HomeMy WebLinkAbout2002-05-12 City CouncilTO:
City Pal Alto
a ager s Report
FROM:CITY MANAGER DEPARTMENT: PUBLIC WORKS
DATE:
SUB3ECT:
MAY 12, 2002 CMR:272:03
REJECTION OF BIDS FOR THE OPERATIONS BUILDING HVAC
UPGRADE PROJECT AT THE WATER QUALITY CONTROL
PLANT (WASTEWATER TREATMENT CAPITAL
IMPROVEMENT PROGRAM PROJECT #8021)
RECOMMENDATION
Staff recommends that Council reject all bids for the Operations Building HVAC Up~ade
project at the Regional Water Quality Control Plant (RWQCP).
BACKGROUND
The Operations Building HVAC Upgrade project was prepared to up~ade the HVAC system
in the Operations Building at the RWQCP. Planning and design documents addressed the
existing system problems, which originated from the age of the system and the changes in
the building’s uses. Once primarily used for the operations function, the building now
houses both an active laboratory and an upgaded operations center. The high level of
laboratory exhaust and computer heat has overburdened the original design.
DISCUSSION
A notice inviting formal bids for the Operations Building HVAC Upgade project was
sent on March 17, 2003 to eight contractors. The bidding period was thirty-six days. A
pre-bid meeting was held on March 27, 2003; five bidders attended the meeting. Bids
were received from three qualified contractors on April 22, 2003, as listed on the attached
bid summary (Attachment A). Bids ranged from a high of $1,522,862 to a low bid of
$ !,017,700. Contractors not responding indicated that they did not submit a bid because
they were too busy. Staff has reviewed all bids submitted and recommends that all bids
be rejected. The low bid is 91.5 percent above the engineer’s estimate of $534,000. An
inquiry into the project costs was held with the two lowest bidders and the desig~
engineer on Monday, April 28, 2003. As a result of that meeting, staff has concluded that
the engineer’s estimate was low because of 1) an under-estimate for controls,
instrumentation, and electrical work, 2) pricing information provided by HVAC suppliers
that was much lower than the pricing received by bidders, 3) an under-estimate of the
HVAC ductwork, and 4) project was over-designed with too much sophistication of
controls. Staff will evaluate whether redesign efforts or other approaches to addressing
CMR:272:03 Page 1 of 2
the building’s HVAC problems are warranted. If redesign efforts allow for a viable
project within budget, the project will be rebid.
ATTACHMENTS
Attachment A: Bid Summary
PREPARED BY:
DEPARTMENT HEAD:
James Allen, Project Engineer, RWQCP
William D. Miks, Manager RWQCP
GLENN S. ROBERTS
Director of Public Works
CITY MANAGER APPROVAL
Assistant City Manager
CMR:272:03 Page 2 of 2
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