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<br /> <br />6.1E <br />Page 1 <br /> <br />February 13, 2006 <br /> <br />Subject <br />Asphalt Materials Purchase <br /> <br />Recommendations <br />By Motion: <br />(1) Reject the bids from Raisch Products of San Jose, CA and GraniteRock of <br />Redwood City, CA for the 2005-2006 Asphalt Materials Purchase. <br /> <br />(2) Authorize re-advertising and re-bid of the 2005-2006 Asphalt Materials Purchase. <br /> <br />Background <br />On December 8, 2005, staff sent out bid requests to the two suppliers the City has <br />purchased asphalt materials from in the past and also advertised the bid. On January 4, <br />2003, two bids were received and opened in the City Clerk's Office: <br /> <br />BIDDER PRICE <br />Raisch Products, San Jose, CA ($195,340.00 + tax) <br />Graniterock, Redwood City, CA ($200,408.00 + tax) <br />Staff's Estimate ($196,520.00 + tax) <br /> <br />BID AMOUNT <br />$211,455.55 <br />$216,941.66 <br />$212,732.90 <br /> <br />The bid specifications only requested the purchase price of the asphalt materials. City staff <br />must travel to the supplier's location to pick up and bring back materials to Redwood City <br />worksites. For typical pavement repairs, the number of trips can range from two to <br />fourteen per day. The materials purchase price alone does not account for the additional <br />costs of picking up the materials. These additional costs include travel time required to get <br />the material, increased fuel usage, and the loss in crew productivity on the job site. The <br />farther the asphalt plant is located from Redwood City, the greater the associated costs. <br /> <br />Staff recommends that new bid specifications clearly state the full criteria to be used in <br />evaluating the bid proposals to determine the lowest bid, which should include the time and <br />related costs to pick up the materials. By changing the criteria on which the Council would <br />award the contract, a true "low bid" can be determined. <br /> <br />Alternatives <br />There are two alternatives: <br />(1) Accept the apparent low bid. While the low bid for materials purchase is $5,486.16 <br />less than the second bid, the costs associated with City staff picking up and transporting <br />the material will exceed the difference in purchase price and reverse the total low cost. <br />The bid evaluation criteria were not clearly stated in the bid documents to consider these <br />factors and make a bid award decision on the total cost basis. <br /> <br />Page 1 of 2 <br /> <br />,--.---- ---- <br />