TRANSMITTAL LETTER FOR BOARD MEETING OF AUGUST 8, 2013
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Report on rejection of bids for Contract 13-932-21, Painting Services in the Stickney Service Area, to CL Coatings, LLC, estimated cost $1,636,000.00
Body
Dear Sir:
On April 4, 2013, the Board of Commissioners authorized the Director of Procurement and Materials Management to advertise for bids, Contract 13-932-21 Painting Services in the Stickney Service Area.
In response to a public advertisement of May 3, 2013, a bid opening was held on June 4, 2013. The bid tabulation for this contract is:
ERA VALDIVIA CONTRACTORS, INC. $1,620,760.00
CL COATINGS, LLC *$2,095,270.00
*corrected total
Two hundred forty (240) companies were notified of this contract being advertised and twenty-four (24) companies requested specifications.
Era Valdivia Contractors, Inc., (Era Valdivia) submitted a low bid for this contract. A review of the Utilization Plan by the Diversity Administrator revealed that Era Valdivia listed their WBE firm as a supplier of products and materials to meet 100% of the WBE participation. This contract did not contain the supplier exception language. Era Valdivia, has been declared non-responsive in accordance to Section 11 (i) on page D-14 of the Affirmative Action Interim Ordinance Appendix D where it states: "Purchase of materials and supplies must be pre-approved if their purchase is related to goal attainment. Bidder may count payments to MBE, WBE or SBE regular dealers or manufacturers who offer only furnish and deliver contracts for materials and supplies for no more than twenty-five percent (25%) of each MBE, WBE or SBE goal, unless approved by the Administrator. If the bidder exceeds the supplier exception amount allowable as stated in the bid documents, the bid will be viewed as non-responsive".
The Director of Procurement and Materials Management has notified Era Valdivia Contractors, Inc. of this action.
A review of the second low bidder, CL Coatings, LLC, revealed that their bid of $2,095,270.00 is approximately 28 percent above the estimated cost and is considered too high for an award. Therefore, CL Coatings, LLC has been notified by the Director of Procurement and Materials Management that their bid is being rejected in the public's best interest.
The Maintenance and Operations Department will re-advertise this contract as soon as possible.
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management, DAL:SEB:klv
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 August 8, 2013