TRANSMITTAL LETTER FOR BOARD MEETING OF NOVEMBER 15, 2018
COMMITTEE ON PROCUREMENT
Mr. John P. Murray, Acting Executive Director
Title
Authority to award Contract 17-276-3D, Structural Repairs and Roofing Replacement at 95th Street Pumping Station, Calumet Service Area, to IHC Construction Companies, LLC, in an amount not to exceed $4,559,000.00, plus a five (5) percent allowance for change orders in an amount of $227,950.00, for a total amount not to exceed $4,786,950.00, Account 401-50000-645780, Requisition 1497724
Body
Dear Sir:
On August 2 2018, the Board of Commissioners authorized the Director of Procurement and Materials Management to advertise for bids Contract 17-276-3D, Structural Repairs and Roofing Replacement at 95th Street Pumping Station, Calumet Service Area.
In response to a public advertisement of September 5, 2018, a bid opening was held on October 9, 2018. The bid tabulation for this contract is:
MCDONAGH DEMOLITION INC. $4,197,068.28
IHC CONSTRUCTION COMPANIES, LLC $4,559,000.00
F.H. PASCHEN, SN NIELSEN & ASSOCIATES LLC *$4,819,000.00
TYLER LANE CONSTRUCTION, INC. $4,864,132.00
PATH CONSTRUCTION COMPANY, INC. $5,983,110.00
*corrected total
Nine hundred fifty-nine (959) companies were notified of this contract being advertised and forty-two (42) companies requested specifications.
The Minority Business Entity (MBE), Women Business Entity (WBE) and Small Business Entity (SBE) goals for the contract are 20% MBE, 10% WBE, and 10% SBE.
A review of the low bid, submitted by McDonagh Demolition Inc., revealed that this firm failed to meet the participation goals for WBE and SBE as required in this contract. McDonagh Demolition Inc., provided 28% MBE, 0.002% WBE and 4.7% SBE participation, leaving a shortfall of approximately 10% WBE and 5.3% SBE participation. The firm did not submit a waiver request form signed by an authorized officer on page UP-6 as required. Therefore, in accordance with Section 12(c) of the Affirmative Action Ordinance, Revised Appendix D, McDonagh Demolition Inc.’s bid is considered non-responsive and rejected for failure to meet the Revised Appendix D goals and in the public’s best interest. The Director of Procurement and Materials Management has notified McDonagh Demotion Inc., of this action.
IHC Construction Companies, LLC, the lowest responsible bidder, is proposing to perform the contract in accordance with the specifications. The estimated cost range for this contract is $4,085,000.00 to $4,945,000.00, placing their bid of $4,559,000.00 within the estimated cost range.
IHC Construction Companies, LLC, has executed the Multi-Project Labor Agreement (MPLA) Certificate as required. It is anticipated that the following trades will be utilized on this contract: bricklayer, carpenters, cement mason, electrician, electrician foreman, iron worker foreman, laborer, laborer foreman, operating engineer, pipefitter, plumber, plumber foreman, sheet metal worker, sheet metal foreman, steel erector, and truck driver. The list of construction trades is not intended to confer any rights or jurisdiction upon any union or unions.
IHC Construction Companies, LLC, 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% MBE, 11% WBE, and bidder offers WBE credits to satisfy the SBE participation.
The contract will require approximately fifty (50) 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 17-276-3D to IHC Construction Companies, LLC, in an amount not to exceed $4,559,000.00, plus a five (5) percent allowance for change orders in an amount of $227,950.00, for a total amount not to exceed $4,786,950.00, 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 contract will commence upon approval of the Contractor’s Bond and all work will be completed within 740 calendar days.
Funds are available in Account 401-50000-645780.
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 November 15, 2018
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