TRANSMITTAL LETTER FOR BOARD MEETING OF DECEMBER 18, 2008
COMMITTEE ON PURCHASING
Mr. Richard Lanyon, General Superintendent
Title
Authority to award Contract 01-103-2S (Rebid), 39th Street Conduit Rehabilitation Phase 1 - Bypass Tunnel, SSA, Chicago, Illinois, to Kenny/Shea, a Joint Venture in an amount not to exceed $146,430,000.00, Account 401-50000-645600, Requisition 1240087
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Dear Sir:
On April 17, 2008, the Board of Commissioners authorized the Purchasing Agent to advertise for bids, Contract 01-103-2S, 39th Street Conduit Rehabilitation Phase 1 - Bypass Tunnel, SSA, Chicago, Illinois.
In response to a public advertisement of May 7, 2008, a bid opening was held on July 22, 2008. All bids were rejected at the August 14, 2008 Board Meeting.
In response to a public re-advertisement of August 20, 2008, a bid opening was held on September 30, 2008. The bid tabulation for this contract is:
KENNY/SHEA, A JOINT VENTURE $146,500,000.00
JAY DEE - TRAYLOR, JOINT VENTURE $154,310,000.00
Four hundred ninety-eight (498) companies were notified of this contract being advertised and eleven (11) companies requested specifications.
Kenny/Shea, a Joint Venture, the lowest responsible bidder, is proposing to perform the contract, in accordance with the specifications.
The estimated cost for this contract was $142,700,000.00; placing the bid of $146,500,000.00, approximately 2.7 percent above the cost estimate.
The review of the proposals by the Engineering department revealed that Item 5D had an estimated quantity of seven (7) connections to grout instead of an anticipated four hundred and ninety (490) connections. The high mobilization cost for this item, spread across the estimated seven connections, resulted in an artificially high unit cost, which would significantly increase the cost of the contract when applied to the 490 connections. The Engineering department believes that the larger quantity of connections should substantially reduce the unit cost per connection. Due to the artificially high unit cost, it was determined by Law, Engineering, and the Purchasing Agent that Item 5D should be eliminated from the award of this contract in the public’s best interest. The value of work for Item 5D, as stated in the proposal page submitted by Kenny/Shea, a Joint Venture, was $10,000.00 per unit, or $70,000.00. The Jay Dee-Traylor, Joint Venture, proposal established the total value of this item at $43,890.00, or $6,270.00 per unit. Elimination of this item for purposes of awarding the contract will not change the ranking of the bidders. The work that was originally intended to be performed under this item will be redefined and accomplished as an extra under the contract subsequent to award. Thus, Contract 01-103-2S (Rebid) to Kenny/Shea, a Joint Venture will be awarded in an amount not to exceed $146,430,000.00.
Kenny/Shea, a Joint Venture is in compliance with the Revised Appendix D as indicated on the attached report. The protected class utilization for this contract is 21 percent Minority Business Enterprise (MBE), 10 percent Women Business Enterprise (WBE), and the Contractor offers MBE and WBE credits to fulfill the Small Business Enterprise (SBE) participation.
Kenny/Shea, a Joint Venture has executed the Multi-Project Labor Agreement (MPLA) certificate as required. The construction trades anticipated to be utilized on this contract are: Carpenters, Cement Workers and Masons, Electricians, Metal and Iron Workers, Laborers, Miners, Operating Engineers, Pipe Fitters and Plumbers, Painters, and Teamsters. The list of construction trades is not intended to confer any rights or jurisdiction upon any union or unions.
In view of the foregoing, it is recommended that the Purchasing Agent be authorized to award Contract 01-103-2S (Rebid) to Kenny/Shea, a Joint Venture, in an amount not to exceed $146,430,000.00, subject to the contractor furnishing a performance bond in form satisfactory to the Law Department and approved by the Purchasing Agent.
Funds are available in Account 401-50000-645600, Bond Fund.
Recommended, Darlene A. LoCascio, Purchasing Agent, DAL:SEB:klv
Respectfully Submitted, Barbara J. McGowan, Chairman Committee on Purchasing
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for December 18, 2008
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