ST9301-CS041118 MEMORANDUM
FROM THE
DEPARTMENT OF ENGINEERING
To~
From:
Date:
RE:
Robert Hager, Esq., City Attorney
Ken Griffin, P.E., Director of Engineering/Public Works ~
November 18, 2004
ST 93-01 Sandy Lake Rd. (Kimble Kourt to East City Limits)
On November 16, 2004 the City received and opened bids for the construction of Sandy Lake
Road. The apparent Iow bidder on the project was Tiseo Paving in the amount of $4,838,404.20.
The second low bidder was McMahon Contracting in the amount of $4,895,011.46. While
reviewing Tiseo's apparent low bid, I noted a discrepancy in one of the pay items from the way
the specifications state that pay item should be bid. The pay item in question is Item #57,
Mobilization and Demobilization. I've attached a description of that pay item with this memo.
Item #57 states, "Note: the total amount bid for Mobilization and Demobilization shall not
exceed five percent (5%) of the total contract amount, exclusive of this pay item (adjusted
contract amount)." It is my opinion that statement is clear. However, the way that Tiseo bid the
project was to total all their bid items (gl - gl 16) and they then made sure that the total amount
for Bid Item #57 did not exceed 5% of the total contract amount.
Five percent of the total contract amount for Tiseo Paving is $241,920.21 (this is five percent of
$4,838,404.20). The description of Pay Item #57 very clearly states that the five percent should be
calculated exclusive of the amount bid for Pay Item #57. In this case, that would be a maximum
amount of $229,920.21, calculated as follows:
$4,838,404.20 - $240,000 = $4,598,404.20 x 5% = $229,920.21
In essence, their bid for Pay Item #57 is $10,079.79 higher than allowed per the description of the
pay item. My questions are as follows:
1) Is the description of Pay Item #57 clear enough that the average contractor would have
understood how to calculate this item?
2) Because Tiseo calculated it incorrectly, is their bid considered non-responsive, or is this
strictly an error in the bid that can be adjusted to $229,920.21 while still awarding the
contract to Tiseo? or
3) Should Tiseo's bid be declared non-responsive and rejected, and the low bid be awarded to
McMahon Contracting who did calculate Pay Item #57 correctly?
This bid award will go to Council on Dec. 14, so an expeditious response on this matter is
requested.
"CITY OF COPPELL ENGINEERING - EXCELLENCE BY DESIGN"
Pay Item #54 and 55 Remove Old Drainage Structure 10'x 8' Box & Wingwalls
This pay item shall consist of the removal and disposal of the existing 4-barrel 10' x 8' box
culvert and wingwalls located at Station +42+70. Pay Item #55 is subsidiary to Pay Item #54.
The removal of the box culvert will be in phases. Attention must be paid to the specifications and
conditions of nationwide permit 14. The Contractor and the Owner's representative shall
measure the existing box culvert prior to removal. The Contractor shall not stockpile removal
material on the job site, unless specifically authorized in writing by the Owner, and is responsible
for locating a suitable disposal site.
Measurement and Payment shall be made on the basis of price bid per linear foot (LF) along the
centerline and shall be total compensation for furnishing all materials, tools, equipment, labor,
and any other incidentals necessary to complete the work.
Pay Item #56 Mailbox Assemblies
This pay item shall consist of the permanent relocation of two (2) existing mailboxes in the
locations as shown in the plans. This pay item shall include any temporary relocation of mailbox
assemblies and providing portable mailbox stands as required. The Contractor shall videotape
and/or photograph each mailbox prior to starting construction. Each mailbox relocated shall
match the existing mailbox condition to the extent possible. The Contractor may need to
demolish the existing mailboxes and replace them with new mailboxes as directed by the
Owner's representative.
Measurement and Payment shall be made on the basis of price bid per each (EA) and shall be
total compensation for furnishing all materials, tools, equipment, labor, and any other incidentals
necessary to complete the work.
Pay Item #57 Mobilization & Demobilization
This pay item shall consist of mobilization and demobilization for the construction of the project.
The project shall be constructed in phases as shown in the plans. This pay item shall be inclusive
of any and all mobilizations and demobilizations associated with the project. Mobilization shall
be defined as all necessary equipment, supplies, materials and personnel on the job site ready to
begin construction. Note: The total amount bid for Mobilization & Demobilization shall not
exceed five percent (5%) of the total contract amount~ exclusive of this pay item (adiusted
contract amount).
Measurement and Payment shall be as follows: Ten percent (10%) of the amount bid shall be
paid with the first pay estimate. On all subsequent pay estimates, measurement and payment shall
be prorated on the basis of the value of the adjusted contract amount completed, plus the initial
10%. Prorated payment shall be as follows: When 1% of the adjusted contract amount has been
earned, 50% of lump sum bid for mobilization, less retainage, will be paid. When 5% of the
adjusted contract amount has been earned, 75% of the lump sum bid for mobilization, less
retainage, will be paid. When 10% of the adjusted contract amount has been earned, 90% of the
lump sum bid for mobilization, less retainage, will be paid. Payment for the remaining 10% of
the lump sum bid for mobilization, less retainage, will be paid on the next monthly estimate
following the 90% payment. Payment shall be total compensation for furnishing all labor,
materials, tools, and equipment necessary to complete the work.
5-12 Description of Pay Items
~P LaserJet 3330
HP LASERJET 3200
Nov-19-2004 9:26AM
J nye n t
Fax Call Report ]
Job Date Time Type Identification Duration Pages Result
321 11/19/2004 9:24:35AM Send 214.965,0010 1:58 2 OK
MEMORAND!
FROM THE
DEPARTMENT OF EN
M
INEERING