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Seguin council awards roughly $17.9 million drainage contract for North Hideaki Street after bidder protest
Summary
The Seguin City Council voted to award a $17.9 million bid alternate for the North Hideaki Street drainage improvement project to D and D Contractors, citing schedule and material‑availability concerns tied to a GLO CDBG‑MIT grant with an October 2026 completion deadline. An apparent low bidder urged the council to reconsider, saying a precast option could save about $2.3 million; staff said the alternate reduced schedule risk.
The Seguin City Council approved a contract award to D and D Contractors, Inc., for the North Hideaki Street drainage improvement project, adopting staff and engineer recommendations to select a cast‑in‑place bid alternate at approximately $17.9 million.
The project is funded through a General Land Office (GLO) CDBG‑MIT grant with a hard construction completion deadline in October 2026, which staff and the engineer said made schedule risk a primary consideration in the recommendation. The engineer of record and staff told council that the bid alternate included stronger references, better assurance of material availability and schedule control, and liquidated‑damage provisions tied to contract milestones.
Opposition at the meeting came from Joe Olivares, representing Go Underground (apparent low bidder for the base bid), who said his company’s base bid was about $15.57 million and argued the city could save roughly $2.3 million by using precast box culverts rather than cast‑in‑place construction. "That's 2.3 millions that you guys might be saving," Olivares said, asking the council to table the award and discuss options with local suppliers. Staff and the engineer responded that the alternate offered greater certainty given local constraints, utility conflicts and recent supply‑chain uncertainties.
Council member Gaetan moved to approve the engineer's recommendation; Council member Ray seconded. One council member announced an abstention in the recorded proceedings; the motion carried as recorded in the transcript.
The contract award authorizes the city manager to execute construction documents with D and D Contractors, subject to standard federal and DBE requirements and the city's procurement rules. Staff said the contract includes fixed bid items, milestone metrics, and liquidated damages to encourage timely completion.
The council's action follows a public procurement process in which staff requested sealed bids and the city’s engineer (TRC) conducted reference checks and a bid‑tab analysis before making its recommendation. The council did not instruct staff to reopen procurement or to table the item at the meeting.
Next steps: staff will finalize the construction contract and proceed with pre‑construction coordination and permits. The project remains subject to federal grant terms and TxDOT/federal approvals where applicable.
