REPORT TO THE CITY COUNCIL
December 7, 2017
FROM: SCOTT L. MOZIER, PE, Director
Public Works Department
BY: ROBERT N. ANDERSEN, PE, Assistant Director
Public Works Department
L. NATHAN SANCHEZ, Project Manager
Public Works Department, Facilities Management Division
SUBJECT
Title
Reject all bids for the Cary Park Restroom Replacement Project - Bid File No. 3554 (Council District 4)
Body
RECOMMENDATION
Staff recommends that Council reject all bids received September 5, 2017, for the Cary Park Restroom Replacement project (Project).
EXECUTIVE SUMMARY
Staff recommends that Council reject all bids for the Project, Bid File 3554. After review of all bids it was determined to modify the project specifications to allow the bids to come in within the projects construction budget.
BACKGROUND
On May 26, 2016, an agreement was executed with The Vernal Group for the preparation of plans and general construction contract documents to replace the restroom at Cary Park. Plans and specifications were developed and a Notice Inviting Bids was published in the Business Journal on August 31, 2017, and posted on the City’s website and faxed to ten (10) building exchanges. The specifications were distributed to twenty (20) prospective bidders. One (1) sealed bid proposal was received and opened in a public bid opening on September 5, 2016, with a bid of $391,000 for the Total Net Base Bid.
The apparent lowest bid calculated out to be 48.7% above the Engineer’s Estimate for this scope of work. After review of all bids, it was determined to modify the project specifications to allow the bids to come in within the projects construction budget.
Staff recommends that Council reject all bids received on September 5, 2017, for the Project and procure the pre-fabricated restroom directly from the manufacturer via a piggyback contract. Purchasing has begun the process to get the piggyback contract in place so the restroom can be purchased within a month. Once the building has been ordered, the manufacturer will take eight to ten (8-10) weeks to fabricate the building. During the fabrication time a local contractor will be brought on board via the Job Order Contracting [JOC] program to perform the demolition of the existing building and prepare the site for the new building. The City has established a JOC program that was approved by City Council on September 28, 2017. Installation of the new building should take approximately two (2) weeks after the unit arrives.
There are insufficient funds to award a contract, due to the bids coming in 48.7% over the Engineer’s Estimate for the Project. It is anticipated that procuring the restroom via piggyback and utilizing the JOC program for the associated demolition and concrete work will result in a $96,000 savings versus awarding to the current low bidder. In addition, the piggy back method and the JOC program will save three (3) months as compared to re-bidding a traditional contract. Staff anticipates the restroom will be installed and ready for public use by April 2018.
ENVIRONMENTAL FINDINGS
This is not a project for the purposes of CEQA pursuant to CEQA guidelines section 15378(b)(5), as it is an administrative action that will not result in direct or indirect changes to the environment.
LOCAL PREFERENCE
Local preference was not implemented because staff is requesting to reject all bids.
FISCAL IMPACT
Implementation of the staff recommendation will have no impact upon the City’s General Fund as staff is requesting Council reject all bids.
Attachment:
Bid Evaluation