AgdaPkt 2006-09-25 - Laserfiche WebLink

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6.18 Page 2 Apparent Low Sid Summary {Continued} Apparent Low Budget BP# Description Bidder * Bid Estimate Acoustical. Ceilings & Wall Performance 11 Panels Contractin~, Inc. $59,950.00 $190,000 12 Painting & Wall Coverino Blue Skies Paintinq $193,000.00 $200,000 Allied Fire . 13 Fire Protection Protection $261,867.00 $125,000 i , Ray L. Hellwig 14 Mechanical & Plumbing Mechanical Co. Inc. $1,583,306.00 $910,000 15 Electrical Smith & Sons $1,783,000.00 $1,000,000 Total Base Bids $15,269,231.00 $10,000,000 Total Estimate Variance Variance % $10,000,000.00 $ 5,269,231.00 52.7% The sum of all the apparent low multi-trade bids is 52.7% higher than the Budget Estimate of $10,000,000.00 for the cost of construction. The City's Construction Manager, Design Architect, and staff have carefully analyzed the bids and interviewed the multi-trade contractors to determine the reasons behind the high bids and the low number of bidders. After canvassing various trade contractors on their bids for the project, it was disclosed that historically; bidding projects during the end of the summer does not produce a favorable bidding climate for public bids. For many of the multi-trade bids only one bid was received, reflecting a lack of competitive bidders. Prices for raw materials continue to be volatile, reflecting individual trade contractors' uncertainty of securing fixed prices. Furthermore, escalating labor costs and finding available skilled workers for some trades, has also contributed to the higher bids. AU of these factors contribute to the unsatisfactory bid results at this time. Staff also met with the City of San Jose's Library Director and their Construction Manager to review their experience in similar-sized libraries they have recently bid. It was determined that re-packaging the design (plans and specifications) and re- advertising, using the conventional lump sum general contractor procurement, and delaying the bidding until mid-November, would result in more competitive and favorable bids. Staff also determined there should be no reduction in scope, due to the substantial delay in re-designing and getting OLC's re-approval will cause. Therefore, staff recommends rejecting all bids, and re-advertising the project using the conventional bidding method of soliciting lump sum bids from general contractors. Modifications will be made to the specifications to clarify the use of lighting, flooring, and other systems that will increase competition.