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HomeMy WebLinkAbout06/18/2013 Rejection of Bids for Elevated Tank Painting ProjectMount Prospect Public Works Department INTEROFFICE MEMORANDUM AM?/ TO: VILLAGE MANAGER, MICHAEL E. JANONIS FROM: WATER/ SEWER SUPERINTENDENT DATE: JUNE 12, 2013 SUBJECT: REJECTION OF BIDS FOR ELEVATED TANK PAINTING PROJECT BACKGROUND The elevated tank is budgeted for re- painting during the capital program for 2013. The Village retained the professional services of Tank Industry Consultants, Inc. of Indianapolis, Indiana to inspect the elevated tank and prepare the detailed technical specifications and bid documents for the re- painting and for any needed repairs. The base bid was detailed to include the containment of the structure to prevent paint overspray; to make needed repairs to the elevated tank walkway; and to replace the cathodic protection system. BID RESULTS Bid documents were sent out in April 2013 to painting contractors who specialize in water tanks. The project was advertised in a local newspaper as required. Ten firms were solicited for this work. The bid was publicly opened on Monday, May 6, 2013. Five (5) firms responded with bids. The following bids were received: Contractor Total Bid Am -Coat Painting $879,000 Maxcor Painting $995,600 Jetco Ltd $1,035,000 TMI Coatings $ 1,194,700 Classic Protective Coatings $1,276,600 All bids meet the bid requirements, have the proper signatures and provided all necessary bid certifications or deposits. Page 2 of 2 Rejection of Bids for Elevated Tank Painting Project June 12, 2013 DISCUSSION The lowest cost proposal was from Am -Coat Painting Inc, of Homer Glen, IL in the amount of $879,000. The engineer's estimate for this work was $653,700. The available budget is $734,000. The lowest cost bid exceeds available funding by $145,000 and exceeds the engineer's estimate by $225,300. Sufficient funds do not exist in the current budget to award this work. Staff, along with our consultant, reviewed the estimate and believes that the estimate is reasonable and current. All of the prices received are much higher than anticipated. When asked, contractors advised that the prices bid are at a premium because of all of the work they are performing this year. Another area which was identified as being more expensive than anticipated was the protection of wireless antenna equipment on the elevated tank. Bid pricing received for this item ranged from $2,600 to $100,000. The engineer's estimate for antenna protection was $15,000. The wireless carriers that have equipment on the elevated tank are required under their leases to offset any of the Village's extra costs involved during painting and maintenance so most of this cost would be offset by the wireless carriers. However, the bid documents did not clearly differentiate between costs associated with Village - owned and wireless carrier communications equipment. Staff has concluded it remains feasible to expect this project to be completed within allocated budget. To this end, we recommend rejecting all bids, restructuring the bid documents to accurately identify commercial wireless carrier equipment protection costs, and re- bidding the work later this summer for construction in 2014. RECOMMENDATION I recommend that the Village Board reject all of the bids for the 2013 Elevated Tank Painting Project as being over budget. Matt Overeem Seafi`P. Dorsey, Director of Public Works Cc: Director of Public Works Sean Dorsey Deputy Director of Public Works Jason Leib File MBOlineo N: IWaterlprojec1sl20131Elevated ianklBid Board repor12013.dacx