TRANSMITTAL LETTER FOR BOARD MEETING OF MARCH 6, 2008
COMMITTEE ON PURCHASING
Mr. Richard Lanyon, General Superintendent
Title
Report on rejection of bids for Contract 08-881-11, for Painting Services for the Battery B Final Settling Tanks at the Calumet Water Reclamation Plant, Estimated Cost: $400,000.00
Body
Dear Sir:
On November 15, 2007, the Board of Commissioners passed an order directing the Purchasing Agent to advertise for bids for Painting Services for the Battery B Final Settling Tanks at the Calumet Water Reclamation Plant.
In response to a public advertisement of December 19, 2007, a bid opening was held on January 15, 2008. The bid tabulation for this contract is:
ERA VALDIVIA CONTRACTORS, INC. $340,631.00
CL COATINGS, LLC $356,376.80
NORTHWESTERN CONTRACTORS, INC. $441,230.50*
CROWN PAINTING, INC. $474,080.08*
MANTA INDUSTRIAL, INC. $985,477.10*
*corrected total
Five hundred thirty (530) companies were notified of this contract being advertised and seventeen (17) companies requested specifications.
A review of the bid documents for this contract revealed that language for the Supplier’s Exception which allows the bidder to utilize PCE suppliers for the 100 percent goal attainment in their respective categories was included on page P-4 of the contract by mistake.
The Affirmative Action Section did not recommend a Supplier’s Exception for this Contract, and the Purchasing Agent did not grant the exception prior to advertising. The PCE goals were 20 percent MBE, 10 percent WBE, and 10 percent SBE.
The apparent low bidder, ERA Valdivia Contractors, Inc., offered WBE suppliers in their utilization plan which exceeded the allowable utilization of suppliers for the WBE goal attainment. The suppliers exception should not have been added on page P-4.
Based on the above information and consultation with the Affirmative Action Administrator, all bids have been rejected by the Purchasing Agent in the public’s best interest.
The contract will be reviewed and revised prior to re-advertisement.
Respectfully submitted, Darlene A. LoCascio, Purchasing Agent, DAL:SEB:klv