TRANSMITTAL LETTER FOR BOARD MEETING OF SEPTEMBER 4, 2025
COMMITTEE ON PROCUREMENT
Mr. John P. Murray, Acting Executive Director
Title
Authorization to increase cost estimate for Contract 22-377-2D Raw Sewage Discharge Pipe Support Modifications for Pumps 1-3, KWRP, estimated cost between $8,293,500.00 and $10,039,500.00, Account 201-50000-645750, Requisition 1629461
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Dear Sir:
On December 19, 2024, the Board of Commissioners authorized the Director of Procurement and Materials Management to advertise Contract 22-377-2D Raw Sewage Discharge Pipe Support Modifications for Pumps 1-3, KWRP, at an estimated cost between $5,168,000.00 and $6,256,000.00. The initial cost estimate did not adequately account for the complexity of the installations and did not anticipate the higher costs and more volatile market associated with proposed tariffs.
The contract was advertised on April 2, 2025. Bids were received on July 1, 2025. The sole bid received has been rejected due to it being approximately 56 percent above the engineer’s estimate.
Upon review of the sole bid received, it was determined that the initial cost estimate underestimated the costs associated with the complexity of working in difficult locations and confined spaces. Most of the work is happening at elevations well below grade which requires a combination of mobile and overhead cranes, carts, and stairs to access. The work will require substantial scaffolding to support work at elevations approximately 40’ above the floor. This work is occurring in confined spaces with specialized safety requirements. The estimate also did not account for the price increases, notably steel, and market volatility that has been observed as a result of recent tariff proposals. Therefore, the estimate has been revised to more adequately address the complexity of the work and current market conditions.
The purpose of this contract is to modify the pipe supports within the North Pump Well of the Influent Pumping Station to strengthen and protect the raw sewage pumping systems during thermal and transient loading events. The project includes miscellaneous repairs to concrete, piping, hydraulic control systems and other items required to maintain reliable long-term operation of the Influent Pumping Station.
Based on the aforementioned issues, the revised estimated cost for this contract is between $8,293,500.00 and $10,039,500.00. The estimated cost range will be stated in the advertisement for bids.
The bid deposit for this contract is $401,580.00.
The contract specifications require that all work commence 30 calendar days after approval of the contractor’s bond and shall be completed with 740 calendar days after approval of the contractor’s bond. Liquidated damages are $1,000.00 for each calendar day that the contractor is in default of the time specified for failing to achieve substantial work completion and $200.00 for each calendar day that the contract is in default of the time specified for completion of the entire work.
The Multi-Project Labor Agreement will be included in this contract.
The Affirmative Action Ordinance, Revised Appendix D will be included in this contract. The type of work to be performed under the contract is within the “General Construction” category for establishing Minority-owned Business Enterprises (MBE), Women-owned Business Enterprises (WBE), and Veteran-owned Business Enterprises (VBE) utilization goals. The MBE, WBE and VBE utilization goals for this contract are: 20 percent MBE, 10 percent WBE and 3 percent VBE.
The tentative schedule for this contract is as follows:
Advertise September 17, 2025
Bid Opening October 21, 2025
Award December 4, 2025
Completion December 13, 2027
Estimated expenditures for 2026 and 2027 are $6,514,000.00 and $2,216,000.00, respectively. Funds are being requested in 2026 and 2027 in Account 201-50000-645750, and are contingent on the Board of Commissioners’ approval of the District’s budget for those years.
In view of the foregoing, it is recommended that the Director of Procurement and Materials Management be authorized to increase the cost estimate and re-advertise Contract 22-377-2D.
Requested, Catherine A. O’Connor, Director of Engineering, CS
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Respectfully Submitted, Precious Brady-Davis, Chairperson Committee on Procurement
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for September 4, 2025
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