HomeMy WebLinkAbout06.a. Reject sole bid submitted for construction of the 2012 CIPP (cured-in-place pipe) Sliplining Project, DP 8405Board Meeting Date: July 5, 2012
subject: REJECT ALL BIDS SUBMITTED FOR THE CONSTRUCTION OF THE 2012
CIPP SLIPLINING PROJECT, DISTRICT PROJECT 8405
Submitted By: Initiating Dept. /Div.:
Wesley Adams, Assistant Engineer Engineering /Capital Projects
REVIEWED AND RECOMMENDED FOR BOARD ACTION:
W. Adams
s
A. Antkowiak
Ann E. Farrell
General Manager
ISSUE: On June 20, 2012, one (1) sealed bid was received and opened for the
construction of the 2012 CIPP Sliplining Project, District Project 8405. The Board of
Directors must award the contract or reject bids within 50 days of the bid opening.
RECOMMENDATION: Reject all bids received for the construction of the 2012 CIPP
Sliplining Project, DP 8405.
FINANCIAL IMPACTS: The total cost of redesign and rebid of the project will be
influenced by the project scope revisions.
ALTERNATIVES /CONSIDERATIONS: Award a construction contract and authorize
the General Manager to execute contract documents with SAK Construction of
California for the total amount of $4,875,718. This action will result in payment of
$2,275,718 over the Engineer's estimate, which is not recommended.
BACKGROUND: In 1991, the District implemented a sewer renovation program.
Candidate sewer line segments were identified, evaluated, and placed on a priority list
for replacement and /or renovation. The project will renovate existing large- diameter
deteriorated pipelines located in Walnut Creek and Martinez (see Attachment 1).
District staff prepared the plans and specifications for the project. The Engineer's
estimate for construction of the 2012 CIPP Sliplining Project is $2,600,000. This project
was advertised on June 1 and 8, 2012. One (1) sealed bid for $4,875,718 was received
and publicly opened on June 20, 2012. Another bidder brought his bid to the reception
area approximately 20 minutes late, and his bid could not be accepted. The
Engineering Department conducted a technical and commercial review of the accepted
bid and determined that SAK Construction of California is the lowest responsive bidder
with a bid amount of $4,875,718. A summary of bids received is shown in
Attachment 2.
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POSITION PAPER
Board Meeting Date: July 5, 2012
subject: REJECT ALL BIDS SUBMITTED FOR THE CONSTRUCTION OF THE 2012
CIPP SLIPLINING PROJECT, DISTRICT PROJECT 8405
This project is included in the fiscal year (FY) 2011 -12 Capital Improvement Budget
(CIB) on page CS -22. Staff has conducted a cash -flow analysis of the Collection
System Program budget and concluded that adequate funds are available for this
project.
Staff has evaluated the design and bidding climate to determine why only one bid was
submitted and why it exceeded the Engineer's estimate. Following are the main
reasons:
The project was bid late in the bidding season, when most contractors already have
other jobs and there is less incentive to provide low bids. A second bidder for this
project arrived late, and his bid could not be accepted. One of the construction
rehabilitation technologies specified was a spiral -wound lining. Only a limited number
of installers for this type of construction are available in Northern California.
Due to a scheduling conflict with the Outfall Improvements Project, Phase 6, and
treatment plant operational constraints, a significant portion of the project had to be
completed during the summer of 2013. This would require the Contractor to mobilize its
equipment twice. Work sites in the City of Walnut Creek were subject to strict permit
requirements, such as limited construction schedules and work hours.
All of these factors made this project unattractive and resulted in a single bid, which
exceeded the Engineer's estimate. Based on the results of the evaluation, it was
determined that, by redesigning portions of the project, changing the construction
schedule to avoid two mobilizations, and rebidding early in next year's bidding season,
the District could potentially attain significant savings. Therefore, staff concluded that it
is in the best interests of the public and the District to reject all bids, incorporate design
changes, and rebid the project early in 2013.
RECOMMENDED BOARD ACTION: Staff recommends the following:
Reject all bids received for construction of the 2012 CIPP Sliplining Project,
DP 8405.
NAPESUMCbradleyTOSITION PAPERS1Adams18405 PP Reject Bids -2012 Sliplining.doc Page 2 of 4
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ATTACHMENT 2
2012 CIPP SLIPLINING PROJECT
DISTRICT PROJECT 8405
SUMMARY OF BIDS
PROJECT NO.: 8405 DATE: JUNE 20, 2012
PROJECT NAME: 2012 CIPP SLIPLINING PROJECT
PROJECT LOCATION: VARIOUS CITIES IN CONTRA COSTA COUNTY
NO. OF ADDENDA: 1 ENGINEER EST.: $2,600,000
NO.
BIDDER
BID PRICE
1
SAK Construction of California
Rocklin, CA 95765
$4,875,718
2
3
4
BIDS OPENED BY /s /Elaine Boehme
DATE June 20, 2012
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