Approval of a Public Works Construction Contract in Excess of $75,000- Miscellaneous Concrete Construction Project 04-04
|Meeting Date:||January 17, 2006||Primary Staff Contact:||James H. Olson, 552-2412|
|Department:||Public Works/ Engineering||Email:||email@example.com|
|Contributing Departments:||Planning & Finance||Secondary Staff Contact:||Pieter Smeenk, 552-2413|
|Estimate Time:||10 minutes|
The 2004 Miscellaneous Concrete Construction Project No. 2004-04 was rebid on December 14, 2005. As was experienced at the May 10, 2005 bid opening, only a single bid was received which was again much higher then the engineer's estimate. The project has been organized into three distinct bid schedules to provide some flexibility in the size and composition of the project. The total estimate for Schedules A, B and C was $379,751.50. The bid, submitted by LTM Inc. is for $538,470.00 which is beyond the allocated budget.
It is recommended that LTM be awarded a contract for Schedules B and C only at a total cost of $372,320.00 and that Schedule A be delayed until a later date.
This project was originally bid on May 10, 2005 with only a single bid received. Since that bid was 48% higher than the engineers estimate, it was elected to reject the single bid and rebid the project later in the season in the hopes that the bidding atmosphere would improve and more bidders could be attracted. Several changes were made to the project to help encourage a more competitive project including:
Unfortunately, there has been very little change in the bidding conditions. We are still in a contractors "dream world" where contractors have more work than they can handle and can pick and choose their work with little fear of competition from other contractors. Construction costs have continued to rise with escalating fuel costs and material shortages attributed largely to the hurricanes in the southern gulf states.
The 2004 Miscellaneous Concrete Construction Project was rebid on December 14, 2005 with results similar to the May 10, 2005 bid. Again, we received only a single bid from LTM, Inc. The results of the bid are as follows:
The single bid is $158,718.50 (41.8%) over the estimate. The total bid from May 10th was for $512,357.50.
Staff has met with LTM to review the proposal to determine if possible cuts or reductions could be made in each of the bid schedules but the potential reduction was inconsequential. It was agreed that the most prudent approach was to delay one of the bid schedules for rebid at a later date.
The only schedule not encumbered by grant driven time constraints or LID requirements is Schedule A which is basically a sidewalk construction project.
|Related City Policies:|
Ashland Municipal Code Section 2.50 sets forth the requirements of public contracting within the City of Ashland. Council has determined that all public contracts in excess of $75,000 can be awarded only upon approval by Council.
Council may elect to approve the attached contract with LTM Inc. in the amount of $372,320.00 for Schedule B and C of the 2004 Miscellaneous Concrete Construction Project.
Council may elect to reject the bid submitted by LTM Inc. in its entirety and award no contract.
Council may elect to award alternative schedules of work within this project.
Staff recommends that Council approve the award of a contract to LTM Inc. for Schedules B and C of the 2004 Miscellaneous Concrete Project at a total cost of $372,320.00. Schedule A to be developed at a later date as a separate contract.
Council may move to approve a contract to LTM Inc. for $372,320.00
Council may move to reject the bid submitted by LTM on December 14th, 2005.
The above document(s) are Adobe® Acrobat® PDF files and may be viewed using the free Adobe® Acrobat® Reader™. Most newer web browsers already contain the Adobe® Acrobat® Reader™ plug-in. However, if you need it, click on the "Get Acrobat® Reader™" icon to download it now.