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Shakopee City Council
March 17, 2020
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| | | | | | | | | FROM: | Ryan Halverson, Assistant City Engineer | | TO: | Mayor and Council Members |
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| | | | | | | | Subject:
2020 Sewer Service Lateral Pipe Rehabilitation Project | | |
| | | | | | | | Policy/Action Requested:
Adopt Resolution R2020-024, awarding a contract in the amount of $434,570 to BLD Services, Inc., for the 2020 Sewer Service Lateral Pipe Rehabilitation Project SEWER-20-003. | | |
| | | | | | | | Recommendation:
Approve Resolution R2020-024. | | |
| | | | | | | | Discussion:
The city's Capital Improvement Plan (CIP) contains the 2020 Sewer Service Lateral Pipe Rehabilitation Project SEWER-20-003 (see attached CIP summary sheet). On January 21, 2020, the City Council adopted Resolution R2020-004 approving the plans and specifications, and authorizing bidding of the project.
In accordance with Minnesota Statute Section 471.347 Uniform Municipal Contracting Law, bids were solicited and opened on March 2, 2020. Two (2) bids were received and Musson Brothers, Inc., from Brookfield, WI, was the initial apparent low bidder in the amount of $425,277.50. The 2nd bid was from BLD Services, Inc., from Kenner, LA, in the amount of $434,570.00 (see the attached resolution for the bid tabulation summary).
After review of the bid tabulations, it was determined that Musson Brothers, Inc., made an error on their bid proposal. The Supplementary Specifications prescribe that the lump sum line item bid for mobilization “shall not exceed 5 percent of the total bid.” Musson Brothers, Inc.’s lump sum bid for mobilization is 5.64 percent of its total bid, exceeding the maximum. As a result, the Musson Brothers, Inc., bid is considered and recommended to be non-responsive and disqualified.
Therefore, the bid received from BLD Services, Inc., is considered the lowest responsive bid. This bid is competitive and consistent with past project costs. The bid amount is 13.1 percent under the engineer's estimate of $500,000. BLD Services, Inc., has the capacity and experience for the project and is deemed a responsible bidder. They are prepared to begin work this summer with an anticipated substantial completion in November 2020. | | |
| | | | | | | | Budget Impact:
Based on the low bid amount, the updated total estimated project cost and funding summary is as follows:
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CIP
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Estimate Based |
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Budget
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On Bid Award |
| COSTS |
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| Construction Cost |
$ 500,000.00 |
$ 434,570.00 |
| Contingency |
$ 50,000.00 |
$ 35,000.00 |
| Subtotal |
$ 550,000.00 |
$ 469,570.00 |
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| Eng/Admin/Legal |
$ 100,000.00 |
$ 100,000.00 |
| Total Estimated Project Cost |
$ 650,000.00 |
$ 569,570.00 |
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| FUNDING |
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| Sanitary Sewer Fund |
$ 650,000.00 |
$ 569,570.00 |
| Total Funding |
$ 650,000.00 |
$ 569,570.00 |
The amended total project budget of $569,570 is under the original estimated 2020 CIP budget by approximately 12.4 percent and includes a contingency amount that covers any unexpected change orders, quantity adjustments and other miscellaneous expenses encountered as part of the project.
This project is funded by the Sanitary Sewer Fund. | | |
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