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Subject
Award Bid Alternates for Bid #12-10, Construction of Water Treatment Plant Energy Conservation and Rehabilitation Improvements.
Recommendation
Staff recommends that the Mayor and Council award the Alternate Bid Items #1, #5, #7 and #10 of Bid #12-10 to CPP Construction Company of Gaithersburg, MD, in the amount of $566,000 (including a 5% contingency) which were included in the IFB #12-10 Water Treatment Plant Energy Conservation and Rehabilitation Improvements. This portion of the project is not funded by the Federal "Stimulus Grant."
Discussion
Project Description
This award is for upgrades at the Water Treatment Plant, funded by the Water Plant Upgrades (210-850-4A40) CIP Project. Specific items to be awarded are Alternate Bid Items #1, #5, #7 and #10, described below:
- Bid Alternate #1; replace air compressor and butterfly valve for the blow-off screen at the intake,
- Bid Alternate #5; replace existing fluoride tank and install drainage control,
- Bid Alternate #7; replace existing chlorine regulator scale,
- Bid Alternate #10; repair sluice gate and install electronic valve actuators.
Background
To facilitate multiple construction projects at the Water Treatment Plant, two CIP projects: Water Plant Upgrades (210-850-4A40) and Water Plant Maintenance and Repair (210-850-8A84) were combined into one bid, IFB#12-10, Water Treatment Plant Energy Conservation and Rehabilitation Improvements Project. The Base Bid Items, funded by CIP 210-850-8A84, are those items approved by the Maryland Department of the Environment (MDE) for the "Stimulus Grant Project," which was awarded by the Mayor and Council to CPP Construction on October 26, 2009. The Alternate Bid Items, funded by CIP project 210-850-4A40 Water Plant Upgrades, were not awarded at that time due to the high prices submitted by CPP Construction for those items.
Due to the strict deadlines established by MDE for awarding and starting construction of the "Stimulus Grant" project, staff did not begin negotiating the alternate items until after the Base Bid contract was executed.
Negotiations on the Alternate Bid Items have resulted in significant savings. The CPP Construction proposal for Alternate Bid Items #1, #5, #7, and #10 was $930,000. Staff negotiated the pricing down to $539,000, a difference of $391,000. Staff recommends adding a 5% contingency to this award making the award $566,000.
Mayor and Council History
The Mayor and Council have taken three previous actions to support this project. On May 4, 2009 the Mayor and Council awarded the design services for this project to Hazen and Sawyer (H/S) in the amount of $149,000 via the City's Architectural and Engineering Master Contract #08-08 (Category L - Water Treatment Analysis and Design Services). On August 3, 2009, the Mayor and Council adopted a budget amendment to the FY 2010 budget to add the ARRA grant funding. On October 26, 2009, the Mayor and Council awarded Bid #12-10 Base Bid Items to CPP Construction of Gaithersburg, MD, in the amount of $1,569,750 (including a 5% contingency), for the construction of Water Treatment Plant Energy Conservation and Rehabilitation Improvements.
Procurement Information
Bid #12-10 was solicited using the State of Maryland's e-Maryland Marketplace bid web portal. The solicitation also was posted on the City's Web site, and advertised in the Washington Post and El Tiempo Latino. In addition, the bid was sent out directly via e-mail to several vendors who have previously worked on utility projects for the City.
Bid #12-10 was developed with three categories: Base Bid (American Recovery and Reinvestment Act (ARRA) funded); Alternate Items (Water Plant Rehabilitation; non-ARRA funded); and Contingency Items (ARRA and non-ARRA funded items). Per MDE requirements, award was based on the lowest, responsive Base Bid. Award of Alternate Items has been pursued separately, by negotiation in accordance with Section 17-61(j)(2) of the City Code.
References
CPP Construction recently completed the Water Treatment Plant Recycle Line project that was awarded by the Mayor and Council at its August 4, 2008 meeting. Staff also has checked references provided by CPP Construction for work performed and found them to be satisfactory.
Fiscal Impact
Sufficient funds are available in the Water Plant Upgrades CIP (210-850-4A40-0426).
Next Steps
The Purchasing Division will issue a contract amendment to CPP Construction Company.
Department Head:
Craig Simoneau, P.E.; , Director of Public Works
Approved on: 12/29/2009
City Manager:
Scott Ullery, City Manager
Approved on: 12/31/2009
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