SAN ANTONIO WATER SYSTEM PURCHASING DEPARTMENT FORMAL INVITATION FOR BIDS ANNUAL CONTRACT FOR WELL MAINTENANCE SERVICES ADDENDUM NO.

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SAN ANTONIO WATER SYSTEM PURCHASING DEPARTMENT Issued By: D. Anthony Rubin Date Issued: May 21, 2015 BID NO.: 15-7031 FORMAL INVITATION FOR BIDS ANNUAL CONTRACT FOR WELL MAINTENANCE SERVICES ADDENDUM NO. 2 Sealed bids addressed to the Purchasing Director, San Antonio Water System, 2800 US Hwy 281 North, Administration Bldg., 5 th Floor, San Antonio, TX 78212 will be received until 3:00 p.m., May 28, 2015 and then publicly opened and read aloud for furnishing materials or services as described herein below, The San Antonio Water System Purchasing Department is willing to assist any bidder(s) in the interpretation of bid provisions or explanation of how bid forms are to be completed. Assistance may be received by visiting the Purchasing Office in the SAWS Main Office, 2800 US Hwy 281 North, San Antonio, TX 78212, or by calling (210) 233-3819. This invitation includes the following: Invitation for Bids Terms and Conditions of Invitation for Bids Specifications and General Requirements Price Schedule The undersigned, by his/her signature, represents that he/she is authorized to bind the Bidder to fully comply with the Specifications and General Requirements for the amount(s) shown on the accompanying bid sheet(s). By signing below, Bidder has read the entire document and agreed to the terms therein. Signer s Name: Firm Name: (Please Print or Type) Address: Signature of Person Authorized to Sign Bid City, State, Zip Code: Email Address: Telephone No.: Fax No.: Please complete the following: Prompt Payment Discount: % days. (If no discount is offered, Net 30 will apply.) Please check the following blanks which apply to your company: Ownership of firm (51% or more): Non-minority Hispanic African-American Other Minority (specify) Female Owned Handicapped Owned Small Business (less than $1 million annual receipts or 100 employees) Indicate Status: Partnership Corporation Sole Proprietorship Other (specify) Tax Identification Number: To report suspected ethics violations impacting the San Antonio Water System, please call 1-800-687-1918. Page 1 of 10

This Addendum No. 2 is issued to make changes as documented herein to the original bid sent to you on May 6, 2015. All other requirements, terms and conditions of the original bid remain the same. Modifications to the Specifications 1. Under Standard Requirements, page 16 of 49, Item D, replace paragraph with the following: For pulling and installation, the Contractor shall schedule work with SAWS upon receipt of written Notice to Proceed (NTP). For repair work at the Contractor s facility, the Contractor shall begin work immediately after written NTP and work continuously until the pump is ready for scheduled installation. Normal work hours shall be from 8:00 am - 5:00 pm unless approval for extended hours is granted by SAWS 2. Under Standard Requirements, page 16 of 49, Item F, 4, delete the following paragraph in its entirety. Contractor shall provide a duplicate line shaft to install the pump. The duplicate line shaft (dummy shaft) shall consist of the same diameter and material as the approved line shaft. The duplicate line shaft shall be utilized every four joints to ensure the pump can free spin without any noticeable interference. Any noticeable interference shall be cause for rejecting the pump assembly. 3. Under Section I Group A, page 23 of 49, Item J, replace paragraph with the following: This item is for the labor and equipment rental to scratch well casing surface with a steel wire brush and the cleaning and removal of debris from the well, as required by SAWS. This unit price per hour (HR) assumes that the mobilization and demobilization charge for the rig identified under Items 1-3 for the small, medium and large pumps has already been paid to the Contractor. 4. The Price Schedules have been revised and the new price schedule is issued with this addendum, and must be submitted with the Contractor s Bid. Questions and Answers 1. D. Work Schedule - Can the contractor have hours of operation from 8AM to 5PM? We have received approval from Val to work till 5PM. Answer 1: Hours operation shall be SAWS normal business hours from 8:00 a.m. to 5:00 p.m. 2. K. Salvage Materials & Performance Bond Where do we include the prices for the Salvage Materials hauled to Marbauch? Answer 2: The cost of hauling salvageable material shall be incidental to Items 1-3 for the small, medium and large pumps which have already been paid to the Contractor. 3. Does the Performance Bond need to be incorporated into the Pulling & Setting of this bid? Answer 3: Yes. Page 2 of 10

4. Does the crane rental charges for pulling/setting some SAWS pumps need to be incorporated into the Pulling & Setting of this bid? II Group A. Answer 4: Crane rental expenditures shall incidental to Items 1-3 for the small, medium and large pumps which have already been paid to the Contractor. 5. Will the contractor be allowed to use someone like Schlumberger to assist with mudding the well? Answer 5: Yes. 6. J. Scratching & Cleaning- Will SAWS change the price from Square Foot to Hours and also change the quantity to 120 hours? It is very difficult to charge by the square foot due to the unknown scale, hardness of deposit, etc. Answer 6: Item 11 under Group A has been revised to include hourly rate. 7. Group B. Please remove all items that limit a 20% markup. Answer 7: Requirement is no longer applicable. See revised Price Schedules. 8. Will there be a line item for Scotckote 134? Do we need to add for freight and hauling to the Scotchkote 134 line item? Answer 8: No. Should SAWS request special coatings, then the allowance included in the Price Schedule under Group B, Item 8, shall be used to pay for any additional cost. 9. Do we need to include all associated costs of a drilling rig for blockage removal? Is the mobilization, demobilization, permits, etc. included in the cost per hour? Answer 9: The unit price per hour assumes that the mobilization and demobilization charge for the rig identified under Items 1-3 for the small, medium and large pumps has already been paid to the Contractor. 10. Page 13 of 49, item 2 Statement that the bidder is a licensed master water well pump installer. Master license includes wind mill service for which not all commercial well and pump service companies provide service for. Can the word master be removed for the requirements? Answer 10: Requirement has been deleted. See Addendum no. 1. 11. Page 15 of 49, item 12, states that we are required to provide an engineered traffic control plan and the cost is incidental to pulling the pump and should be included in the pulling price. Whether we utilize this service or not, SAWS will be charged, as written. Would it not be in SAWS best interest to provide a separate bid item for this service? Answer 11: Traffic control requirements shall be incidental to Items 1-3 for the small, medium and large pumps which have already been paid to the Contractor. 12. Page 16 of 49, item D, Work Schedule. States that normal work hours are 7:00am to 3:30 pm. Would it be possible to extend this to 5:00pm? Answer 12: See response to Question no. 1. Page 3 of 10

13. Page 17 of 49, item 4, It is our understanding that this item has not been utilized on previous contracts and if utilized would impede the installation process. The contractor awarded the project is ultimately responsible for the proper installation and operation of the pump assembly and will provide a warranty. Should this item be removed? Answer 13: Item has been deleted. See Modifications to the Specifications section above. 14. Page 20 of 49, item K, Salvageable Material, contractor is responsible for all expenses associated with transporting to SAWS facility. Shall this costs be included in the pull or install pricing? Answer 14: See response to Question no. 2. 15. Page 21 of 49, item B, 2, pulling or installing shall be paid for by LF whether in a building or outdoors, flanged or screwed. There are instances where some pump settings are 400 versus 60 and some can be pulled with our rigs and some may require a rental crane. Costs associated with renting a crane to pull a pump would be considerably more, under most circumstances. We would have to include the cost of a crane rental in our pulling price whether or not it is necessary. Would it not be in SAWS best interest to provide a separate bid item for crane rental? Answer 15: See response to Question no. 4. 16. Page 21 of 49, item C, 1&2, states that Well Mudding Service is for the installation and or removal of mud and includes the purchasing, mixing, application, removal and disposal. Section 2 of this item states that mobilization/ demobilization, of mixing equipment and tanks is incidental cost to plan work, transport and setup equipment, teardown and transport off site and final clean-up. The bid form has this as an allowance with a percentage mark-up and that the contractor will be paid based on submitting subcontractors invoices. How is the contractor to get paid for his labor for mobilization and demobilization of equipment if it is incidental and SAWS is paying subcontractors invoices only? Answer 16: The Contractor s mark-up cost shall include all additional associated expenses associated with Well Mudding Services. 17. Page 23 of 49, items I, J & K, Fishing, Scratching and Blockage Removal. All three (3) of these items state that mobilization and demobilization costs should be included in the pulling price of the pumps. These items may or may not be utilized and the way it is specified SAWS will pay mobilization and demobilization costs of drill pipe, fishing tools, etc. whether they are utilized or not. Would it not be in SAWS best interest to provide a separate bid item for these mobilization and demobilization costs? Answer 17: See response to Question no. 9. 18. Page 26 of 49, item A, motor teardown and inspection. Do the submersible motors removed from the wells need to be inspected and repaired by the manufacturer s authorized repair facility? Answer 18: Contractor shall make sure the new installed equipment is fully functional as per the manufacturer s recommendations. SAWS does not dictate which repair facility the equipment should be sent to. 19. Some of the submersible motors that SAWS is going to want to be pulled are going to have mercury seals. Mercury is considered a hazards material and shipping cost and handling is expensive compare to motors with a mechanical seal. Should there be a line item distinguishing the two different seal types to cover the additional cost of handling hazardous material? Page 4 of 10

Answer 19: In the event hazardous materials are found during the inspection of the submersible equipment, then the allowance included in the Price Schedule under Group C, Item 8, shall be used to pay for any additional cost. 20. DELIVERY OF GOODS/SERVICES The bidder will clearly state in the bid the time required for delivery upon receipt of contract or purchase order. Proposed delivery time must be specific and such phrases as required, as soon as possible or prompt may result in disqualification of the bid. Since bidders do not know what exact product is required, lead-times will be determined on a case by case basis. Please confirm that delivery times must be specified. Answer 20: Contractor is not required to submit delivery times at the time of submitting his bid. 21. Teardown and Inspection Reports (TIR) Test reports (balance, vibration, hydrostatic, NPSH, submersible pump / motor unit test, etc. as applicable) Do the submersible motors need to go back to the manufacturer for repair or will you allow any repair facility to repair the motors? Please confirm that all pumps and motor need to be tested in a pit prior to installation? This is not a typical rebuild on you smaller pumps and motors, this will cause excessive lead times. Answer 21: See response to Question 18. All equipment must be tested at the Contractor s repair facility prior to installation. Copies of the reports must be submitted to SAWS for approval prior to shipment. 22. Pump, Pump Component, and Submersible Motor Repair/Rehabilitation Requirements Pump repairs or rehabilitation work shall be completed within 20 working days after receipt of P.O. authorizing the work. Submersible motor repairs or specialty work shall be completed within 30 working days after receipt of P.O. authorizing the work. Please allow more than 20 days on a case by case basis with written approval. Answer 22: SAWS may grant additional days on a case by case basis. Contractor shall demonstrate in writing, the need for additional days. 23. SALVAGEABLE MATERIAL Please provide a bid item for hauling salvageable materials Answer 23: See response to Question 2. 24. Items 11: Scratching and Cleaning Suggestion - changing the bid item from SF to hourly rate for mob and demob and trip time, a separate hourly rate for jet time, and linear foot for scratching and agitating. Linear Foot LF will require specified time per foot: example: scratch casing at a rate of 1 minutes per foot and 2 minutes per foot on screen. The time is usually determined off of the severity of build up. This will allow the item to be LF. Page 5 of 10

Answer 24: See response to Question 6. 25. Items 12: Blockage Removal Please confirm that this item requires a drilling rig. Will SAWS allow the use of a sub-contractor if a drilling rig is required? If not this will limit your qualified bidders, in the past there was only one contractor in town with both drilling and services rigs. Answer 25: See response to Question 9. A drilling rig from a sub-contractor is acceptable. 26. Will you please provide a bid item for crane services using a percent over invoice? Answer 26: See response to Question 4. 27. Scotch Coat please confirm that Scotch Coat is required on repairs and new installations. Excessive lead times and field touch-ups are concerns with using Scotch Coating. Epoxy coating less lead time and easy field touch-up. Will epoxy coating be accepted for repairs and new installations? Answer 27: See response to Question 8. Special coatings may be required by SAWS on a case by case basis. Contractor shall assume, for bidding purposes, an epoxy coating will be required for repaired equipment and fusion bonded epoxy for brand new equipment. 28. Please confirm hours of operation. Answer 28: See response to Question 1. 29. Will the 20% maximum markup for parts be removed? Answer 29: See response to Question 7. 30. Page 26 of 49 B-4 Please confirm that if a subcontractor is used, no markups will be allowed. Contractors incur costs on any subcontractor work - please allow for a % over invoice for all subcontractor work. Answer 30: Requirements shall remain as listed under Section III, Group C, B, 4. 31. Page 18 of 49 18-F Please confirm that the failure to replace parts/equipment within 10 days of the request from SAWS will result in a total breach of contract. Answer 31: Contractor is required to only provide cost estimates within 10 working days per Section I, G, 3. IT IS NECESSARY THAT THIS ADDENDUM BE RETURNED. Page 6 of 10

PRICE SCHEDULE FIRST YEAR BASE PERIOD Item No. Description Qty. Unit Unit Price or % Mark-Up Group A Pump Pulling and Installation 1 Pull or Install (per foot of column) Small Pumps (2-6 ) 6000 FT $ $ 2 Pull or Install (per foot of column) Medium Pumps (8-14 ) 8000 FT $ $ 3 Pull or Install (per foot of column) Large Pumps (>16 ) 1000 FT $ $ 4 Well Mudding Services $150,000 /YR % $ 5 Well Bailing 40 HR $ $ 6 Well Video Log 1200 FT $ $ 7 Well Geophysical Survey 1200 FT $ $ 8 Dekoron Airline Installation 1000 FT $ $ 9 Miscellaneous Parts $80,000 /YR % $ 10 Fishing for Pump, Column, or Parts 120 HR $ $ 11 Scratching and Cleaning 240 HR $ $ 12 Blockage Removal 200 HR $ $ SUBTOTAL (Group A) $ Group B Well Pump Repair 1 Pump Teardown and Inspection (all sizes) 20 EA $ $ 2 Pump Repair Shop Labor Regular Time 250 HR $ $ 3 Pump Repair Shop Labor Overtime 20 HR $ $ 4 Pump Parts and Materials $100,000 /YR % $ 5 Line Shaft Replacement $40,000 /YR % $ 6 Line Shaft Bearings $40,000 /YR % $ 7 Column Pipe and /or Pump Coating 5,000 SF $ $ Extended Price 8 Bid Mark-ups $50,000 /YR % $ SUBTOTAL (Group B) $ Group C Submersible Pump and Motor Repair Identify subcontractor, if applicable:. 1 Motor Teardown and Inspection 8 Diameter Frame 2 EA $ $ 2 Motor Teardown and Inspection 10-12 Diameter Frame 2 EA $ $ 3 Motor Teardown and Inspection 14-16 Diameter Frame 2 EA $ $ 4 Motor Teardown and Inspection 18 Diameter Frame 1 EA $ $ 5 Repair Shop Labor Regular Time 150 HR $ $ 6 Repair Shop Labor Overtime 20 HR $ $ 7 Pump and Submersible Motor Unit Test 2 EA $ $ 8 Motor Parts and Materials $100,000 /YR % $ 9 Shipping Costs (Round Trip) 10 trips $ $ SUBTOTAL (Group C) $ Group D Well Pump and Component Replacement 1 Well Pumps $200,000 /YR % $ 2 Well Motors $200,000 /YR % $ 3 Column Pipe, Discharge Head, and other Components $60,000 /YR % $ 4 Power Cable $50,000 /YR % $ SUBTOTAL (Group D) $ FIRST YEAR BASE PERIOD TOTAL CONTRACT AMOUNT (Groups A, B, C and D) $ Page 7 of 10

PRICE SCHEDULE OPTION YEAR 1 Item No. Description Qty. Unit Unit Price or % Mark-Up Group A Pump Pulling and Installation 1 Pull or Install (per foot of column) Small Pumps (2-6 ) 6000 FT $ $ 2 Pull or Install (per foot of column) Medium Pumps (8-14 ) 8000 FT $ $ 3 Pull or Install (per foot of column) Large Pumps (>16 ) 1000 FT $ $ 4 Well Mudding Services $150,000 /YR % $ 5 Well Bailing 40 HR $ $ 6 Well Video Log 1200 FT $ $ 7 Well Geophysical Survey 1200 FT $ $ 8 Dekoron Airline Installation 1000 FT $ $ 9 Miscellaneous Parts $80,000 /YR % $ 10 Fishing for Pump, Column, or Parts 120 HR $ $ 11 Scratching and Cleaning 240 HR $ $ 12 Blockage Removal 200 HR $ $ SUBTOTAL (Group A) $ Group B Well Pump Repair 1 Pump Teardown and Inspection (all sizes) 20 EA $ $ 2 Pump Repair Shop Labor Regular Time 250 HR $ $ 3 Pump Repair Shop Labor Overtime 20 HR $ $ 4 Pump Parts and Materials $100,000 /YR % $ 5 Line Shaft Replacement $40,000 /YR % $ 6 Line Shaft Bearings $40,000 /YR % $ 7 Column Pipe and /or Pump Coating 5,000 SF $ $ Extended Price 8 Bid Mark-ups $50,000 /YR % $ SUBTOTAL (Group B) $ Group C Submersible Pump and Motor Repair Identify subcontractor, if applicable:. 1 Motor Teardown and Inspection 8 Diameter Frame 2 EA $ $ 2 Motor Teardown and Inspection 10-12 Diameter Frame 2 EA $ $ 3 Motor Teardown and Inspection 14-16 Diameter Frame 2 EA $ $ 4 Motor Teardown and Inspection 18 Diameter Frame 1 EA $ $ 5 Repair Shop Labor Regular Time 150 HR $ $ 6 Repair Shop Labor Overtime 20 HR $ $ 7 Pump and Submersible Motor Unit Test 2 EA $ $ 8 Motor Parts and Materials $100,000 /YR % $ 9 Shipping Costs (Round Trip) 10 trips $ $ SUBTOTAL (Group C) $ Group D Well Pump and Component Replacement 1 Well Pumps $200,000 /YR % $ 2 Well Motors $200,000 /YR % $ 3 Column Pipe, Discharge Head, and other Components $60,000 /YR % $ 4 Power Cable $50,000 /YR % $ SUBTOTAL (Group D) $ OPTION YEAR 1 TOTAL CONTRACT AMOUNT (Groups A, B, C and D) $ Page 8 of 10

PRICE SCHEDULE OPTION YEAR 2 Item No. Description Qty. Unit Unit Price or % Mark-Up Group A Pump Pulling and Installation 1 Pull or Install (per foot of column) Small Pumps (2-6 ) 6000 FT $ $ 2 Pull or Install (per foot of column) Medium Pumps (8-14 ) 8000 FT $ $ 3 Pull or Install (per foot of column) Large Pumps (>16 ) 1000 FT $ $ 4 Well Mudding Services $150,000 /YR % $ 5 Well Bailing 40 HR $ $ 6 Well Video Log 1200 FT $ $ 7 Well Geophysical Survey 1200 FT $ $ 8 Dekoron Airline Installation 1000 FT $ $ 9 Miscellaneous Parts $80,000 /YR % $ 10 Fishing for Pump, Column, or Parts 120 HR $ $ 11 Scratching and Cleaning 240 HR $ $ 12 Blockage Removal 200 HR $ $ SUBTOTAL (Group A) $ Group B Well Pump Repair 1 Pump Teardown and Inspection (all sizes) 20 EA $ $ 2 Pump Repair Shop Labor Regular Time 250 HR $ $ 3 Pump Repair Shop Labor Overtime 20 HR $ $ 4 Pump Parts and Materials $100,000 /YR % $ 5 Line Shaft Replacement $40,000 /YR % $ 6 Line Shaft Bearings $40,000 /YR % $ 7 Column Pipe and /or Pump Coating 5,000 SF $ $ Extended Price 8 Bid Mark-ups $50,000 /YR % $ SUBTOTAL (Group B) $ Group C Submersible Pump and Motor Repair Identify subcontractor, if applicable:. 1 Motor Teardown and Inspection 8 Diameter Frame 2 EA $ $ 2 Motor Teardown and Inspection 10-12 Diameter Frame 2 EA $ $ 3 Motor Teardown and Inspection 14-16 Diameter Frame 2 EA $ $ 4 Motor Teardown and Inspection 18 Diameter Frame 1 EA $ $ 5 Repair Shop Labor Regular Time 150 HR $ $ 6 Repair Shop Labor Overtime 20 HR $ $ 7 Pump and Submersible Motor Unit Test 2 EA $ $ 8 Motor Parts and Materials $100,000 /YR % $ 9 Shipping Costs (Round Trip) 10 trips $ $ SUBTOTAL (Group C) $ Group D Well Pump and Component Replacement 1 Well Pumps $200,000 /YR % $ 2 Well Motors $200,000 /YR % $ 3 Column Pipe, Discharge Head, and other Components $60,000 /YR % $ 4 Power Cable $50,000 /YR % $ SUBTOTAL (Group D) $ OPTION YEAR 2 TOTAL CONTRACT AMOUNT (Groups A, B, C and D) $ Page 9 of 10

PRICE SCHEDULE OPTION YEAR 3 Item No. Description Qty. Unit Unit Price or % Mark-Up Group A Pump Pulling and Installation 1 Pull or Install (per foot of column) Small Pumps (2-6 ) 6000 FT $ $ 2 Pull or Install (per foot of column) Medium Pumps (8-14 ) 8000 FT $ $ 3 Pull or Install (per foot of column) Large Pumps (>16 ) 1000 FT $ $ 4 Well Mudding Services $150,000 /YR % $ 5 Well Bailing 40 HR $ $ 6 Well Video Log 1200 FT $ $ 7 Well Geophysical Survey 1200 FT $ $ 8 Dekoron Airline Installation 1000 FT $ $ 9 Miscellaneous Parts $80,000 /YR % $ 10 Fishing for Pump, Column, or Parts 120 HR $ $ 11 Scratching and Cleaning 240 HR $ $ 12 Blockage Removal 200 HR $ $ SUBTOTAL (Group A) $ Group B Well Pump Repair 1 Pump Teardown and Inspection (all sizes) 20 EA $ $ 2 Pump Repair Shop Labor Regular Time 250 HR $ $ 3 Pump Repair Shop Labor Overtime 20 HR $ $ 4 Pump Parts and Materials $100,000 /YR % $ 5 Line Shaft Replacement $40,000 /YR % $ 6 Line Shaft Bearings $40,000 /YR % $ 7 Column Pipe and /or Pump Coating 5,000 SF $ $ Extended Price 8 Bid Mark-ups $50,000 /YR % $ SUBTOTAL (Group B) $ Group C Submersible Pump and Motor Repair Identify subcontractor, if applicable:. 1 Motor Teardown and Inspection 8 Diameter Frame 2 EA $ $ 2 Motor Teardown and Inspection 10-12 Diameter Frame 2 EA $ $ 3 Motor Teardown and Inspection 14-16 Diameter Frame 2 EA $ $ 4 Motor Teardown and Inspection 18 Diameter Frame 1 EA $ $ 5 Repair Shop Labor Regular Time 150 HR $ $ 6 Repair Shop Labor Overtime 20 HR $ $ 7 Pump and Submersible Motor Unit Test 2 EA $ $ 8 Motor Parts and Materials $100,000 /YR % $ 9 Shipping Costs (Round Trip) 10 trips $ $ SUBTOTAL (Group C) $ Group D Well Pump and Component Replacement 1 Well Pumps $200,000 /YR % $ 2 Well Motors $200,000 /YR % $ 3 Column Pipe, Discharge Head, and other Components $60,000 /YR % $ 4 Power Cable $50,000 /YR % $ SUBTOTAL (Group D) $ OPTION YEAR 3 TOTAL CONTRACT AMOUNT (Groups A, B, C and D) $ Page 10 of 10