Item Coversheet

Resolution

NO. 185

A Resolution accepting the lowest responsive, responsible bid for demolition from  R. A. Baker Plmbng. & Excavating LLC, in a not-to-exceed amount of $72,100.00.

BATTLE CREEK, MICHIGAN - 8/4/2015

Resolved by the Commission of the City of Battle Creek:

 

The lowest responsive, responsible bid for demolition is accepted R. A. Baker Plmbng. & Excavating LLC in a not-to-exceed amount of $72,100.00. The City Manager is authorized to execute Contract No. 2015-044B, which will be paid from BU/Account 3880.









I, Victoria Houser, City Clerk of the City of Battle Creek, hereby certify the above and foregoing is a true and correct copy of a Resolution adopted by the Battle Creek City Commission at a Regular meeting held on August 4, 2015.


Victoria Houser


Battle Creek City Commission
8/4/2015
Action Summary

Staff Member: Christine Huff 
Department:Purchasing 
SUMMARY 
A Resolution accepting the lowest responsive, responsible bid for demolition from  R. A. Baker Plmbng. & Excavating LLC, in a not-to-exceed amount of $72,100.00.
BUDGETARY CONSIDERATIONS
None, this project is being reimbursed by Battle Creek Unlimited.  

HISTORY, BACKGROUND and  DISCUSSION
The solicitation was initially issued in November 2014, under IFB #2015-036B. The demolition was estimated to be below $50,000, so there was no prevailing wage requirement in the IFB.  However, the low bid was $53,200, so we could not proceed with award because there was no prevailing wage requirement listed in the IFB.

The project to demolish the property at 54/56/58 Leonard Wood Drive was re-issued December 23, 2014, under IFB #2015-044B, with the prevailing wage requirements, as required by the City’s Administrative Code.  

Copies of the IFB were provided to thirty-eight contractors and four plan houses. Construction and demolition companies and the trades subscribe to planhouses to be aware of all jobs being bid around the region.  In addition, an advertisement was placed in the Battle Creek Enquirer and on the City’s website.  Bid responses were due on January 7, 2015, and were as follows: 



$72,100      RA Baker
$76,500      Smalley Construction
$87,000      Armour Contracting
$87,000      JMB Demolition
$104,500    Specialized Demolition
$136,500    Dore and Associates
$186,000    Kalamazoo Metal Recyclers
$198,000    Pitsch Demolition

It is not unusual to have such wide spread between low and high bids for demolition.

Award of this contract was further delayed as BCU finalized acquisition of the property.  

On July 21, 2015, my office received notice that BCU had successfully acquired the properties and we now have the approval to award the bid to demolish.  The bids expired on May 7, 2015, which means we can no longer hold the low bidder to his bid price, as all bid sureties were returned and/or null after that date. However, RA Baker was willing to hold his price of $72,100.00 to demolish this property under the original contract terms.  If he had not been willing to hold the price (which he was no longer under any obligation to do), we would have no choice but to re-bid.

Due to the many delays in this project, I believe it is in our best interest to award this contract to the lowest responsive, responsible bid to R.A. Baker, a contractor that has done demolitions for us in the past. 




DISCUSSION OF THE ISSUE

POSITIONS

ATTACHMENTS:
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