TRANSMITTAL LETTER FOR BOARD MEETING OF OCTOBER 15, 2020
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Report on rejection of bids for Contract 15-266-4H3 (Re-Bid), Odor Control Systems at Two TARP Shafts and Decommissioning of the Thornton Transitional Reservoir, Calumet Service Area, estimated cost range from $14,598,000.00 to $17,671,000.00
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. All bids were rejected as reported at the Board Meeting of September 5, 2019.
Authorization to increase cost estimate from between $8,616,000.00 and $10,430,000.00 to a cost estimate between $14,598,000.00 and $17,671,000.00 was approved at the Board Meeting of September 19, 2019.
In response to a public re-advertisement of October 2, 2019, a bid opening was held on November 19, 2019. The bid tabulation for this contract is:
KENNY CONSTRUCTION COMPANY $19,329,500.00
RAUSCH INFRASTRUCTURE LLC $20,281,000.00
IHC CONSTRUCTION COMPANIES L.L.C. $28,870,000.00
The estimated cost range of this contract is between $14,598,000.00 and $17,671,000.00. The engineers estimate is $15,366,250.00.
All bids received are over the high end of the cost range estimate of $17,617,000.00. The bids range from 9.4% for Kenny Construction Company, 14.7% for Rausch Infrastructure LLC, and 63.3% for IHC Construction Companies, L. L. C.
Due to recent intense precipitation and the updated rainfall data, the Engineering Department took this opportunity to re-evaluate the potential for eliminating this work and keeping the additional storage capacity for Thorn Creek floodwater at the Thornton Transitional Reservoir. This analysis, including multiple modeling evaluations, took a number of months to complete. However, while Hanson Material Service had previously suggested it may be interested in a longer term lease or even selling a portion of the Lower West Lobe, their representatives have recently stated they are not amenable to selling any portion of the Lower West Lobe, nor to extending the lease beyond two years to complete the decommissioning of the Thornton Transitional Reservoir.
Therefore, due to the high bids received and length of time since the bids were received, all bids have been rejected in the best interest of the District. The Director of Procurement and Materials Management has notified all bidders 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