HomeMy WebLinkAbout2020-07-06-I05B Gas Transmission Modifications_Reject BidsAGENDA ITEM:
CITY OF WAUKEE, IOWA
CITY COUNCIL MEETING COMMUNICATION
MEETING DATE: July 6, 2020
AGENDA ITEM:Consideration of approval of a resolution rejecting bids for the 2020 Gas
Transmission Modifications Project
FORMAT:Resolution
SYNOPSIS INCLUDING PRO & CON: The City of Waukee and received bids for the 2020
Gas Transmission Modification Project on Tuesday, June 30, 2020. Three bids were received.
The bids were $417,170.96 from Midwestern Contractors of Illinois, NPL Construction from
Minnesota, and $443,128.00 from Meade Construction of Illinois. The engineer’s estimate for
this project was $210,000.00.
FISCAL IMPACT INCLUDING COST/BENEFIT ANALYSIS: $ 417,176.00
COMMISSION/BOARD/COMMITTEE COMMENT:
STAFF REVIEW AND COMMENT: USDI is going to discuss with bidders as to why bids
were so far above the engineer estimate. Several factors could come into play such as unclear bid
documents, contractor’s current schedules or completions dates. USDI will formulate a plan to
rebid project.
RECOMMENDATION: Staff recommends rejecting the bids.
ATTACHMENTS: I. Letter of Recommendation
II. Bid Tab
PREPARED BY:Beth Richardson
REVIEWED BY: Tim Royer TLR
PUBLIC NOTICE INFORMATION –
NAME OF PUBLICATION:
DATE OF PUBLICATION:
I5B
RESOLUTION 2020-
RESOLUTION REJECTING BIDS FOR THE 2020 GAS
TRANSMISSION MODIFICATIONS
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WAUKEE,
STATE OF IOWA:
WHEREAS, on the 12th day of June, 2020, plans, specifications, form of contract,
estimate of cost and enhancement of payment were filed with the Clerk for the construction of
certain public improvements described in general as the 2020 Gas Transmission Modifications;
WHEREAS, on June 1, 2020, the Council determined that it was necessary and advisable
to construct certain public improvements described in general as the 2020 Gas Transmission
Modifications;
WHEREAS, notice of hearing on plans, specifications, form of contract, estimate of cost
and enhancement of payment for the public improvements was published as required by law;
WHEREAS, on June 30, 2020, the date fixed as the date for receiving bids, all bids
submitted exceeded the engineer’s estimate of cost; and
WHEREAS, the Council has determined it is in the best interest of the City to reject all
bids.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF WAUKEE, STATE OF IOWA:
Section 1. That all bids received for the construction of certain public improvements
described in general as construction of the 2020 Gas Transmission Modifications, be and are
hereby rejected.
PASSED AND APPROVED this 6th day of July, 2020.
Mayor
ATTEST:
City Clerk
Utility Safety & Design, Inc.
28847 US Highway 136
Unionville, MO 63565
P (660) 947-3316 F (660) 552-4602
SHELBYVILLE, KENTUCKY
PO Box 727
Shelbyville, KY 40066
Office/Fax (502) 513-5127
BELLEVILLE, ILLINOIS
9 Executive Woods Court, Suite 1
Belleville, IL 62226-2016
P (618) 277-1520 F (618) 277-1586
OLNEY, ILLINOIS
1927 Miller Drive
Olney, IL 62450
P (618) 392-5502 F (618) 392-2261
July 2, 2020
Mr. Tim Royer, Assistant Dir. of Public Works
City of Waukee
805 University Avenue
Waukee, IA 50263
troyer@waukee.org
RE: 2020 Gas Transmission Modifications – Bid Recommendation
Dear Mr. Royer,
USDI has tabulated the bids from three bidders for the above referenced project. Please refer to the
attached certified bid tabulation. The apparent low bidder is Midwestern Contractors of Elburn, IL.
Their bid was for $417,170.96 which is approximately double the Engineer’s estimate. All bidders
submitted the required bid bond, proposal and bidder status form.
Inflated bids are sometimes indicative of bid documents that aren’t clear or complete, however, we did
not receive any questions prior to the bid regarding the plans and specifications. High bids can also be
indicative of the contractors being busy with other projects with similar completion dates. USDI will
contact the bidders to discuss their proposals to determine if there were any specific causes for the high
bids. Considering all of this it is my recommendation that the City of Waukee not award this contract at
this time. After speaking with the bidders, USDI will formulate a plan to re‐bid the project.
Please feel free to contact me anytime if you have any questions or require additional information.
Respectfully Submitted,
Anthony Everette, P.E.
Vice‐President Engineering
USDI
Attach: As noted