Title
Approval of Amendment No. 2 to Services Agreement AGR22-18a with All-Rite Construction, Inc.; AGR22-18c with GME General Building, LLC; AGR22-18d with Pluma, LLC; and AGR22-18e with R and M Construction LLC for On-Call Facility Construction Services in an Aggregate Amount Not to Exceed $21,000,000 Plus Applicable Gross Receipts Tax
Recommended Action
I move that Council approve Amendment No. 2. to Services Agreement No. AGR22-18a with All-Rite Construction, Inc.; AGR22-18c with GME General Building, LLC; AGR-22-18d with Pluma, LLC; and AGR22-18e with R and M Construction LLC for On-Call Facility Construction Services in an Aggregate Amount Not to Exceed $21,000,000 Plus Applicable Gross Receipts Tax.
County Manager's Recommendation
The County Manager recommends that the Council approve the motion as presented.
Body
On August 29, 2021, the County advertised a formal multi-source competitive solicitation for on-call facility-related construction services through Request for Proposals No. 22-18. There were five separate contracts considered in the award.
On February 1, 2022, Council approved Agreements AGR22-18 a, b, c, d, and e for an aggregate amount not to exceed $4,000,000.00 for a seven-year term through 2029. The contractor under AGR22-18b requested termination of the contract with the County which was granted. The remaining construction firms with current agreements include All-Rite Construction, Inc., GME General Building, LLC., Pluma, LLC, and R and M Construction, LLC.
On May 8, 2024, Council approved Amendment No. 1 to AGR22-18, increasing the total compensation to $10,000,000 for Agreements a, c, d, and e. Since that approval, the demand for construction services has continued to rise and is rapidly approaching the $10,000,000 limit. The agreement term remains unchanged and continues through 2029.
Staff is requesting County Council approval of Amendment No. 2 to all four agreements to increase the aggregate not-to-exceed amount to $21,000,000, excluding New Mexico gross receipts tax (NMGRT). These Amendments are provided as Attachments A through D and have been reviewed by the County Attorney's Office.
Work undertaken with these agreements includes construction, renewals, upgrades, improvement, renovations, remodels, and demolitions of major building elements, and their ancillary sub elements, such as substructure, shell, interiors, HVAC, plumbing, electrical, fire protection, equipment and furnishings, and special construction.
These Agreements have been utilized to meet the construction needs of many County Departments. For instance, the Departments of Public Utilities and Community Services have utilized these agreements to complete construction projects such as the Hilltop House Demolition, the Abiquiu Hydroelectric Plant Office Renovation, Wastewater Treatment Plant Exterior Sidewalk and Interior Floor Repairs, Brewer Arena Renovations and ADA Improvements, Ashley Pond Electrical Upgrades for Food Vendors.
The Los Alamos County owns, operates, and maintains 47 buildings, maintaining or improving the operation of these buildings to their original design intent involves renewals, repairs, renovations, remodels, upgrades, and on occasion demolition. Like any other commercial building owner, the County requires ready access to the services of licensed and bonded construction firms to perform these related Major Facilities Maintenance (MFM) and Capital Improvement Projects (CIP) in a timely manner. In addition, the County may require expedited access to construction services to perform unexpected and urgent facilities repairs.
Several shovel-ready projects are proposed to utilize this Agreement for construction services. For instance, the Department of Public Utilities will be requesting approval of a Task Order to construct the foundation piers for the White Rock Electrical Substation (possible item on April 7, 2026 Council agenda). This is a critical project that will restore and improve the redundancy of White Rock’s electric distribution system. In another separate but related item on the March 31, 2026 agenda, the County’s Sustainability Manager is requesting approval of a Task Order to install Level 3 Electric Vehicle Charging stations at the Mesa Public Library parking lot. Other projects within the scope this agreement include the demolition of three buildings along Longview Dr. as part of the Longview Dr realignment project, and HVAC Improvements at the Betty Ehart Senior Center.
An increase in the contract aggregate not to exceed amount will ensure the County can continue to respond to major maintenance needs, capital improvement projects, and urgent repairs in an expedient manner.
Alternatives
Council could choose to not approve these Amendments. However, this action will require a new solicitation for on-call construction services or multiple separate solicitations to procure construction services for future projects and will delay the completion of several projects programmed in the MFM and CIP.
Fiscal and Staff Impact/Planned Items
The aggregate compensation of Agreements AGR 22-81 a, c, d, and e are not to exceed twenty-one million dollars, ($21,000,000.00), excluding NMGRT, for a seven-year term that began February 2022 through February 2029. The Public Works Capital Projects & Facilities Division will manage these Agreements. Construction services procured through these Agreements will correspond to either a programed MFM or CIP project or other applicable departmental budget. No fiscal or staff impacts are anticipated.
Attachments
A - AGR22-18 a Amendment No. 2- All Rite Construction, Inc.
B - AGR22-18 c Amendment No. 2 - GME General Building, LLC
C - AGR22-18 d Amendment No. 2 - Pluma, LLC
D - AGR22-18 e Amendment No. 2 - R&M Construction
E - AGR22-18 a - e Amendment No. 1 to AGR 22-18
F - AGR22-18 a - e Executed Contract - AGR 22-18