TRANSMITTAL LETTER FOR BOARD MEETING OF SEPTEMBER 5, 2019
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Report on rejection of bids for Contract 15-266-4HR (Re-Bid), Odor Control Systems at Two TARP Shafts and Decommissioning of the Thornton Transitional Reservoir, Calumet Service Area, estimated cost range from $8,616,000.00 to $10,430,000.00
Body
Dear Sir:
On February 7, 2019, the Board of Commissioners authorized the Director of Procurement and Materials Management to advertise for bids, Contract 15-266-4H, Odor Control Systems at Two TARP Shafts and Decommissioning of the Thornton Transitional Reservoir, Calumet Service Area.
In response to a public advertisement of March 20, 2019, a bid opening was held on April 30, 2019. There were no bids received for this contract.
Authorization to increase cost estimate range from between $4,750,000.00 to $5,750,000.00 to a cost estimate range between $$8,616,000.00 and $10,430,000.00 was approved at the Board Meeting of May 16, 2019.
In response to a public re-advertisement of May 22, 2019, a bid opening was held on July 23, 2019. The bid tabulation for this contract is:
RAUSCH INFRASTRUCTURE, LLC $20,627,000.00
IHC CONSTRUCTION COMPANIES, INC. $20,950,000.00
Six hundred four (604) companies were notified of this contract being advertised and fifty-nine (59) companies requested specifications.
A review of the lowest bid, submitted by Rausch Infrastructure LLC, revealed that the bid is approximately 97.8 percent over the estimate range and considered too high for award. Therefore, all bids are rejected in the public’s best interest. The Director of Procurement and Materials Management has informed Rausch Infrastructure LLC and IHC Construction Companies, L.L.C. of this action.
The contract documents will be reviewed and revised by the Engineering Department prior to re-advertisement.
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management, DAL:SEB:cm