R2013-67 ACCEPTING THE BID AND AUTHORIZING THE EXECUTION OF A CONTRACT

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BmNBRIDGE CHARLES R.HUNSINGER,P.E. STEVEN G.BAINBRIDGE,P.E.,P.L.S. GEE &ASSOCIATES,INC. H.DAVID HARP,P.E. Consulting Engineers MATTHEW B.FOSTER,P.E.,P.L.S. MILANSKI CURTIS J.CASSIDY,P.E. June 25,2013 The Honorable Mayor McElroy and Council Members 1 Gary K.Anderson Plaza Decatur, Illinois 62523 RE: Recommendation of Project Award Lake Shore Drive Sewer Rehabilitation Project City Project 2012-06 Dear Mayor and City Council: Competitive bids for the Lake Shore Drive Sewer Rehabilitation Project were opened June 21, 2013, at 10:00 a.m. at the Public Works Department. The project is comprised of three separate Divisions of work to be constructed concurrently. All bids received were responsive to the Advertisement for Bids, and there were no irregularities in the bidding process. Division A was estimated to cost $6,136,881.00. The sole bidder was SAK Construction, LLC, from O'Fallon, Missouri at $4,177,792.75 (31.9% below the estimate). While a bid that is almost 32% lower than the estimate is normally cause for concern, we should point out that Division A allowed spiral wound lining and cured-in-place pipeliner technologies to compete against each other. SAK is capable of installing both. Two other planholders were also capable of using both technologies but did not submit bids. It is our opinion that specifying competing technologies resulted in SAK providing a more competitive bid package than specifying only one technology. This seems especially evident as those companies capable only of cured-in-place liners did not submit bids on this Division of work. The bid appeared to be balanced and internally consistent. SAK is a national company with the experience and technical capability to perform the work, but has not previously worked in the Decatur area. References have indicated that this company has performed quality work and conducted itself in a professional manner. We recommend that the City award Division A to SAK Construction, LLC, contingent upon approval by the Illinois Environmental Protection Agency, receipt of a loan offer by IEPA, and a satisfactory evaluation of references that have been requested but not received as of the writing of this letter. Division B was estimated at$1,406,163.00. The lowest of the four bidders was Insituform Technologies USA, LLC, from Chesterfield, Missouri, at $1,348,734.25 (4.1% below the estimate). The next lowest bid was from SAK Construction at $1,368,413.00 (2.7% below the estimate). Both bids appeared to be balanced and consistent. Insituform is a national company that has performed previous work in the Decatur area and has the experience and technical capability to perform the work. References have indicated that this company has performed quality work and conducted itself in a professional manner. We recommend that the City award Division B to Insituform Technologies USA, LLC, contingent upon approval by the Illinois Environmental Protection Agency, receipt of a loan offer by IEPA, and a satisfactory evaluation of references that have been requested but not received as of the writing of this letter. 1670 S.TAYLORVILLE ROAD ■ 217/423-8600 ■ FAX 217/423-8677 0 DECATUR, ILLINOIS 62521