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Item 1.A.6.
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| City Council Regular | |
| Date: | 03/28/2022 |
| Title: | WO 22-33 Lead Service Replacements, Bid Award |
| Presented by: | Debi Meling |
| Department: | Public Works |
| Presentation: | No |
| Legal Review | Not Applicable |
RECOMMENDATION
Staff recommends the City Council reject the only bid received for WO 22-33, Lead Service Replacements.
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
Prior to beginning the Lead Service Replacement program in 2019, the City of Billings had approximately 1,100 lead services in operation. There are approximately 299 known lead services remaining in operation. The City's goal is to remove the lead services (from the water main to curb valve) within the City of Billings by the Fall of 2024 prior to the implementation of the EPA's new Lead and Copper Rule. Staff anticipates achieving the City's goal even with the recommendation to reject the bid for WO 22-33: Lead Service Replacements.
Staff is recommending that the bid for WO 22-33: Lead Service Replacements be rejected as only one (1) bid was received, which came in at 198% of the historic average price per replaced lead service. Staff believes rebidding the project when more contractors are available to perform the work will result in receiving additional bids at a cost closer to the historic average. Furthermore, Staff will evaluate options to complete a portion of the lead service replacement work by the Public Works Department this construction season and to bid a project during the Fall of 2022 that allows more flexible construction timing to reduce bid pricing.
The project was advertised on February 4, 11, and 18, 2022 in the Yellowstone County News and on the City's website. Bids were opened February 22, 2022. One (1) bid was received. Western Municipal Construction, LLC submitted the lowest responsible total bid.
Staff is recommending that the bid for WO 22-33: Lead Service Replacements be rejected as only one (1) bid was received, which came in at 198% of the historic average price per replaced lead service. Staff believes rebidding the project when more contractors are available to perform the work will result in receiving additional bids at a cost closer to the historic average. Furthermore, Staff will evaluate options to complete a portion of the lead service replacement work by the Public Works Department this construction season and to bid a project during the Fall of 2022 that allows more flexible construction timing to reduce bid pricing.
The project was advertised on February 4, 11, and 18, 2022 in the Yellowstone County News and on the City's website. Bids were opened February 22, 2022. One (1) bid was received. Western Municipal Construction, LLC submitted the lowest responsible total bid.
ALTERNATIVES
City Council may:
- Award a portion of WO 22-33: Lead Service Replacements to Western Municipal Construction, as the FY 2022 budget allows, which would include Schedule #1-Base Bid, Schedule #3-Additive, and Schedule #4-Additive totaling $671,640.00. This alternative is not recommended as the cost is significantly above the cost that the work can likely be done for at a later time and it will reduce the number of services that can be replaced with the budget.
- Not award a contract and reject the bid. The City's goal of replacing lead services within the City (from main to curb valve) by fall of 2024 remains achievable.
FISCAL EFFECTS
The following bid was received and evaluated:
The project was budgeted in FY 22 using water funds. The bid prices were significantly higher due to the unfavorable bidding environment.
| Contractor | Schedule 1-Base Bid | Schedule 2-Additive | Schedule 3-Additive | Schedule 4-Additive | Total Bid |
| Western Municipal Construction, LLC | $480,160.00 | $142,020.00 | $96,500.00 | $94,980.00 | $813,660.00 |
The project was budgeted in FY 22 using water funds. The bid prices were significantly higher due to the unfavorable bidding environment.