Approval to award Bid No. 2025-038 for CDBG Residential Rehabilitation for 2803 Avenue M, Fort Pierce, FL to De La Hoz Builders, Inc. for an amount not to exceed $91,469.00.

The Grants Division, in coordination with the Purchasing Division, initially advertised this project for competitive bidding in June 2023 in accordance with applicable procurement requirements. At that time, the maximum allowable award for CDBG Residential Rehabilitation projects was capped at $50,000.00. Due to the extensive scope of work required, projected rehabilitation costs exceeded the allowable funding threshold, and no award could be made.

Subsequently, the applicant reapplied for CDBG Residential Rehabilitation funding in 2024 and was awarded under the revised funding limits approved by the City Commission, increasing the maximum allowable award to $100,000.00. The project was rebid in June 2024 and awarded to Andros Roofing Construction LLC. In October 2024, the contractor formally withdrew from the project due to increased workload and impacts associated with Hurricane Milton, requiring the City to cancel the award and re-initiate the procurement process.

During this period, an unforeseen bat infestation was identified at the property. In order to address health, safety, and environmental compliance requirements, the Grants Division engaged a licensed bat mitigation specialist at a cost of $2,230.00, reducing the available grant award to $97,770.00. Additionally, a mandatory HUD-CDBG environmental review was completed at a cost of $4,395.00, further reducing the remaining grant funding to $93,375.00.

The project was advertised for bid a third time in March 2025 and received four responses. Two bids exceeded the remaining grant amount and did not provide sufficient capacity to accommodate potential change orders. The remaining two bidders were unable to obtain the required performance and insurance bonds, as mandated by procurement and grant compliance requirements, and were therefore deemed non-responsive.

In October 2025, the project was rebid for a fourth time, resulting in five submitted bids. One bidder was deemed non-responsive. Upon request for references, the two lowest bidders failed to provide the required documentation within the prescribed timeframe. Consequently, the fourth-lowest bidder was determined to be the lowest responsive and responsible bidder.

After multiple competitive procurement efforts and thorough review in compliance with HUD-CDBG regulations and City procurement policies, the Grants Division recommends awarding of the contract to De La Hoz Builders in an amount not to exceed $91,469.00, as the lowest responsive and responsible bidder meeting all programmatic, financial, and compliance requirements.

De La Hoz Builders initially submitted a bid of $99,873.00. However, due to the grant funding constraints available for this residence, staff contacted the intended awardee and mutually agreed to remove certain items from the scope of work (see attached Revised Bid Response Form) to achieve the revised award amount.

Staff recommends approval of Bid No. 2025-038 - CDBG Residential Rehabilitation of 2803 Avenue M, awarding the project to the fourth-lowest responsive bidder, De La Hoz Builders, Inc. in an amount not to exceed $91,469.00.

Award to alternative bidders or request new bids.

Donnella Clarke, Grants Manager, City of Fort Pierce

Gelencia Carter, Purchasing Division Manager