ACTION REQUESTED:
Title
Communication from City Manager and Director of Public Works with a Request to Accept the Value Engineered Proposal from OTTO BAUM COMPANY, INC., in the Amount of $269,983.00, and Award a CONTRACT for the POPLETT HOLLOW ROAD CULVERT REPLACEMENT PROJECT. [District 5]
Body
BACKGROUND:
After the heavy storms and flash flooding that occurred in April and June, 2013, one very significant repair issue discovered was the failing culvert and headwalls on Poplett Hollow Road. This 5' diameter culvert is in the regulatory floodplain. The culvert pipe is in poor condition and is under the only access road to several houses. The culvert needs to be replaced before it fails and causes the road to be closed and residential access to be blocked.
Some of the repairs are eligible for FEMA funding (estimated $29,800); however, the repairs must be completed within 18 months of the FEMA declaration (late fall for this project) in order to meet FEMA's funding requirements. This creates a shortened construction schedule. The lead time for the box culverts' fabrication is 6 to 8 weeks. Immediately following Council's award of the contract, the ordering process for these structures will begin.
On June 10, 2014 the bids were opened for the Poplett Hollow project. The engineer's estimate was $269,560. One (1) bid was received:
Contractor
Bid Amount
Otto Baum Company, Inc.
$327,883.00
Since there was only one bid, it was greater than 20% of the engineer's estimate, and the construction schedule is short, Public Works asked that the Contractor look at Value Engineering the project to lower the project cost.
Value Engineering is letting a contractor look at the project to determine if there is a more cost effective way that this particular contractor can build the project. Different contractors could have different value engineering proposals. For most projects, value engineering happens after the award of the contract. For this project, w...
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