TRANSMITTAL LETTER FOR BOARD MEETING OF AUGUST 14, 2008
COMMITTEE ON PURCHASING
Mr. Richard Lanyon, General Superintendent
Title
Report on rejection of bids for Contract 01-103-2S 39th Street Conduit Rehabilitation Phase 1 Bypass Tunnel, Stickney Service Area, Chicago, Illinois, estimated cost $93,200,000.00
Body
Dear Sir:
On April 17, 2008, the Board of Commissioners authorized the Purchasing Agent to advertise for bids for Contract 01-103-2S 39th Street Conduit Rehabilitation Phase 1 Bypass Tunnel, Stickney Service Area, Chicago, Illinois.
In response to a public advertisement of May 7, 2008, a bid opening was held on July 22, 2008. The bid tabulation for this contract is:
KENNY/SHEA, A JOINT VENTURE $143,800,000.00
JAY DEE - TRAYLOR, JOINT VENTURE *$151,443,830.00
*corrected total
Four hundred eighty-one (481) companies were notified of this contract being advertised and thirty-eight (38) companies requested specifications.
A review of the bids ranged from 54.3 to 62.3 percent over the Engineer’s estimate for this contract. Given the difference between the contract estimate and the bids received, the Engineering Department recommends rejecting the bids. The Purchasing Agent concurs with the recommendation and has informed both bidders that their bids are being rejected in the public’s best interest.
The Engineering Department will review and revise the cost estimate and request authority from the Board to re-advertise the contract at the August 14, 2008 meeting.
Respectfully Submitted, Darlene A. LoCascio, Purchasing Agent, DAL:SEB:klv