AgdaPkt 2019-08-26 Joint SA PFA - Laserfiche WebLink

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6.E. - Page 3 of 22 MB Construction, Inc. From San Francisco, CA 1 $1,399,000.00 On the fifth business day after the bid opening, the apparent low bidder Anderson Pacific Engineering Construction, Inc. (Anderson Pacific) submitted a letter dated July 9, 2019 requesting Bid Relief from the City pursuant to California Public Contract Code Sections 5103. After a careful review of all related facts and California Public Contract Code Sections 5100-5110 in particular, staff has determined that Anderson Pacific had in fact claimed a mistake under Public Contract Code Section 5103 in the original bid for the Project and satisfied the elements of that statute. Specifically, Anderson Pacific claimed to have made an error in the bid preparation by not including additional costs for Bid Item #1. Anderson Pacific stated that the mistake was a clerical error. After reviewing the bid, staff determined that there is no evidence that Anderson Pacific made an error in judgment or was careless in inspecting the work site or reading the Project Plans and Specifications. Staff evaluated all four bids. Anderson Pacific, the apparent low bidder, was disqualified for the above reasons. The second low bid of $1,283,333.00 submitted by Disney Construction, Inc. (Disney) was considered to be excessively higher than the Engineer's Probable Cost Estimate of $650,000 to $690,000. Staff determined that awarding the project to any of the bidders was unviable. Therefore, based on Section 00200 - Instructions to Bidders, Paragraph 1.14.A, which states "The City also reserves the right, in its discretion to reject all Bids; to re -bid the Project," a Notice of Intend to Reject All Bids was sent to all bidders and posted on the City's public bidding portal on July 10, 2019. Pursuant to Public Contract Code Section 5105, Anderson Pacific is prohibited from participating in future bidding on the Project. On July 29, 2019 staff responded to Anderson Pacific's Bid Relief letter to acknowledge receipt and inform Anderson Pacific that it is prohibited from participating in further bidding of the Project. After analyzing all bids, staff believes that the probable reason for these discrepancies and elevated cost is that the proposed project scope is uncommon and requires specialized skills and abilities to achieve the project objectives. A combination of other factors may also be the reason for higher prices such as limited space within the water tank site that reduces space for equipment and restricts the activities that could be performed simultaneously. Other cost factors include the potential presence of high water table and need for dewatering. Some of these uncertainties or unquantifiable costs are embedded as incidentals in the bid proposals. The restricted availability of a skilled labor force and local equipment make projects on the Peninsula more expensive. The timing of the bid opening possibly also affected the cost due to high volume of projects out to bid and under construction by other agencies and the private sector at the bid opening date. Staff recommends that the City Council approve the Bid Relief to Anderson Pacific, reject all bids, return all bid bonds, and authorize staff to revise bid documents and re -advertise this project for public bidding. If Bid Relief is granted, Anderson Pacific will be prohibited from participating in any future bidding of this Project. If authorized, staff would revise the contract documents to further clarify the scope of work and provide more precise information on the equipment, methods and site conditions. Staff would review and update City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org 50