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Home My WebLink AboutPR 12150:BUS. PARK CONTRACTPort Arthur Economic Development Corporation P. O. Box [089 · Port Arthur, Texas 77641-1089 409/983-8195 · 409/983-8222 fax Email: portarthuredc~eonet.net · http://www.portarthur.com/edc Memo To: Mayor, City Council and Cit~anager From: Ike Mills, Executive Director//V~ Date: Apd124, 2003 Re: P.R. No. 12150; Council Meeting Apd129, 2003 Attached is P.R. No. 12150 approving Contract VII in the amount of $597,672.00 to Excavator & constructors as it pertains to the Port Arthur Business Park as approved by the Section 4A Port Arthur Economic Development Corporation. The Board of Directors of the EDC allowed Sandra Enterprises to withdraw their bid since Sandra Enterprises indicated they made an innocent mistake in bidding the project with no intention to circumvent the bidding procedures. Sandra Enterprises bid $499.186.03. cc: Mark T. Sokoiow, City Attomey Jim Wimbedey, EDC Attomey RESOLUTION NO. A RESOLUTION APPROVIN~ THE AWARD OF P. R. No. 12150 04y14/03 bj~ CONTRACT VII IN THE AMOUNT OF $597,672.00 TO ESCAVATOR &CONSTRUCTOES FOR THE PORT A~THUR BUSINESS PARK AS APPROVED BY THE SECTION 4A PORT ARTHUR ECONOMIC DEVELOPMENT CORPORATION WHEREAS, the Section 4A Economic Development Corporation advertised for bidders to construct the Port Arthur Business Park; and WHEREAS, the Business Park project was divided into seven contracts, Contract I and Contract VII were not previously awarded. WHEREAS, the bids for Contract VII (landscaping and final grading) were received on February 19, 2003 and were reviewed and evaluated by Schaumburg & Polk as well as by Diamond Consulting; and WHEREAS, the report and recommendations of Schaumburg & Polk and Diamond Consulting are attached as Exhibits "A" and "B"; and WHEREAS, on March 31, 31, 2003, the Board of directors of the Port Arthur Section 4A Port Arthur Economic Development Corporation voted unanimously to allow Sandra Enterprises to withdraw their bid at $499,186.03 due to an innocent material mistake in bidding with no intention to circumvent the bidding procedures and to approve the award of Contract VII to Excavators & Constructors for $597,672; and WHEREAS, the actions of Section 4A Economic Development Corporation require the approval by the City Council; and NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR: Section 1. That the facts and opinions in the preamble are true and correct. Section 2. That the City Council herein approves the award of construction contract for Contract VII to Excavator & Constructors for $597,672 by the Section 4A Economic Development Corporation. Section 3. That a copy of the caption of this Resolution be spread upon the Minutes of the City Council READ, ADOPTED AND APPROVED on this day of , A.D., 2003, at a Regular Meeting of the City Council of the City of Port Arthur, Texas, by the following vote: AYES: Mayor , City Council , NOES ATTEST: EVANGELINE GREEN, OSCAR ORTIZ, MAYOR CITY SECRETARY PROVED AS T~ FORM: r0 ious ,,ifm ' , ,/EXECUT Xm APPROVED AS TO FORM: MARK T. SOKOLOW, CITY ATTOP~NEY APPROVED FOR ADMINISTRATION: STEVE FITZGIBBONS, CITY MANAGER APPROVED AS TO AVAILABILITY OF FUNDS REBECCA UNDERHILL, DIRECTOR OF FINANCE EXHIBIT ~A" Diamond Consulting Economic Development Architecture t~ Gambrel Oak Place Planning The Woodlands. Texas 77380 April 14, 2003 Mr. lke Mills Executive Director Port Arthur Ecunomie Development Corporation P.O. Box 1089 Port Arthur, Texas 77640-1089 Re: City Council Meeting to Award Contracts and Change Orders for Business Park Dear Ike, As you know, bids for Contracts I and VII were received in January and February respectively. I delayed submitting ~hem for award until they could be considered as one package along with Change Order 2 for Contract VI and Agreement letters from the utility companies. As you will recall The March EDC board meeting was delayed several weeks. But these have not been included on either of the two subsequent City Council meeting agendas and are thus still pending. Change Order 2 to Contract VI is now critical The contractor must receive the alternate valve called for in this change order before he can complete construction of the retention pond and ouffall structures. This valve has a lead- time of weeks in order to allow it to be fabricated speeifically for our application. The folinw'mg agreements that were approved by the EDC Board on March 31: Contract VI - Change Order 2 -Substitution of outfall valves + $15,406.00 Contract I- General Requirements - award of the following: Contact for Construction Sign - $1,957.34 to Fast Sign Contract for Temporary Project Sign - $4,125.87 to Fast Signs Contract for Modular Office - $48,893.00 to Eagle Pro Engineering Inc. Contact VI~ Landscaping and Final Grading - award of the following: Contract for consu'uction - Utility Agreements Agreement for Power Services- Gas Service- $597,672.00 to Excavators and Constructcxs Inc. $351,000.00 with Entergy Not to exceed $165.000 -with Texas Gas In addition to these items we have since uncovered two additional items that may require action by both the EDC Board and City Council. They are: Potential changes m Contract V- Road Improvements as a result of changes in soil moisture content (see Monthly Report for March and April). Additional soil tests are currently underway to resolve concerns and revise paving section and sub grade design if required. Change Order 3 to Contract 11I - Underground Utilities - This change order is for revisions in the Jade Road connection to a new offsite water line being constructed by the City under separate conlmct These ph 281 367 7821 fax 281 292 7552 email diaconsult@worldcet.att.net IkeMills Apdl14,2003 Page 2 of 2 revisions are the results of changes requested by the City's Utility Director. It and will increase the length of bore uader FM 365, require the removal and replacement ora portion of Jade Ave south of FM 365 and add valves and other appurtenances at the connection point. A proposal in the mount of $25,798.50 has been received from E&C Ine and reviewed by our Engineer. This change order is also time critical. I respectfully request that a special meeting be scheduled with the City Council at the earliest practical date. It this is not possible, I request that the city include these items on its next regular council meeting. If it is possible I also request that a special meeting of the EDC Board be scheduled prior to the Council meeting to consider Change Order 3 to Contract :ill and (if matters can be resolved in time) any changes to Contract V. If you have any questions please let me know. Warm regards, William E. Diamond Il Ce: Tim Alexander Bill Hughes EXHIBIT "B" Schaumburg & Polk, Inc. CONSULTING ENGINEERS 8865 College Street, Suite 100 Beaumont, Texas 77707 Phone (409)866-0341 Fax (409)866-0337 March 5, 2003 Mr. William E. Diamond Diamond Consulting t 1 Gambrel Oak Place Houston. Texas 77380 Re; Port Arthur Business Park Contract VII - kandscaping & Final Grading Bid Tabulation & Engineer's Recommendations RECEIVED Mr. Diamond: Please find attached the Bid Tabulation for "Contract VII - Landscaping & Final Grading" for bids received on February 19, 2003. We had a total of two proposals that were received before the specified bid time and we had one proposal that was turned in after the specified bid time The late proposal was returned to the bidder unopened. The apparen, t low bid was submitted by Sandra's Enterprises, Inc. with a total base bid of $499,186.03 in 240 calendar days. The second low bid was submitted by Excavators & Constructors for the total base bid of $597,672.00 in 120 calendar days. The difference between the two bids submitted is $98,485.97, which causes some concern as to the large spread between them and the low bid would take twice as long to complete the work. Upon reviewing the bids for accuracy, we discovered that the apparent low bid had a math eh-or in the labor and material breakdown. This error was brought to the attention of Sandra Guilbeau with a phone call to request a clarification letter from her company. While discussing the math error, we reviewed several other bid items and the differences in the costs for labor & equipment in Items #3 & #5 was our greatest concern. I requested that Ms. Guilbeau write a letter to explain the proper allocation of the labor and material breakdown and also explain the reasons for the large discrepancy in these two items and the long period of construction. ' I received the attached letter from Sandra's Enterprises, Inc. dated February 25th explaining the proper allocation of the breakdown and explanation of the calendar days. This letter also inforn~ed us that there was an error in their proposal causing them great concern. They did not state their intentions for honoring their proposal in this letter, therefore, we requested a second letter for them to state their position. In the attached letter, Sandra's Enterprises, Inc. requests that they be allowed to withdraw their bid without penalty due to errors in their estimate. Based upon the current engineer's estimate of $565,000.00, it is Clear that Sandra's Enterprises, Inc. does appear to be approximately 12% lower than our engineer's BidTab_Recom,nendations.doc Schaumburg & Polk, Inc. CONSULTING ENGINEERS estimate, however, the next bid is approximately 5% above our engineer's estimate. Based upon the request from Sandra's Enterprises to withdraw their proposal, we feel that only two options are available for award of this project. 1) Award to the second low bidder; or 2) Reject ail bids and re-bid the project Since either option would be acceptable to us for continuing with the award of this contract, we will proceed with this Contract VII based upon the decisions and declarations of the Port Arthur EDC and City Council. Please advise as to how we should proceed after the decision is made. Please contact me if you have any questions. Sincerely, Schaumburg & Polk, Inc. William R. Hughes, Jr., P.E. Project Manager Attachments CC: Ike Mills, Executive Director- Port Arthur EDC Port Arthur Business Park Project File c\o Diamond Consulting SP1 File No. 3602 BID TABULATION PORT ARTHUR BUSINESS PARK CONTRACT VII - LANDSCAPING & FINAL GRADING BID DATE: FEBRUARY 19, 2003 AT 3:00 P.M. SANDRA'S ENTERPRISES ~NG1NEER: SCHAUMBURG & POLK, INC. INC. dba Professional Maid EXCAVATORS & Service CONSTRUCTORS, INC. Engineer's Estimate $565,000 2951 W. Hwy 36S 8869 S. Hwy. 69 Port Arthur, TX 77640 Port Arthur, TX 77640 IASE BID Proposed to provide all labor, materials, tools, equipment, and supe~-dsion necessary to complete the construcfion of the landscaping and final grading aa specified in Contract VII in accordance with the plans & specifications for the total lump sum separated price of I LS $499,186.03 $597,672.00 MATERIALS I LS $343,664.49 $288,300.00 LABOR & EQUIPMENT I LS $131,250.00 $309,372.00 UNIT PRICE BRE.4KDOFI/N (INCLUDED IN BASE BID): ITEM NO. 1: Provide mobilization costs, including payment boad, performance bond, performance bond ~nsurance, and movlng equipment to the project, all in strict accordance with the plans and specifications; NOT TO EXCEED 5% OF tOTAL PROJECT BID for the lump sum separated price of 1 LS $24,271.54 $13,440.00 MATERIALS I LS $24,271.54 $500.00 LABOR & EQUIPMEN~I I LS $0.00 $12,940.00 ITEM NO. 2: To provide installation of all Landscaping including but not limited to Trees, Shrubs. Traffic Island Construction with Brick Pavers using an allowance of $300.00 per 100 installed bricks and related items as specified in the plans & specifications for the lump sum separated ~rice of 1 LS $136,749.20 $108,900.00 MATERIALS 1 LS $99,749.20 $77,300.00 LABOR & EQUIPMENT 1 LS $37,000.00 $31,600.00 ITEM NO. 3 lZfo provide installation of all Mon-t~ments including but not limited to Bedding, Concrete Masonry, Painting and related items as specified in the plans & specifications for the hlmp sumi separated price of ] LS $86,480.57 $114,500.00 MATERIALS I LS $66,480.57 $52,500.00 LABOR & EQUIPMENT J LS $20,000.00 $62,000.00- BID TABULATION PORT ARTHUR BUSINESS PARK CONTRACT VII - LANDSCAPING & FINAL GRADING BID DATE: FEBRUARY 19, 2003 AT 3:00 P.M. ENGINEER: SCHAUMBURG & POLK, INC. SANDRA~S ENTERPRISES INC. dba Professional Maid EXCAVATORS & Service CONSTRUCTORS, INC. Engineer's Estimate $565,000 2951 W. Hwy 365 8869 S. Hwy. 69 Port Arthur, TX 77640 Port Arthur, TX 77640 iTEM NO.4: !% provide installation of all Irr/gation Systerr appurtenances including but not limited tc Irrigation System, Maintenance and related items as specified in the plans & specification [or the lump sum separated price of I LS $105,874.72 $75,900.00 MATERIALI 1 LS $75,274.72 $31,000.00 LABOR & EQUIPMENT I LS $30,600.00 $44,900.00 ITEM NO. 5: To complete all Finish Grading, Hydromulch Seeding, Excavation, Backfill, On-site Disposal of Excess Material, Additional Clearing, SWPPP Maintenance and Subsequent Removal Construction Debris' Removal and related items as specified in the plans & specifications for the lump sum separated price of I LS $46,810.00 $134,820.00 MATERIAL: I LS $37,610.00 $49,000.00 LABOR & EQUIPMEN'I I LS $9,200.00 $85,820.00 lTEM NO. 6: ITo complete the Construction of the Access Road (approx. 4500 L.F.) and related items as specified in the plans & specifications for the lump sum separated price of 1 LS $99,000.00 $150,112.00 MATERIALS: I LS $64,550.00 $78,000.00 LABOR & EQUIPMENT: I LS $34,450.00 $72,112.~ TOTAL BASE BID $499,186.03 $597,672.00 BID TABULATION PORT ARTHUR BUSINESS PARK 'CONTRACT VII - LANDSCAPING & FINAL GRADING BID DATE: FEBRUARY 19, 2003 AT 3:00 P.M. ENGINEER: SCHAUMBURG & POLK, INC. SANDRA'S ENTERPRISES, INC. dba Professional Maid EXCAVATORS & Service CONSTRUCTORS, INC. Engineer's Estimate $565,000 2951 W. Hwy 365 8869 S. Hwy. 69 Port Arthur, TX 77640 Port Arthur, TX 77640 . _ %. -=- . - _. ALTERNATIVE BID NO. 1 To provide the installation of additional or deduction of Quercus Virginiana (Live Oak) as directed by ENG1NEER in accordance with the )fans and specifications for the lump sum separated price of $324.00 $220.00 MATERIALS: 1 LS $324.00 $125.00 LABOR & EQUIPMENT: I LS $0.00 $95.00 ALTERNATIVE BID NO. 2: To provide the installation or deduction of Bricl~ Pavers as directed by ENGiNEER in accordance with the plans and specifications for the ]uml: sum separated price of $12.71 Per Square Foot $220.00 MATERIALS: I LS $12.71 Per Square Foot $100.00 LABOR & EQUIPMENT: 1 LS $0.00 $120.00 4. LTERNATIVE BID NO. 3: To provide Florida Sabal Pahns in lieu ot Washingtonia Robusta specified in the revised ~lao L9 of 9 (with all ortner items remaining the same), Deduct from the Base Bid the lump sum __ !price of $5,2~27.20 $11,500.00 MATERIALS: I LS $5,227.20 $11,500.00 LABOR & EQUIPMENT: 1 LS $0.00 $0.00 CONTRACT VII - CONSECUTIVE CALENDAR DAYS HUB/DBE Business participation percentage Port Arthur Business participation percentage Hired or Employed Porl Arlhur Residents Acknowledge Addendum No.s I & No 2 240 120 15% 20% 10(1% 1(10% 58 As needed The Bid Proposals submitted have been reviesved, and ~o the best of my knowledge this is an accurate tabulation of the Bids received. BY: Ph. 800-722-7939 Fax 409-724-6461 Pg. 409-723-5763 e-mail: .anus @ pernet.net February 25, 2003 Mr. William R. Hughes, Jr. P.E. Schaumburg & Polk, Inc. 8865 College Street Beaumont, TX 77707 SANDRA'S ENTERPRISES, INC. 2951 W. Hwy. 365 · PORT ARTHUR, TEXAS 77640 Dear Sir: Re: Contract VII - Landscaping & Final Grading, Port Arthur Business Park After checking our bid, it's apparem we honestly erred in the addition of the separated price break down o£the base bid. The math error occurred when Item#1 was mistakenly excluded from the Materials figure, when added tc this number it brings the total to $367,936.03.. This is the corrected amount. We also noticed two areas in our bid where the materials and equipment figures are quite low. ltem #3 and Item #5. Item #3 $20,000 materials cost were not included Item #5 $I0,000 equipment cost were not included These of course are causing us great concern. Also noted in our bid the total allotted days for the completion of'Contract VII is 240. We will need a large amount of days to complete tiffs project, because we are so low in om' pricing. Would you please review our bid, and then call us at 409/722-7939. 1 would lkke to hear fi`om you promptly. Ph, 800-722-7939 Fax 409-724-6461 Pg, 409-72~-5763 e-mail: janus @ pernet, net SANDRA'S ENTERPRISES, INC. 2951 W. HwY. 365 · PORT ARTHUR~ TEY. AS 77 -. February 27, 2003 Mr. William R. Hughes, Jr. P.E. Schaumburg & Polk, Inc 8865 College Street Beaumont, TX 77707 Dear Sir: Re: Contract VII - Landscaping & Final Grading, Port Arthur Business Park After checking our bid, it's apparent we honestly erred in two areas where the materials and equipment figures are quite low. Item #3 and Item #5. Item #3 $20,000 materials cost were not included Item #5 $113,000 equipment cost were not included Since this of course is causing us great concern, we are asking to withdraw our bid without penalty. Please call us at 409/722-7939. 1 would like to hear from you promptly. Sincerely, President