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HomeMy WebLinkAboutHyalite-Sourdough Water Treatment Plant Replacement Project Notice of Award.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: Hyalite/Sourdough Water Treatment Plant Replacement Project Notice of Award MEETING DATE: July 25th, 2011 AGENDA ITEM TYPE: Action RECOMMENDATION: Approve and authorize the City Manager to sign the notice of award to Apollo, Inc for bid items A1 and A2 in the amount of $26,879,130.00 contingent upon SRF Program approval. BACKGROUND: Attached is a copy of the Notice of Award for the above referenced project. The existing water treatment plant is reaching the end of its useful life. The water facility plan recommended replacement of the existing plant with a new pressurized membrane filtration treatment plant with chlorine contact disinfection and a new downstream contact channel with additional storage capacity for treated water. The plan also recommended an increase in capacity with the initial phase able to produce 22 million gallons per day, and room for expansion in a future phase to 36 million gallons per day. This project will achieve those facility plan recommendations. Bids for the above-referenced project were opened on June 7, 2011. The project was bid with two schedules. Schedule A with its alternates was for the treatment facility itself. Schedule B was for the replacement of the Sourdough intake facility. There were 11 bidders on Schedule A, and 9 on Schedule B. The low bid for Schedule A was submitted by Apollo, Inc from Kennewick, WA in the amount of $27,004,400.00. Initially the low bidder on Schedule B was Williams Brother Construction, but as allowed under the contract, they provided evidence of a substantial error in their bid within 24 hours of the opening and withdrew their bid. With their withdrawal, the low bidder became RSCI from Meridian, ID. There were many minor bid irregularities on the bids submitted, but after the corrections were made in accordance with the contract documents, the low bidders remained the same. A bid protest was received from the third low bidder on the project, Dick Anderson Construction, Inc. They were requesting that both the low and second low bid be thrown out. The basis of the protest was issues that they raised in response to a few items in the information required of bidders. This is a series of questions that must be answered within 10 days of the bid opening in order to help the City and Consultants evaluate the low bidder. Prior to receiving the 273 protest, we had already raised a question with two of the three items raised by Dick Anderson, and they raised a third. We asked for clarification and additional information from Apollo on the items in question which they provided. The information and response from Apollo was reviewed by City Engineering and Legal staff, and the Consultants and it was determined that the additional information satisfied our concerns. We recommend the issues that were raised be deemed minor irregularities and that the award be made to Apollo. A copy of the protest letter, Apollo’s response, and an additional follow up from council for Dick Anderson are included for your review. The recommendation in regard to Schedule A is to only make award to Apollo, Inc for bid items A1 and A2 in the amount of $26,879,130.00. Bid item A2 is a deductive bid item to eliminate construction of 2 of the residual drying beds. The recommendation for Schedule B is to not award it at this time. This is primarily for budgetary reasons. By not making award at this time, we will be able to go into the overall project with a 5% contingency within the original overall project budget. Once we are well into the project, if the budget allows, we will rebid the intake work as a standalone project. The Bid Tabulation and engineers award recommendation for the project is attached. UNRESOLVED ISSUES: None ALTERNATIVES: Disapprove FISCAL EFFECTS: The project is being funded through a combination of Water Enterprise Fund, Water Impact Fee Fund, and a loan from the State Revolving Fund. Based on the award recommendation above, the overall project budget would be: Construction Schedule A1 $27,007,400.00 Bid Item A2 Drying Bed Reduction $ (128,270.00) Pall Membrane Equipment $ 5,558,300.00 Pilot Costs $ 385,000.00 Engineering $ 6,307,500.00 System Integration $ 438,925.00 Contingency 5% Item A and Pall $ 1,621,872.00 Total $41,190,727.00 Attachments: Engineers Recommendation, Bid Protest Correspondence Report compiled on: 7/12/11 274 275 276 277 278 279 280 281 282 283 284 285 286 287 288 289 290 291 292 293 294 295 296 297 298 299 300 301 302 303 304 305 306 307 308 309 310 311 312 313 314 315 316 317 318 319 320 321 322 323 324 325 326 327 328 329 330 331 332 333 334 335 336