Subject
title
Award and Authorize the City Manager to Execute Contracts Responsive to IFB #26-25 for Water Main Rehabilitation Program - Externally Funded Projects
end
Department
PW - Engineering
Recommendation
Staff recommends that the Mayor and Council award, and authorize the City Manager to Execute, contracts responsive to IFB #26-25 for Water Main Rehabilitation Program - Externally Funded Projects as follows: Sagres Construction Corp. of Alexandria, Virginia and Crown Construction Services, Inc. of Temple Hills, Maryland, in an aggregate amount not to exceed $25,000,000.00 for water main rehabilitation services for a term beginning on the Effective Date and shall expire after one (1) year, with authority for the Purchasing Agent to exercise an option to extend for a period of an additional 12 months, and four annual renewals within a total not-to-exceed amount of $25,000,000.00, to be split between two contractors, for water main rehabilitation services.
Discussion
This IFB #26-25 is for construction of water main replacements as part of the Water Main Rehabilitation Program (210-850-UE26; Attachment 1). Water main replacement projects will replace pipes, water house connections, fire hydrants and valves throughout Rockville. The goal of this program is to ensure an infrastructure renewal cycle of approximately 100 years, which is the equivalent to 1 percent of the 175-mile water distribution system per year.
Department of Public works has received a significant amount of external funding, and this contract will ensure that requirements dictated by that funding will be included. The amount of this award will also allow the City to utilize this contract for any future externally funded work.
In order to inhibit internal and external corrosion, the new water mains will be cement lined ductile iron pipe with a polyethylene wrap encasement. Within the project limits, all water house connections will be assessed and replaced if the flow is inadequate or if there is a presence of lead; all fire hydrants will be replaced and painted consistent with the National Fire Protection Association guidelines.
Staff has successfully used a contract of this type since 2008.
In October of 2023, two water main rehabilitation projects were awarded funding through Maryland Department of Environment’s (MDE) Drinking Water State Revolving Fund (DWSRF) for total of $6,065,440 in loans that includes $1 million in loan forgiveness. The following year, an additional water main rehabilitation project was awarded $3,220,000 with $805,500 in loan forgiveness through the DWSRF. All loan funds that are not forgiven will be re-paid according to loan agreement using funds from the Water Main Rehabilitation Program (210-850-UE26; Attachment 1).
In March of 2024, President Biden signed the six bill FY24 Appropriations "minibus" that contained over 6,000 earmarks, including a $959,752 earmark for additional water main work in Rockville’s Disadvantaged Community census tract. This earmark will be administered by the Environmental Protection Agency (EPA).
The current contract (#01-22) does not include the additional language that is required by external funding through MDE and the EPA.
Once specific designs are complete, DPW will submit full construction packages to the external agencies for approval. When the external agencies have approved the construction packages, then loan/grant agreements will require Mayor and Council approval prior to the authorization of work under this contract.
Mayor and Council History
This is the first time this item has been brought before the Mayor and Council.
Public Notification and Engagement
Commercial properties and residents will be notified via neighborhood advisories at least two weeks in advance of construction. Additionally, service customers are provided two weeks’ notice if a temporary interruption of service is planned.
Procurement
Staff prepared and publicly advertised Invitation for Bids #26-25 on July 7, 2025, in accordance with Rockville City Code section #17-61. IFB #26-25 was posted on the city website and electronically provided to 82 prospective bidders via the State of Maryland e-Marketplace Advantage (eMMA) system. Of the 82 prospective bidders, using the systems reporting capabilities, four were Disadvantaged Business Enterprises (DBE), five were Minority Business Enterprises (MBE), and two were Veteran-Owned Small Business Enterprises (VSBE).
Sealed bids were received and opened on September 3, 2025. The following bids were received:
|
Vendor Name |
MFD Status |
Vendor Location |
Bid Table A |
|
Sagres Construction Corporation |
Non-MFD-V response |
Alexandria, VA |
$ 4,967,500.00 |
|
Crown Construction Services, Inc. |
Non-MFD-V |
Temple Hills, MD |
$ 5,822,250.00 |
|
ECM Corporation |
MFD-V |
Severn, MD |
$ 6,898,600.00 |
|
J. Fletcher Creamer & Son, Inc. |
Non-MFD-V |
Hackensack, NJ |
$ 9,446,385.00 |
|
Pessoa Construction Company |
MFD-V |
Fairmont Heights, MD |
$ 9,657,710.00 |
|
Anchor Construction Corp. |
Non-MFD-V |
Washington, DC |
$ 9,741,885.00 |
|
Mid-Atlantic Utilities, Inc. |
Non-MFD-V |
Carlyle, PA |
$ 10,093,125.00 |
|
Ross Contracting Inc. |
Non-MFD-V |
Mt, Airy, MD |
$ 14,002,520.00 |
|
|
|
|
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The bid amounts shown above were based on estimated quantities and used for bid evaluation purposes only. The bid amounts include labor only and do not include water main material pricing.
The awarded contractors must obtain three material quotes prior to the purchase order issuance for each individual project. Total payments will not exceed an aggregate amount of $25,000,000, to be split between two recommended contractors. Staff will develop individual projects (streets) for the contractors to construct and assign tasks via work authorization letters. Payment and performance bonds will be required for each assigned task.
In accordance with Rockville City Code, Section 17-39(a), Awarding Authority, all contracts involving more than two hundred and fifty thousand dollars ($250,000) shall be awarded by the Mayor and Council.
Staff reviewed all references and confirmed four references for Sagres Construction Corp. and three references for Crown Construction Services, Inc. The remaining references provided by both contractors were unresponsive. All references that staff were able to confirm were found to be acceptable.
To view the Sagres Construction Corp. contract see Attachment 2 and to view the Crown Construction Services, Inc. contract see Attachment 3.
To view all contract documents, please click the link provided below:
<https://rockvillemd.legistar.com/View.ashx?M=AO&ID=176364&GUID=599b7301-3889-40b5-ae4d-b5aa2a9296eb&N=SUZCIDI2LTI1IChBR0VOREEgSVRFTSkgKENPTlRSQUNUIFBBQ0tFVCkgKDA1LTA0LTI2KS5wZGY%3d>
Fiscal Impact
Funding for this contract is provided through the Water Main Rehab & Improvement: FY26-FY30 (UE26) CIP project. Future funding for the continuation of this program will be provided through the Water Main Rehab & Improvement: FY26-FY30 (UE26) project, subject to Mayor and Council budget approval.
Next Steps
Upon Mayor and Council award, the Procurement Department will obtain insurance certificates, appropriate contract signatures, and issue contract packets to the recommended, low bid contractors listed above.
Following approval of plans by external agencies, Mayor and Council will need to enter into funding agreements with these agencies.