HomeMy WebLinkAboutNotice of Award to McAlvain for bid items 1, 2 and 5 for WRF Digestor 3 and Solids Dewatering Project.pdf Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Bob Murray, Project Engineer
Rick Hixson, City Engineer
Chuck Winn, Assistant City Manager
SUBJECT: WRF Digester No. 3 and Solids Dewatering Project – Notice of Award
MEETING DATE: February 8, 2010
AGENDA ITEM TYPE: Consent
RECOMMENDATION: Approve and authorize the City Manager to sign the notice of award
to McAlvain Civil Constructors, Inc for bid items 1, 2, and 5 in the amount of $5,298,965.00
contingent upon SRF Program approval.
BACKGROUND: In October of 2008, bids were received for the first phase of the Water
Reclamation Facility (WRF) improvements project. The bids came in significantly over budget,
and as such only a portion of the proposed project could be awarded at that time. As part of the
Commission meeting on that award, an overall funding package was presented to and approved
by the Commission. That included eliminating some items entirely from the Phase 1 project;
continuing with some items that were currently under a separate contract such as engineering and
system integration; repackaging and rebidding the admin/lab building and digester number 3; and
a 10% project contingency. That total package amounted to $53,810,198 (see fiscal effects
below for details).
The repackaged admin/lab building was awarded at the December 28, 2009 Commission meeting
in the amount of $1,680,000.00. The digester number 3 and solids dewatering project was
repackaged and rebid, with the bids opened on December 22nd. McAlvain Civil Constructors,
Inc was the apparent low bidder with a total bid in the amount of $5,566,615.00. The project
was bid with 5 separate bid items with the low bidder being determined by the lowest overall bid.
After the low bidder is determined, the City can choose to award any or all of the five bid items.
Based on the overall project budget, we are recommending that only bid items 1, 2, & 5 be
awarded. These are the Base Bid, Screw Press, and Boiler respectively.
FISCAL EFFECTS: As stated above, in October of last 2008 a budget was presented to and
approved by the Commission for the Phase I project. It was presented as:
Project $41,192,233
System Integration $ 526,000
Contingency $ 4,172,000
Total Construction $45,890,233
Engineering $ 7,919,965
Total $53,810,198
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Now that we have received bids on the other project components, the budget can be further
broken down as follows:
Phase 1 (under construction) $36,362,233
Change Orders to Date $ (209,295)
Wage Rate Issue (Change Order 4) $ 300,000
Subtotal $36,452,938
Admin Building $ 1,680,000
System Integration $ 526,000
Engineering $ 7,919,965
Total Cost w/o Digester No. 3 $46,578,903
Digester Bid Items 1, 2, & 5 $ 5,298,965
Total Awarded Project Costs $51,877,868
Total Budget from Above $53,810,198
STAG Grant $ 485,000
Total Revised Budget $54,295,198
Total Project Contingency if Awarded $ 2,417,330
We have recently received an FFY10 STAG grant that can be used for the WRF project in the
amount of $485,000. This has not been considered in any of the past project budgets or rate
computations therefore it represents an increase in the overall budget amount available.
The “Phase 1” project component is nearing the midpoint of construction. There is $20,550,000
remaining on that project. Added to the admin building and digester bid prices this comes to a
total of $27,528,965 remaining in construction contracts. The total project contingency of
$2,417,330 equates to 8.8% of the remaining project costs. To date we have been carrying a
contingency of 10% on the remaining work, but we feel comfortable recommending going
forward with the reduced amount given we are so far along on the phase 1 project, and the
majority of the underground work on it is complete.
ALTERNATIVES: As suggested by the City Commission.
Attachments: Engineers Award Recommendation
Report compiled on: February 2, 2010
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