Consent 1.A.2.
Regular City Council Meeting
- Meeting Date:
- 06/27/2016
- TITLE
- Bid Award: W.O. 16-17; 2016 Miscellaneous Locations Valley Gutter Construction
- PRESENTED BY:
- David Mumford
- Department:
- Public Works
Presentation:
PROBLEM/ISSUE STATEMENT
W.O. 16-17; 2016 Miscellaneous Locations Valley Gutter Construction project is to install and reconstruct valley gutters at existing stormwater trouble spots. The project was advertised on May 12th and 19th in the Billings Times and on the City's Website. Bids were opened on May 24, 2016 and the City received three bids. Action on this contract award was delayed at the June 13, 2016 Council meeting.
A public agency in Montana must 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.
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 (EHC, 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 (J&J Concrete, Inc). In this case, EHC, LLC was only 4.4% ($4,335.50) lower than J&J Concrete, Inc. Therefore, the City must award this construction to the Montana resident low bidder, J&J Concrete, Inc.
A public agency in Montana must 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.
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 (EHC, 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 (J&J Concrete, Inc). In this case, EHC, LLC was only 4.4% ($4,335.50) lower than J&J Concrete, Inc. Therefore, the City must award this construction to the Montana resident low bidder, J&J Concrete, Inc.
ALTERNATIVES ANALYZED
City Council may:
- Approve the construction contract with J&J Concrete, Inc. in the amount of $98,695; 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 can be minimized by completing this project.
FINANCIAL IMPACT
The following bids were received and evaluated:
Funding for this project will be from Storm Drain Funds budgeted in FY16.
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RECOMMENDATION
Staff recommends that Council approve a contract with J&J Concrete, Inc. for W.O. 16-17, 2016 Misc. Locations Valley Gutter Construction in the amount of $98,695.