Collierville approves three-year hot-mix asphalt contract after single bid and price increases

The Collierville board on April 27 approved a three-year contract to supply hot-mix asphalt after the procurement division received a single bid this cycle. Public Works Director Josh Russell told the board seven vendors were notified and one bid was received from Standard Construction; he reported base mix at $81.50 per ton, 4/11d at $90 per ton and 4/11e at $85 per ton.

Russell said the town prepared for higher prices in the upcoming budget and that asphalt pricing can fluctuate according to a bituminous index tied to petroleum fuel costs. "This is very hard for me to ... the bituminous index," Russell said, noting prices could go up or down. He told the board there are sufficient funds in the account for planned purchases in the remainder of the fiscal year.

After brief clarifying questions from aldermen about mix terminology, the board approved the recommended contract on a unanimous roll call vote. The contract term is three years (12 months with two renewals); staff noted variable pricing clauses tied to the index.

The board did not discuss procurement of multiple vendors for redundancy; Russell said in past years multiple contracts were used to increase availability but this year only one vendor bid.