TRANSMITTAL LETTER FOR BOARD MEETING OF NOVEMBER 17, 2022
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Authority to award Contract 20-859-3SR (Re-Bid), Drop Shaft Modifications and Collection Facilities Work, NSA (Re-Bid), to IHC Construction Companies, L.L.C., in an amount not to exceed $3,158,000.00, plus a five (5) percent allowance for change orders in an amount of $157,900.00 for a total amount not to exceed $3,315,900.00, Account 401-50000-645600, Requisition 1570130
Body
Dear Sir:
On October 21, 2021, the Board of Commissioners authorized the Director of Procurement and Materials Management to advertise for bids Contract 20-859-3S, Drop Shaft Modifications and Collection Facilities Work, NSA
In response to a public advertisement of December 15, 2021, a bid opening was held on March 1, 2022. No bids were received at the bid opening.
Authorization to decrease cost estimate was approved at the Board meeting of July 14, 2022.
In response to a public re-advertisement of August 10, 2022, a bid opening was held on October 4, 2022. The bid tabulation for this contract is:
IHC CONSTRUCTION COMPANIES, LLC $3,158,000.00
RAUSCH INFRASTRUCTURE, LLC $3,287,944.00
IHC Construction Companies, LLC, the lowest responsible bidder, is proposing to perform the contract in accordance with the specifications. The estimated cost range for this contract is $1,995,000.00 to $2,415,000.00, placing their bid of $3,158,000.00 approximately 30.7% above the high end of the cost range.
The major discrepancy for the low bid being over the cost estimate may be attributed to the cost for concrete removal and injection grouting prices submitted by the low bidder in comparison to the District’s estimate for those items.
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: carpenters, cement workers/masons, electricians, iron workers, laborers, operating engineers, truck drivers and skilled workers. The list of construction trades is not intended to confer any rights or jurisdiction upon any union or unions.
The associated goals for this contract were 15 percent Minority Business Enterprise (MBE) and/or Women Business Enterprise (WBE), 10 percent Small Business Enterprise (SBE), and 3 percent Veteran-Owned Business Enterprise (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 Minority Business Enterprise (MBE), Women Business Enterprise (WBE), Small Business Enterprise (SBE), and Veteran-Owned Business Enterprise (VBE) utilization goals for this contract are 13.57% MBE, 1.45% WBE, and bidder offers MBE credits to satisfy the SBE participation. The bidder offered 3.39% for the VBE goal.
The contract will require approximately eleven (11) people for the services.
In view of the foregoing, it is recommended that the Director of Procurement and Materials Management be authorized to award Contract 20-859-3SR (Re-Bid) to IHC Construction Companies, LLC, in an amount not to exceed $3,158,000.00, plus a five (5) percent allowance for change orders in an amount of $157,900.00 for a total amount not to exceed $3,315,900.00, 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 will commence 30 calendar days after the approval of the contractor’s bond and all work will be completed within 400 calendar days.
Funds are available in Account 401-50000-645600.
Requested, Catherine A. O’Connor, Director of Engineering
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management, DAL:SEB:cm
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 November 17, 2022
Attachments