Title
A Resolution Of The City Commission Of The City Of Hollywood, Florida, Authorizing The Appropriate City Officials To Issue A Purchase Order To A To Z Metal Fabrication, Inc. For Construction Services Related To The Water Treatment Plant Spiractor Repairs In The Amount Of $175,010.00 (City Project No. 16-4106); Exempting The Contractor From Executing A Payment And Performance Bond.
Body
Staff Recommends: Approval of the Attached Resolution.
Explanation:
On July 6, 2016, the City Commission adopted Resolution No. R-2016-206 canceling Bid No. 16-4106 and approving an agreement with A to Z Metal Fabrication, Inc. for construction services related to the water treatment plant spiractor repairs in the amount of $175,010.00.
Resolution No. R-2016-206 stated that the bid was canceled because the sole bidder, A to Z, did not comply with the bid bond requirement contained in the bid documents.
In its bid, A to Z stated that it would not comply with the payment and performance bond requirements if it were to be awarded the contract.
Resolution No. R-2016-206 awarded the contract to A to Z under the "best interest" exemption from the competitive bid requirements of the Purchasing Ordinance.
Florida Statute Section 255.05 requires any person entering into a construction contract with the City to execute and record a payment and performance bond, unless the contract is for $200,000 or less and the official or board awarding the contract exempts such person from executing a payment and performance bond.
The Administration intended that A to Z be exempted from the payment and performance bonds requirement, but miscommunication among the individuals involved in preparing Resolution No. R-2016-206 resulted in the omission of the necessary language.
Resolution No. R-2016-206 authorized the execution of a standard construction contract, but when payment and performance bonds are not required, it is customary to use a purchase order instead of a construction con...
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