Background:
The Utilities Department, Gas Division requires an underground gas distribution contractor to furnish labor, equipment, and materials for commercial main extensions and service line installations; system reinforcement main installations; repairs and/or replacement of natural gas main and service lines; and to provide emergency response after-hours support, on an as-needed basis.
In order to meet these needs, the City issued BID 25-75-08-MS and two responses were received on October 2, 2025. Staff evaluated the responses and recommend award to the lowest responsive and responsible bidder, Mears Group, Inc. The lowest bidder, Solar Champs LLC dba Champs Pro Services, was deemed non-responsive because they failed to provide minimum qualification information, per bid document requirements.
In accordance with Section 5-173(d) of the Code of Ordinances, if fewer than two (2) responsive bids or proposals for commodities or contractual services purchases are received, the department may negotiate on the best terms and conditions. Staff met with Mears Group, Inc., the only responsive and responsible bidder, to conduct negotiations which resulted in a 10.7% overall price reduction.
Although the City has previously had a contract for these services, the pricing is not comparable because of changes in scope and line items. Two bid items are for a one-time private development project that was not part of the prior contract, which costs would be borne by the developer. When evaluating the negotiated rates, staff has determined that Mears Group, Inc.’s pricing is fair and reasonable.
All references were favorable for Mears Group, Inc.’s performance on similar contracts with other entities. In addition, Mears Group, Inc. previously provided these services to the City and their performance was satisfactory. Staff recommends award to Mears Group, Inc.
The initial award will be for a three-year period, commencing on November 28, 2025. The City reserves the right to renew the award for two additional one-year periods. Pricing for the initial term shall remain fixed, pricing for subsequent years and any extension year shall be subject to an adjustment, only if increases occur in the industry, in accordance with the Consumer Price Index (CPI) as promulgated by the Bureau of Labor Statistics, US Department of Labor in an amount not to exceed 5%.
Sunrise vendors listed in the Business Tax License directory were solicited. However, the vendor that downloaded the document does not perform this type of work.