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Home My WebLink About12/16/2014 Isabella Area Sewer ImprovementsProspect TO: FROM: DATE: SUBJ: Background Mount Prospect Public Works Department INTEROFFICE MEMORANDUM ACTING VILLAGE MANAGER DAVID STRAHL DIRECTOR OF PUBLIC WORKS DECEMBER 11, 2014 BID RESULTS FOR ISABELLA AREA SEWER IMPROVEMENTS ($8,863,088) The 2011 Comprehensive Flood Study Report identified several sewer improvement projects for areas subjected to severe, recurrent, and geographically concentrated flooding. The first phase of these improvements (Phase 1 Improvements) involved storm sewer improvements on SeeGwun Avenue, NaWaTa Avenue, Lawrence Lane, Hatlen Avenue, Hatlen Court, Busse Road, Michael Street, Verde Drive, Bonita Avenue, and Audrey Lane. The Phase 1 Improvements also included ditch regrading and culvert replacement work in the Golfview Estates residential subdivision. This work was facilitated by $2.5 million in short-term debt issued in 2012. All of this work was designed and constructed in 2013. The second, and final, phase of public sector work identified by the 2011 Comprehensive Flood Study is the construction of a relief sewer system in the Isabella Street residential area. The proposed scope of work for this project includes the installation of approximately 6,600 linear feet of relief sewer ranging in size from 15" to 84" (and appurtenances) to provide a 25 -year recurrence interval level of protection for approximately 800 single-family homes. Funding for this work has been facilitated by $10 million in general obligation bond debt. Bid Results Plans and bid documents for this project were prepared by Burns & McDonnell consulting engineers of Downers Grove, Illinois. Bids were let on October 17, 2014. A public notice was placed in a local newspaper. Thirteen (13) sewer construction firms picked up bid documents and eight (8) attended a mandatory pre-bid meeting on November 3, 2014. Bids were opened and read aloud on November 24, 2014. Six (6) bids were received: Bidder Bid Amount A Lamp Concrete Contractors $8,057,352.09 Martam Construction, Inc. $9,057,012.40 Glenbrook Excavating & Concrete, Inc. $9,290,734.73 John Ned Construction Company $10,158,791.00 Bolder Contractors, Inc. $11,111,193.27 Berger Excavating Contractors, Inc. $12,563,144.73 Page 2 of 4 Bid Results for Isabella Area Sewer Improvements ($8,863,088) December 11, 2014 The engineer's estimate of probable construction cost for this project is $10,052,725. Discussion All bids were properly signed, accompanied by appropriate bid bonds, and responsive to the bid documents. All six (6) bidders attended the mandatory pre-bid meeting. The apparent low -bidder is A Lamp Concrete Contractors of Schaumburg, Illinois (ALamp). ALamp has performed work for the Village in the past. In 2009, ALamp was the general contractor for the $2.7 million street resurfacing program. The paving work was subcontracted to Arrow Road of Mount Prospect. However, ALamp was responsible for sub -base preparation, concrete flatwork, structure adjustments, small -diameter storm sewer work, and overall project management. ALamp's performance was acceptable. Work was completed on time and below the project award amount. Review of ALamp's bid submittal revealed several concerns about their ability to complete the project. Among these concerns were disparaging references about project close-out, housekeeping, and crew turnover; a lack of experience installing 84" diameter (or larger) pipe; inordinately low bid prices for trench backfill, junction chamber reconstruction work, by-pass pumping, and overall project cost; as well as unbalanced prices for mobilization and traffic control. On December 4, 2014, staff and design engineer Burns & McDonnell met with ALamp representatives to discuss these concerns. These matters were disposed as follows: Project Close-out, Housekeeping, and Crew Turnover. ALamp acknowledged these issues and proposed they would avoid potential problems by permanently assigning their best underground construction crew to this project. They also identified the project foreman they planned to assign to this project and provided specific work references for his crews. All references were acceptable with respect to timeliness, project close-out, and housekeeping. Lack of Experience Installing 84" Diameter (or larger) Pipe. ALamp provided acceptable references for the installation of 60" diameter pipe and 48" diameter pipe. However, approximately 30% of the work in this project involves the installation of larger pipe. Notably, the work involves installing 1,000 feet of 72" diameter sewers and 2,000 feet of 84" diameter sewers. ALamp acknowledged this deficiency but advised that they presently own and can adeptly operate the trench boxes, large backhoes, and other equipment necessary to safely install the large pipe. Inordinately Low Bid Price for Trench Backfill. ALamp's bid price for trench backfill is approximately half the cost of other bidders. ALamp explained that they own a concrete recycling facility and have the capability to manufacture their own trench backfill. They Page 3 of 4 Bid Results for Isabella Area Sewer Improvements ($8,863,088) December 11, 2014 further opined that this resource differentiates them from the other bidders and facilitates lower costs for trench backfill. Inordinately Low Bid Price for Junction Chamber Work. The project involves structural concrete construction work on sewer junction chambers. ALamp's prices for this work seem low considering the scope of work involved. Particularly, staff was concerned that ALamp might not have properly assessed the trench shoring requirements and might not fully appreciate the difficulties performing partial concrete demolition work on active sewer structures. ALamp responded that they plan to subcontract this work to a structural concrete contractor with relevant experience in these niche tasks. The subcontractor is known to Burns & McDonnell as competent in this work. In addition, staff reminded ALamp that shoring designs must be signed and sealed by a structural engineer; they are also subject to Village review. Inordinately Low Bid Price for Sewer By -Pass Pumping. An important component of the project is facilitation of by-pass pumping that will enable construction on live combination sewers. ALamp's bid price for this work is substantially lower than the costs of other bidders and the engineer's estimate. ALamp acknowledged that the by-pass pumping plan must accommodate both low and peak flows without surcharging. They further explained that they own a variety of resources and were confident that they could provide a by-pass pumping plan that will satisfy Village requirements. Overall Project Cost is Exceptionally Low. ALamp's bid is approximately $1 million lower than the second -lowest bidder and almost $2 million lower than the engineer's estimate and median bid. ALamp stated that they can construct the improvements at the bid price and within the contract time without additional compensation. They also opined that vertical integration of key project components including trucking, traffic control, and trench backfill along with advantageous supplier relationships allow them to be cost competitive on this project. Mobilization and Traffic Control Prices are Unbalanced. ALamp's bid prices for mobilization and traffic control constitute approximately 25% of the project cost. This allocation of costs is unusual and could be construed as a means to be compensated at a rate that exceeds value added. Staff advised ALamp that these pay items would be paid pursuant to Illinois Department of Transportation (IDOT) standard procedures. As a consequence, much of the money attributed to these pay items will not be eligible for payout until the end of the project. ALamp acknowledged understanding of the Village's position on this matter. As a result of this meeting, staff is satisfied that aforementioned concerns can be effectively managed. It is also the opinion of staff that ALamp can construct the improvements at the price quoted and within the time frame specified in the bid documents. Page 4 of 4 Bid Results for Isabella Area Sewer Improvements ($8,863,088) December 11, 2014 Staff also recommends that the award for this project include a 10% contingency to accommodate quantity variances and unforeseen conditions commonly associated with underground work. The total recommended project award is $8,863,088 ($8,057,352.09 base bid + $805,735.91 contingency). Recommendation I recommend that the Village Board accept the lowest cost bid for the Isabella Area Sewer Improvements as submitted by Al -amp Concrete Contractors, Inc., of Schaumburg, Illinois in an amount not to exceed $8,863,088. Sufficient funds for this propo d expenditure exist in the current budget. can P. Dorsey Cc: Director of Finance David Erb Deputy Director of Public Works Jason Leib Water/Sewer Superintendent Matt Overeem Streets/Buildings Superintendent Paul Bures Village Engineer Jeff Wulbecker Administrative Superintendent Kristina Jakupovic Traffic Engineer Matt Lawrie Project Engineer Joel Michalik File