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Consent Agenda Item INDIAN RIVER COUNTY, FLORIDA DEPARTMENT OF UTILITY SERVICES r'"� ` Date: August 28, 2014 To: Joseph A. Baird, County Administrator From: Vincent Burke, P.E., Director of Utility Services Thru: Jennifer Hyde, Purchasing Manager 4a, Prepared By: Arjuna Weragoda, P.E., Capital Projects Manager AO Gordon Sparks, P.E., Environmental Engineer C, -5 Subject: Bid No. 2015001 Award Recommendation for Construction of Water, Sewer and Reclaimed Water Line Replacements/Extensions and Miscellaneous Annual Requirements Labor Contract, UCP #4103 DESCRIPTIONS AND CONDITIONS: The Department of Utility Services has used outside Utility Contractors to complete a large number of projects of varying sizes for over 13 years. These contractors have performed the work under annual or bi-annual labor contracts awarded to them by the Board of County Commissioners. The need for the Labor Contracts has mainly been as the result of: 1) the urgent nature of some projects and the lack of available staff due to heavy project Toads; 2) the lack of specialized equipment or materials; and/or 3) lack of special or very technical skills. The use of the labor contractors has eliminated the requirement of hiring additional personnel or purchasing special equipment, which in turn has saved the County a great deal of money. Many municipalities and counties use the labor contracts for these reasons. The basic concept of the Labor Contract is that one or more contractors are selected based on a public bid for furnishing labor only for a list of selected construction related items. The list of construction related items was prepared to represent what is normally encountered by the Utility Department in conducting its business. It is updated for each re -bid based on past experiences. The County in turn direct purchases materials for these labor items and individual Work Authorizations are prepared which outline specific construction projects. These projects have ranged in complexity from simple tasks such as installing or replacing water meters to larger pipeline replacement/installation projects. The dollar amount of these Work Authorizations has ranged from several thousand dollars to several hundred thousand dollars, with the larger ones being associated with the roadway improvement projects. For projects with labor costs of more than $100,000, a Public Construction Bond is required. On September 7, 2010 the Board of County Commissioners awarded the present Labor Contract to Melvin Bush Construction, Inc. and Derrico Construction Corporation for a period of two (2) years. The contract was renewed for two one-year periods with Melvin Bush Construction, Inc. The second one-year period ends on September 30, 2014, so the purpose of this agenda item is to select two (2) Labor 19I