BACKGROUND: The Department of Public Utilities entered into three contracts with Decker Construction Company for the Utility Cut and Restoration Project, which includes heat welding, asphalt repairs, and concrete repairs. These contracts were the result of Director's bids received in March 2005. Decker Construction Company was the only bidder for the heat welding and asphalt repairs, and was the lowest responsive, responsible, and best bidder for concrete repairs. The original contracts were for a period of one year with an option to renew for two one-year extensions. Since the Department is pleased with their performance over the last year, we would like to modify the original contracts to enter into a third year, for a grand total of $1,090,000.00. The Contract Compliance Number for Decker Construction Company is 31-0983557. They do not have MBE/FBE status.
1. The amount of additional funds needed for these contracts is $1,090,000.00. The original contracts were established for $560,000.00. The total cost of the original contracts, the first modification, the second modification, the third modification, and this modification is $2,960,000.00. Modifications represent funding added during the contract period for increased cost related to the services provided. The need for increased funding is directly related to system repairs over and above those originally anticipated. The contract will not exceed three years, as originally specified, and will be rebid late in 2007.
2. The need for additional funds was known at the time of the initial contract, as this is an annual expenditure. This legislation is to encumber the funds budgeted for fiscal year 2007 for the Division of Power and Water and the Division of Sewerage and Drainage.
3. As mentioned above, the initial agreement allowed us to contract with the vendor for a total of three years. Since the Department has been pleased with their performance over the last year we would like to contin...
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