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500K 102 PAGE 139 The low bidder erred by including $82,007.00 in the mobilization item of their bid. The contract documents allow for a maximum mobilization of $30,000.00 for a project in this range. Staff has performed an extensive reference check on this contractor (Underground Industries, Inc.). All references checked, both supplied by the contractor and solicited outside by staff, and have been excellent as has the review of the company's financial statement. In order to award to this firm, the mobilization cost must be reduced to the allowable amount of $30,000.00. If this figure was reduced by the $52,007.00, the contract amount would be, in the staff's opinion, too low to guarantee successful construction. Staff, therefore, recommends the following: 1. Modification of the firm's bid; i.e., set original mobilization at $30,000.00. 2. Allow the contractor to bill for one-half of the remaining mobilization overage of $52,007.00 at the 50% completion point in the project and 50% upon final completion of the project. 3. Award Bid No. 7058 to Underground Industries, Inc., in the amount of $788,000.00 with the above -outlined provisions and authorize the chairman to execute same when bonds and insurance have been received. If you require any additional information or have any questions with regard to this matter, please do not hesitate to contact me at 770-5325. DATE: July 14, 1997 TO: BOARD OF COUNTY COMMISSIONERS THRU: James E. Chandler, County Administrator H. T. "Sonny' Dean, Directo General Services FROM: Fran Boynton Powell, Purchasing Manager SUBJ: Award Bid #7058/North County Reverse Osmosis Brine line Construction Utilities Department BACKGROUND INFORMATION: Bid Opening Date: Advertising Dates: Advertisement Mailed to: Replies: JULY 22,1997 June 12, 1997 May 21, 28, June 4, 1997 Thirty -Three (33) Vendors Ten (10) Vendors kIR