TRANSMITTAL LETTER FOR BOARD MEETING OF AUGUST 8, 2013
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Authority to award Contract 11-241-3P, Disinfection Facilities, Calumet Water Reclamation Plant, to IHC/KED, a Joint Venture, in an amount of $30,920,000.00, plus a five (5) percent allowance for change orders in an amount of $1,546,000.00, for a total amount not to exceed $32,466,000.00, Account 401-50000-645650, Requisition 1358920
Body
Dear Sir:
On April 9, 2013, the Board of Commissioners authorized the Director of Procurement and Materials Management to advertise for bids, Contract 11-241-3P Disinfection Facilities, Calumet Water Reclamation Plant.
In response to a public advertisement of April 24, 2013, a bid opening was held on July 9, 2013. The bid tabulation for this contract is:
F. H. PASCHEN, SN NIELSEN & ASSOCIATES LLC $30,360,000.00
IHC/KED, A JOINT VENTURE *$30,920,000.00
SOLLITT/SACHI/ALWORTH, JOINT VENTURE $34,090,000.00
W. E. O'NEIL CONSTRUCTION COMPANY *$34,253,334.00
WALSH CONSTRUCTION COMPANY $35,893.618.00
KENNY CONSTRUCTION COMPANY $38,204,100.00
*corrected total
Seven hundred forty-six (746) companies were notified of this contract being advertised and one hundred ten (110) companies requested specifications.
A review of the low bid submitted by F. H. Paschen, SN Nielsen & Associates LLC (F. H. Paschen) revealed that they did not meet the required goals for Minority Business Enterprise (MBE) participation. F. H. Paschen submitted a Subcontractor's Letter of Intent for an MBE firm which was not listed on the UP-2 page of the Utilization Plan for MBE participation. This MBE firm was not counted toward the MBE participation. In accordance to the Affirmative Action Interim Ordinance Appendix D where it states: (a) The Director shall declare the bid submission non-responsive if a bidder: (ii) Failed to commit in its Utilization Plan to MBE, WBE and SBE participation equal or greater than each of the Utilization Contract Goals unless the Bidder submitted with its bid a request for a total or partial waiver of the Goal(s). F. H. Paschen's bid failed to meet the required goals for MBE participation.
F. H. Paschen did not submit a waiver request with its bid. Therefore, the bid was considered non-responsive and was rejected in the public's best interest. The Director of Procurement and Materials management has notified F. H. Paschen of this action.
IHC/KED, a Joint Venture, the lowest responsible bidder, is proposing to perform the contract in accordance with the specifications.
The estimated cost for this contract was $33,000,000.00, placing the bid of $30,920,000.00, approximately 6.3 percent below the estimate.
IHC/KED, a Joint Venture, is in compliance with the Affirmative Action Interim Ordinance Appendix D as indicated on the attached report. The Socially and Economically Disadvantaged Individuals utilization goals for this contract are: 20 percent Minority Business Enterprise (MBE), 10 percent Women Business Enterprise (WBE), and the bidder offers MBE participation to satisfy their Small Business Enterprise (SBE) goals.
IHC/KED, a Joint Venture, 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: operating engineers, carpenters, cement finishers, and laborers. The list of construction trades is not intended to confer any rights or jurisdiction upon any union or unions.
In view of the foregoing, it is recommended that the Director of Procurement and Materials Management be authorized to award Contract 11-241-3P, to IHC/KED, a Joint Venture, in an amount not to exceed $30,920,000.00, plus a five (5) percent allowance for change orders in an amount of $1,546,000.00, for a total amount not to exceed $32,466,000.00, subject to the contractors furnishing a performance bond in form satisfactory to the Law Department and approved by the Director of Procurement and Materials Management.
Funds are available in Account 401-50000-645650.
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
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