PILLAR: Sustainable
AGENDA DATE: September 9, 2026
COUNCIL DISTRICT(S): Citywide
DEPARTMENT: Dallas Water Utilities Department
PRIORITY: Infrastructure
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SUBJECT
Title
Authorize (1) the rejection of proposals received for the Central Wastewater Treatment Plant Non-Potable Water System Improvements Project; and (2) the re-advertisement for new proposals - Financing: No cost consideration to the City
*In alignment with Water and Wastewater Capital Improvement Program.
Body
BACKGROUND
The Central Wastewater Treatment Plant (CWWTP) Non-Potable Water System Improvements Project, located at 1020 Sargent Road, will provide a new Non-Potable Water (NPW) system that will satisfy current volume and pressure demands, as well as include provisions for expansions to meet future growth. The existing non-potable water infrastructure is not meeting the needs of the CWWTP, resulting in increased operations and maintenance costs. The demand for non-potable water has increased due to improvements to several processes throughout the plant that started utilizing NPW in place of drinking water for mechanical equipment cooling and seal water demands.
The project scope includes construction of a wet well, pump station, electrical building, 16-inch, 18-inch, and 24-inch diameter non-potable water lines and associated appurtenances for the non-potable water conveyance loop. The advertised contract also included the rehabilitation of approximately 1,680 linear feet of 84-inch diameter semi-elliptical plant influent piping.
On May 8, 2026, one proposal was received in the amount of $69,415,850.00, which substantially exceeded the engineer’s estimate and available project budget of approximately $37 million. The single, higher than expected proposal is attributed to regional labor competition and specialized trade deficits, limited contractor participation, geopolitical volatility and material escalation, general market saturation and high contractor backlogs. In addition, the inclusion of the pipe rehabilitation work on the same contract as the pump station is believed to have limited additional proposers from submitting.
The Dallas Water Utilities Department and the project engineer recommend rejecting the sole proposal and request that the City Council authorize staff to re-advertise the project after appropriate adjustments to the project solicitation and targeted outreach to get additional proposals. The scope of work will be revised and repackaged to encourage broader contractor interest and achieve more competitive pricing. Readvertisement is anticipated to occur by the end of 2026.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
Information about this item was provided to the City Council on September 4, 2026.
FISCAL INFORMATION
No cost consideration to the City.