Staff recommends the City Council reject all bids for W.O. 20-11, Lloyd Mangrum and Lake Hills Lift Station Rehabilitation.

W.O. 20-11, Lloyd Mangrum & Lake Hills Lift Station Rehabilitation, is intended to rehabilitate the pumps, wetwell, and controls at the Lloyd Mangrum sanitary sewer lift station and the controls, electrical, and wetwell at the Lake Hills sanitary sewer lift station. Lake Hills also includes relocating the pumps from the drywell to the wetwell and the valves and meters to a new vault. The bid had two schedules, schedule 1 for Lloyd Mangrum and schedule 2 for Lake Hills. Schedule 1 had one alternative. The project was advertised May 15, 22, 29, and June 5, 2020 in the Yellowstone County News and on the City's website. Bids were opened June 9, 2020, and one bid was received. Western Municipal Construction, Inc. submitted the lowest responsible bid.  The bid was significantly higher than our estimate or budget so staff is recommending that council reject the bids.  Staff will work to determine why the bid was high and whether the project can be re-bid after changes to the design or contract requirements.
 

City Council may:

• Reject all bids for W.O. 20-11, Lloyd Mangrum & Lake Hills Lift Station Rehabilitation. There is no viable alternative.

Contractor	Schedule 1	Schedule 1 Alternative	Schedule 2	Total
Western Municipal Construction Inc.	$342,590.00	$370,750.00	$614,130.00	$956,720.00

The project was budgeted in FY20 using wastewater funds. The amount budgeted was $650,000.00.  Staff is researching why the bid was higher than the estimate. Some possible reasons include the non-competitive bid, the current market of contractor workloads, or design details or construction sequencing that resulted in higher costs.  The project will be evaluated to determine how to proceed to get the work done within the approved budget.