HomeMy WebLinkAbout06/05/2012 Sewer Line Spot Relays 2012 Reject BidMount Prospect Public Works Department
INTEROFFICE MEMORANDUM
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TO: VILLAGE MANAGER MICHAEL E. JANONIS
FROM: DIRECTOR OF PUBLIC WORKS
DATE: MAY 29, 2012
SUBJ: BID RESULTS FOR 2012 SEWER LINE SPOT RELAYS
BACKGROUND
On Monday, May 7, 2012, sealed bids for the 2012 Sewer Line Spot Relay Project were opened
and read aloud. This bid package was assembled to procure the services of a sewer
excavation contractor capable of replacing structurally failed pipe and installing or repairing
manholes. In many instances, once this work is completed, the remaining sections of affected
pipe are further rehabilitated utilizing the cured -in- place -pipe (CIPP) process.
Four (4) bids were received. The bid results were as follows:
Bidder
Base Bid
Martam Construction, Elgin, IL
$284,500.00
Swallow Construction, Downers Grove, IL
$312,115.00
Bolder Construction, Deerfield, IL
$386,000.00
Suburban General Construction, LaGrange Park, IL
$434,500.00
Staff identified Martam Construction of Elgin, Illinois (Martam) as the apparent lowest cost
bidder and presented a recommendation to award a contract accordingly at the May 15, 2012
Village Board meeting. However, Martam had failed to attend a mandatory pre -bid meeting
thereby raising concerns about the responsiveness of their bid. Subsequently, the Village
Board declined a motion to accept staff's award recommendation.
DISCUSSION
The estimate of probable construction cost for this project was $277,000 - $295,000. With the
exception of Martam's bid, all of the bids exceeded this estimate.
To gain a better understanding of this anomaly, staff contacted bidders and learned that all had
associated monetary risk with a bid document requirement assigning responsibility for the
disposal of hazardous soil to the successful contractor. This requirement is a legacy provision
utilized in most previous excavation contracts. However, recent changes in Illinois
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BID RESULTS FOR SEWER LINE SPOT RELAYS
MAY 29, 2012
Environmental Protection Agency regulations pertaining to the disposal of construction and
demolition debris have formalized the compliance process and increased costs.
Staff has no knowledge that any of the excavation sites included in the scope of work for this
project contain soils requiring disposal as hazardous material. In fact, our experience
excavating in and about these areas for water main breaks and other sewer repairs suggests
that all of the soil can be disposed of as clean construction debris. Consequently, staff has
concluded that a blanket assignment of responsibility for the disposal of all excavated soils to
the contractor, regardless of composition, only serves to add unnecessary cost to the project.
Therefore, staff proposes to re -bid the work with clear instructions directing bidders to assume
that all excavated soils can be disposed as clean construction debris. If hazardous soils are
encountered, the material will be sequestered, analyzed, and disposed by the Village pursuant
to existing protocols. No hazardous soil disposal costs will be assigned to the contractor.
Furthermore, staff has determined that re- bidding will not adversely affect the progress of the
cured -in- place -pipe lining project. As noted previously, much of the work included in the spot
relay project is prelude to CIPP work. Staff has contacted Visu -Sewer Clean & Seal, the
successful CIPP contractor, and learned that the materials necessary for our contract will not be
delivered until the end of July. Consequently, there is sufficient time to re -bid and start
construction on the spot relay work.
RECOMMENDATION
Staff recommends rejecting all bids as non - responsive because they exceeded construction
cost estimates.
Staff also recommends re- bidding the work with modified instructions pertaining to the disposal
of excavated soils. Bid results and an award recommendation will be presented for
consideration at a future Village Board meeting.
,
Sean P. Dorsey
CC: Village Clerk Lisa Angell
Deputy Director of Public Works Jason Leib
Water /Sewer Superintendent Matt Overeem