Consent 1.A.1.
Regular City Council Meeting
- Meeting Date:
- 05/09/2016
- TITLE
- Bid Award: W.O. 16-01 Schedule 2B - Sanitary Sewer Main Replacement Project
- PRESENTED BY:
- David Mumford
- Department:
- Public Works
Presentation:
PROBLEM/ISSUE STATEMENT
W.O. 16-01, Schedule 2B, Sanitary Sewer Replacement Project will replace approximately 4,950 feet of 8-inch sanitary sewer main and reconnect sanitary sewer services in the alleys between Grand Avenue and Lewis Avenue from Division to 4th Street West. The existing sewer is clay tile pipe, which has many breaks and root intrusions and requires frequent maintenance to keep the system functioning. The project was advertised on April 7th, 14th, 21st in the Billings Times and on the City's Website. Bids were opened on April 26, 2016 and the City received 5 bids.
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.
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 3.8% ($41,902.60) lower than Western Municipal Construction, Inc. Therefore, the City must award this construction to the Montana resident low bidder, Western Municipal Construction, Inc.
After considering preference to resident bidders, Western Municipal Construction, Inc. submitted the lowest responsible bid.
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.
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 3.8% ($41,902.60) lower than Western Municipal Construction, Inc. Therefore, the City must award this construction to the Montana resident low 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 $1,102,651.60; or,
- Do not approve the construction contract and reject all bids. If the project is not approved, the City will continue to experience ongoing maintenance problems. Future repair costs and property damage claims can be minimized by completing this project.
FINANCIAL IMPACT
The following bids were received and evaluated:
Funding for this project will be from Wastewater Funds budgeted in FY16.
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RECOMMENDATION
Staff recommends that Council approve a contract with Western Municipal Construction, Inc. for W.O. 16-01, Schedule 2B Sanitary Sewer Replacement Project in the amount of $1,102,651.60.