DISCUSSION
Staff again solicited bids for this project pursuant to Municipal Code Section 2.50.100 on July 1, 2021. Bids were opened by the City Clerk's Office on July 28, 2021 at 11:00 a.m. One bid was received in the amount of $3,740,000. This amount exceeds the engineer’s estimate of $2,400,000 by $1,340,000 and consequently exceeds the budget for the project.
At the first bid opening on June 30, 2021, eight contractors showed interest in the project by purchasing plans and specifications, but no bids were received. At the most recent bid opening for the project, two additional contractors purchased plans and specs yet only one bid was received. It is generally understood that a lack of competitive bids increases a project’s price.
In response to the lack of bidders, staff initiated contact with the rest of the plan holders who decided not to bid on the job. Some of them responded that it is due to their current workload, others said because they do not want to implement the Community Workforce Agreement (CWA), and some said it was a combination of both. With regard to the CWA, some contractors said they have difficulty integrating CWA workers into their underground construction operation due to the workers’ unfamiliarity with the contractor’s work team and operation. Staff will plan to follow-up with contractors to see how we may be able to help mitigate their concerns before the project is re-advertised.
Staff recommends the rejection of the bid received and the re-advertisement of this project at a later date for the chance to receive competitive bids.