To ratify an increase to the current awarded contract amount of $3,332,210 by $285,909, for a total contract amount of $3,618,119, for West Arterial Overlay - 2023, Project No. 7541, from Texas Materials Group, Inc. dba Texas Bit for the Public Works Department; and authorizing the City Manager to execute all necessary documents. (Contract No. 2023-0341-B; Change Order No. 1) Approved

On June 12, 2023, Council awarded a bid in the amount of $3,332,210 for West Arterial Overlay - 2023, Project No. 7541 to Texas Materials Group, Inc. dba Texas Bit.

Public Works recommends the approval of Change Order No. 1, increasing the current awarded contract amount of $3,332,210 by $285,909, for a total contract amount of $3,618,119 to Texas Materials Group, Inc. dba Texas Bit, for the West Arterial Overlay - 2023, Project No. 7541.

This change order is for additional quantities of material for unforeseen pavement repairs that were needed at the intersection of Dallas North Tollway and Plano Parkway. As concrete repairs were underway near the intersection, staff noticed that significant additional repairs were needed due to subgrade issues beneath the existing pavement.  The additional repairs needed to be performed immediately to ensure proper vehicle safety and maintain the overlay project schedule at Plano Parkway and the Dallas North Tollway.  Original project quantities were used to complete this repair, causing a shortage of quantities needed for other areas within the project scope. The contractor will hold current prices for the additional quantities needed to complete the project.

If this change order is not awarded at Council, the project will lack the necessary funds to complete the full scope of overlay in other areas later this year, which will result in elevated maintenance and replacement costs in the future.

The City is exempt from the competitive bid process for this expenditure as allowed by Texas Local Government Code Chapter 252 Subchapter B Section 252.022(a)(2). (Contract No. 2023-0341-B; Change Order No. 1)

Funding for this item is available in the 2023-24 Street Improvements CIP.  The first Change Order for the West Arterial Overlay - 2023 project, in the total estimated amount of $285,909, will leave a project balance of $49,452 for future expenditures.

Approval of this item will support the City's Strategic Plan Critical Success Factor of being an Excellent, Innovative, and Accountable City Government.