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HomeMy WebLinkAbout10 Reject Bids for 2018 Paving Projectenda Item # CONSENT To: Board of Directors From: Brian Wright Date. February 07, 2018 Subject: Consideration to Reject all Bids for the District's 2018 Paving Maintenance Project 10 1. WHY THIS MATTER IS BEFORE THE BOARD District Code requires, following the opening of a public bid for services with a total cost exceeding $15,000, the General Manager shall present to the Board a recommendation regarding the award of a service contract. 2. HISTORY Each year the District's Water Department requires the services of a qualified paving contractor to provide asphalt paving work associated with street excavations conducted by the water distribution maintenance crews and the replacement of deteriorated paved surfaces located at various District facilities. Staff evaluates the condition of paved surfaces owned by the District, and generates an inventory of site locations and street excavations to be included in the annual maintenance project. 3. NEW INFORMATION On October 16, 2017, the District publicly advertised a request for bids for the Paving Maintenance Contract 2018. On November 14, 2017 a bid opening was held, at which point one bid was received. A breakdown of the received bids is provided below. Paving Maintenance Contract Bid Summary (Schedule A) Contractor Address Bid Total Responsive West Coast Paving, Inc. JReno, NV $256, 625 JYes Upon review of the received bid, staff identified an increase in per unit cost that was more than double that of bids awarded for the same work in previous years. Additional inquiry revealed that the dissimilarity in construction crew mobilization and equipment necessary to complete each the various paving projects called out for in the bid request, has limited the response of local contractors and caused a significant increase in cost. Based on the limited response to the request for bids and the significant increase in total bid price, staff has determined the bid results not to be in the best interest of the District. Staff will recommend that all bids for the Paving Maintenance 2018 be rejected. Furthermore, in the interest of facilitating a more inclusive and competitive bidding process, Staff intends to restructure the necessary paving maintenance work into multiple projects with individual requests for bids. Separating the projects will be more conducive to a competitive bid and better meet the needs of the District. 4. FISCAL IMPACT This item will not have a direct fiscal impact. 5. RECOMMENDATION Reject all bids received for the Paving Maintenance Contract 2018, Michael D. Holley General Manager / Water Utility Manager