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6.D. - Page 3 of 22
<br />and all bids, consistent with City Charter Section 67 and Redwood City Code Section 2.68(C). The
<br />evaluation process is detailed below.
<br />One discrepancy was encountered in the bid submitted by the apparent low bidder JMB Construction: the
<br />Base Bid line item #24 extended cost (related to landscape maintenance) does not equal the product of
<br />the Unit Price and the Quantity of the line item. Section 00200- Instructions to Bidders, Paragraph 1.14.E,
<br />states, "In case of discrepancy between a unit price and the total price set forth for the unit price item,
<br />the unit price shall prevail. If, however, a specified unit price is ambiguous, unintelligible, uncertain or
<br />omitted, and the total price set forth for that item is clear, the total price shall prevail, and the unit price
<br />shall equal the stated total price divided by the stated (estimated if applicable) quantity." Multiplying the
<br />Bid Quantity and the Unit Price of line Item #24 as bid, correcting the Bid Cost column and adding totals
<br />yields a corrected Total Base Bid of $11,259,761.00. This amount is 25% over the Engineer's Probable Cost
<br />Estimate of $9,030,000.00. After initially concluding that the original bid of JMB Construction need not be
<br />corrected and providing notice to JMB (Attachment 2), and after receiving an objection from Disney
<br />Construction (albeit not a formal bid protest), staff concluded that the bid of JMB should be corrected,
<br />and provided notice to all bidders that all bids would be rejected (Attachment 6).
<br />Staff also evaluated the second low bid submitted by Disney Construction, and identified two
<br />discrepancies: a) The Base Bid line item #14 (related to a vertical turbine pump) extended cost does not
<br />equal the product of the Unit Price and the Quantity of the line item; and b) The Total Base Bid does not
<br />equal the summation of all the line item extended costs. These discrepancies were evaluated and resolved
<br />based on Section 00200- Instructions to Bidders, Paragraph 1.14.E, which as noted above states, "In case
<br />of discrepancy between a unit price and the total price set forth for the unit price item, the unit price shall
<br />prevail"; and Paragraph 1.14.F, which states, "Discrepancies between the indicated sum of any column of
<br />numerals and the correct sum thereof will be resolved in favor of the correct sum," respectively.
<br />Therefore, Disney Construction corrected bid amount is $10,022,000.00.
<br />Staff then informed Disney Construction of the results of the bid evaluation, requested confirmation of
<br />their bid and willingness to perform the work as the lowest bidder. Disney Construction Inc. in turn has
<br />submitted a notice of an error in their bid, and requested relief.
<br />Due to the mistakes, irregularities and complications found in the first and second lowest bids, JMB
<br />Construction Inc. and Disney Construction Inc., and higher than expected project construction costs over
<br />planned budget, staff is recommending to Council to reject all bids and not to award the project; to direct
<br />staff to reevaluate project scope, design, schedule, budget and financing options and re -bid the project at
<br />a later time. This recommendation is in accordance with the Project Contract Bid Document under Section
<br />00200-1.14.A as well as the City Charter and Redwood City Code, as noted above.
<br />Staff believe that the recommended action is reasonable and fair to all concerned parties and also is in
<br />the best interest of the City. A tentative schedule for the rebid is as follows: Notice to Bidders will be
<br />issued on Tuesday, February 12, 2019 and the bid opening will be held on Wednesday, March 6, 2019.
<br />FISCAL IMPACT
<br />Funds for this project were previously appropriated in the Fiscal Year 2018-2019 Division budget as Water
<br />Fund Capital Projects — California Water Tank and Pump Station project accounts. Their total budget has
<br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org
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