Staff recommends rejecting this bid and NOT awarding the project due to higher than anticipated budget amounts. The current budget does not cover the construction costs as bid, therefore staff would like to hold off and repackage and reallocate money to complete this project next construction season.

This project consists of installing approximately 4,700 LF of sanitary sewer lining and 1,800 LF of 8", 12", 15", 18", and 24" sanitary sewer main replacement in the following areas (see attached map):

1.  Lakeway from 4-J to Hwy-59.

2.  Emerson from Teak to Lakeway.

3.  KG Town Center North of Universal Athletics to Lakeway.

4.  Edwards from Dalbey Park to Crum Electric.

5.  Sioux from Frontage Road to Hwy-59.

The City of Gillette, Purchasing Division, opened bids for this project at the City Warehouse on Wednesday, February 26, 2020 at 2:30 P.M.

The following table summarizes the one bid received and the Engineer's Estimate.

BID IRREGULARITIES

The bid is $2,120,638.50 higher than the available funding.  No arithmetic errors were found in the one bid.  In general, bid unit prices were higher for all parts of the work than historic prices.  The higher than normal prices were a result of lack of competition, high availability of other work in the area and location of this project (Lakeway Road).

Based on the above evaluation, HDR recommends the City of Gillette not award the project to DRM, Inc. for $5,670,638.50.

CONSTRUCTION ESTIMATE

The total construction cost for this project was estimated at $3,961,836.00.

BUDGET

The funding for this project has been allocated from the 1% Optional Sales Tax Account 201-10-05-419-70-47420 in the amount of $3,550,000.00.  If this project is awarded we would be $2,120,638.50 over budget.

CONTRACTORS REVIEW

DRM, Inc. has no apparent problems with their bid.

Bid Tabulation is attached.