Staff recommends the City Council award a contract for W.O. 22-03 Contract No. 2 City Chip Seal to Hardrives Construction, Inc. in the amount of $1,355,014.24.

The City Chip Seal project is part of the ongoing Street Preventative Maintenance Program supported by the City Council since 1985. Annually, staff identifies streets proposed for preventative maintenance that includes pavement patching, chip/scrub seal resurfacing, overlay resurfacing, and crack sealing. Chip/scrub sealing is an economical surface treatment designed to protect and prolong the life of the pavement and is typically used on local, collector, and low traffic volume arterial streets. This contract will chip/scrub seal approximately 21 miles of streets throughout the City. The attached map shows the locations of the proposed work. The contract was advertised on January 14, 21, 28 and February 4, 2022, in The Yellowstone County News and on the City's website. Staff opened bids on February 8th, 2022, for W.O. 22-03 Contract No. 2 City Chip Seal. There was one bid received.  Hardrives Construction, Inc. submitted the lowest responsible bid. Their bid is below the engineer's opinion of probable cost and the unit prices are competitive for the type of work being performed.
 

City Council may:

• Award W.O. 22-03 Contract No. 2 City Chip Seal, to Hardrives Construction, Inc. in the amount of $1,355,014.24.; or,
• Do not award a contract and reject all bids. If the contract is not awarded, the streets planned for maintenance will continue to degrade.

The following bids were received:

Contractor	Contract Amount
Hardrives Construction, Inc.	$1,355,014.24

The project was budgeted in FY22 using Gas Tax funds. The budgeted amount is sufficient to award this project.