HomeMy WebLinkAbout08-01-16 CC Mtg - C3. NOA to DLM for S. University Sewer
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Bob Murray, Project Engineer
Rick Hixson, City Engineer
SUBJECT: South University Area Sewer Main Interceptor - Notice of Award
MEETING DATE: August 1st, 2016
AGENDA ITEM TYPE: Consent
RECOMMENDATION: Find apparent low bid submitted by EDK Engineering and Contracting
Inc not responsible and authorize the City Manager to sign the Notice of Award to DLM
Contracting, Inc. for the Total Unit Priced Bid in the amount of $1,434,620.00.
BACKGROUND: Attached is a copy of the Notice of Award for the above referenced project.
The project generally includes the installation 15 and 18 inch diameter gravity sewer main from
the intersection of Fowler and Garfield to the intersection of Lincoln and 19th. This will include
a large diameter bore across 19th to connect to the existing main in Lincoln. The project also
includes the installation of a water main in the Bart Farm Road from Garfield to Lincoln to provide service to a few of the MSU farm buildings in the area. Installation of the sewer main is
necessary to provide service to the South University Development area and the vacant ground
south it. The contract is to be completed within 90 days of the issuance of the notice to proceed.
Bids for the above-referenced project were opened on July 13, 2016 with 6 bids being submitted.
The apparent low bid was submitted by EDK Engineering and Contracting Inc. in the amount of $1,319,632.00. The next lowest bid was submitted by DLM Contracting in the amount of
$1,434,620.00. Staff is recommending that the low bid submitted by EDK be rejected and the
award made to DLM. There were a few bidding requirements that EDK did not meet. The most
concerning is the lack of experience installing water and sewer mains as a company. They have
been in business since 2009, but have been concentrating on engineering versus construction. Recently they decided to get the construction side up and running. They have been awarded a
few projects in eastern Montana, but to date have not completed any and have not done a water
or sewer main project as a company. The attached award recommendation letter from Morrison
Maierle contains all of the background information and correspondence with EDK. DLM has a
long history of completing municipal pipe projects, and has completed projects for the City in the past. The Bid Tabulation for the project is attached.
UNRESOLVED ISSUES: None
ALTERNATIVES: Disapprove
FISCAL EFFECTS: The 8” equivalent portion of the sewer mains will be paid for from the
Wastewater Fund, the oversized portion will be paid for from the Wastewater Impact Fee fund
and the water mains will be paid for from the Water Fund. This equates to $156,061.14 –
Wastewater Fund, $1,127,579.17 – Wastewater Impact Fee Fund, and $150,979.69 – Water Fund.
Attachments: Notice of Award, Award Recommendation Letter, Bid Tabulation
Report compiled on: 7/26/16
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