R2010-20 FOR THE RESTORATION OF MACARTHUR ROAD BRIDGE

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BACKGROUND: See Appendix A for additional background material. Bids Received on State Letting The bridge replacement plans were prepared by Homer L. Chastain and Associates and approved by the Illinois Department of Transportation. Bids were opened for this project as part of the State letting on January 15, 2010. The results were reported to the City as follows: Compared to Engineer's Est. Bidder Bid Price Over(-Under) H. L. Chastain's Estimate $1,266,065.00 ----- Freesen, Inc. $1,404,732.78 10.95% Springfield, IL Sangamo Construction Co. $1,423,060.31 12.40% Springfield, IL Halverson Construction Co. $1,485,279.10 17.31% Inc. - Springfield, IL Kovilic Construction Co. $1,864,420.00 47.26% Inc. - Franklin Park, IL The bids exceeded the estimated construction cost originally prepared for the project. IDOT does not release any detailed information about project bid prices until the construction contract is fully executed. As a result, it is difficult to fully assess the reasons bid prices are higher than the Engineer's estimate. IDOT did review the bids and could not determine any abnormalities in the estimate or bids other than generally increased unit prices. Chastain discussed the bids with Freesen and indicated that increased costs were provided for excavation in the creek bed due to flooding concerns. Higher costs were also provided for placement of the concrete piers and abutments. Recommend Award Following discussions with IDOT, Chastain, and Freesen, City staffrecommends that the City Council authorize the necessary funding and concur with IDOT awarding the project to Freesen. The following reasons are given as justification to move ahead with the project. 1. Time. Construction costs will tend to increase with time especially as the construction season progresses and contractors book their work. The inflow of AR.RA funding continues to absorb the construction industry's capacity to accomplish work as the bidding environment becomes less competitive. 2. Project Design. The project design meets IDOT's requirements and will not change. No information has been offered by either IDOT or the apparent low bidder to suggest changes in design that will significantly reduce costs. With no substantial changes in the design required, rebidding the project is not likely to produce a decrease in cost, only a change in the Engineer's construction cost estimate due to the benefit of 20-20 hindsight. 3. Funding. The City is using a substantial amount of ARRA funding ($447,408) for this work that must be obligated by March 2010. There is not sufficient time to rebid the project prior to the March deadline which will put the obligated ARRA funds in jeopardy. Page � 2