TRANSMITTAL LETTER FOR BOARD MEETING OF OCTOBER 17, 2024
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Authority to award Contract 01-103-AS 39th Street Conduit Rehabilitation - Phase II, SSA, to Michels Trenchless, Inc. (Michels), in an amount not to exceed $39,418,164.03, plus a five (5) percent allowance for change orders in an amount of $1,970,908.20, for a total amount not to exceed $41,389,072.23, Account 401-50000-645700, Requisition 1607772
Body
Dear Sir:
On November 2, 2023, the Board of Commissioners authorized the Director of Procurement and Materials Management to advertise for bids Contract 01-103-AS, 39th Street Conduit Rehabilitation - Phase II, SSA.
In response to a public advertisement of March 20, 2024, a bid opening was held on June 18, 2024. The bid tabulation for this contract is:
INSITUFORM TECHNOLOGIES USA LLC $40,357,380.00
MICHELS TRENCHLESS INC. $42,572,000.00
The associated tailored goals for this contract are 12 percent Minority-owned Business Enterprises (MBE) and/or Women-owned Business Enterprises (WBE) and 3 percent Veteran-owned Businesses (VBE).
Insituform Technologies USA, LLC (Insituform) offered 0 percent MBE, 0.01 percent WBE, and 0 percent VBE participation. Insituform requested a waiver on the MBE and/or WBE goals.
The Acting Diversity Administrator reviewed the waiver request and determined that Insituform did not meet the goals of the contract and did not substantiate a good faith effort to comply with the contract goals stated in the contract documents under Section 15, Utilization Plan Submission (b) and (e) (iv) of the Affirmative Action Ordinance Revised Appendix D and is considered non-responsive and rejected. The Director of Procurement and Materials Management has informed Insituform of this action.
Michels Trenchless, Inc. (Michels), the lowest responsible bidder, is proposing to perform the contract in accordance with the specifications. The estimated cost range for this contract is $27,930,000.00 to $33,810,000.00, placing their bid for Cost Proposals A, B, and C of $39,418,164.03 approximately 16.6 percent above the high range of the estimate.
The difference between the Engineer’s estimate and the bids received is attributable to escalation, a large contingency due to the unique and difficult nature of this work, including coordination with IDOT and neighborhood development projects and White Sox game traffic, within the same project area. These activities will require additional mobilization/demobilization work. The Engineering department believes the costs for this work to be fair and reasonable.
After consultation with the Engineering and Law departments, A determination was made to accept only proposals A, B, and C for $39,418,164.03. The unit price work under cost proposals D through J is only used if additional unit price work is performed. This unit price work is not guaranteed. Michels entered their extension costs as their unit price written in words for this work.
Michels, has executed the Multi-Project Labor Agreement (MPLA) as required. It is anticipated that the following trades will be utilized on this contract: carpenters, cement workers/masons, laborers, operating engineers, truck drivers, pipe fitters, and skilled workers. The list of construction trades is not intended to confer any rights or jurisdiction upon any union or unions.
Michels 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: 11.64 percent MBE and WBE. Bidder provided 0.835 percent for VBE participation.
The contract will require approximately one hundred eighty-two (182) people for the services.
The contractor shall commence the work 30 calendar days after approval of the contractor’s bond and complete the work within 730 days thereafter.
In view of the foregoing, it is recommended that the Director of Procurement and Materials Management be authorized to award Contract 01-103-AS, Cost Proposals A, B, and C, to Michels, in an amount not exceed $39,418,164.03, plus a five (5) percent allowance for change orders in an amount of $1,970,908.20, for a total amount not to exceed $41,389,072.23, 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.
Funds are available in Account 401-50000-645700.
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 October 17, 2024
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