Amend Price Agreements with Interlaken, Inc., Titan Utilities and Iron Horse Excavation LLC, dba Oxbow Construction for $1,500,000 per agreement to provide additional construction services (amend Price Agreements 31002237, 31002238 and 31002239)

Price Agreements are a type of project delivery method for construction and repair/maintenance projects where Task Orders for a specific scope of work are negotiated under the master Price Agreement, using established rates for labor, equipment, and markups for overhead and profit on labor, equipment, material and subcontractor direct costs. The Council authorized an exemption to the competitive bidding requirements of ORS Chapter 279C and Portland City Code Chapter 5.34 via Ordinance No. 190487, passed on July 7, 2021. Accordingly, price agreements were competitively solicited and awarded for a not to exceed amount of $3,000,000. Additional services are required. The Bureau of Environmental Services recommends that Price Agreements No. 31002237, 31002238 and 31002239 with Interlaken, Inc., Titan Utilities and Iron Horse Excavation LLC, dba Oxbow Construction be amended to increase the compensation by $1,500,000 and extend the expiration date to July 1, 2025, per section 4 of the original Price Agreements. No revenues will be impacted by this Council action. This Council action does not change existing City policy.

Work performed under the Price Agreements will be funded by the Bureau of Environmental Services through annual appropriations within the Sewer System Operating Fund, Pump Station Improvement Program Shell (WBS Element E11280) and Rehab, Repair and Modifications Shell (WBS Element E04891) with the Bureau of Environmental Services’ FY 2021-25 Capital Improvement Plan (CIP).

The City of Portland has a core goal and objective to increase opportunities for local small and disadvantaged firms. Price Agreements save time and money by simplifying and expediting the procurement process and save on administrative costs. More projects are completed on time and on budget. The collaborative information sharing, detailed project scopes, and proven processes improve the quality of the work and speed of project delivery. Cost transparency is enhanced given the predetermined pricing. Each project cost is developed using the Price Agreement rates yielding full transparency and auditability. The deferred maintenance backlog is reduced. More projects are completed simultaneously per year. There are fewer change orders. Better communication improves project scope development and yields elimination of contractor-driven change orders.