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�i, 1� - � <br /> The low bid of $866,172.00 is 30% lower than the Engineer's Estimate of . <br /> $1,265,950.00. The bid of McNamara & Smallman Construction, Inc. is considered <br /> good and responsive. <br /> Following is an explanation for the significantly low bids. All bids are lower than the <br /> Engineer's Estimate due to competitive bidding. A pool of nine bidders is a rarity that <br /> promotes competition, and favors an outcome of low bids. Furthermore, Gelco <br /> Services, Inc. listed as a sub-contractor for the "trenchless" portion of the contract with <br /> six of the nine bidders, kept their costs low in order to be listed as a sub-contractor to as <br /> many bidders as possible. This resulted in a cluster of bids that are low and fairly <br /> similar in amount. The low bidder, McNamara & Smallman Construction, Inc., further <br /> reduced the cost for the "open-cuY' portion of the contract, resulting in the lowest bid. <br /> A complete copy of the agreement is available for review in the City Clerk's Office. <br /> Alternatives <br /> Do not approve the contract for the 2004-2005 Sewer Main Replacement Project, which <br /> will leave the existing sewer main in its old and deteriorated condition. <br /> Fiscal Impacts <br /> Funds in the amount of $1,225,234.00 are available in the Capital Improvements <br /> Program Budget, Collection system Replacement Program. <br /> �--�� . , <br /> Grace e o I Patterson �d ver � <br /> Associate Civil Engine r C�mmunity Development Services Director City Manager <br /> , GL:ss <br /> s/library/reports/Grace/award_2004-2005 SM Replacement <br />