TO: Mayor and City Commission
FROM: Cale Curtis, City Manager
DATE: December 4, 2024
Title
A RESOLUTION OF THE CITY OF MARGATE, FLORIDA, AUTHORIZING THE TERMINATION OF NEGOTIATIONS THAT WERE UNDERTAKEN WITH PRIMORIS ENERGY SERVICES CORPORATION PURSUANT TO RESOLUTION 24-048 AND REQUEST FOR QUALIFICATIONS (RFQ) NO. 2024-008 - DESIGN/BUILD SERVICES FOR THE WEST WASTEWATER TREATMENT PLANT (WWTP) UPGRADES; PROVIDING FOR AN EFFECTIVE DATE.
BACKGROUND: The City of Margate Department of Environmental and Engineering Services (DEES) issued Request for Qualifications (RFQ) No. 2024-008 on April 5, 2024, seeking Design/Build Services for the West Wastewater Treatment Plant (WWTP) Upgrades.
This capital improvement project aims to improve treatment processes, expand plant capacity from 10 to 12 million gallons per day (MGD), and ensure the continued performance and reliability of the City’s wastewater treatment system.
On June 20, 2024, the City Commission adopted Resolution No. 2024-048, authorizing the Administration to negotiate a design/build agreement with the top-ranked firm, Primoris Energy Services Corporation, for the West WWTP Upgrades project.
The negotiations with Primoris Energy Services Corporation commenced on July 2, 2024, and concluded after four months, with the final meeting held on October 31, 2024, during which a total of 12 meetings and site visits were conducted to evaluate and discuss the project.
On November 12, 2024, Primoris Energy Services Corporation submitted a final response that was inconsistent with the Design Criteria Package (DCP), exceeded the City’s budget, and diverged from the cost evaluations provided. Additionally, the response recommended alternative delivery approaches that were not supported by the current RFQ.
It is not in the City’s best interest to continue negotiations with Primoris Energy Services Corporation. By terminating the negotiations, the City will be able to explore alternative strategies to deliver this critical project in alignment with its objectives and budget.
RECOMMENDATION: Approval
FISCAL IMPACT: None
CONTACT PERSON: Curt Keyser, DEES Director
Spencer L. Shambray, NIGP-CPP, CPPB, Purchasing Manager