Memorandum
City of Lawrence
Utilities Department
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TO: |
David L. Corliss – City Manager Diane Stoddard - Assistant City Manager Casey Toomay – Assistant City Manager |
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FROM: |
Melinda Harger – Utilities Engineer |
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CC: |
Dave Wagner – Director of Utilities Mike Lawless – Deputy Director of Utilities Philip Ciesielski – Assistant Director of Utilities Beth Krishtalka – Assistant to Director Mark Hegeman – Utilities Operations Superintendent Dave King – Utilities Maintenance Superintendent Leah Morris – Project Engineer |
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DATE: |
March 5, 2015 |
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RE: |
Reject and Rebid Project UT1304 Contract 4 Wakarusa Wastewater Treatment Plant and Conveyance Corridor |
Background/Project Description
The 2012 Wastewater Utilities Master Plan and Capital Improvements Program recommend the construction of the Wakarusa Wastewater Treatment Plant (WWTP) and Conveyance Corridor facilities to be online in 2018. These improvements are required to mitigate wet weather surcharging of sanitary sewers along the 31st Street Corridor, provide for relief of wet weather overloading at the existing WWTP, and provide additional organic treatment capacity to provide for future growth of the community.
The Conveyance Corridor improvements include a pump station facility in the area of 31st and Louisiana and required force mains and gravity sewers to convey sewerage to and from this point to the Wakarusa WWTP.
The City Commission received a detailed project update at the January 6, 2015 meeting.
Project Status
UT1304 Contract 4 includes the Wakarusa WWTP, Pump Station 10, and improvements to the existing Kansas River WWTP. Separate construction contracts for the Wakarusa WWTP site fill, access roads, and force mains were bid and awarded in 2014.
The City Commission set a bid date of February 17, 2015 for Project UT1304 Contract 4 at the January 13, 2015 meeting. On February 10, 2015 the bid opening was extended one week to February 24, 2015.
Bid Details
On February 24, 2015, bids were received for UT1304 Contract 4 from the following two (2) bidders. The bids were opened and the lump sum bids listed below publicly read aloud.
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Crossland Heavy Contractors |
$50,772,210.00 |
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Garney Construction |
$52,185,250.00 |
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Engineer’s Estimate |
$45,968,120.00 |
Alternative bids were also publicly read aloud at the bid opening. Details are summarized on the attached bid tab.
Both lump sum bids exceed the Engineer’s Estimate. Black & Veatch has provided a letter explaining reasons for the discrepancy between their estimate and the bids received. They also include their recommendation for a rebid process and some modifications to the contract documents to consider based on input from bidders.
Since the lowest bid is over the Engineer’s Estimate, the Department of Utilities recommends that the bids be rejected and that the scope of the project be modified in order to award a contract that is supported by the current rate structure. The scope can efficiently be modified with the issuance of additional addenda modifying the contract requirements. Following the modification, bids can again be received. In order for this rebidding process to be completed with minimal delay to the project, we recommend setting a new bid date of April 7, 2015.
A two-step bid process as described below would be used to allow bidders and the City some clarity on what has been changed in the bid documents.
This process would avoid the delay associated with a significant redesign and rebidding effort. It would also allow the two (2) bidders an opportunity to quickly reprice the work and submit new bids in a very short period of time. In addition, it would allow other bidders who may have begun the bidding process, but were unable to complete it in the first round, to also submit timely bids thereby increasing competition and hopefully reducing bid amounts.
We anticipate the Engineer’s Estimate will increase from the first bid opening given that we know it was not in line with the current market. Therefore, we are considering the following additional deductive alternatives in order to obtain a net bid (with selected deductions) under the Engineer's Estimate and within the project funding:
*The latter two would help answer questions about how much those individual structures cost. If the cost is too high, the City would have the option to deduct that structure, redesign, and rebid it later as a separate project.
The analysis and recommendations of the alternatives will be presented for City Commission consideration and direction during the award of Contract 4. In order to award a project that the City can afford at this time, some deductions may be accepted that we would hope to pursue at a later date, in a modified and/or reduced form, as revenue would become available within the existing rate plan.
Project Schedule
The revised anticipated bidding schedule for Contract 4 is as follows:
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Advertise: |
March 11, 2015 |
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Pre-Bid Conference: Bid: |
March 18, 2015 April 7, 2015 |
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Award: |
April 21, 2015 |
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Notice to Proceed: |
June 1, 2015 |
The force main installation (Contract 2A) will continue through August 2015. The Wakarusa WWTP site fill placement is complete and the access road construction (Contract 3) will be complete by June 2015.
Project Funding
The project is included in the Department of Utilities Rate Plan and Capital Improvement Program. An estimated cost of $40-45 million for Contract 4 can be delivered within the projected expenditures of the 2013 to 2017 CIP.
Action
Reject all bids for Bid Number B1467, Project UT1304 Contract 4 Wakarusa Wastewater Treatment Plant and Conveyance Corridor.
Set a bid date of April 7, 2015 for Bid Number B1519, Project UT1304 Contract 4 Wakarusa Wastewater Treatment Plant and Conveyance Corridor.