Staff recommends the City Council award a contract for W.O. 26-03 Contract 2 City Chip Seal to Hardrives Construction, Inc. in the amount of $1,896,007.60.

The Contract 2 City Chip Seal project is part of the City of Billings’ ongoing Street Preventative Maintenance Program, which preserves pavement and extends roadway life through treatments such as chip sealing, scrub sealing, crack sealing, and patching. The FY26 project includes chip seal work at multiple locations across the city to protect existing pavement and slow deterioration. Following a competitive bidding process, Hardrives Construction, Inc. submitted the lowest responsible bid at $1,896,007.60. Staff recommends awarding the contract to Hardrives Construction, with the project funded through FY26 Street Maintenance District II and Street/Traffic operations and maintenance funds.

The Contract 2 City Chip Seal project is part of the City's ongoing Street Preventative Maintenance Program, which has been in place since 1985. Each year, City staff identifies streets for preventative maintenance and pavement preservation, including pavement patching, chip seal and scrub seal resurfacing, mill and overlay resurfacing, and crack sealing. Chip sealing, scrub sealing, crack sealing, and patching are cost-effective surface treatments designed to protect and extend the life of a pavement by addressing cracking, raveling, and oxidation. These treatments reduce water intrusion and slow overall pavement deterioration. 

Contract 2 City Chip Seal is the second of several street preventative maintenance projects planned in FY26. The project was bid with a base bid and three additive alternates. The attached maps show the locations of the proposed work.

The contract was advertised on February 6, 13, 20, and 27, 2026, in the Yellowstone County News and on the City's website. Staff opened bids on March 3, 2026. Two bids were received. Hardrives Construction, Inc. submitted the lowest responsible bid.

The following bids were received:

Contractor	Total
Hardrives Construction, Inc.	$1,896,007.60
Knife River Billings	$2,282,891.80

The project was budgeted in FY26 using Street Maintenance District II funds in the amount of $4,300,000. An additional $250,000 in Street/Traffic operations and maintenance funds was allocated to the project for multi-use trail maintenance along arterial streets. After accounting for previously obligated pavement overlay work and this contract, approximately $200,000 remains available for construction inspection and additional pavement preservation projects.

City Council may:

• Award W.O. 26-03 Contract 2 City Chip Seal, to Hardrives Construction, Inc. in the amount of $1,896,007.60; or
• Not award a contract and reject all bids. If no contract is awarded, the streets and multi-use trails identified for maintenance will continue to deteriorate, resulting in higher future costs due to deferred maintenance.