HomeMy WebLinkAbout04/03/2018 Bid Results for Sewer Lining5/30/2018 BoardDocs® Pro
Agenda Item Details
Meeting Apr 03, 2018 - REGULAR MEETING OF THE MOUNT PROSPECT VILLAGE BOARD - 7:00 p.m.
Category 8. VILLAGE MANAGER'S REPORT
Subject 8.2 Motion to accept joint purchasing bid results for sewer lining in an amount not to exceed
$1,320,633.
Type Action
Preferred Date Apr 03, 2018
Absolute Date Apr 03, 2018
Fiscal Impact Yes
Dollar Amount 1,320,633.00
Budgeted Yes
Budget Source Water and Sewer Fund
Recommended Action Award a two (2) year contract for cured -in-place sewer lining to the lowest cost bidder, Hoerr
Construction, Inc, in an amount not to exceed $1,320,633 in 2018. Expenditures in 2019 will
be at the contract rates, but limited to funds appropriated in the 2019 budget.
Information
In the current budget, staff requested funds for continuing combined sewer system repairs. These combined sewer
repairs were identified during the Combined Sewer System Evaluation Study (CSSES) completed in 2015. A copy of this
report is attached.
Much of this work entails rehabilitating existing sewer main segments by inserting a cured -in-place (CIPP) liner inside a
host pipe segment. This method is more cost effective than open -cut excavation and far less disruptive. The Village has
successfully utilized this process since the late 1970s.
The scope of work in this year's project includes 82 pipe segments totaling 20,035 lineal feet of combined sewer rated as
category 5 and 4. This pipe ranges in size from 8" to 30" in diameter. Category 5 sewers are in "severe structural
condition"; the CSSES study recommends that repairs be completed within one 1 to two 2 years.
In total, there are 25,115 lineal feet of combined sewers rated as category 5. Lining work performed in 2016 and 2017,
along with work proposed this year, will correct 100% of the category 5 combined sewer defects identified in the CSSES
report. In addition, the proposed work in 2018 will correct 11,118 lineal feet of category 4 sewers. This work represents
approximately 28% of the sewers rated category 4.
The 2018 project also includes an additional 6,163 lineal feet of lining repairs in the separate sanitary sewer system.
These pipes have all been rated as category 5 defects following condition assessment by Public Works staff following
closed-circuit television camera inspection. These pipes are primarily all 8" in diameter.
In total, the 2018 project will rehabilitate 26,198 lineal feet of combined and separate sanitary sewers.
The CIPP contract being considered this year is a joint bid through the Municipal Partnering Initiative (MPI). MPI is a
collective of Cook County, Lake County and DuPage County municipalities that have leveraged bulk purchasing and
workload sharing to reduce the cost of many municipal services including sewer lining. The bid is similarly structured to
the MPI bids that the Village participated in 2016 and 2017. The only change of significance is the term of the contract.
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The 2018 bid represents a two (2) year contract unlike previous years that were only a one (1) year term. The rational
was a two (2) year contract would result in more favorable pricing.
The Village of Mount Prospect is the lead agency for the 2018 sewer lining bid. As the lead agency the Village administers
the bid on behalf of additional participating agencies including Arlington Heights, Lincolnshire and Rolling Meadows. The
total quantity sewer lining included in the bid is approximately 55,000 lineal feet. Mount Prospect's portion of the contract
comprises approximately 47% of the total bid quantity (linear feet of sewer lining).
Payment for work performed under this contract is made directly to the contractor. No liability is established between the
Village of Mount Prospect and the other participating agencies.
Bid Results
A Notice to Bidders was posted on the Demandstar website by Onvia. Sealed bids were received on March 19, 2018.
Five (5) contractors submitted bids for the this project. The Village's portion of the bids ranged from a low of
$844,889.60 by Hoerr Construction, Inc. to a high of $1,054,198.00 by Kenney Company. The engineer's estimate for
the project was $1,398,657.00.
All bidders submitted a bid bond in the amount of 5% of the total bid as required in the bid proposal packet. All bids were
checked for their accuracy. All bidders correctly signed their bids and bid bonds. Below is a summary of the bids:
Hoerr Construction successfully completed the Village's CIPP project in 2016 and 2017. Hoerr performed exceptionally
with no issues. In addition, Hoerr construction has completed over 1.3 million feet of CIPP liner since the company's
founding in 1994. All reference checks indicate the firm has consistently performed work of this scale and scope with
acceptable results.
Based on the bid review; Hoerr Construction Inc. of Peoria, Illinois is a responsible bidder and meets all of the bid
qualifications and requirements. The engineer's estimate for the 2018 project is $1,398,657.00 and the bid from Hoerr at
$844,889.60 is below the estimate. Comparing the current 2018 prices against the lineal foot costs from the Village's last
CIPP award in 2017, this year's project represents an average decrease of 5.5%. In a typical year, we would expect in
the range of an 8 — 10% increase over the previous year's bid. Assuming a 10% increase an expected total bid would
have been approximately $980,000.00. In retrospect, the engineer's estimate was overly conservative and relied heavily
on lining bids that have been opened in the region in the past six months. In determining the estimate more focus should
have been given to the MPI lining bid awards.
The budget for 2018 was $1,400,00.00. The bid is based on estimated quantities and does allow for an increase or
decrease in the estimated quantities. Staff has contacted Hoerr Construction to request an increase in quantities bringing
the total base bid to $1,200,603.00. Hoerr Construction has indicated that they approve of the increased quantities.
Staff is recommending a contingency of 10% be added to the contract award to accommodate the price difference
between the actual footage lined versus the engineer's estimate of footage to be lined. The total award would be
$1,320,663 (Base bid of $844,889.60 plus $355,713.40 increased quantities plus $120,060.00 10% contingency totaling
$1,320,633.00).
Alternatives
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2018
2019
Bidder
2018
Mount Prospect
2019
Mount
Overall Total
Portion
Overall Total
Prospect
Portion
Hoerr Construction,
Goodfield, IL
$1633921.40
$844,889.60
$1,666,654.35
$861,798.17
Visu-Sewer of Illinois,
$ 1 872 519.65
$961,623.50
$1,947,352.40
$993,792.55
Bridgeview, IL
Insituform Technologies
$1,885,978.00
$1,018,026.30
$2,180,969.11
$1,210,880.67
USA, Chesterfield, MO
Michels Corp,
Brownsville, WI
$1,893,641.00
$1,069,622.00
$2,405,809.00
$1,341,869.00
Kenny Company,
$2,091,388.00
$1,054,198.00
$2,154,129.64
$1,085,823.94
Northbrook, IL
Hoerr Construction successfully completed the Village's CIPP project in 2016 and 2017. Hoerr performed exceptionally
with no issues. In addition, Hoerr construction has completed over 1.3 million feet of CIPP liner since the company's
founding in 1994. All reference checks indicate the firm has consistently performed work of this scale and scope with
acceptable results.
Based on the bid review; Hoerr Construction Inc. of Peoria, Illinois is a responsible bidder and meets all of the bid
qualifications and requirements. The engineer's estimate for the 2018 project is $1,398,657.00 and the bid from Hoerr at
$844,889.60 is below the estimate. Comparing the current 2018 prices against the lineal foot costs from the Village's last
CIPP award in 2017, this year's project represents an average decrease of 5.5%. In a typical year, we would expect in
the range of an 8 — 10% increase over the previous year's bid. Assuming a 10% increase an expected total bid would
have been approximately $980,000.00. In retrospect, the engineer's estimate was overly conservative and relied heavily
on lining bids that have been opened in the region in the past six months. In determining the estimate more focus should
have been given to the MPI lining bid awards.
The budget for 2018 was $1,400,00.00. The bid is based on estimated quantities and does allow for an increase or
decrease in the estimated quantities. Staff has contacted Hoerr Construction to request an increase in quantities bringing
the total base bid to $1,200,603.00. Hoerr Construction has indicated that they approve of the increased quantities.
Staff is recommending a contingency of 10% be added to the contract award to accommodate the price difference
between the actual footage lined versus the engineer's estimate of footage to be lined. The total award would be
$1,320,663 (Base bid of $844,889.60 plus $355,713.40 increased quantities plus $120,060.00 10% contingency totaling
$1,320,633.00).
Alternatives
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1. Accept Municipal Partnering Initiative Joint Bid Results for Cured -In -Place Sewer Lining.
2. Action at discretion of Village Board.
Staff Recommendation
Staff recommends accepting the results from the Municipal Partnering Initiative joint bid for Cured -In -Place Sewer Lining
and award a two (2) year contract to Hoerr Construction, Inc. of Peoria, Illinois in an amount not to exceed $1,320,633 in
2018. Sufficient funds exist in the current 2018 budget for this project. Expenditures in 2019 will be at the contract rates,
but limited to funds appropriated in the 2019 budget.
2015 COMBINED SEWER STUDY MEMO AND ABRIDGED FINAL REPORT BINDER.pdf (557 KB)
Motion & Voting
Award a two (2) year contract for cured -in-place sewer lining to the lowest cost bidder, Hoerr Construction, Inc, in an
amount not to exceed $1,320,633 in 2018. Expenditures in 2019 will be at the contract rates, but limited to funds
appropriated in the 2019 budget.
Motion by Paul Hoefert, second by William Grossi.
Final Resolution: Motion Carries
Yea: William Grossi, Eleni Hatzis, Paul Hoefert, Richard Rogers, Colleen Saccotelli, Michael Zadel
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