AgdaPkt 2004-07-26 - Laserfiche WebLink

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��i��-4 2.0 Background The SBSA Effluent Outfall Repair/Replacement Project requires approximately 600,000 pounds (300 tons) of new steel sheet piling. This material was recently procured by SBSA (May, 2004) in advance of the bidding process for the construction work related to this project. It will be made available to the successful bidder for the project. It is anticipated that this cofferdam will be constructed in the fall of 2004, and very little of this sheet piling will be salvaged. The Redwood City Recycled Water Storage Tank Project requires approximately 1,500,000 pounds (750 tons) of new steel sheet piling of the same section capability as the SBSA Effluent Outfall Project, which are AZ 18 steel sections. At the present stage of design, the sheets are estimated to be 60 feet in length (70%), 75 feet in length (20%), and the balance are 25 feet in length. In addition to the above, and due to the complicated nature of the cofferdam design, an additional 900,000 pounds (450 tons) of W36, W24 and H14 bracing is required. The cost of the steel sheet piling is approximately $800,000 and the steel bracing is $500,000. It is anticipated that 1,200,000 (600 tons) and 800,000 (400 tons) pounds respectively, of the steel can be salvaged. 3.0 Reasons for the Procurement There are three factors that prompted the prepurchase decision for the SBSA Effluent Outfall Project. 1. Current Steel Market trends 2. Lead time for delivery 3. Design considerations All of the above conditions also affect the City's Recycled Water Storage Project. 3.1 Current Steel Market Trends In the past six (6) months or more, steel prices in the United States have increased 15% - 50%, depending on the steel product. This has occurred due to global conditions causing a shortage of all types of steel materials. (This is also being felt with cement, plywood and lumber as well.) Steel sheet piling was quoted at $0.42 per pound in January, and in May 2004 the Purchase Order was issued for $0.46. SBSA experienced a 10.5% increase during this four-month period. Consequently, a major reason for the procurement was to eliminate the impact of future cost increases to the project budget. Although, the steel market has seen a very recent leveling off, it is not expected to fully level off until the fourth quarter of 2004, at the earliest, with no guarantees that prices will not continue to climb. Page 2 of 4