AGENDA #4r
MEMORANDUM
TO: Mayor and Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Award of Bid for Bulk Asphalt
DATE: June 26, 2006
The attached resolution would accept a bid and award a contract to S.T. Wooten Corporation for asphalt and tack coat to be used for street patching by the Public Works Department. The 2006-2007 budget includes sufficient funds (see below) for this purchase.
Specifications and bid notices for asphalt and tack coat were distributed to 4 prospective vendors in North Carolina.
The Notice to Bidders was published April 5, 2006 on the Town of Chapel Hill’s website. Two bids were received and opened May 3, 2006, at 3:00 p.m. The two responsive bids are as follows:
|
ITEM |
S.T. Wooten |
Riley Paving |
|
|
|
|
|
Asphalt I-2 |
$54.00/Ton |
$45.00/Ton |
|
|
|
|
|
Asphalt H |
$46.00/Ton |
$43.50/Ton |
|
|
|
|
|
Asphalt HB |
$45.00/Ton |
$44.00/Ton |
|
|
|
|
|
Asphalt HDB |
$46.00/Ton |
$44.00/Ton |
|
|
|
|
|
Tack Coat (CRS-1) |
$3.00/Gal. |
$4.00/Gal. |
|
|
|
|
|
Total |
$114,200.00 |
$106,900.00 |
DISCUSSION
The process of patching streets requires that asphalt and tack coat be picked up by Town trucks and delivered to the site when needed. It is impractical to stockpile the material because it must be applied at high temperatures established at the plant; therefore, we have considered transportation costs in addition to the materials price in analyzing these bids.
The year-round availability of hot asphalt is important. The availability of hot-mix asphalt during cold weather allows us to make stable patches when we otherwise would have to use "cold patch," which is unstable. Potholes receiving cold patch typically disintegrate over the winter, resulting in expensive future repairs.
We received two responsive bids from vendors with distances from Chapel Hill noted:
|
S.T. Wooten Corp. |
-16 miles |
-28 minutes |
|
|
|
|
|
Riley Paving Co. |
-29miles |
-43 minutes |
Given the estimated 275 mile round trips we make each year and the relative distance of each vendor, we have estimated transportation costs as follows:
|
|
Vendor |
Miles |
Time (Hours) |
Cost |
|
|
|
|
|
|
|
|
S.T. Wooten Corp. |
8,800 |
256 |
$13,439 |
|
|
|
|
|
|
|
|
Riley Paving Co. |
15,950 |
394 |
$22,991 |
The calculation is based on Paragraph 2, entitled "Special Terms and Conditions, of the bid proposal. In this section, it was stated that travel costs would be calculated and considered as part of the total cost. When the travel costs are calculated, the comparative costs of the two responsive bids are as follows:
|
|
Asphalt |
Transportation |
|
|
Bidder |
Bid |
Cost |
Total Cost |
|
|
|
|
|
|
S.T. Wooten Corp. |
$114,200 |
$13,439 |
$127,639 |
|
|
|
|
|
|
Riley Paving Co. |
$106,900 |
$22,991 |
$129,891 |
Therefore, we conclude that the total bid of S.T. Wooten Corp. in the amount of $114,200 is the most favorable to the Town.
The contract permits an adjustment to the quantity by 25 percent less or more than we estimated. With this permissible adjustment, the quantities acquired will be adjusted and our actual expenditures would remain within the amount budgeted by the Council.
This contract may be extended by one year if mutually agreeable to both the Town of Chapel Hill and S.T. Wooten Corp. at the same unit prices. If extended, the contract award would be within approved funding for Fiscal 2007-2008.
RECOMMENDATION
That the unit prices bid by S.T. Wooten Corp., as stated above, for asphalt and tack coat be accepted by adoption of the attached resolution.