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Request from the Department of Public Works Business Manager to execute a five-year contract for underground utility locating services with USIC Utility Locating, LLC in the amount of $230,000
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Submitted by:
Kristen Kilsdonk
Department:
Department of Public Works
A. Issue
The City is currently under contract with USIC Utility Locating, LLC (USIC) to provide underground locating and marking services in the City’s underground facilities. The contract expires at the end of 2023, so a new contract is needed at this time.
B. Background/Options
Due to the expiration of the underground utility locating contract and in preparation for the 2024 budget process, a request for proposal (RFP) was issued to obtain proposals. The following proposals were received:
USIC - $22.85 per ticket (5% increase over current rate)
Break Point Survey - $22.47 per ticket (3% increase over current rate)
UtiliSource - $60.00 per ticket (176% increase over current rate)
USIC was not the lowest bidder, however, the cost differential between the low bidder (Break Point Survey) and USIC is less than $4,000. Break Point Survey has recently entered the market in Wisconsin whereas USIC is established in our state and has been servicing the City of Wauwatosa for five years. As such, we are recommending that we proceed with award of a five-year contract with USIC for $230,000. We are seeking approval of the contract now in order to guarantee the costs as well as have the contract prepared and in place for the new term.
C. Strategic Plan (Area of Focus)
Infrastructure
D. Fiscal Impact
Actual costs will vary dependent upon the quantity of locates that need to be performed. The quantity of locate requests have increased due to larger infrastructure projects which impacts the costs in addition to rate increases. Utilizing our assumptions and historical averages we anticipate the new contract cost will result in an increase of $24,000 over the current contract and budget cost. This increase will be accounted for in the annual budget approval process.
E. Recommendation
Authorize the execution of a five-year agreement with two one-year renewal options with USIC for underground locating and marking services in the City’s underground facilities beginning January 1, 2024 for a fee of $230,000.