03/11/2014 (2) - Laserfiche WebLink

Home Browse Search

MH MASTEILLER. & MOLER, INC. —CIVIL ENGINEERS " December 30, 2013 Mr. Vincent Burke, PE - Director Indian River County Utilities Department 180127" Street Vero Beach, Florida 32960 RE: Indian River County Central WWTF Sludge Holding Tanks Modifications Review of Bids Indian River County, Florida Our File# 1305 IRC Project# UCP 4102/Bid No 2014006 Dear Mr. Burke: Bids were received for the referenced project and opened on December 18, 2013 at 2:00 p.m. The original bid packages are included with this letter. Three (3) qualified General Contractors submitted bids, which varied from a low of Six Hundred Fifty-Four Thousand Dollars ($654,000.00) to Seven Hundred Seven Thousand Dollars ($707,000.00). The Utility Department's budget and the Engineer's Estimate is Four Hundred Thousand Dollars ($400,000.00). A copy of the bid tabulation sheet is attached. The low bidder is R. J. Sullivan Corporation of Pompano Beach, Florida. I have reviewed each of the three (3) bids and find the information in all three (3) bids to be complete and in order. The bids are substantially over the amount which has been budgeted by the Utility Department, as well as our engineering estimate amount. The budget amount established for this project was done several years ago and our office made every effort in order to develop a project scope which would fit in to that budget amount. Prior to developing the final project scope, our office along with a local contractor and Utility Department Staff spent several months conducting site visits, meetings, and discussions to develop the most cost effective project which would reliably and effectively operate to the satisfaction of the Utility Department. This extra effort was deemed necessary by all parties with the knowledge that accurately estimating the cost of demolition and rehabilitation projects of this type is more difficult as compared to new projects. However, despite these efforts the three (3) project bids were in excess of the Utilities budget amount and our estimate for constructing this project. The project breakdown of cost has been acquired from two (2) of the three (3) bidding contractors and the Utility Staff and I have met and reviewed this information. It is the opinion of the Utility Staff and our office that the three (3) bids which were received are correct and accurately reflect the project cost as shown on the plans and described in the specifications. The low bid from R. J. Sullivan reflects the fact that they are under contract with Utilities Department on several projects currently and, therefore, their mobilization amount is less. It is our recommendation that the Utility Department should award the contract to R. J. Sullivan in the event that additional funding can be obtained to construct the project. As an alternative, the project cost can be reduced by eliminating the painting portion of the project, as well as the amount for contingencies which would result in approximately $150,000.00 in savings. This would reduce the project cost to approximately $500,000.00. The elimination of these bid items would also require that the project be rebid. In summary, it appears that it is not possible to construct this project based on the utility budget of $400,000.00. It will be necessary to increase the utility budget for this project in order to either award 1655 27"'Street,Suite 2 • Vero Beach, Florida 32960 Phone: (772)567-5300 • Fax: (772) 794-1106 mastmolr@bellsouth.net 69