AGENDA ITEM D2. FUNDING SOURCE: FY 2017 Uniform Rate and Applicable Bond Funds

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1 AGENDA ITEM D2 DATE: December 1, 2016 TO: Matt Jordan, General Manager FROM: Alison Adams, Chief Technical Officer SUBJECT: As-Needed Well Construction and Rehabilitation Award Goods & Services Contract Nos and to the lowest, responsive responsible bidders Approve SUMMARY: The award of these two contracts provides for As-Needed Well Construction and Rehabilitation services for the Agency s production and monitor wells. RECOMMENDATION: Approve Contract No with Diversified Drilling Corporation and Contract No with A.C. Schultes of Florida, Inc. FUNDING SOURCE: FY 2017 Uniform Rate and Applicable Bond Funds DISCUSSION: Maintenance of Tampa Bay Water s existing production and monitor wells and permit compliance require as-needed well construction and rehabilitation services be available. Existing production and monitor wells may need to be modified or abandoned or replaced with new wells due to maintenance or permit requirements during each fiscal year. These services include: rehabilitation of existing production wells to reestablish production capacity, construction of new production or monitor wells, modification of production or monitor wells to correct problems inside the well, repair wells due to damage of the casing above land surface, or abandonment of wells due to problems or lack of continued need. Tampa Bay Water does not have in-house expertise or well drilling equipment to self-perform these services. During Fiscal Year 2016, $371,000 in task order assignments were issued to accomplish these well rehabilitation, repair, and construction activities. Staff evaluated the potential workload for the next three years and determined that two contracts are needed for asneeded well construction and rehabilitation services. Each contract will have an amount of $200,000 per year. As-Needed Well Construction and Rehabilitation Services, Contract Nos and , were advertised on August 30, 2016 on Onvia DemandStar and on Tampa Bay Water s website. Through this advertisement, 141 suppliers were notified and 24 downloaded the bid documents. A non-mandatory pre-bid meeting was conducted on September 14, 2016 at 9:00 a.m., at which two bidders were present. On October 19, 2016, bids were received and publically opened from five qualified bidders with the following results:

2 Matt Jordan December 1, 2016 Page 2 Bidder Basis of Award Diversified Drilling Corporation $317, A.C. Schultes of Florida, Inc. $416, Southeast Drilling Services $568, Rowe Drilling Company, Inc. $580, Florida Design Drilling Corporation No Bid The basis of award price is comprised of a representative scope of work expected over the contract period and fixed unit costs submitted by the contractor. Staff has evaluated all supporting materials and documents and has determined Diversified Drilling Corporation and A.C. Schultes of Florida, Inc. to be the lowest responsive, responsible, bidders for As- Needed Well Construction and Rehabilitation Goods and/or Services. Staff recommends award of Tampa Bay Water Contract No to Diversified Drilling Corporation in the amount of $200,000 per calendar year and Contract No to A.C. Schultes of Florida, Inc. in the amount of $200,000 per calendar year. The contracts will commence upon execution and terminate on December 31, Each contract contains an option for renewal for an additional two (2) years, one-year at a time from the date of expiration, provided that the drilling contractor and Tampa Bay Water both agree to the renewal and all conditions and unit prices remain the same. The proposed contracts have been approved as to form by Tampa Bay Water s General Counsel. A copy of the bid schedules for the two contracts is attached to this agenda item. The approval of these contracts does not encumber any funds. Funds for the task orders to be issued under these contracts will be from the current and future Tampa Bay Water budgets as approved by the Board of Directors. In addition, staff recommends that the Board waive the expenditure limit of the General Manager for tasks issued pursuant to these contracts. This waiver extends the General Manager s signature authority for task orders up to the annual contract limit, and will allow time-sensitive projects to begin and work to progress avoiding the potential delay that may occur based on the Board s bimonthly meeting schedule. BACKGROUND: Tampa Bay Water has historically outsourced all as-needed well construction and rehabilitation services. It continues to be cost-effective to use as-needed well construction and rehabilitation contractors for this work rather than performing the task in-house. Ownership, insurance, and maintenance of well drilling equipment, and retaining staff expertise to operate that equipment, is not cost effective for the Agency. The use of as-needed contractors is more efficient and provides faster service than if these services are procured each time the Agency requires well rehabilitation or construction services. Attachment

3 DIVERSIFIED DRILLING CORPORATION ATTACHMENT A

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10 A.C. SCHULTES OF FLORIDA, INC. ATTACHMENT B

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