CC SR 20160517 D - Reject Bids for RPVtv Building Improvement ProjectRANCHO PALOS VERDES CITY COUNCIL
AGENDA REPORT
AGENDA DESCRIPTION:
MEETING DATE: 05/17/2016
AGENDA HEADING: Consent Calendar
Consideration and possible action to reject all bids received for the RPVty Building
Improvement Project.
RECOMMENDED COUNCIL ACTION:
(1) Reject all bids received for the RPVty Building Improvement Project; and,
(2) Direct Staff to revise the project bidding criteria, modify the scope of work without
impacting essential elements of the project, with a goal of decreasing the
construction cost, and re -advertise the project as soon as possible.
FISCAL IMPACT: Funding for the project was carried forward from FY14-15 in the
amount of $94,795. Additional funding will be required to complete the construction and
provide for a construction contingency and construction inspection. It is currently
estimated that the budget required to construct this project will be $150,000, based on
the recently -received bids, including construction inspection and a 10% construction
contingency. Staff intends to recommend re -budgeting $94,795 to FY16-17 and
requesting additional funding of approximately $55,000 in the FY16-17 capital budget.
Amount Budgeted:
Additional Appropriation
Account Number(s):
$94,795
None (estimated at $55,000)
330-3036-461-73-00
ORIGINATED BY: Ron Dragoo, PE, Principal Engineer +;
REVIEWED BY: Michael Throne, PE, Director of Public Works UIJ�J
APPROVED BY: Doug Willmore, City Manager.,P
BACKGROUND AND DISCUSSION:
The RPVty Building Improvement Project includes a new heating/ventilation/air
conditioning (HVAC) system; relocating the data system; cleaning up the data cabling
(identifying and removing abandoned cables and installing some new cables); and
minor building modifications to adhere to Americans with Disabilities Act (ADA)
standards. The project also includes an opportunity to increase the scope of work, if the
budget allows:
• Additive Alternate Item No. 1 provides for a fiber-optic conduit from the cable
building to City Hall to improve data connectivity.
• Additive Alternate Item No. 2 provides for ADA compliance for the building.
• Additive Alternate Item No. 3 provides for ADA urinal flush for the restroom.
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The project was publicly advertised, and sealed bids were received and opened on April
26, 2016. Concept Consulting, Corporation submitted the lowest bid out of 3 bids
received. The following table summarizes the bids received:
BID SUMMARY (BASE BID + BID ALTERNATIVES)
Construction Companies
Bid Amount
Concept Consultant, Inc.
$ 123,673.00
Alternate 1
$73,232.00
Alternate 2
$8,400.00
Alternate 3
$1,800.00
Gamma Builders, Inc.
$ 198,733.00
Alternate 1
$170,420.00
Alternate 2
$13,780.00
Alternate 3
$4,900.00
Minako America Corporation, Inc.
$ 262,405.00
Alternate 1
$42,500.00
Alternate 2
$13,500.00
Alternate 3
$700.00
ENGINEER'S ESTIMATE OF PROBABLE COST
$ 116, 000.00
Regrettably, it was discovered that the lowest bidder's plumbing subcontractor has a
suspended license, and his electrical subcontractor was slated to perform over 50% of
the work, which is not permitted by the Public Contract Code. The second -lowest bid
came in at more than 70% higher than the engineer's estimate. Additionally, there were
three alternate bid items that had significant variations in cost between the three
bidders. Public Works recommends revising the project bidding criteria; modifying the
scope of work without impacting essential elements of the project which includes rough
carpentry, HVAC installation, electrical, ductwork, cabling, metal doors and frames,
tiling, painting, and concrete paving with a goal of decreasing the construction cost, and
re -advertise the project as soon as possible.
Therefore, Staff recommends rejecting all bids and the re -bidding the project with the
necessary revisions to the contract documents. The new contract documents will be
ready to advertise for bidding within four weeks.
ALTERNATIVES:
In addition to the recommended action, the City Council may consider alternative
actions:
Award the contract to the second -lowest bidder, based on the current bids, not
including the alternate bid items. This alternative would provide for a partially -
complete project, and would require the allocation of additional funding to
complete. If so directed, Public Works would return with a complete bid analysis
and award recommendation on a future agenda.
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