| | | | | | | |  | AGENDA ITEM REQUEST |
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| Originating Department: Purchasing |
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| Item Number: 4J | Meeting Date: 3/26/2019 |
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| City Reference Number (C#): C19062 |
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| Item Description:
A Resolution of the City of Sunrise, Florida, to award bid no. 18-01-10-CM for the Sunrise Lakes Phase 1 Passive Park Project to Bejar Construction, Inc.; and providing an effective date. City Manager Richard Salamon. Timothy Welch, Utilities Director. |
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| Funding:
325.66.75.572.506510 - Construction
Project 006453 - Sunrise Lakes Phase 1 Park |
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| Background:
The City of Sunrise requires a qualified contractor to provide construction services for a new passive park, on land purchased by Broward County and given to the City for the purpose of developing a passive park. This park project located at Sunrise Lakes Boulevard and Sunrise Lakes Drive will have a walking trail, trellis structure with seating, raised overlook with railing, perimeter fencing, new landscaping and irrigation, renovated parking area, and LED lighting to enhance the perimeter walkway.
This project is funded in part by a grant from the Broward County Challenge Grant Program as part of the 2000 Broward County Safe Parks and Land Preservation Bond Program. This cost-reimbursable grant allows the City to apply for partial cost reimbursement of up to $500,000 from Broward County.
Bid no. 18-01-10-CM was advertised and the City received five (5) bids for this project. The lowest responsive and responsible bidder, Bejar Construction, Inc. (BCI), submitted a bid that is approximately $13,400 or 2% less than the next lowest bidder. BCI’s bid is approximately 42% above the Design Consultant’s opinion of probable construction cost (OPCC). After evaluation of the bids, it appears that the construction market has risen significantly over the past year within certain sectors of construction trades and material suppliers. These increases in the construction market were not adequately anticipated and accounted for in the consultant’s OPCC.
Staff has evaluated the following options; 1) rebidding with current scope, 2) rebidding with a reduction in scope, 3) constructing the project using City forces, and 4) awarding the project to the lowest bidder with the current scope.
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Option 1) Since BCI’s bid is approximately 2% less than the next lowest bidder, it is unlikely that rebidding the project without significantly reducing the scope of the project will result in any bid savings.
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Option 2) In order to obtain bids within the original project’s OPCC, a reduced scope valued at over $180,000 would be required. For example, elimination of a majority of the proposed site lighting elements, reduction of the amount of proposed landscaping material, changing the proposed park fencing from decorative to chain link, and the direct purchase of the site amenities would be necessary to provide the savings necessary to meet the OPCC. A reduction of scope in this magnitude would not meet the overall design intent of the project.
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Option 3) Upon review of the scope of work for the project, it was determined that City forces could feasibly complete approximately 20% of the work, while still maintaining their current level of service for core work activities. The remaining portions of the project would need to be sub-contracted out and require a more involved City representative acting as a site superintendent. Although City forces are capable of doing a small portion of the project, it would be expected that the portions of sub-contracted work would come in at a higher rate than bid on by BCI and the overall delivery of the project to completion would increase by 50%.
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Option 4) Based upon the evaluation of the above options, staff is recommending awarding the project to BCI with the current scope.
The Utilities Department and Purchasing Office staff have reviewed the responses and recommend award to the lowest responsive and responsible bidder, Bejar Construction, Inc. All references were favorable for Bejar Construction, Inc.'s performance on other projects of a similar type and scale. It should be noted that recently Bejar Construction, Inc. successfully completed the Nob Hill Hall Renovations project. |
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| Department Head Recommendation: Approval |
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| Person With Additional Information: | | | Name: Cheryl McCalla, CPPB, Procurement Specialist | Phone: 954-572-2204 |
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| Department Head Name and Title: Timothy Welch, P.E., Utilities Director
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| City Manager: Authorized for agenda placement |
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