CIP PROJECT 98-621 PHASE II MUNICIPAL PIER ARCHITECTURAL UPGRADES – AWARD CONSTRUCTION CONTRACT

 

Recommendation :

It is recommended that the City Council:

• Award the Construction Contract to Los Angeles Engineering of Temple City, California, based upon their lowest responsible bid of $1,168,771.00; and

• Authorize the appropriation of $167,008 from the 121 Prop A fund; and

• Authorize the Mayor to execute and the City Clerk to attest the construction contract subject to approval by the City Attorney; and

• Authorize the Director of Public Works to make minor changes as necessary within the contingency of $116,877.

 

Background :

On November 9, 1999 the City Council authorized advertising for bids. The project was advertised in the Easy Reader, Green Sheet (Construction News Reporter), Daily Construction Service and Bid America. A total of twenty-two bid packages were picked up. The City Clerk received nine bids by the closing date of December 16, 1999. The bids were publicly opened and read aloud. The bid results are as follows:

 

BIDDER	CITY	TOTAL BID AMOUNT
1. PKB Construction	Arcadia, CA	1,157,737.75
2. Los Angeles Engineering	Temple City, CA	1,168,771.00
3. Pima Corp.	Santa Monica, CA	1,177,624.45
4. Ace Restoration & Water Proofing	Fullerton, CA	1,180,138.11
5. John S. Meek Co.	Wilmington, CA	1,198,614.40
6. Metro Builders & Engineering Group	Newport Beach, CA	1,274,329.00
7. Zondiros Corp.	Hermosa Beach, CA	1,286,628.00
8. American Marine Corp.	Los Angeles, CA	1,313,282.67
9. American Restoration & Construction	Los Angeles, CA	1,357,267.00

 

Analysis:

The price of the apparent low bidder, PKB Construction, is 12% below the engineer’s estimate of $1,314,867.00.

A review of the bid documents revealed that PKB Construction is non-responsive for the following reasons:

PKB construction proposed to sub-contract out 69% of the work. The contract documents call for the contractor to perform, with its own organization, work amounting to at least 50% of the contract price.

Staff is of the opinion that the above is not an informality or an irregularity that may be waived. Therefore, staff is recommending that Los Angeles Engineering is the lowest responsible bidder. Los Angeles Engineering’s bid price is 11% lower than the engineer’s estimate. Staff has reviewed the low bidder documents and has found them to be in order and reference calls have been supportive of the contractors work habits.

 

Fiscal Impact :

Funds from various sources * in the amount of $1,293,603 remain available for this project, CIP 98-621. Here is what is needed to complete the project:

 

Construction Cost $ 1,168.771.00

Construction Contingency Cost 116,877.00

Construction Testing Cost 65,400.00

Construction Management & Inspection 82,500.00

 

Total $ 1,433,548.00

Funds Available (1,266,540.00)

Funds Needed $ 167,008.00

Therefore an additional appropriation of $167,008 from fund 121 Prop A is required using funds remaining from other projects.

Alternatives:

• Approve Staff’s recommendation.
• Reject all bids. Send back to staff for downscale of project.
• Take no action.

Agendas / Minutes Menu     Agenda