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| DATE:
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7/7/2015 7:00:00 PM |
| SUBJECT: |
| Council Consideration of a Bid Award for the Gillette Madison Pipeline Phase III Rehabilitation Project to WBI Energy Corrosion Services in the Amount of $547,490.00. |
| BACKGROUND: |
The purpose of the "Phase III" Pipeline Rehabilitation Project is to install a cathodic protection system (CP System) on the existing 30-inch Madison Pipeline that was made electrically continuous as part of previous phases of this project. The CP system will be a series of deep-ground anodes with rectifiers installed at 5 to 6 mile intervals along the length of the entire 42-mile pipeline. The new CP system is designed to provide additional cathodic protection for the new 42-inch metallic pipeline currently being installed, as well as the existing 30-year old pipeline facility.
This project was advertised for bid on May 8, 15, 22, and 29. A pre-bid meeting was held on May 21 at the City West Breakroom. The City of Gillette Purchasing Division opened bids on June 3, at 1:00 P.M., at the City Warehouse. Below is a summary of the bids received:
Bidder | Bid Price | BGL Asset Services, LLC | $ 325,782.00 | WBI Energy Corrosion Services | $ 547,490.00 | QualCorr Engineering Corporation | $ 794,954.00 | TYVO, LLC | $ 669,200.00 |
DOWL provided bidding phase services for this project, which included a review of the bids. From this review, the following observations were made based on 1.03.B.b&c of Section 13100, evidence of similar experience and listing of 3 similar projects:
• They state "BGL has installed many deep well groundbeds for many different Gas/Oil transmission operating companies." (not for this type of project)
• They did not provide a list of similar projects from the last 5 years.
• They also say "BGL feels that the request for references breeches certain aspects of what should be shared, and BGL must opt out of providing some of the information requested for these references, we apologize for this deviation."
• They then list 4 projects in Indiana, Illinois and Michigan. No projects within 200 miles were provided as was requested.
• Their deep anode ground beds are only ~200 feet deep, not the 320-foot depth designed for this project.
• They also listed LIDA mixed metal oxide type anode for three of these projects and a conductive cement type backfill for the fourth project, which is also different than the type of anodes and backfill required for our project.
• The name and resume of the proposed superintendent was not provided.
• The name and experience of the driller was not provided.
• They didn't provide information on schedule issues, cost overruns or claims on their past projects as requested.
• They didn't provide the names of their equipment suppliers.
In accordance with 1.04 of Section 13100 and Article 19 of Section 00200 of the Contract Documents, City staff is in agreement with DOWL's recommendation to reject the BGL Asset Services, LLC bid, based on qualifications provided.
The second low bid from WBI Energy Corrosion Services was then reviewed by DOWL. It was determined that their bid meets the requirements specified in the Contract Documents and that they are qualified to do the work. City staff is in agreement with DOWL's recommendation to award the project to the second low bidder, WBI Energy Corrosion Services. Also attached, is the WWDC concurrence for the proposed motion to award this project to WBI Energy Corrosion Services. |
| ACTUAL COST VS. BUDGET: |
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The budget for this project is $750,000.00, which includes engineering, land acquisition, and construction phase services. The construction estimate in this budget is $525,000.00. The Engineer's estimate for construction at the time of bidding was $693,000.00.
Sixty-seven percent (67%) of all eligible costs associated with this project are eligible for reimbursement from the WWDC through grant funding we have with them.
The remaining 33% will be funded through the City's 1% Sales Tax Revenue.
Expenditures will be charged to Budget Account No. 201-10-05-419-70-47411,
Project No. 06EN40. |
| SUGGESTED MOTION: |
| I Move to Approve a Bid Award for the Gillette Madison Pipeline Phase III Rehabilitation Project to WBI Energy Corrosion Services in the Amount of $547,490.00. |
| STAFF REFERENCE: |
| Kendall Glover, Utilities Director |
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