Title
Resolution - A Resolution Rejecting All Bids for Construction of the Industrial Elevated Storage Tank
Requested Action
Reject all bids for construction of the Industrial Elevated Storage Tank.
Recommendation
The Engineering Staff recommends that all bids received be rejected.
Description/History
The Water System Capital Improvements Plan proposes a two million gallon elevated storage tank to be constructed at Hanks Dr. and 7th St. The project design contract was awarded on May 22, 2017 to Freese & Nichols, Inc. The design was completed and prepared for public bid. The Engineer’s Opinion of Probable Cost prepared by Freese & Nichols and budgeted for construction of the project was $6,070,000.00.
The project was publicly bid on July 18, 2019. There were three bidders. Bids ranged from a low bid of $6,623,000.00 to a high bid of $8,436,000.00. A fourth bid was received after the required bid opening time and was returned to the bidder unopened.
Justification
The lowest and best bid for the project is $553,000.00 higher than the amount budgeted for the project. In an effort to obtain a bid within the project budget, it is recommended that all bids received be rejected. Staff will review scope and project details and consider any possible revisions to possibly result in a lower project construction cost. The project will then be publicly rebid.
Funding Source
Not Applicable
Prepared By
Raymond Coffman, P.E., City Engineer, Engineering Department, 817-276-4238