TRANSMITTAL LETTER FOR BOARD MEETING OF JANUARY 17, 2013
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Authority to award Contract 04-131-2D, Rehabilitation of the A/B and C/D Service Tunnels - Phase One, Stickney WRP, to F.H. Paschen SN Nielsen & Associates, LLC, in an amount not to exceed $13,615,000.00, Account 401-50000-645750, Requisition 1335454
Body
Dear Sir:
On January 5, 2012, the Board of Commissioners authorized the Director of Procurement and Materials Management to advertise for bids, Contract 04-131-2D Rehabilitation of the A/B and C/D Service Tunnels - Phase One, Stickney WRP.
In response to a public advertisement of June 6, 2012, a bid opening was held on August 14, 2012. The bid tabulation for this contract is:
F.H. PASCHEN, SN NIELSEN & ASSOCIATES, LLC $13,615,000.00
IHC CONSTRUCTION COMPANIES LLC $14,023,000.00
JAMES MCHUGH CONSTRUCTION COMPANY $15,206,318.00
KENNY CONSTRUCTION COMPANY $16,533,591.25
Six hundred seventy-three (673) companies were notified of this contract being advertised and twenty (20) companies requested specifications.
F.H. Paschen SN Nielsen & Associates, LLC, the lowest responsible bidder, is proposing to perform the contract in accordance with the specifications. The estimated cost for this contract was $10,174,344.00, placing the bid of $13,615,000.00, approximately 33.82 percent above the estimate.
The Director of Engineering has informed the Director of Procurement and Materials Management that the Engineering Department re-examined the final cost estimate after the bid opening and considers the bid amount acceptable for the following reasons: the time and effort required to perform the repair was underestimated considering the extreme conditions and environment inside the A/B and C/D services tunnels, the estimate underestimated the man-hours required to perform repairs inside the West Side Pumping Station, and the estimate did not include allowances for earth retention systems and adequate allowances for coordination of structural, mechanical and electrical work. Based on the information above, the Director of Procurement and Materials Management is of the opinion that the bid received is a fair and reasonable price and represents the market price for the work required.
F.H. Paschen SN Nielsen & Associates, LLC is in compliance with The Affirmative Action Interim Ordinance Appendix D as indicated on the attached report. The protected class utilization for this contract is 20 percent Minority Business Enterprise (MBE), 10 percent Women Business Enterprise, and the bidder offers MBE and WBE participation to satisfy the Small Business Enterprise (SBE) goal.
F.H. Paschen SN Nielsen & Associates, LLC 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: laborer, carpenter, mason, equipment operator, insulator, pipe fitter, electrician, plumber, iron worker, roofer, sheet metal worker, steel erector, and truck driver. 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 04-131-2D, to F.H. Paschen SN Nielsen & Associates, LLC, in an amount not to exceed $13,615,000.00, 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.
Funds are available in Account 401-50000-645750.
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 January 17, 2013
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