Council awards five-year, up-to-$60 million asphalt contract to Vulcan Materials

The San Diego City Council approved a five-year 'as-needed' contract with Vulcan Materials Company to supply paving materials and asphalt concrete to multiple city departments, authorizing a not-to-exceed amount of $60,000,000.

Deputy Director Philip Lowery described the contract’s scope — Transportation, Public Utilities and Stormwater will use the materials for mill-and-pave projects, pothole repair, sidewalk ramps and in-house CIP work. Lowery explained that the contract isolates the asphalt binder (a petroleum-based component) and ties that item to a California crude oil price index so monthly adjustments limit contingency in a volatile market. “The requested action is for you to authorize the mayor or his designee, to award this 5 year contract for these 3 departments for a not to exceed amount of $60,000,000,” Lowery said.

Sean Harris of the Office of the IBA noted the contract’s not-to-exceed amount increases from $20 million in the prior contract to $60 million and said the vendor has been the sole responsive bidder across four solicitations dating back to at least 2012. “The vendor has been the sole responsive bidder on this contract across 4 solicitations dating back to at least 2012,” Harris said, and he recommended the council request a regional price-comparison analysis to assess whether unit pricing is reasonable.

Public commenters raised concerns about the heat absorption of dark asphalt and urged the city to pilot higher-reflectivity materials where feasible; others questioned long-term performance and asked about efforts to attract additional suppliers. Purchasing staff said they can perform a regional comparison and that outreach efforts to expand the bidder pool have been attempted in past solicitations.

Councilmember Whitburn moved and Councilmember Elo Rivera seconded approval of the staff recommendation; the motion passed unanimously, 6–0, with Councilmembers Moreno, Von Wilpert and Campbell absent. Council directed staff to provide further analyses where appropriate during the contract term.