HomeMy WebLinkAboutPR 15581: REJECTING BIDS - SANITARY SEWER REHABMEMORANDUM
CITY OF PORT ARTHUR
UTILITY OPERATIONS DEPARTMENT
TO: Stephen Fitzgibbons, City Manager
FROM: Kelly Eldridge, Director of Utility Operations ~~C~~~
DATE: October 15, 2009 ;~~,`,~
SUBJECT: Proposed Resolution No. 1558t
RECOMMENDATION
I recommend that the City Council approve Proposed Resolution No. 15581 rejecting the bids for the Sanitary
Sewer Rehabilitation by Pipebursting &Sliplining Methods to Serve Basins EV75, PR78, LV49, & LV56,
Contract No. 8, and authorizing re-advertisement for bads.
BACKGROUND
This is our last of three Phase II SSES projects performed under the ARRA grant administered by the TWDB
that deals with Sanitary Sewer Collection System Rehabilitation by the pipebursting &Sliplining methods.
Eight (8) contractors attended the mandatory pre-bid meeting, and the following four (4) bids were received on
October 14, 2009:
Adjustment
Bidder Factor Total Bid
ALLCO, Inc. 0.947 $3,381,973.75
Beaumont, TX
Horseshoe Construction 0.89 $3,178,412.50
LaPorte, TX
Williamson Construction 0.930 $3,321,262.50
Lumberton, TX
Huff& Mitchell 0.949 $3,389,116.20
Cypress, TX
PM Construction 0.864 wrong bid form
Pasadena, TX
These type projects utilize a bid form that already has established prices for each item, and contractors are
asked to provide a bid in the form of a factor to be mull:iplied to each line item to produce a unique total bid.
This prevents contractors from unbalancing bid items and allows the City to better control costs. On October
13, 2009, Addendum No. 1 changed the bid form to incllude additional bid items from another basin in order to
ensure we did not miss any items from our SSES reconnmendations, and spend within our grant amount. As
evidenced above, PM Construction did not acknowledge receipt ofthis addendum, but provided a bid factor on
the old bid form. Upon further investigation, it appears that they were not issued the Addendum by email or
fax. PM Construction has offered to utilize their bid factor for the new bid amount, but that would be unfair to
the other bidders, as the additional bid items are not necessarily at the same unit cost.
BUDGET/FISCAL EFFECT
We expect the bids to be lower since all bidders have seen these bids.
Page 1 of 2
~~
STAFF/EMPLOYEE EFFECT
We are re-advertising this project now in order to stay ahead of TWDB deadlines.
SUMMARY
I recommend that the City Council approve Proposed Resolution No. 15581 rejecting the bids for the Sanitary
Sewer Rehabilitation by Pipebursting & Sliplining Mel;hods to Serve Basins EV75, PR78, LV49, & LV56,
Contract No. 8, and authorizing re-advertisement for bids.
Page 2 of 2
P.R. No. 15581
10-15-09
RESOLUTION NO.
A RESOLUTION REJECTING BIL>S FOR THE SANITARY
SEWER REHABILITATION BY PIPEBURSTING &
SLIPLINING METHODS TO SERVE BASINS EV75, PR78,
LV49 &LV56, CONTRACT NO. B, AND AUTHORIZING
RE-ADVERTISEMENT FOR BIDS.
WHEREAS, the City is currently under an Agreed Order with the TCEQ to rehabilitate its
sanitary sewer system; and,
WHEREAS, there exists a need to reduce flows and eliminate sanitary sewer overflows in
our collection and treatment systems; and,
WHEREAS, the City of Port Arthur advertised and received bids from five contractors for
the Sanitary Sewer Rehabilitation by Pipeburstinl; &Sliplining Methods to Serve Basins EV75,
PR78, LV49 &LV56, Contract No. 8; and,
WHEREAS, the apparent low bidder did not acknowledge receipt of Addendum No.1, and
subsequently submitted a bid on the wrong bid form; and,
WHEREAS, Arceneaux & Gates Consulting Engineers, Inc. investigated and found that they
may not have provided this Addendum No. 1 to this contractor and recommends rejection of bids
and re-advertisement for bids, in an effort to be fair to all bidders; NOW THEREFORE,
BE IT RESOLVED BY THE CITY COI7NCIL OF THE CITY OF PORT ARTHUR:
THAT the City Council of the City of Port Arthur hereby rejects the bids for the Sanitary
Sewer Rehabilitation by Pipebursting &Sliplining Methods to Serve Basins EV75, PR78, LV49 &
LV56, Contract No. 8; and,
THAT the City Manager of the City of Port Arthur is hereby authorized and instructed to re-
advertise this project for bids as soon as practicable; and,
P.R. No. 15581
10-15-09
Page 2 of 2
THAT, a copy of the caption of this Resolution be spread upon the Minutes of the City
Council.
READ, ADOPTED AND APPROVED THIS day of , 2009
at a Regular Meeting of the City Council of the City of Port Arthur, Texas, by the following vote:
AYES: Mayor
Councilmembers:
NOES:
ATTEST:
Terri Hanks
City Secretary
APPROVED FOR ADMINISTRATION:
Stephen Fitzgibbons
City Manager
Ross Blackketter, PE
Director of Public Works
Deloris Prince
Mayor
APPROVED AS TO FORM:
al Tizeno
Acting .City Attorney
Kelly Eld dge
Director of Utility Operations
EXHIBIT A
(A&G Recommendation)
1;xcENEaux
GATES ~
ARCENEAUX & GATES
Consulting Engineers, Inc.
Engineers • Stuveyors • Planners
October ].6, 2009 _
Mr. Kelly Eldridge
Water Utilities Manager
CITY Of PORT ARTHUR
PO Box 1089
444 4T" Street
Port Arthur, Texas 77b41-1089
RE: Contract No 8 f or Pfpe Bursting - 8osins
EV75, PR78, tV49 & LV56
TWOB CWSRf-~IRRA Funded Sanitary Sewer
System Improvements
Dear Mr. Eldridge:
The City received five (5) sealed bids for the project noted above on October 14, 2009. Our firm
issued an addendum to the bidding documents on October 13, 2009 which replaced the bid
form with a new bid form containing additional work items for the contractors to consider. The
addendum was sent to the bidders via email. When bids were opened and read aloud, it was
clear that one of the bidders was using the original bid form and not the one modified by
addendum. After further checking into our email records, it was found that we failed to send
the correct bid form to one contractor. That contractor, PM Construction happened to submit
the lowest bid factor. In fairness to all of the bidders, including PM Construction, we
recommend that the bids received on October 14, 2009 for this project be rejected and that the
project be rebid.
Should you have the need for additional information or questions, please contact me.
Very truly yours,
ARCENEAUX & GATES CONSULTING ENGINEERS, INC.
Ron Arc ux, PE, Pty
Preside EO
One'htrtle Creek Square 3501 1lutle Creek Dr.. Suite 102 Port Arthur, T1C 77642 408/724-7888 FRX 408!724-1447