TRANSMITTAL LETTER FOR BOARD MEETING OF SEPTEMBER 3, 2015
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Authority to award Contract 10-883-AF, Flood Control/Streambank Stabilization Project on Tinley Creek, Crestwood, Illinois, to Industria, Inc., in an amount not to exceed $7,222,220.00, plus a five (5) percent allowance for change orders in an amount of $361,111.00, for a total amount not to exceed $7,583,331.00. Account 501-50000-645620, Requisition 1398261
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Dear Sir:
On May 21, 2015, the Board of Commissioners authorized the Director of Procurement and Materials Management to advertise for bids Contract 10-883-AF, Flood Control/Streambank Stabilization Project on Tinley Creek in Crestwood, Illinois.
In response to a public advertisement of May 27, 2015, a bid opening was held on July 28, 2015. The bid tabulation for this contract is:
INDUSTRIA, INC. $7,222,220.00
PATH CONSTRUCTION COMPANY, INC. $7,550,000.00
KENNY CONSTRUCTION COMPANY $8,207,213.95
JUDLAU CONTRACTING, INC. $9,980,000.00
Six hundred forty eight (648) companies were notified of this contract being advertised and sixty five (65) companies requested specifications.
The purpose of Contract 10-883-AF is to construct channel modifications on Tinley Creek to increase flow volume during storm events. In addition, a section of both banks will be stabilized and fitted with erosion control elements. Three pedestrian bridges will be replaced as a part of the work, and in-stream structures will be installed for riffle and pool habitat enhancements. Once complete, this project will reduce flooding risk for 173 structures in a flood prone area of Crestwood.
Industria, Inc., the lowest responsible bidder, is proposing to perform the contract in accordance with the specifications. The estimated cost for this contract was $4,207,935.00, placing the bid of $7,222,220.00, approximately 71.7 percent above the estimate.
The reason for the discrepancy between the estimated cost and bid prices are due to the following factors:
• Native landscape plantings required by the US Army Corps of Engineers are subject to a 3-year maintenance and monitoring period in which the contractor will need to meet defined performance criteria which includes watering and removal of invasive species. The contractor is also required to replace, transport and plant any plants that perish during the three-year period. The cost and effort involved in meeting these requirements was not fully taken into account on the initial estimate.
• Underestimated clearing and tree removal costs
• Underestimated the cost of mass excavation and disposal of soils
• Underestimated disposal costs associated with large chunks of concrete in the creek bed.
• Difficulty and significant risk associated with dewatering the work site
• Underestimated replacement costs of three pedestrian bridges
Based on the above statements, the Engineering department believes the costs for this work required is fair and reasonable.
Industria, Inc., is in compliance with the Affirmative Action Ordinance, Revised Appendix D as indicated on the attached report. The Minority Business Enterprise (MBE), Women Business Enterprise (WBE) and Small Business Enterprise (SBE) utilization goals for this contract are 20.7 percent MBE, 10 percent WBE and the bidder offers MBE credits to satisfy SBE participation.
Industria, Inc., has executed the Multi-Project Labor Agreement (MPLA) certificate as required. It is anticipated that the following trades will be utilized on this contract: laborers and operating engineers. The list of construction trades is not intended to confer any rights or jurisdiction upon any union or unions.
The contract will require approximately forty-two (42) people for the services.
In view of the foregoing, it is recommended that the Director of Procurement and Materials Management be authorized to award Contract 10-883-AF to Industria, Inc., in an amount not to exceed $7,222,220.00, plus a five (5) percent allowance for change orders in an amount of $361,111.00, for an amount not to exceed $7,583,331.00, subject to the contractor furnishing a performance bond in form satisfactory to the Law Department and approved by the Director of Procurement and Materials Management.
The estimated completion date is within 1,460 days after approval of Contractor’s Bond.
Funds are available in Account 501-50000-645620.
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management, DAL:SEB:cm
Respectfully Submitted, Barbara J. McGowan, Chairman, Committee on Procurement
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for September 3, 2015
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