Title
Rescinding Award of F-Float Replacement Project Due to Failure to Execute Contract Documents Timely and Awarding the Project to the Second Lowest Bidder, Quigg Bros
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Move to Rescind the August 4, 2014 Motion Awarding the Percival Landing F-Float Replacement Project to the Lowest Bidder, Neptune Marine for Failure to Execute the Contract Documents timely, and Move to Award the Project to Second Lowest Bidder, Quigg Bros., Inc.
Report
Issue:
Whether to rescind the motion awarding the Project to low bidder, Neptune Marine, rejecting Neptune Marine for failure to execute the contract documents timely and award to second low bidder, Quigg Bros., Inc., for the Percival Landing F-Float Replacement Project or rescind the motion for award and reject all bidders.
Staff Contact:
Kip Summers, Project Engineer, Parks, Arts and Recreation, 360.570.5834
Presenter(s):
None - Consent Calendar item.
Background and Analysis:
The City closed the Percival Landing F-Float in January of 2013 due to the unsafe conditions of the float. Replacement floats were designed, permits obtained and bids received for the replacement floats in December of 2013. All bids exceeded the engineer's estimate and, as a result, all bids were rejected and City Council directed staff to conduct stakeholder outreach and redesign the project to reduce the cost and still meet stakeholders input. Stakeholder feedback was instrumental in re-designing F-Float to serve more as a sewage pump-out facility than transient moorage. In addition, the E-Float and F-Float work was separated into two projects. This allowed the City to maintain the critical project schedule on F-float while design continues on E-Float.
On July 2, 2014, staff received bids for the F-Float Replacement project. Tabulation of bids received is attached. The lowest bid was approximately 40% over the engineer's estimate.
On August 4, 2014, Council awarded the project to the lowest bidder, Neptune Marine, and allocated the additional funding necessary to proceed with the project.
Although the City has given Neptune Marine more than adequate time to return the documents, Neptune has failed to do so. In fact, Neptune provided notice on September 3, 2014 that it has been unable to obtain the necessary bonds and, therefore, cannot move forward with the project. Project specification Section 007200, 1.03(C) requires that the successful bidder return the signed contract, along with an insurance certificate and necessary bonds, within 10-calendar days of award. Section 007200, 1.03(E) states that if the bidder fails or refuses to sign the contract, the Contracting Agency may then award the contract to the second lowest responsible bidder or reject all bids. The second lowest bidder, Quigg Bros., bid is just $108.80 above Neptune Marine. Quigg Bros. is available and can obtain the necessary bonding required by the City. The parties have agreed to extend the 45-calendar day requirement for bid award or rejection under Project specification Section 007200, 1.03(B).
Staff recommends rescinding the motion to award to Neptune Marine, rejecting the low bid and awarding the contract to the second lowest bidder, Quigg Bros., Inc. The City has worked with Quigg Bros. in the past and has been very pleased with their work performance.
If Council decides to award to Quigg Bros., the work is still on schedule to be completed by mid-June of 2015.
Neighborhood/Community Interests (if known):
Staff contacted key members of the boating community and they would like to see power and water services added to the Percival Landing floats. All floats have been without power and water since 2006 and F-Float was closed in January of 2013 due to safety concerns.
Options:
1. Rescind motion awarding, reject low bidder and award to second lowest bidder, Quigg Bros., Inc.
2. Rescind motion awarding and reject all bids. Direct staff to re-bid the project.
Financial Impact:
Awarding the second bid will not require additional funding authorization from Council.