TRANSMITTAL LETTER FOR BOARD MEETING OF DECEMBER 7, 2017
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Authority to award Contract 17-902-31, Installation of Shaftless Screw Conveyors for Aerated Grit Tanks at the Stickney Water Reclamation Plant, to IHC Construction Companies, L.L.C., in an amount not to exceed $2,525,000.00, Account 401-50000-645680, Requisition 1461803
Body
Dear Sir:
On May 4, 2017, the Board of Commissioners authorized the Director of Procurement and Materials Management to advertise for bids, Contract 17-902-31, Installation of Shaftless Screw Conveyors for Aerated Grit Tanks at the Stickney Water Reclamation Plant.
In response to a public advertisement of August 30, 2017, a bid opening was held on October 24, 2017. The bid tabulation for this contract is:
IHC CONSTRUCTION COMPANIES, L.L.C $2,595,000.00
Seven hundred ninety-nine (799) companies were notified of this contract being advertised and thirty (30) companies requested specifications.
The Director of Procurement and Materials Management has reviewed the bidders’ list for this contract, and is satisfied that the market for this service has been adequately solicited. A planholders’ survey revealed the following reasons for not bidding: out of scope of work; suppliers only; and do not bid as prime contractor. In light of these findings, the Director of Procurement and Materials Management is of the opinion that the bid received is a fair and reasonable price, and nothing would be gained by rejecting the sole bid and re-advertising this contract.
IHC Construction Companies, L.L.C., the sole bidder, is proposing to perform the contract in accordance with the specifications. The estimated cost for this contract was $2,400,000.00, placing their bid of $2,595,000.00 approximately 8.1 percent above the estimate.
IHC Construction Companies, L.L.C., has executed the Multi-Project Labor Agreement (MPLA) certificate as required. It is anticipated that the following construction trades will be utilized on this contract: machinists, millwrights, pipefitters, electricians, laborers, ironworkers, 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 twenty (20) people for the services.
IHC Construction Companies, L.L.C., 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 percent MBE, 10 percent WBE, and the bidder offers MBE credits to satisfy SBE participation.
In view of the foregoing, it is recommended that the Director of Procurement and Materials Management be authorized to award Contract 17-902-31 to IHC Construction Companies, L.L.C., in an amount not to exceed $2,595,000.00, 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 work under this contract shall begin upon approval of the Contractor’s Bond and be completed within three years.
Funds are being requested in 2018, in the amount of $973,125.00, in Account 401-50000-645680. The estimated expenditures for 2019 are $973,125.00, and for 2020 are $648,750.00. Funds for the 2018, 2019, and 2020 expenditures are contingent on the Board of Commissioners’ approval of the District’s budget for those years.
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 December 7, 2017
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