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| Resolution | NO. 123 |
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| | | | | | | | | A Resolution accepting the lowest responsive, responsible bid for the Wastewater Treatment Plant Secondary Treatment Upgrades Project from Davis Construction, Inc., in an estimated amount of $11,379,277.00, with unit prices prevailing. | | | |
| | | | | | | | | BATTLE CREEK, MICHIGAN - 5/16/2017 | | | |
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Resolved by the Commission of the City of Battle Creek:
That the lowest responsive, responsible bid for the Wastewater Treatment Plant Secondary Treatment Upgrades Project is accepted Davis Construction, Inc., in an estimated amount of $11,379,277.00, with unit prices prevailing. The City Manager is authorized to execute Contract No. 2017-049B, which will be paid from 590.24.6590.801.310 WWTP Rehabilitation.
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 May 16, 2017.
Victoria Houser
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| | | | | | | | | Battle Creek City Commission
5/16/2017
Action Summary | | | |
| | | | | | | | | | Staff Member: | Christine Huff | | Department: | Purchasing |
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| | | | | | | | | SUMMARY
| A Resolution accepting the lowest responsive, responsible bid for the Wastewater Treatment Plant Secondary Treatment Upgrades Project from Davis Construction, Inc., in an estimated amount of $11,379,277.00, with unit prices prevailing.
| BUDGETARY CONSIDERATIONS
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HISTORY, BACKGROUND and DISCUSSION
| The solicitation was issued April 4, 2017, for the above-mentioned project. This project consists of upgrades to the WWTP’s Secondary System for the treatment of liquid waste to reduce electrical energy usage and process cost, improve treatment performance and the reliability of the system while continuing to meet NPDES permit requirements. The project is expected to be completed in 18 months, and save approximately $405,000 per year in electrical and chemical use. See Kurt Tribbett’s attached email for more details.
Copies of the IFB were provided to three contractors and four plan houses. Construction 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 May 1, 2017.
A bid tabulation is attached. LD Docsa was the apparent low, substantially below engineer estimate. LD Docsa, who has long been a valued and honest contractor for us, contacted us soon after bid opening to request their bid be withdrawn due to their error. They provided us with the documentation to support this, being a miscommunication between them and their subcontractor. The demonstration of their error is allowed per Section 16.03, which gives the contractor 24 hours to withdraw a bid due to error, without penalty (i.e., losing their bid bond for 5% of the bid amount).
The purpose of a bid bond is to prevent contractors from backing out of a contract signing solely because they realized, after bid opening, that they "left money on the table" and could have bid higher. The City agreed to the bid withdrawal without penalty, as we are required to do by Section 16.03 of the solicitation.
The second low bid from Davis Construction was more in line with the engineer’s estimate. Their bid was reviewed by Kurt Tribbett, Engineering Administrator, and our consulting engineer Donohue & Associates. A recommendation was made to accept the lowest, responsive, responsible bid from Davis Construction. I concur with the department’s recommendation that contract award to this firm would be in the best interest of the City of Battle Creek.
| DISCUSSION OF THE ISSUE
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| POSITIONS
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