In May 2014, after a competitive bid process, the Village Board awarded a three-year contract to Schroeder Asphalt Services of Huntley, Illinois for roadway repairs using Hot Mix Asphalt Repairs (HMA). The contract is set to expire at the end of January of 2018. HMA contracts are an important tool for Public Works to maintain asphalt throughout the Village and extend the life of our streets. This contract enables various units within Public Works to complete HMA repairs on driveway aprons and roadways, related to utility excavations and general roadway deterioration. 

In accordance with Village purchasing guidelines, Staff can request yearly contract extensions up to the original term of the contract. Public Works is requesting Village Board approval to extend the existing contract for Hot Mix Asphalt for one year, which will be the second of three possible one-year extensions. This extension would begin in February of 2018 and conclude in January of 2019. This contract would be extended with no increase to unit prices from last year.

If this contract is rebid, the chances for unit price increases are high, as these rates are primarily labor-based and hourly rates have increased over the last three years. While the total costs are dependent on the actual quantities used, Public Works expenditures will not exceed the budgeted amount. The bidder has been determined to be responsible and the contract extension meets specifications.

RECOMMENDATION

It is recommended that the Village Board award a one-year contract extension to Schroeder Asphalt Services of Huntley, Illinois, at bid unit prices, up to the budgeted amount. It is further recommended to authorize execution of all necessary documents.