R2010-62 AUTHORIZING CONSTRUCTION CONTRACT

Home Browse Search

It is recommended that the Base Bid (Dredge Basin 6) and Alternate Bid 1 (Purchase the City's Dredge Equipment) be awarded to L.W. Matteson for the following reasons: 1. L.W. Matteson submitted a complete and comprehensive bid meeting all specifications. 2. L.W. Matteson has recent experience in several similar lake dredging projects. See Attachment 1 far details. 3. L.W. Matteson has been a reputable dredging contractor since 1974, based in Burlington, Iowa. 4. The bids that the City receives for capital proj ects are completely dependent on the decisions of contractors to bid or not bid. Therefore, if this project is rebid there can be no guarantee as to how many bids might be received (if any) and at what price the bids might be. 5. Rebidding will delay dredging of Basin 6 by at least three months. 6. Rebidding will require additional bid preparation services by Chastain which are estimated to cost $4,000. 7. The net cost to the City would be the Base Bid minus Alternate Bid 1, which is $10,245,710. This is 21% over the estimated Base Bid and Alternate Bid 1 total cost of $8,455,000, and is reasonable for this type of work. 8. The bid includes purchasing the City's dredge equipment for 44.5% of the original purchase price. This far exceeds the bid estimate that the City might only receive 25% of the original purchase price. 9. The bid is $754,290 less that the $11,000,000 estimated cost for the City to continue in- house dredging operations as currently configured. 10. The bid locks in a fixed cost to dredge Basin 6. If in-house dredging is continued, that total cost can only be estimated due to the future unknown costs of labor, repairs, diesel fuel, etc. 11. The bid completes Basin 6 dredging five years sooner than in-house dredging. It is recommended that Alternate Bid 2 (Dredge Basin 1) from L.W. Matteson be rejected for the following reasons: 1. The bid price is 43% over the estimated cost. 2. Since Basin 1 will not be able to be dredged for at least three years, it is anticipated that a less costly way to transport, store andlor reuse Basin 1 sediment can be developed prior to rebidding. POTENTIAL OBJECTION: None foreseen. INPUT FROM OTHER SOURCES: H. L. Chastain&Associates STAFF REFERENCE: Keith Alexander, Director of Water Management, 424-2863 or kalexander@decaturil.gov Randy Miller, Water Services Manager, 875-5704 or rmiller@decaturil.gov cc: Gregg Foltz, H.L. Chastain&Associates Larry Matteson, L.W. Matteson, Inc.