TRANSMITTAL LETTER FOR BOARD MEETING OF JUNE 16, 2022
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
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Authority to award Contract 07-027-3SR (Re-Bid), North Side Sludge Pipeline Replacement Section 1, NSA, to Joel Kennedy Constructing Corp., in an amount not to exceed $27,120,000.00, plus a five (5) percent allowance for change orders in an amount of $1,356,000.00 for a total amount not to exceed $28,476,000.00, Account 401-50000-645750, Requisition 1363440 (Deferred from the June 2, 2022 Board Meeting)
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Dear Sir:
On August 6, 2020, the Board of Commissioners authorized the Director of Procurement and Materials Management to advertise for bids Contract 07-027-3S, North Side Sludge Pipeline Replacement Section 1, NSA.
In response to a public advertisement of August 26, 2020, a bid opening was held on November 10, 2020. All bids were rejected as reported at the Board meeting of September 23, 2021.
Authorization to increase cost estimate was approved at the Board meeting of December 2, 2021.
In response to a public re-advertisement of February 2, 2022, a bid opening was held on April 19, 2022. The bid tabulation for this contract is:
JOEL KENNEDY CONSTRUCTING CORP. $27,120,000.00
IHC CONSTRUCTION COMPANIES, LLC $27,769,000.00
BURNS CONSTRUCTION COMPANY, JOHN $30,789,000.00
Joel Kennedy Constructing Corp., the lowest responsible bidder, is proposing to perform the contract in accordance with the specifications. The estimated cost range for this contract is $16,752,500.00 to $20,279,300.00, placing their bid of $27,120,000.00 approximately 33.7% above the high end of the cost range.
The reasons for the discrepancy between the Engineer’s estimate and the low bid may be attributed to material price increases, mainly associated with the HDPE pipeline, steel valves and fittings and diesel fuel. The volatility in the markets may have also attributed to escalated prices that were unforeseeable at time of advertisement as well as for the contractor to lock in supplier prices for the duration of the contract.
Joel Kennedy Constructing Corp. 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, laborers, operating engineers, pipe fitters, plumbers, pile drivers, iron workers and truck drivers. 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 are 20 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).
Joel Kennedy Constructing Corp., 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 2% MBE, 18% WBE and bidder offers MBE, WBE and self to satisfy the SBE requirement. The bidder committed to 0.17% for the VBE goal.
The contract will require approximately one hundred thirty-two (132) 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 07-027-3SR (Re-Bid) to Joel Kennedy Constructing Corp., in an amount not to exceed $27,120,000.00, plus a five (5) percent allowance for change orders in an amount of $1,356,000.00 for a total amount not to exceed $28,476,000.00, 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 will commence upon approval of the Contractor’s Bond and all work will be completed within 970 calendar days.
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:bn
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 June 16, 2022
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