Report Prepared by: Paul Flores, E.I.T. Assistant Engineer, Engineering Department
Title
SUBJECT: Reject All Bids Received for Project No. CP230060 Merced Yosemite Regional Airport Terminal
REPORT IN BRIEF
Considers rejecting all bids received to construct the new airport terminal due to non-responsive bids.
RECOMMENDATION
City Council - Adopt a motion rejecting all bids received for Project No. CP230060 Merced Yosemite Regional Airport Terminal Project due to irregularities and/or non-responsive bidders and direct staff to re-bid project.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Approve, subject to conditions as specified by the City Council; or,
3. Deny the request; or,
4. Refer back to staff for reconsideration of specific items as requested by the Council.
AUTHORITY
Charter of the City of Merced, Article II, Section 200 - Powers, City of Merced and Article XI, Section 1109 - Contracts on Public Works.
Merced Municipal Code, Chapter 3.04, Article IV - Public Works Contracts.
The City Council, in its discretion, when it is in the best interests of the city to do so, may waive any informalities or minor irregularities in any bid process, may reject any or all bids, or may accept the bid that best serves the public purpose even though it may not be the lowest. The City Council may readvertise for bids or, except as otherwise provided in this chapter, proceed with the purchase of the materials, supplies, equipment or contractual services by negotiation in the open market.
CITY COUNCIL PRIORITIES
As provided for in the FY 2023/2024 Adopted Budget.
DISCUSSION
On July 6, 2023, City staff received three (3) bids for the project with the following results:
|
1 |
Thompson Builders Corp. |
$ 15,419,685.63 |
|
2 |
Bobo Construction Inc. |
$ 15,269,770.00 |
|
3 |
Diede Construction Inc. |
$ 16,937,552.00 |
On July 13, 2023, Mead and Hunt reviewed all bid packets and stated multiple irregularities and/or missing items for Bobo Construction Inc. and Diede Construction Inc. They recommended that Thompson Builders Corp. be considered for award as they were the only responsive bidder.
On July 14, 2023, City staff notified all bidders that the City would recommend awarding the construction contract to Thompson Builders Corp. with the recommendation from Mead and Hunt.
On July 18, 2023, Bobo Construction Inc. submitted a bid protest against the City’s award to Thompson Builders Corp. claiming that Thompson’s bid was non-responsive (incomplete) due to the fact they failed to list a sub-contractor.
In consultation with the City Attorney, staff has determined that the bid protest is valid.
As no responsive bids were received staff recommends rejecting all bids and re-bidding the project.
IMPACT ON CITY RESOURCES
This project was established as a Capital Improvement Project with funding from CARES Act Grant and Economic Development Opportunity Fund. Pooled cash will be necessary while grant reimbursement requests are being processed.
ATTACHMENTS
1. Bid Results
2. Mead and Hunt Letter
3. Letter to Bidders
4. Bid Protest
5. Rejection Letter