TRANSMITTAL LETTER FOR BOARD MEETING OF APRIL 20, 2017
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Authority to award Contract 16-806-22 (Re-Bid), Furnish, Deliver and Install an Upgraded Vacuum System at the 95th Street Pumping Station, to Ornelas Construction Company, in an amount not to exceed $286,309.00, Account 201-50000-645600, Requisition 1417079 (As Revised)
Body
Dear Sir:
On July 7, 2016, the Board of Commissioners authorized the Director of Procurement and Materials Management to advertise for bids Contract 16-806-21, Furnish, Deliver and Install an Upgraded Vacuum System at the 95th Street Pumping Station.
In response to a public advertisement of September 14, 2016, a bid opening was held on October 4, 2016. All bids were rejected as reported at the Board meeting of November 3, 2016.
In response to a public re-advertisement of February 8, 2017, a bid opening was held on March 7, 2017. The bid tabulation for this contract is:
ORNELAS CONSTRUCTION COMPANY $286,309.00
MECCON INDUSTRIES, INC. $343,000.00
One thousand sixty-four (1064) companies were notified of this contract being advertised and twenty-two (22) companies requested specifications.
Ornelas Construction Company, the lowest responsible bidder, is proposing to perform the contract in accordance with the specifications. The estimated cost of this contract is $200,000.00, placing their bid of $286,309.00 approximately 43.2 percent above the estimate.
Maintenance and Operations believes that the cost over the estimate is due to the inclusion of an additional cost factor to compensate for any unknown risk associated with the strict shutdown requirements, and the unpredictable amount of liquidated damages that would be assessed. In addition, since the original preparation of a cost estimate for this project, there has been a considerable increase in the cost of the electrical equipment and materials required under this Contract.
Ornelas Construction Company 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 10 percent WBE and bidder offers themselves to satisfy MBE and SBE participation.
Ornelas Construction Company has executed the Multi-Project Labor Agreement (MPLA) Certificate as required. It is anticipated that the following trades will be utilized on this contract: electricians, pipefitters and carpenters. The list of construction trades is not intended to confer any rights or jurisdiction upon any union or unions.
The contract will require approximately ten (10) 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 16-806-22 (Re-Bid), to Ornelas Construction Company, in an amount not to exceed $286,309.00.
The contractors shall furnish the equipment within 400 calendar days after approval of the Contractor’s Bond.
Funds for the 2017 expenditures, in the amount of $200,000.00, are available in Account 201-50000-645600. The estimated expenditures for 2018 are $86,309.00. Funds for the 2018 expenditures are contingent on the Board of Commissioners’ approval of the District’s budget for that year.
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 April 20, 2017