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