Title
Approval of Services Agreement No. AGR25-976 with Sunland Asphalt & Construction, LLC in an Amount Not to Exceed $1,000,000 plus Applicable Gross Receipts Tax for On-Call Roadway Repair and Construction Services through December 31, 2025
Recommended Action
I move that Council approve Services Agreement No. AGR25-976 with Sunland Asphalt & Construction, LLC in an amount not to exceed $1,000,000 plus applicable gross receipts tax for On-Call Roadway Repair and Construction Services.
County Manager's Recommendation
The County Manager recommends that Council approve the motion as presented.
Body
To maintain progress with the county-wide pavement preservation efforts, improve the county’s overall pavement condition indices, and keep up with ongoing road repair needs, the services of qualified contractors are required to assist Public Works staff with a variety of pavement maintenance methods that include asphalt patching, slurry seals, micro-seals, and crack sealing to name a few.
The procurement of road repair and construction services complies with Section 31-3(b)(4) of the County Procurement Code as Sunland Asphalt & Construction LLC. is a party to Price Agreement No. 2023-08-C319-ALL with the Cooperative Education Services (CES). Through CES, the contractor has competitively bid a price agreement for on-call paving and site work, which meets the same standard and specifications as the services and construction required by Los Alamos County. The agreement considered for approval is included as Attachment A.
This contract is a Task Order-based contract with a term that will commence June 11, 2025, and shall continue through December 31, 2025, unless sooner terminated. Compensation for task orders shall not exceed a combined total of $1,000,000 plus applicable gross receipts tax. The term is short as the contractor is aligning the contract term with the end of their current CES Agreement on which the pricing is based. Sunland Asphalt & Construction provides roadway pavement preservation services not currently provided by other on-call contracts that are desired to be completed by the end of this calendar year such as a proposed slurry seal of Grand Canyon Ave. in White Rock.
As the Public Works Department identifies a need for asphalt and construction services, funds will be identified, and a task order will be properly approved and issued. Sunland Asphalt & Construction LLC is solely responsible for the means, methods, and processes for completing the agreed tasks. Project schedules, price, and completion dates shall be determined on a project-by-project basis as outlined in an approved Task Order and shall be dependent upon the urgency of the task issued. The Contractor may be requested to perform any or all of the services and tasks in phases and as agreed to in a written Task Order. The Contractor shall be paid in accordance with the rate schedule provided in Exhibit “A” of the agreement.
Task order signature approval is based on the associated compensation limits established in the Procurement Code. If a Task Order exceeds $300,000, the task order will be taken to Council for approval. There is no obligation to offer a minimum amount of work or compensation to the Contractor. Staff will be responsible for tracking the expenditure of all task orders to ensure that contract limits are not exceeded. Other County Departments may also utilize the on-call contract as needed.
Alternatives
Council could choose to not approve this Agreement, and staff would then follow alternate procedures of the Procurement Code to seek on-call road repair services. This alternate would delay the preservation of the county’s road infrastructure.
Fiscal and Staff Impact/Planned Item
The aggregate compensation of all task orders issued under the agreement shall not to exceed the sum of one million dollars ($1,000,000), excluding New Mexico gross receipts taxes (NMGRT) for the entire term. The County shall pay compensation for the performance of the services in accordance with each issued task order through applicable and properly appropriated funding sources.
Compensation shall be paid in accordance with the rate schedule set out in Exhibit "A," of the agreement.
The Public Works Traffic and Streets Division will be the primary user of the services in this agreement. Task orders will primarily utilize approved Traffic and Streets budget. Other funding sources will be identified in cases where other County Departments wish to use the services of this agreement. The Public Works Department will manage this agreement.
Attachments
A - AGR25-976 Sunland Asphalt & Construction, LLC