Title
Consider a memorandum/resolution rejecting Bid No. 22-25 for the Wayfinding Signage Improvements Project.
Summary
DATE: September 6, 2022
TO: Kent Cagle, City Manager
FROM: Mike Wilson, Executive Director of Aviation
SUBJECT: Reject Bid for Bid No. 22-25 Wayfinding Signage Improvements Project
BACKGROUND AND FINDINGS:
On July 13, 2021, The Federal Aviation Administration (FAA) approved a new Passenger Facility Charge (PFC) Application at Killeen-Fort Hood Regional Airport to collect PFC revenues from the Airlines for approved projects in this application. One of the projects in the approved application is the Wayfinding Improvements Project in the amount of $300,000. This project is in our CIP for 2021. It will include the design, procurement, and replacement of existing LED message board and add additional signage.
The City advertised the Wayfinding Signage Improvements Project bid on May 19 and 26, 2022. Advertising appeared in the local newspaper as well as the City’s website. Additionally, it was advertised on multiple statewide electronic bidding sites. A pre-bid meeting was held on May 26, 2022 with two (2) general contractors attending.
On July 6, 2022, one (1) bid was received from Native American Services Corps (NASCO). The results were as follows:
|
Vendor |
NASCO |
|
Base Bid |
$486,000.00 |
|
Deductive Alternate 1 |
-$86,631.00 |
A thorough review of this bid package was completed by the airport’s consultant and staff. The bid came in higher than what the FAA has approved for this project.
Therefore, the consultant and staff’s recommendation is to reject the bid.
THE ALTERNATIVES CONSIDERED:
Alternatives considered: (1) Award bid, or (2) reject the bid.
Which alternative is recommended? Why?
Staff recommends alternative 2. The bid came in higher than what the FAA approved for this project. FAA recommended to re-bid project.
CONFORMITY TO CITY POLICY:
Rejection of bid is allowed by the competitive bid process per Local Government Code and the City’s purchasing policy.
FINANCIAL IMPACT:
What is the amount of the expenditure in the current fiscal year? For future years?
N/A
Is this a one-time or recurring expenditure?
N/A
Is this expenditure budgeted?
N/A
If not, where will the money come from?
N/A
Is there a sufficient amount in the budgeted line-item for this expenditure?
N/A
RECOMMENDATION:
Staff recommends City Council reject bid for Bid 22-25, Wayfinding Signage Improvements Project.
DEPARTMENTAL CLEARANCES:
Purchasing
Finance
Legal
ATTACHED SUPPORTING DOCUMENTS:
Letter of Recommendation