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File #: 2025-1133   
Type: Agenda Item Status: Passed
File created: 4/16/2025 In control: City Council
On agenda: 5/6/2025 Final action: 5/6/2025
Title: Approve award of contract to Precon Corporation for the construction of two ground storage tanks at Water Treatment Plant No. 2 in the amount of $4,959,872 plus a 10 percent contingency of $495,987, for a total expenditure of $5,455,859
Attachments: 1. FOR COUNCIL - Construction Services Agreement for Ground Storage Tanks at WTP #2 - Precon Corporation (CIP 250425), 2. Legal Ad, 3. BID TABULATION
Submitted By: Jimmy Lopez
presenter
Presentation By: Sean Lanier
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Department: Engineering

STAFF RECOMMENDATION (Motion Ready):
title
Approve award of contract to Precon Corporation for the construction of two ground storage tanks at Water Treatment Plant No. 2 in the amount of $4,959,872 plus a 10 percent contingency of $495,987, for a total expenditure of $5,455,859
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OCALA'S RELEVANT STRATEGIC GOALS:
Operational Excellence, Quality of Place

PROOF OF PUBLICATION:
Bid released to the public: 3/6/2025: Newspaper ad published 3/7/2025

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BACKGROUND:
This project consists of constructing two three-million-gallon (3MG) ground storage tanks (GST). These tanks (No. 1 and No. 2) will be located at the future Water Treatment Plant No. 2 (WTP#2) site for redundancy in our water availability throughout the City of Ocala (City). WTP# 2 is located at 3744 South Pine Avenue.

This project is partially funded through two cost-share agreements: No. 37150, approved by City Council on September 28, 2021, between the City and the St. Johns River Water Management District for the Lower Floridan Aquifer Conversion Phase 3 Project; and No. LPA0709, approved by City Council on September 19, 2023, between the City and the Florida Department of Environmental Protection for Phase V of the same project.

FINDINGS AND CONCLUSIONS:
On March 6, 2025, the City of Ocala issued Invitation to Bid (ITB) No. ENG/250425 for WTP#2 ground storage tank construction. On April 14, 2025, two bids were received on a lump sum basis as follows:




Precon Corporation (Precon) was found to be the lowest responsible and responsive bidder, with a total bid of $4,959,872. Staff requests a 10 percent contingency of $495,987 to allow the City Engineer to issue change orders to cover unforeseen conditions and other conflicts that may arise during construction. With the contingency, the total project budget shall not exceed $5,455,859.

Staff recommends awarding the contract for constructin...

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