts:
014212.544140 $12,244
014212.544145 $ 185
C010725.589000 $ 951
M250193.589000 $ 951
C066017.589000 $ 7,925
TOTAL $22,256
Future year funding is contingent on Council budget approval.
Prepared By: Ryan Kraemer, Senior Administrative Analyst
Approved
Forwarded to Council
Attachments:
A. Associated Ready Mixed Concrete, Inc. Oaks Form