R2007-96 ACCEPTING THE BID AND AUTHORIZING A CONTRACT

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The bid submitted by Beniach Construction Company was determined to be unbalanced. The Illinois Department of Transportation indicates in their Local Roads specifications that the awarding authority reserves the right to reject a proposal in which the bid prices for some items are out of proportion to the ii bid prices for other items. Beniach bid $0.01 for some pavement items and made up the significant I cost by bidding $162,000 for traffic control on the project. Bidding one cent for work usually costing $30 to $35 per square yard, and $162,000 for traffic control normally costing about $5,000 represents an extremely unbalanced bid in the opinion of City Staf£ Proceeding with a contract based on highly unbalanced bid prices would create unnecessary financial risks for the City. Staff therefore recommends that Beniach's bid be rejected and the bid award for this project be given to Otto Baum ' Company, Inc. Otto Baum has successfully performed several concrete pavement projects for the City. Staff recommends the City Council approve a contract with Otto Baum Company, Inc. to perform the concrete pavement work. , POTENTIAL OBJECTION: I�I Christy-Foltz Inc. failed to provide their Workers Compensation Experience Modifier which is I required documentation for every bid. Their bid was not read publicly and they are listed as non- responsive. Concerns may be raised by Beniach Construction Company for the reasons cited above. i INPUT FROM OTHER SOURCES: None STAFF REFERENCE: Richard Marley, Director of Engineering & Infrastructure, at 424-2747 Matt Newell, City Engineer, at 424-2747 Richard Marley will be in attendance at the City Council meeting to answer any questions of the Council on this item. BUDGET/TIME IMPLICATIONS: Funding far this project is budgeted in the General Street Capital Fund and the Water Fund. The recommended low bid amount is $505,462.80. The project should begin in June and be substantially completed by August 31, 2007. Attach: 4 cc: John Smith, Assistant City Manager for Public Services Dick Borders, Municipal Services Manager Aaron Lawson, Assistant City Engineer Bob Davidson, Engineering Technician Supervisor ' Dan Mendenall, Traffic and Parking Supervisor Otto Baum Company, Inc. Entler Excavating Company, Inc. ' Christy-Foltz, Inc. Beniach Construction Company, Inc. Page 2