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Home My WebLink About8 District Pipeline Replacement Project Agenda Item # 8 Public Utility District ACTION To: Board of Directors From: Neil Kaufman Date: March 17, 2010 Subject: Consideration of the Award of a Contract for the District Pipeline Replacement Project - 2010 - Contract A 1. WHY THIS MATTER IS BEFORE THE BOARD Board approval is required for expenditures in excess of$15,000. 2. HISTORY In 2005 and 2006, the Water Department made Board presentations regarding the condition of existing water pipelines and the need to pursue a pipeline replacement program. The District subsequently issued a COP in 2006 and dedicated a portion of those funds for the pipeline replacement program. Pipeline construction projects have been undertaken each year from 2006 through 2009 as part of this program. 3. NEW INFORMATION The planned construction for 2010 entails about 10,700 feet of pipeline trench and has been bid a single construction contract. Due to uncertainties with the currently bidding climate, the bidding documents were structured as a base bid with three additive alternates. This bidding structure allows the District greater flexibility in matching the cost of the project to the available funds. Item Location Base Bid Northwoods Blvd, Zermatt Drive, Snowpeak to Sierra Glen (Eastern Portion) Miscellaneous Services, West Reed Avenue Additive Alternate A Kitzbuhel Road Additive Alternate B Snowpeak to Sierra Glen Western Portion Additive Alternate C I Ford to Snowpeak The bid opening for Contract A was held at 10:00 AM on March 9, 2010. Ten bids were received. A summary of the bids is given below: BASE BID ONLY Bidder Location Amount Martin General Engineering Rancho Cordova, CA $1,370,739.50 Lorang Brothers Colfax, CA $1,664,446.00 Teichert Construction Lincoln, CA $1,724,100.00 Burdick Excavating Carson City, NV $1,728,457.00 Marques Pipe'line Sacramento, CA $1,806,755.00 Aspen Developers Truckee, CA $1,976,415.00 AM-X Construction & Truckee, CA $2,081,864.82 Excavation Hansen Brothers Grass Valley, CA $2,122,267.00 Gerhardt & Berry Reno, NV $2,154,976.49 Manuel Brothers Grass Valley, CA $2,182,430.00 BASE BID WITH ADDITIVE ALTERNATE A Bidder Location Amount Martin General Engineering Rancho Cordova, CA $ 1,459,017.00 Lorang Brothers Colfax, CA $ 1,788,605.00 Burdick Excavating Carson City, NV $ 1,839,462.00 Teichert Construction Lincoln, CA $ 1,847,595.00 Marques Pipeline Sacramento, CA $ 1,932,930.00 Aspen Developers Truckee, CA $ 2,128,760.00 AM-X Construction & Truckee, CA $ 2,222,470.58 Excavation Hansen Brothers Grass Valley, CA $ 2,270,393.00 Gerhardt & Berry Reno, NV $ 2,296,078.49 Manuel Brothers Grass Valley, CA $ 2,333,492.50 BASE BID WITH ADDITIVE ALTERNATES A& B Bidder Location Amount Martin General Engineering Rancho Cordova, CA $ 1,715,287.00 Lorang Brothers Colfax, CA $ 2,133,914.00 Burdick Excavating Carson City, NV $ 2,156,517.00 Teichert Construction Lincoln, CA $ 2,167,255.00 Marques Pipeline Sacramento, CA $ 2,295,080.00 Aspen Developers Truckee, CA $ 2,573,165.00 AM-X Construction & Truckee, CA $ 2,643,677.27 Excavation Hansen Brothers Grass Valley, CA $ 2,735,035.00 Gerhardt & Berry Reno, NV $ 2,748,017.44 Manuel Brothers Grass Valley, CA $ 2,803,218.50 BASE BID WITH ADDITIVE ALTERNATES A, B & C Bidder Location Amount Martin General Engineering Rancho Cordova, CA $ 1,799,538.25 Lorang Brothers Colfax, CA $ 2,231,788.50 Burdick Excavating Carson City, NV $ 2,241,212.00 Teichert Construction Lincoln, CA $ 2,262,805.00 Marques Pipeline Sacramento, CA $ 2,403,158.50 Aspen Developers Truckee, CA $ 2,686,739.50 AM-X Construction & Truckee, CA $ 2,774,448.81 Excavation Gerhardt & Berry Reno, NV $ 2,865,617.94 Hansen Brothers Grass Valley, CA $ 2,868,243.00 Manuel Brothers Grass Valley, CA $ 2,939,021.00 As shown in the tables, Martin General Engineering of Rancho Cordova was the apparent low bidder for all four bid alternatives. On March 10, the District received a letter from Martin General Engineering requesting that it be allowed to withdraw its bid cited mathematical errors in preparing its bid. A copy of the withdrawal request letter is included as Attachment 1. Lorang Brothers of Colfax was the second lowest bidder under all four bid alternatives. Lorang Brothers is properly licensed and has performed work in the Truckee area. Given the bid prices provided by Lorang Brothers, it is recommended that they be awarded the Base Bid only. 4. FISCAL IMPACT As shown above, the bid price from Lorang Brothers for the work of the base bid is $1,664,446.00. The District is required to spend all of the remaining 2006 COP funds this year. This amount is currently about $1.6 million. In addition to the 2006 COP funds, a portion of the project is eligible to be funded from Facility Fees due to upsizing in order to accommodate future growth. Funding Source Amount Water Department 2006 COP $17464,612.55 Water Department Facility Fees $155,773.05 Water Department Metering Project $9,552.60 Water Department- SAD 2 Restricted Fund $34,507.80 Total $1,664,446.00 Additional costs will be incurred associated with construction inspection, environmental compliance and geotechnical testing. This will allow for complete expenditure of the 2006 COP funds. It is also recommended that the Board of Directors authorize a 10 percent allowance for change orders at this time. 5. RECOMMENDATION 1) Allow withdrawal of the bid from Martin General Engineering. 2) Award the District Pipeline Replacement - 2010 - Contract A to Lorang Borthers in the amount of $1,664,446.00 plus a 10 percent change order allowance for an amount not to exceed $1,830,890.00. 3) Authorize the transfer of up to $1,611,073 from 2006 COP funds to the Water Department General Fund, up to $171,350 from Water Department Facility Fees and up to $37,959 from the SAD 2 restricted fund to cover the cost of the project Michael D. Holley General Manager/Water Utility Manager Mar 10. 2010 3: 35PM MGE INC No- 6248 P. 2 Attachment 1 Martin General Engineering, Inc. mGEI General Engineering Contractors i 12485 Quicksilver Dr o Rancho Cordova, CA 95742 j y Tel (916) 355-8101 Fax (916) 355-8108 M C arc*844279 Letter Transmittal March 10, 2010 LT-1 Truckee Donner Public Utility District Attn: Mr. Neil Kaufman 11570 Donner Pass Road Truckee, Ca. 96160 Tel: 530-587-3896 Fax: 530-587-1189 Subject: Relief of Bidders Project: District Pipeline Replacement 2010 Contract A Reference: Public Contract Code Sections 5100 to 5107 To Whom It May Concern: Pursuant"to the provisions of Public Contract Code Sections 5100 to 5107, inclusive, concerning relief of bidders and in particular to the requirement therein," we are hereby respectfully requesting to withdraw our bid under the assertion of a mathematical error in our excel spreadsheet formula, that when compounded into our calculations resulted in a significant amount not accounted for in our proposal. During our post bid review of our proposal it.was found that an error was made in the General Conditions portion of our estimate which was not incorporated into our estimate. So of the items which were excluded are as follows: 1.5% bond cost for the entire bid amount, necessary insurance costs, administrative costs(project manager/project engineer), room and board for the employees to name a few.This computation error resulted in an amount of$238,498,00,which was left out of our bid. In hopes that you accept this letter as notice to withdraw our bid under"mathematical error", we apologize for any inconvenience this may have caused. Please feel free to call us if you have any questions regarding this matter, or if I can be of any further assistance. i Respec , i Daniel Martin Vice President Martin General Engineering, Inc. 3 I cc: File, Hard Copy Certified USPS i i i 1 1 /1 I