Agenda 04/12/2022 Item #16A14 (Terminate Agreement #21-7852-ST w/Quality Enterprises, Inc.)04/12/2022
EXECUTIVE SUMMARY
Recommendation to terminate for convenience Construction Agreement No. 21-7852-ST, Bridge
Replacement-Bridge Package D-1 Bridge-Immokalee Road-Grant Funded, with Quality
Enterprises USA, Inc. (Project 66066).
OBJECTIVE: To obtain the Board’s approval to terminate for convenience Construction Agreement
No. 21-7852 ST, with Quality Enterprises USA, Inc.
CONSIDERATIONS: On July 13, 2021 (Agenda Item 16.A.27), the Board awarded Invitation to Bid
No. 21-7852-ST, Bridge Replacement-Bridge Package D-1 Bridge-Immokalee Road-Grant Funded, to
Quality Enterprises USA, Inc. (“QE”), in the amount of $2,664,776.70, to provide bridge construction
services. This bridge construction project is receiving a grant from the Florida Department of
Transportation (“FDOT”).
On February 4, 2022, QE notified staff it intended to request an increase in the contract price due to a
delay in issuing a Notice to Proceed to commence work on the project, and the resulting escalation in
costs related to materials, labor, and equipment since the July 13, 2021, date of the award of the contract.
Staff was delayed in the issuance of the Notice to Proceed as a result of issues related to FDOT’s role in
awarding a contract for Construction Engineering Inspection services (“CEI”) on this project. In short,
the delay resulting from FDOT’s failure to obtain CEI services for the project delayed the commencement
of the construction project.
On February 11, 2022, staff met with QE to discuss the issues related to its intent, an d it was agreed that
QE would provide a proposal identifying the cost escalation it sought. On February 24, 2022, QE
provided staff with a quote that the probable construction cost increase would be $321,000 (which is 12%
over the competitively bid contract amount). QE offered to terminate the contract for convenience as an
alternative.
Staff reviewed and compared all bids submitted under ITB 21-7852 ST, to support justification for the
requested increase. Upon review. staff determined that the best option is to rebid the project to keep
market rates transparent rather than proposing to accept the price increase, especially when other
contractors might want to pursue similar cost relief at the expense of the County. This project is sales tax
and federally funded through a Local Agency Program grant administered by the FDOT, and staff notified
FDOT to ensure that taking this action is not an impediment to the grant awarded.
Accordingly, staff is requesting Board approval to terminate the Agreement for convenience as authorized
in Exhibit H., Section 19, which provides that the County may terminate the contract without cause upon
providing seven (7) calendar days of written notice to the contractor. A copy of the proposed written
notice to QE is attached.
FISCAL IMPACT: There is no fiscal impact associated with this action.
GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with this
action.
LEGAL CONSIDERATIONS: This item is approved as to form and legality and requires majority vote
for Board approval. -SRT
RECOMMENDATION: To terminate for convenience Construction Agreement No. 21-7852 ST,
Bridge Replacement-Bridge Package D-1 Bridge-Grant Funded, with Quality Enterprises USA, Inc. as
provided herein.
Prepared by: Marlene Messam, P.E., Principal Project Manager, Transportation Engineering Division.
ATTACHMENT(S)
1. 21-7852 Notice to Terminate ltr to QE signed (PDF)
16.A.14
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04/12/2022
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.A.14
Doc ID: 21872
Item Summary: Recommendation to terminate for convenience Construction Agreement No. 21-
7852-ST, Bridge Replacement-Bridge Package D-1 Bridge-Immokalee Road-Grant Funded, with Quality
Enterprises USA, Inc. (Project 66066).
Meeting Date: 04/12/2022
Prepared by:
Title: Project Manager, Principal – Transportation Engineering
Name: Marlene Messam
04/04/2022 3:53 PM
Submitted by:
Title: Division Director - Transportation Eng – Transportation Engineering
Name: Jay Ahmad
04/04/2022 3:53 PM
Approved By:
Review:
Transportation Engineering Jay Ahmad Additional Reviewer Completed 04/04/2022 3:56 PM
Procurement Services Ana Reynoso Level 1 Purchasing Gatekeeper Completed 04/04/2022 4:07 PM
Procurement Services Sandra Herrera Additional Reviewer Completed 04/04/2022 4:11 PM
Growth Management Department Trinity Scott Growth Management Department Completed 04/04/2022 4:18 PM
Procurement Services Sue Zimmerman Additional Reviewer Completed 04/04/2022 4:40 PM
Transportation Engineering Steve Ritter Additional Reviewer Completed 04/05/2022 7:25 AM
Growth Management Department Lisa Abatemarco Additional Reviewer Completed 04/05/2022 8:09 AM
Growth Management Department Gene Shue Additional Reviewer Completed 04/05/2022 9:22 AM
Growth Management Department Ellen Sheffey Growth Management Skipped 04/04/2022 4:26 PM
Grants Valerie Fleming Level 2 Grants Review Completed 04/05/2022 9:48 AM
Growth Management Department Trinity Scott Transportation Completed 04/05/2022 10:06 AM
County Attorney's Office Scott Teach Level 2 Attorney Review Completed 04/05/2022 4:09 PM
Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review Completed 04/05/2022 4:18 PM
County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 04/06/2022 8:24 AM
Office of Management and Budget Susan Usher Additional Reviewer Completed 04/06/2022 8:42 AM
Grants Geoffrey Willig Additional Reviewer Skipped 04/06/2022 11:13 AM
16.A.14
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04/12/2022
County Manager's Office Mark Isackson Level 4 County Manager Review Completed 04/06/2022 11:24 AM
Board of County Commissioners Geoffrey Willig Meeting Pending 04/12/2022 9:00 AM
16.A.14
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Procurement Services Division – 3295 Tamiami Trail East – Naples, Florida 34112-4901
www.colliercountyfl.gov/procurementservices
April 12, 2022
Quality Enterprises USA, Inc.
3494 Shearwater Street
Naples, FL 34117
Via Email: LGaudio@qeusa.com
RE: #21-7852-ST Bridge Replacement – Bridge Pkg D-1 Bridge –
Immokalee Rd – Grant Funded (the “Agreement”)
Notice to Terminate for Convenience
Dear Mr. Gaudio:
Staff is recommending to the Board of County Commissioners (Board) at its April 12, 2022,
meeting to exercise the termination for convenience provision provided in Exhibit H.,
Section 19, of the above-referenced Agreement, with an effective date of April 19, 2022.
Subject to the Board’s approval of Staff’s recommendation, this letter will serve as the
County’s 7-day Notice to Terminate for Convenience.
Should you have any questions regarding this termination notice please contact us at
(239) 252-8034.
Respectfully,
Sue Zimmerman
Procurement Contracts Manager
cc: Marlene Messam, Principal Project Manager
Jay Ahmad, Director, Transportation Engineering Division
Sandra Herrera, Director, Procurement Services
16.A.14.a
Packet Pg. 785 Attachment: 21-7852 Notice to Terminate ltr to QE signed (21872 : Recommendation to terminate for convenience Construction Agreement No.ZimmermanSue Digitally signed by
ZimmermanSue
Date: 2022.04.04 12:09:11 -04'00'