DATE: February 25, 2016
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Paul Holzen, Director of Engineering
William Banks, Staff Engineer
SUBJECT:
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*Consideration of Award of the Construction Contract (COF Contract No. 2015-0002) for the Hillsboro Road Improvements Project Phase 2, Independence Square to Mack Hatcher Parkway, (TDOT PIN 108409.00), to Eutaw Construction Company, Inc. in the Amount of $11,995,005.13 (03-08-16 WS)
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Purpose
The purpose of this memorandum is to provide information to the Franklin Board of Mayor and Aldermen (BOMA) concerning the award of the construction contract (COF Contract No. 2015-0002) for the Hillsboro Road Improvements Project Phase 2, Independence Square to Mack Hatcher Parkway, (TDOT PIN 108409.00), to Eutaw Construction Company, Inc. in the Amount of $11,995.005.13.
Background
The bid opening for the Hillsboro Road Improvements Project Phase 2 was held on Friday, January 22, 2016. There were 3 bidders, with Civil Constructors, LLC being the apparent low bidder, as shown below:
$11,715,322.00 - Civil Constructors, LLC
$11,995,005.13 - Eutaw Construction Company, Inc.
$16,201,292.65 - Sessions Paving Co.
Because there are Federal and State funds attached to the project, Tennessee Department of Transportation (TDOT) Local Programs had to concur with the City’s bid recommendation before the City could award the contract. After a full review by TDOT staff, the low bidder (Civil Constructors, LLC) was deemed non-responsive, as there were some errors in the submitted contract forms. Since TDOT would not concur, they stated the City could instead award the contract to the 2nd lowest bidder (Eutaw Construction Company, Inc.), or re-bid the project.
City staff then requested another review by TDOT for concurrence with the 2nd lowest bidder, Eutaw Construction Company, Inc., to verify the contractor submitted a responsive bid. TDOT concurred, stating that Eutaw Construction Company, Inc. is the lowest responsive bidder for the project. Therefore, the City is formally authorized by TDOT to award the construction contract to Eutaw Construction Company, Inc.
Financial Impact
There are 2 options to proceed with this project, while still maintaining Federal and State funds:
1) Award the construction contract (COF Contract No. 2015-0002) to Eutaw Construction Company, Inc. at a total cost of $11,995,005.13. This cost is almost $279,000 more than the non-responsive low bid. However, Eutaw’s bid amount is still well below the engineer’s estimate of $13,404,260.60.
2) Rebid the project. There is a possibility that the City could receive better bid prices if re-bid, but that is not guaranteed. The rebid would delay the start of the project by at least three months.
This project is funded for construction by the following sources:
• Federal/State: TDOT Local Programs Agency Agreement (TDOT PIN 108409.00, COF Contract No. 2011-0028) allocates $625,000.00 in Federal Enhancement funds (80% Federal / 20% Local Match) and $1,250,000.00 in State funds (100% State / No Local Match) towards the project. The City can request a maximum reimbursement from TDOT of $1,750,000.00. The City will be responsible for all remaining costs.
• City: As an established and planned project within the 2014-2018 CIP, up to $15,000,000 will be funded through the FY 2017 General Obligation Bond Issue and all expenses will be charged against the Capital Projects Fund. This project has been built into the existing debt capacity model and was anticipated to be funded in FY 2017HERE
Recommendation
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Staff’s recommendation is to award the construction contract, COF Contract No. 2015-0002, to Eutaw Construction Company, Inc. based on the following reasons:
1) Civil Constructors’ bid is considered “non-responsive” by TDOT.
2) Eutaw Construction Company’s bid was deemed responsive and awardable by TDOT.
3) Eutaw Construction Company’s bid is below the engineer’s estimate.
4) Past City practice is to award the construction contract to the lowest responsive bidder, when the bid does not exceed the engineer’s estimate.