PILLAR: Sustainable
AGENDA DATE: September 9, 2026
COUNCIL DISTRICT(S): 1, 2, 6, 8, 9, 11, 12, 13, 14
DEPARTMENT: Dallas Water Utilities Department
PRIORITY: Infrastructure
______________________________________________________________________
SUBJECT
Title
Authorize a construction services contract for water and wastewater main installation and rehabilitation improvements at 18 locations (list attached to the Agenda Information Sheet) - Douglas Dailey Construction, LLC, lowest responsible bidder of six - Not to exceed $19,720,451.00 - Financing: Water (Drinking Water) - TWDB 2019 Fund ($4,699,849.28), Water (Drinking Water) - TWDB 2020 Fund ($3,828,587.31), Wastewater Capital Improvement F Fund ($2,725,802.68), Wastewater (Clean Water) - TWDB 2019 Fund ($2,656,922.06), Wastewater (Clean Water) - TWDB 2020 Fund ($2,133,521.64), Wastewater (Clean Water) - TWDB 2021 Fund ($1,834,213.02), Water Capital Improvement G Fund ($1,800,780.00), and Water Capital Improvement F Fund ($40,775.01)
*In alignment with Water and Wastewater Capital Improvement Program.
Body
BACKGROUND
This action will authorize a construction services contract with Douglas Dailey Construction, LLC for the installation and rehabilitation of approximately 30,047 feet of water and wastewater mains at 18 locations. The contract includes the installation of approximately 834 feet of 6-inch; 10,910 feet of 8-inch; 3,130 feet of 12-inch; 1,940 feet of 16-inch; and 23 feet of 36-inch diameter water mains. In addition, the contract includes the installation and rehabilitation of approximately 750 feet of 6-inch; 5,560 feet of 8-inch; 740 feet of 10-inch; 560 feet of 12-inch; 3,700 feet of 16-inch; and 1,900 feet of 30-inch diameter wastewater mains.
The proposed pipeline segments were initially awarded as part of other Dallas Water Utilities Department (DWU) construction contracts for the installation and rehabilitation of water and wastewater main improvements at various locations. However, the contractor had several payment disputes with subcontractors, submitted unreasonable payment claims, and unilaterally demobilized without completing all the contracted work. Despite exhaustive efforts by DWU and the City Attorney to work with the contractor and surety company, neither upheld their contractual obligation to complete the work. This ultimately prompted the City to terminate the original contracts and pursue completion under a separately bid contract.
The existing water and wastewater mains planned for replacement and rehabilitation were built between 1891 and 1986. These mains are contributing to an increase in maintenance costs, as well as service interruptions. Installation and rehabilitation of the proposed segments will improve the capacity of the water and wastewater systems and reduce maintenance costs.
The following chart illustrates Douglas Dailey Construction, LLC’s contractual activities with the City of Dallas for the past three years:
AVI DWU PKR TPW
Projects Completed 0 2 0 0
Active Projects 0 5 0 0
Change Orders 0 2 0 0
Projects Requiring Liquidated Damages 0 0 0 0
Projects Completed by Bonding Company 0 0 0 0
ESTIMATED SCHEDULE OF PROJECT
Begin Construction November 2026
Complete Construction May 2029
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
Information about this item was provided to the City Council on September 4, 2026.
FISCAL INFORMATION
|
Fund |
FY 2026 |
FY 2027 |
Future Years |
|
Water (Drinking Water) - TWDB 2019 Fund |
$ 4,699,849.28 |
$0.00 |
$0.00 |
|
Water (Drinking Water) - TWDB 2020 Fund |
$ 3,828,587.31 |
$0.00 |
$0.00 |
|
Wastewater Capital Improvement F Fund |
$ 2,725,802.68 |
$0.00 |
$0.00 |
|
Wastewater (Clean Water) - TWDB 2019 Fund |
$ 2,656,922.06 |
$0.00 |
$0.00 |
|
Wastewater (Clean Water) - TWDB 2020 Fund |
$ 2,133,521.64 |
$0.00 |
$0.00 |
|
Wastewater (Clean Water) - TWDB 2021 Fund |
$ 1,834,213.02 |
$0.00 |
$0.00 |
|
Water Capital Improvement G Fund |
$ 1,800,780.00 |
$0.00 |
$0.00 |
|
Water Capital Improvement F Fund |
$ 40,775.01 |
$0.00 |
$0.00 |
|
Total |
$19,720,451.00 |
$0.00 |
$0.00 |
Council District Amount
1 $ 2,738,951.54
2 $ 2,191,161.22
6 $ 2,738,951.53
8 $ 1,095,580.61
9 $ 2,191,161.22
11 $ 2,191,161.22
12 $ 1,095,580.61
13 $ 1,095,580.61
14 $ 4,382,322.44
Total $19,720,451.00
LOCAL PARTICIPATION
|
Prime |
Status |
Workforce % |
|
Douglas Dailey Construction, LLC |
Local |
28.57% |
PROCUREMENT INFORMATION
The following six bids were received on June 5, 2026:
*Denotes successful bidder
Bidders Bid Amount
Douglas Dailey Construction, LLC * $19,720,451.00
2005 Bluff Springs Road
Ferris, Texas 75125
Estrada Concrete Company, LLC $19,919,919.35
Camino Construction, LP $20,225,159.00
SYB Construction Co., Inc. $21,564,656.00
Western Municipal Construction of Texas, LLC $22,326,207.00
John Burns Construction Company of Texas, LLC $56,055,239.00
OWNER/EXECUTIVE
Douglas Dailey Construction, LLC
Jose Sura, President
MAPS
Attached