Title
Consider a memorandum/resolution rejecting Bid No. 22-21 for the construction of the Corporate Hangar Phase II Project.
Summary
DATE: September 6, 2022
TO: Kent Cagle, City Manager
FROM: Mike Wilson, Executive Director of Aviation
SUBJECT: Reject Bid for Bid No. 22-21 Corporate Hangar Phase II Project
BACKGROUND AND FINDINGS:
The City advertised the bid to construct a new corporate hangar at Killeen-Fort Hood Regional Airport on March 15 and 22, 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 March 24, 2022 with six (6) general contractors and various sub-contractors attending.
Bids were opened on April 14, 2022, and the City of Killeen received three (3) bids as follows:
|
Bidders |
Bounds Commercial Construction |
NASCO |
NNAC Inc |
|
Base Bid A |
$1,235,297.88 |
$1,511,697.33 |
Non-responsive |
|
Base Bid B |
$2,687,862.75 |
$2,578,402.00 |
|
|
Additive Alt 1 |
$551,566.00 |
$745,173.00 |
|
|
Total |
$4,474,726.63 |
$4,835,272.33 |
|
A thorough review of each bid package was completed by the airport’s consultant and staff. NNAC Inc was considered non-responsive as their bid was not a complete bid. Bounds Commercial Construction was the lowest responsive and responsible bidder. Initially, the consultant and staff’s recommendation was to award the construction contract to Bounds Commercial Construction; however, due to delays in FAA grant funding, the contractor could not extend their bid.
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. Due to the delay in FAA funding, it is 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 22-21, Corporate Hangar Phase II Project.
DEPARTMENTAL CLEARANCES:
Purchasing
Finance
Legal
ATTACHED SUPPORTING DOCUMENTS:
Letter of Recommendation