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<br />6.1D
<br />Page 2
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<br />This pipeline construction project (Bid Package 1) is the first distribution system project
<br />needed to deliver recycled water to existing commercial irrigation and City roadway
<br />landscape customers in the western area of Redwood Shores. The second project (Bid
<br />Package 2) is scheduled for bid in late February to stimulate market competition for
<br />potential cost savings. As the name of this project infers, the work is the beginning of the
<br />distribution system construction component of the Recycled Water Project. It consists of
<br />the installation of the main transmission piping system in Redwood Shores along Radio
<br />Road, Marine Parkway, and a small section of Redwood Shores Parkway. More than
<br />10,000 feet of PVC pipes with sizes ranging from 8 inches to 30 inches in diameter will be
<br />constructed in approximately eights months.
<br />
<br />The six (6) bids received at the bid opening on January 25, 2006, are summarized below:
<br />
<br />No. Bidder Bid Amount
<br />1. K.J. Woods Construction, Inc. - San Francisco, CA $3,418,000.00
<br />2. Mitchell Engineering - San Francisco, CA $4,211,475.00
<br />3. Mountain Cascade, Inc - Livermore, CA $4,357,087.00
<br />4. McGuire and Hester - Oakland, CA $4,844,110.00
<br />5. Ranaer Pipelines, Inc. - San Francisco, CA $5,780,050.00
<br />6. RGW Construction, Inc. - Livermore, CA $6,228,000.00
<br /> Average (not considering the lowest and the highest bids): $4,798,180.50
<br />
<br />The lowest bidder, K.J. Woods Construction, Inc, made a mathematical error in their bid
<br />and has requested to be withdrawn from consideration. Staff has reviewed their request
<br />under the California Public Contract Code, Section 5100 in particular, and determined that
<br />they have met all conditions for a relief of the bid. A letter will be drafted to notify them of
<br />the City's consent.
<br />
<br />The second low bid of $4,211,475.00 from Mitchell Engineering is 6.4% lower than the
<br />Engineer's Estimate of $4.5 Million for the cost of construction. The average is also within
<br />10% of the Engineer's Estimate. Based on the bids received, staff believes that the
<br />second lowest bid of $4,211 ,475.00 is reasonable and responsive, and staff recommends
<br />awarding the contract to Mitchell Engineering.
<br />
<br />Alternative
<br />Council could choose to reject all bids and re-advertise; however, re-advertising would set
<br />the project back at least 60 days, cost additional staff effort and money, and eliminate the
<br />advantages of sequencing the Bid Package 2 following closely after the first award. Staffs
<br />opinion is that potential bidders and the others would likely bid about the same amounts,
<br />so there is little potential to save money by hoping for a more competitive bid than the
<br />current second low bid amount. Therefore, staff believes that a re-advertising for bid would
<br />not bring significant cost savings, and would negatively impact or even delay, the recycled
<br />water production schedule
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