TITLE
Consider a memorandum/resolution rejecting all bids for Bid 21-16 Valley Ditch Phase 1 - B.N.S.F. Railroad Drainage Improvements Project.
SUMMARY
DATE: August 17, 2021
TO: Kent Cagle, City Manager
FROM: Tony Mcllwain, Executive Director of Development Services
SUBJECT: Authorize the rejection of all bids for Bid 21-16 Valley Ditch Phase 1 - B.N.S.F. Railroad Drainage Improvements Project.
BACKGROUND AND FINDINGS:
The City published the bid for Valley Ditch Phase 1 - B.N.S.F. Railroad Drainage Improvements project on April 25, 2021, with Addendums #1 & 2, and the City received competitive bids from three contractors. The bids, opened and read aloud through zoom online video conferencing on July 9, 2021, are as follow:
Bidders Total Bid Amount
Jerdon Enterprise, LP $1,439,338.00
Digg Commercial, LLC $1,248,444.00
Anderzack - Pitzen Construction $1,565,980.00
Engineer’s estimated probable costs were $852,500.
THE ALTERNATIVES CONSIDERED:
1. Reject all Bids and do not move forward with the construction of Valley Ditch Phase 1 - B.N.S.F. Railroad Drainage Improvements Project at this time.
2. Award a construction contract to lowest responsible bidder, Digg Commercial, LLC, for the construction of Valley Ditch Phase 1 - B.N.S.F. Railroad Drainage Improvements Project.
Which alternative is recommended? Why?
Alternative “1” is recommended because:
a. Although Digg Commercial appears to be the lowest responsible bidder, their proposal was over the Engineers Probable Cost Budget.
b. Walker Partners, L.L.C., the design engineering firm on this project, recommended the contract be awarded to Anderzack-Pitzen Construction because of their specialized experience with construction on BNSF railroads. Anderzack- Pitzen Construction, was the highest bidder.
c. Staff recommends all bids be rejected due to budget constraints and fluctuating market conditions of the materials. The bid documents allow the City to reject all or any part of the bid pr...
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