08 - Johnson Woods Drainage Construction Contract Award

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Item No. 8 memorandum TO: Mayor & City Council John Godwin, City Manager FROM: Carla Easton, City Engineer SUBJECT: 2013 BOND FUND — JOHNSON WOODS DRAINAGE CONSTRUCTION CONTRACT AWARD DATE: April 1, 2019 BACKGROUND: The Johnson Woods Drainage Improvement project was planned and scheduled as part of the 2013 Bond Fund for Water and Sewer Improvements. It includes replacement of sanitary sewers and channel restoration along the drainage channel running from Lamar Avenue to Clark Lane, located between Johnson Woods Drive and 31st St SE. AECOM and Hayter Engineering Inc. prepared the construction drawings and specifications, and in 2015 the construction cost was estimated at $1 Million. On June 27, 2017, the City opened bids for this project and only one (1) bid was received in the amount of $1,908,978.00. Due to budget constraints and the limited number of bidders, Council rejected the bid and asked Staff to consider options for completing the improvements. During 2018, staff attempted to negotiate a change order to the Package 4 construction contractor for completion of the Johnson Woods Drainage project, but no amicable agreement could be reached. STATUS OF ISSUE: On March 14, 2019, 4 bids were received for the project. The lowest bid was submitted by Atkins Bros Equipment Co. from Midlothian, Texas, however four days after the bid opening, Atkins withdrew their bid for this project, claiming critical errors by the estimator. While this is their right, we intend to file a claim on the bid bond to recoup the added cost of awarding a higher bid, which is the purpose of the required bid bond. The second lowest bid was submitted by RBIS in the amount of $1,499,501.00. The bids were reviewed and references checked in accordance with the contract documents, and the engineer of record has submitted a recommendation of contract award to RBIS. The contract documents require this project to be completed within 270 calendar days after issuance of the notice to proceed. Construction is anticipated to begin in June. A summary of the bids received for this project is as follows: