TRANSMITTAL LETTER FOR BOARD MEETING OF DECEMBER 19, 2019
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Authority to award Contract 18-277-3M, Digester Sludge Heating System Upgrades and Boiler Removal, Calumet Water Reclamation Plant, to IHC Construction Companies, L.L.C., in an amount not to exceed $25,499,000.00, plus a five (5) percent allowance for change orders in an amount of $1,274,950.00, for a total amount not to exceed $26,773,950.00, Account 401-50000-645750, Requisition 1524789
Body
Dear Sir:
On August 8, 2019, the Board of Commissioners authorized the Director of Procurement and Materials Management to advertise for bids, Contract 18-277-3M, Digester Sludge Heating System Upgrades and Boiler Removal, Calumet Water Reclamation Plant.
In response to a public advertisement of September 18, 2019, a bid opening was held on November 5, 2019. The bid tabulation for this contract is:
IHC CONSTRUCTION COMPANY L.L.C. $25,499,000.00
THE GEORGE SOLLITT CONSTRUCTION COMPANY $25,800,820.00
F.H. PASCHEN, S.N. NIELSEN & ASSOCIATES LLC *$33,917,040.00
*corrected total
Eight hundred fifty-four (854) companies were notified of this contract being advertised and seventy-seven (77) companies requested specifications.
IHC Construction Companies, L.L.C., the lowest responsible bidder, is proposing to perform the contract in accordance with the specifications. The estimated cost range for this contract is $27,075,000.00 to $32,775,000.00, placing their bid of $25,499,000.00 below the estimated cost range.
IHC Construction Companies, L.L.C., has executed the Multi-Project Labor Agreement (MPLA) Certificate as required. It is anticipated that the following trades will be utilized on this contract: asbestos abatement workers, carpenters, cement masons, electricians, insulators, iron workers, laborers, operating engineers, painters, pipefitters, plumbers, sheetmetal workers, structural steel erectors, skilled workers, and truck drivers. The list of construction trades is not intended to confer any rights or jurisdiction upon any union or unions.
IHC Construction Companies, L.L.C., 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 19.2% MBE, 8.8% WBE, and 15% SBE participation. The bidder offers 1.2% for the VBE and requests a partial waiver of the remaining VBE goal.
The contract will require approximately two hundred eighty-seven (287) 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 18-277-3M to IHC Construction Companies, L.L.C., in an amount not to exceed $25,499,000.00, plus a five (5) percent allowance for change orders in an amount of $1,274,950.00, for a total amount not to exceed $26,773,950.00, 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 contractor shall complete all work within 1,100 calendar days after approval of the Contractor’s Bond.
Funds are available in Account 401-50000-645750.
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 December 19, 2019
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