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10/10/23,4:46 PM Item Coversheet <br /> However,the bid date had to be extended by one week because contractors indicated they needed more time to get bids from <br /> subcontractors and suppliers.The bid results are as follows: <br /> Compared to <br /> Bidder Bid Price Engineer's Est. Alternate Bid <br /> Over(Under) <br /> Burdick Plumbing $751,429.00 21.2% <br /> &Heating Co.,Inc. $55,075.00 <br /> Engineer's $620,000.00 <br /> Estimate <br /> Only one contractor took out bid packages and submitted a bid proposal for the project. This is an indication how busy the <br /> construction market is at this time. <br /> Burdick Plumbing&Heating Co.,Inc provided the lowest responsive and responsible bid at 21.2%above the Engineer's Estimate. <br /> Burdick Plumbing&Heating Co.,Inc.has completed several projects to improve the water distribution system for the City. The <br /> project engineer,CMT,has reviewed the bid proposal from Burdick and recommends approval. <br /> The alternate bid items address replacement of parts internal to the valves. Whether this work is needed or not will not be known <br /> until the valves are opened up.To avoid returning to Council for additional authorization,if it turns out that the parts are needed, <br /> this alternate bid amount is included in the proposed contract award. If the parts are not needed,the alternate bid amount will be <br /> reserved for unforeseen contingencies. <br /> The net budget impact is as follows: <br /> Base bid $751,429 <br /> Alternate bid 55,075 <br /> Construction support 48,720 <br /> Total project cost $855,224 <br /> (Available budget) (720,000) <br /> Budget impact $135,224 <br /> Staff considered several options as to award of the contract: <br /> 1. Award the contract and allocate an additional$135,224 from Fund 89,the Water Bond Fund. <br /> 2. Reject all bids and readvertise using the current set of plans and specifications. <br /> 3. Reject all bids and redesign the project to reduce cost. <br /> Alternative 2 is not recommended because cost trends are unfavorable in the.water industry.The September 18/25,2023,issue of <br /> Engineering News Record reports a 14.0%annual rate of cost increase in the water supply sector. During the three months required <br /> to rebid the project,this could equate to a cost increase of$35,000. <br /> Alternative 3 is not recommended because all of the items of work are necessary and major cost savings are not anticipated.Also, <br /> the high rate of cost increase in this construction sector could offset any cost savings from the redesign. <br /> Alternative 1,awarding the contract as bid,is recommended.During construction staff and CMT will work with the contractor to <br /> identify any available cost savings. <br /> MINORITY PARTICIPATION GOALS: <br /> Contractors for City Projects shall comply with City Code Chapter 28,Article 10,"Minority Participation Goals for Public Works <br /> Contracts." <br /> Contractors for City projects shall make a good faith effort to comply with the following minimum goals: <br /> 1.Ten(10)percent of the total dollar amount of the contract should be performed by Minority Business Enterprises(MBE)if <br /> subcontracting opportunities are available and/or ten(10)percent of the total dollar amount should be for the purchase of <br /> goods,material,and equipment to MBE; and, <br /> 2.Eighteen(18)percent of the total hours worked should be performed by minority workers. <br /> https:Hdecatur.novusagenda.com/AgendaWeb/CoverSheet.aspx?ltemlD=4599 2/3 <br />