Title
Dept/ Agency: Water and Sewer Utilities
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Type of Service: Bid Contract
Purpose: To provide Emergency Repair of Sewers - Contract No. 01-WS2024
Entity Name: Underground Utilities Corporation
Entity Address: 711 Commerce Road, Linden, New Jersey 07036
Contract Amount: Not to Exceed $ 3,794,160.00
Funding Source: 2024 Budget/Department of Water and Sewer Utilities/NW038-00-8003-A-71970-B2024
Contract Period: 730 calendar days from the date of the issuance of a written Notice to Proceed
Contract Basis: (X) Bid ( ) State Vendor ( ) Prof. Ser. ( ) EUS
( X ) Fair & Open ( ) No Reportable Contributions ( ) RFP ( ) RFQ
( ) Private Sale ( ) Grant ( ) Sub-recipient ( ) n/a
Additional Information:
Bid Packages Distributed: Five (5)
Bids Received: Three (3)
body
WHEREAS, on May 28, 2024, the City of Newark, Department of Water and Sewer Utilities (the “Department”) advertised to solicit for contractor(s) to provide Emergency Repairs of Sewers in the City of Newark; and
WHEREAS, the Department distributed Five (5) bid packages to prospective vendors following the date of bid advertisement; and
WHEREAS, on June 12, 2024, the Department received three (3) bids for said project in accordance with the Local Public Contracts Law, N.J.S.A. 40A:11-1 et seq.; and
WHEREAS, on August 7, 2024, Municipal Council adopted Resolution 7R12-C authorizing the award of Contract No. 01-WS2024, Emergency Repair of Sewers, to Shauger Property Services, Inc. (“Shauger”) in the amount of Three Million, Six Hundred Forty-Eight Thousand, Four Hundred Fifty Dollars and Zero Cents ($3,648,450.00); and
WHEREAS, on the same day just hours before the Municipal Council meeting commenced, Shauger submitted a letter to the Department requesting to withdraw its bid asserting a cost item error in its bid if used would cause financial irreparable harm to their company; and
WHEREAS, the request failed to comply with requirements of N.J.S.A. 40A:11-23.3, the initial being that the request be made within 5 days of the receipt of bids which then triggers additional requirements for both bidder and municipality before the City can grant the request to withdraw the bid; and
WHEREAS, the Department cannot legally act on Shauger’s request and continue to seek that they execute the properly awarded contract; and
WHEREAS, on November 1, 2024, the Department received a letter, with $20,000.00 company check from Shauger withdrawing its bid and paying the penalty of forfeiting its Bid Guarantee; and
WHEREAS, the Department returned the company check because Shauger’s bid was guaranteed by a Bid Bond guaranteed by Swiss Re Corporate Solutions AIC not a company check, as such, the Department submitted a notice of claim with Swiss Re Corporate Solutions AIC (a copy is attached); and
WHEREAS, Underground Utilities Corporation 711 Commerce Road, Linden, New Jersey 07036, submitted the second lowest responsive and responsible bid, according to the specifications in the total amount of Three Million, Seven Hundred Ninety Four Thousand, One Hundred Sixty Dollars and Zero Cents ($3,794.160.00); and
WHEREAS, the Department wishes to accept the second lowest responsible bid submitted by Underground Utilities Corporation, on June 12, 2024, and execute Contract 01-WS2024 for Emergency Repair of Sewers with Underground Utilities Corporation., for the total amount not to exceed Three Million, Seven Hundred Ninety Four Thousand, One Hundred Sixty Dollars and Zero Cents ($3,794,160.00); and
WHEREAS, this contract was solicited and awarded pursuant to the provisions of the Local Public Contracts Law, N.J.S.A. 40A:11-1 et seq., as a public bid, which constitutes a Fair and Open Process.
NOW, THEREFORE, BE IT RESOVLED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY THAT:
1. The Mayor of the City of Newark and/or his designee, the Director of the Department of Water and Sewer Utilities, are authorized to enter into and execute Contract 01-WS2024 for Emergency Repair of Sewers, with Underground Utilities Corporation, 711 Commerce Road, Linden, New Jersey 07036, for a total amount not to exceed Three Million, Seven Hundred Ninety Four Thousand, One Hundred Sixty Dollars and Zero Cents ($3,794,160.00), the lowest responsible bidder for a period of 730 calendar days, commencing from the date of the issuance of a written Notice to Proceed.
2. Attached hereto is a partial Certification of Funds from the Chief Financial Officer, which states the funds in the amount of $1,000.00, are available in the Department of Water and Sewer Utilities Budget under Business Unit NW038, Department ID 800, Division 8007, Account 71970 B2024. Pursuant to N.J.A.C. 5:30-5.5(d)1(ii) Multi-year Contracts, the Director of the Department of Water and Sewer Utilities is authorized to extend the contract to the full value of $3,794,160.00 when additional funds in the amount of $3,784,160.00 are certified from the 2024, 2025 and 2026 Budgets of the Department of Water and Sewer Utilities in accordance with the time at which the respective work or services are performed or liability for payment incurred. A copy of the Certification of Funds shall be filed in the Office of the City Clerk.
3. There shall be no amendment or change to the contract without approval by the Municipal Council.
4. There shall be no advance payment on this contract in accordance with N.J.S.A. 40A:5-16.
5. The Department of Water and Sewer Utilities shall file a fully executed copy of the contract and Notice to Proceed in the office of the City Clerk.
6. If required by State Law, the City Clerk shall provide the appropriate notice of the award of this contract to the State Comptroller no later than twenty (20) business days following such award, in accordance with N.J.S.A. 52:15C-10 and the Notice of the Office of the State Comptroller dated May 7, 2008.
STATEMENT
This Resolution authorizes the Mayor of the City of Newark and/or his designee, the Director of the Department of Water and Sewer Utilities, to accept the second lowest responsible bid submitted by Underground Utilities Corporation, on June 12, 2024, and enter into and execute Contract No. 01-WS2024 for Emergency Repair of Sewers with Underground Utilities Corporation, 711 Commerce Road, Linden, New Jersey 07036, for the total bid amount of $3,794,160.00 for a period of 730 calendar days, commencing from the date of the issuance of a written Notice to Proceed.