Report Prepared by: Ian Sather, E.I.T Assistant Engineer, Engineering Department
Title
SUBJECT: Approval to Reject All Bids Received for the Re-Bid of Project No. CP220077 Merced Regional Fire Training Facility
REPORT IN BRIEF
Considers rejecting all bids received to construct the Merced Regional Fire Training Facility due to insufficient funding.
RECOMMENDATION
City Council - Adopt a motion rejecting all bids received for Project CP220077 - Merced Regional Fire Training Facility and direct staff to re-elevate the scope, funding and re-bid the 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 City 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 2026/2027 Adopted Budget.
DISCUSSION
Background
The Merced Regional Fire Training Facility (City Project No. CP220077) is a capital improvement project planned for construction in the Airport Industrial Park in Merced, California. In 2023, the Merced Fire Department completed a strategic planning process. Goal 3 of the Strategic Plan is to “provide an effective and efficient response to all emergencies.” One of the objectives established under this goal is to secure the funding and resources necessary for the Hawk Regional Training Center to advance MFD’s mission while supporting the career and technical education programs of Merced College and the Merced Union High School District.
MFD continues to experience record-setting call volumes year after year, with no projected slowdown in service demand. The Department has outgrown its current training facilities at 99 E. 16th Street, Fire Station 51. As MFD continues to expand through the addition of fire stations, apparatus, and personnel, the existing space will no longer be sufficient to provide the training necessary to maintain operational readiness and effectively serve the community.
On June 5, 2023, the City Council authorized the acceptance and appropriation of $3,000,000 in state funding secured by Senator Anna M. Caballero for the Merced Regional Fire Training Center, Phase 1.
Phase 1 of the project scope includes site preparation, water and sewer infrastructure, storm drainage infrastructure, a storm drainage pump station, restrooms to include decontamination areas for both personnel and equipment, concrete and paving work, site fencing, site lighting, electrical infrastructure, and communication conduit installation. Phase 1 also includes the relocation of 3 portable classrooms previously procured by MFD.
On July 7, 2026, the City opened bids for the project and received three responses from the following contractors:
|
Bidder |
Location |
Total Bid Amount |
|
Avison Construction, Inc. |
Madera, CA |
$3,656,183.00 |
|
F & H Construction |
Woodbridge, CA |
$3,909,000.00 |
|
American Paving Co. |
Fresno, CA |
$4,710,194.00 |
The total project budget after adjusting for contingency, engineering, testing & inspections, was calculated to be:
|
Construction |
$ 3,656,183.00 |
|
Contingency (10%) |
$ 365,618.30 |
|
Engineering, Testing & Inspection (5%) |
$ 182,809.15 |
|
TOTAL: |
$ 4,204,610.45 |
The lowest bid, submitted by Avison Construction, Inc. at $3,656,183.00, exceeds the project's available funding of $2,890,994, creating an estimated shortfall of $1,313,616.
Staff recommends all bids be rejected to allow staff to re-evaluate the project scope, explore different funding opportunities and possible partnerships with our local agencies.
IMPACT ON CITY RESOURCES
Project CP220077 was established as a Capital Improvement Project with Fund 2003-Measure Y Fire 20% and State Funding from Senator Anna Cabello.
ATTACHMENTS
1. Bid Results
2. Rejection Letter