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TO: Eric Charest Natural Resources Administrator, Indian River County, FROM: Nicole S. Sharp, P.E. Coastal Restoration & Modeling Program Manager, APTIM DATE: September 15, 2020 RE: Sector 3 Beach and. Dune Restoration Project The following summarizes the bid results for the Sector 3 Beach and Dune Restoration Project and probable causes for unanticipated bid prices. Apparent Low Bidder: The low bidder, Ahtna Marine & Construction Company, LLC, has marine experience with cutterhead dredging projects within the state of Florida through its recent acquisition of Cavache, Inc.; however, the company bid as truck haul and does not have direct experience with truck haul projects of any magnitude and could not provide a reference for large earthmoving/hauling projects. Also, based upon communications with the company and as a result of their internal after -the -fact review of their bid package, Ahtna's bid for $17.1 M contained an error which increased the total cost for placement of sand by $13M. Due to this material error within Ahtna's bid package, the company has withdrawn their bid for the County's consideration. The second lowest bidder, Great Lakes Dredge & Dock (GLDD), LLC, does meet the technical qualifications of the project; however, their bid amount totaled $29M for the project. GLDD is a dredge contractor that has completed several recent and similar projects, and based upon their bid submittal, is capable of constructing the project within the requirements of the specifications. Bid Results: Four potential contractors submitted bid packages, and the bid results for the Sector 3 Beach and Dune Restoration Project ranged from $17.1 M (Ahtna) to $42.4M (CERES), which exceeded the County's cost estimate for the project. After further review, several factors may have attributed to higher unit prices for the cost of sand for the project. These include a highly competitive market, availability of sand suppliers, environmental restrictions imposed by the resource agencies, bid schedule, and status of U.S. Army Corps of Engineers (USACE) permit. Currently, the USACE and other governmental entities have multiple post -storm recovery projects out to bid or pending bid to repair losses from hurricanes which have impacted the state since 2017. Two large truck haul projects within Broward County (approximately 1.5M cubic yards) and Miami Dade County (1 M cubic yards) are expected to be bid for construction in 2020/2021. Additionally, there are active dredging projects on the West Coast of Florida in addition to a post -storm recovery project currently out to bid in the Florida Panhandle. These projects have the ability to limit resources (trucks, sand, and dredges) available to the County within their rigid construction window due to sea turtle nesting season and could have attributed to lack of bid or higher costs. 232