Consent 1.A.4.
Regular City Council Meeting
- Meeting Date:
- 04/25/2016
- TITLE
- Bid Award: W.O. 16-01 Schedule 1 - Will James Area Water Main Replacements Phase II
- PRESENTED BY:
- David Mumford
- Department:
- Public Works
Presentation:
PROBLEM/ISSUE STATEMENT
W.O. 16-01, Will James Area Water Main Replacement Phase II, will replace 3,160 feet of 8-inch and 2,870 feet of 16-inch water main in Broadwater, Custer, and Terry Avenues from 29th Street West to 31st Street West.
The project was advertised on March 24th, 31st, and April 7th in the Billings Times and on the City's Website. Bids were opened on April 12, 2016, and six bids were received.
A public agency in Montana shall award a public contract for construction, repair, and public works to the lowest responsible bidder without regard for residency. However, a Montana resident bidder must be allowed a preference on a contract against the bid of a nonresident bidder from any state or country that enforces a preference for resident bidders. The preference given to Montana resident bidders must be equal to the preference given in the other state or country. See §18-1-102(1)(a), MCA.
The WY Supreme court has upheld its bid preference statute, §16-6-102, W.S. Wyoming’s bid preference statute provides that Wyoming resident bidders will receive preference over nonresident bidders if the nonresident bid is not more than 5% lower than the lowest resident bid. Therefore, although Wyoming’s nonresident bidder (Wilson Bros. Construction, LLC) submitted the lowest construction bid and would otherwise be awarded the project, its nonresident bid is not more than 5% lower than the lowest Montana resident bidder (Western Municipal Construction, Inc). In this case, Wilson Bros. Construction was only 0.68% lower than Western Municipal Construction, Inc. Therefore, the City must award this construction to the Montana resident bidder, Western Municipal Construction, Inc.
After considering preference to resident bidders, Western Municipal Construction, Inc. submitted the lowest responsible bid.
The project was advertised on March 24th, 31st, and April 7th in the Billings Times and on the City's Website. Bids were opened on April 12, 2016, and six bids were received.
A public agency in Montana shall award a public contract for construction, repair, and public works to the lowest responsible bidder without regard for residency. However, a Montana resident bidder must be allowed a preference on a contract against the bid of a nonresident bidder from any state or country that enforces a preference for resident bidders. The preference given to Montana resident bidders must be equal to the preference given in the other state or country. See §18-1-102(1)(a), MCA.
The WY Supreme court has upheld its bid preference statute, §16-6-102, W.S. Wyoming’s bid preference statute provides that Wyoming resident bidders will receive preference over nonresident bidders if the nonresident bid is not more than 5% lower than the lowest resident bid. Therefore, although Wyoming’s nonresident bidder (Wilson Bros. Construction, LLC) submitted the lowest construction bid and would otherwise be awarded the project, its nonresident bid is not more than 5% lower than the lowest Montana resident bidder (Western Municipal Construction, Inc). In this case, Wilson Bros. Construction was only 0.68% lower than Western Municipal Construction, Inc. Therefore, the City must award this construction to the Montana resident bidder, Western Municipal Construction, Inc.
After considering preference to resident bidders, Western Municipal Construction, Inc. submitted the lowest responsible bid.
ALTERNATIVES ANALYZED
City Council may:
- Approve the construction contract with Western Municipal Construction, Inc. in the amount of $1,196,660.00, or;
- Do not approve the construction contract. If the project is not constructed, the City's water distribution system will continue to experience ongoing maintenance problems such as the more frequently occurring main breaks in this area. Future repair costs and property damage claims can be minimized by completing this project.
FINANCIAL IMPACT
The following bids were received and evaluated:
The funding source is water revenues budgeted in FY 16.
| Contractor | Bid Amount |
| Western Municipal Construction, Inc. | $1,196,660.00 |
| Wilson Bros. Construction, LLC | $1,247,982.75 (with 5% Bid Preference) |
| Pro Pipe Corporation | $1,239,389.00 |
| COP Construction, LLC | $1,281,837.00 |
| Kinkaid Civil Construction, LLC | $1,293,380.00 |
| Williams Civil Division, Inc. | $1,435,000.00 |
The funding source is water revenues budgeted in FY 16.
| Budget | $3,750,000.00 |
| Previously Encumbered | $570,580.00 |
| This Contract | $1,196,660.00 |
| Remaining budget | $1,982,760.00 |
RECOMMENDATION
Staff recommends that Council approve a contract with Western Municipal Construction, Inc. for W.O. 16-01, Will James Area Water Main Replacement Project Phase II, in the amount of $1,196,660.00.