TRANSMITTAL LETTER FOR BOARD MEETING OF NOVEMBER 16, 2023
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Authority to award Contract 18-148-3P Digester Rehabilitation and Gas Piping Replacement Phase II, Stickney Water Reclamation Plant, to IHC Construction Companies LLC, in an amount not to exceed $52,360,000.00, plus a five (5) percent allowance for change orders in an amount of $2,618,000.00, for a total amount not to exceed $54,978,000.00, Account 401-50000-645750, Requisition 1602023
Body
Dear Sir:
On July 13, 2023, the Board of Commissioners authorized the Director of Procurement and Materials Management to advertise for bids Contract 18-148-3P Digester Rehabilitation and Gas Piping Replacement Phase II, Stickney Water Reclamation Plant.
In response to a public advertisement of August 23, 2023, a bid opening was held on October 10, 2023. The bid tabulation for this contract is:
IHC CONSTRUCTION COMPAINES LLC $52,360,000.00
The Director of Procurement and Materials Management has reviewed the bidders’ list for this contract and is satisfied that the market for this service has been adequately solicited. A planholders’ survey revealed the following reasons for not bidding: mechanical work was too large for their firm to do, duration of job was too long and it is too difficult to accurately account for labor, material, and equipment costs due to price increases from suppliers, etc. over the duration of the work.
In light of these findings, the Director of Procurement and Materials Management is of the opinion that the bid received is a fair and reasonable price, and nothing would be gained by rejecting the sole bid and re-advertising this contract.
IHC Construction Companies LLC, the sole bidder, is proposing to perform the contract in accordance with the specifications. The estimated cost range for this contract is $34,156,300.00 to $41,347,100.00, placing their bid of $52,360,000.00 approximately 26.60 percent above the high end of the cost estimate.
IHC Construction Companies LLC, has executed the Multi-Project Labor Agreement (MPLA) Certificate as required. It is anticipated that the following trades will be utilized on this contract: bricklayer, carpenter, cement mason, electrician, insulator, iron worker, laborer, machinist, operating engineer, painter, pipefitter, plumber, roofer, sheet metal worker, skilled worker, steel erector, tile mason, and truckdriver. The list of construction trades is not intended to confer any rights or jurisdiction upon any union or unions.
The Minority Business Enterprise (MBE), Women Business Enterprise (WBE), and Veteran-Owned Business Enterprise (VBE) utilization goals for this contract are 20 percent MBE, 9 percent WBE, and 3 percent VBE.
IHC Construction Companies LLC, is in compliance with the Affirmative Action Ordinance, Revised Appendix D and Appendix V as indicated on the attached report. The bidder has committed to the following utilization goals for this contract: 21.47 percent MBE and 9.03 percent WBE. Bidder provided 3.19 percent for VBE participation.
The contract will require approximately one hundred and fifty-nine (159) jobs for the services.
In view of the foregoing, it is recommended that the Director of Procurement and Materials Management be authorized to award Contract 18-148-3P to IHC Construction Companies LLC, in an amount not to exceed $52,360,000.00, plus a five (5) percent allowance for change orders in an amount of $2,618,000.00, for a total amount not to exceed $54,978,000.00, 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.
The contract specifications require that all work commence 30 days after approval of the contractor’s bond and shall be completed within 2190 calendar days after approval of the contractor’s bond.
Funds are available in Account 401-50000-645750.
Requested, Catherine A. O’Connor, Director of Engineering
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management, DAL:SEB:gv
Respectfully Submitted, Marcelino Garcia, 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 November 16, 2023
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