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INDIAN RIVER COUNTY, FLORIDA <br />DEPARTMENT OF UTILITY SERVICES <br />N 6ti- <br />Date: October 19, 2016 <br />To: Jason E. Brown, County Administrator <br />From: Vincent Burke, P.E., Director of Utility Services <br />Prepared By: Arjuna Weragoda, P.E., Capital Projects Manager <br />Subject: West Wabasso Phase II Sewer and the East Gifford Drainage Project - CDBG and Cost <br />Share Grant: Bid No. 2017012 <br />DESCRIPTIONS AND CONDITIONS: <br />On December 1, 2015, the Indian River County Board of County Commissioners (BCC) approved the Federally - <br />Funded Sub -Grant Agreement — FY 2014 Funding Cycle for Contract Number 16DB-OK-10-40-01-N 05. This <br />agreement was in regard to both the West Wabasso Phase II sewer and the East Gifford drainage projects for <br />a total amount of $750,000.00 and the St. Johns River Water Management District FY 15/16 Cost Share grant <br />for a total amount of $343,677.05. The project was advertised August 28, 2016, and bids were opened <br />September 29, 2016. <br />ANALYSIS: <br />The Itemized Bid Schedule was broken into two separate schedules labeled A for the West Wabasso Phase II <br />sewer project and B for the East Gifford drainage project. The engineer's opinion of probable cost for the <br />projects are as follows: <br />Name <br />Schedule A -Sewer <br />Schedule B -Drainage <br />Total <br />Indian River County <br />$1,041,445.60 <br />$169,624.80 <br />$1,211,070.40 <br />Two bidders submitted bids and the results are as follows: <br />Bidder <br />Schedule A -Sewer <br />Schedule B -Drainage <br />Total <br />Blue Goose Construction <br />$2,081,776.30 <br />$176,945.40 <br />$2,258,721.70 <br />(99.89% increase) <br />(4.32% increase) <br />(86.51% increase) <br />Timothy Rose <br />$2,176,814.40 <br />$251,448.46 <br />$2,428,262.86 <br />Contracting <br />Seven (7) prospective bidders attended the mandatory pre-bid meeting that was held September 12, 2016. <br />Given that the lowest bid price is approximately $1 million over the budgeted amount and only two bids were <br />submitted, staff feels that in order to ensure the county receives competitive bids for the subject project, the <br />most appropriate action is the rejection of this bid and to re -advertise. The lack of participation and higher <br />than anticipated bids could possibly be attributed to the complexity of paper work, auditing requirements that <br />are mandated as part of the Federal grant, and the abundance of construction activity available for potential <br />bidders in the Treasure Coast area. <br />F:\Utilities\UTILITY - Engineering\Projects - Utility Construction Permits\IRC - West Wabasso Community Sewer System Phase 2 - UCP# 144 <br />4117\Admin\BCC Items\Rejection of bid 10-18-16.docx <br />