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Council rescinds Volta award for switchgear building and awards contract to Blackstar Diversified
Summary
The Beaumont City Council rescinded a prior award to Volta LLC for switchgear pre-purchase at the wastewater treatment plant and approved awarding the contract to Blackstar Diversified Enterprises LLC after Volta failed to meet performance bond/surety requirements.
The Beaumont City Council on Sept. 16 rescinded an earlier contract award to Volta LLC for pre-purchase work on switchgear at the wastewater treatment plant and authorized a new award to Blackstar Diversified Enterprises LLC of New Orleans, Louisiana.
City staff told the council the previously recommended company, Volta LLC, could not provide required surety and construction bonds during contract execution. Because bonds are a stipulated requirement in the procurement documents, staff recommended withdrawing the award and awarding to the next responsive bidder.
Council voted to rescind resolution 25-156 and to award the contract to Blackstar Diversified Enterprises LLC in the amount stated in staff's reading of the agenda (transcripted as "in the amount of 2,000,000 to a $90,596"). Staff explained Blackstar had confirmed it could meet contract terms and bond requirements.
Councilmember Hilliard requested clarification of the reason for the change during the meeting; staff answered that Volta could not produce the construction bonds necessary to proceed. The council approved the resolution by voice vote.
The council's action moves procurement forward for the wastewater treatment plant power distribution switchgear project; staff will complete contract execution and return with the completed contract and schedule for work.
