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Community Development Services, Department of Transportation recommending the Board reject the two (2) bids received for the Silva Valley Parkway Class 1 and 2 Bike Lanes (Harvard to Green Valley) Project, Contract PW 15-31109, CIP 72310, P&C 004-C1699. The two (2) bids received were approximately $460,000 over the Engineer’s Estimate and Capital Improvement Program (CIP) budget:
FUNDING: Congestion Mitigation and Air Quality Program (95%) and Federal State Block Grant Program (5%). (Federal Funds)
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DEPARTMENT RECOMMENDATION
Community Development Services, Department of Transportation (Transportation), is recommending the Board reject the bids received for the Silva Valley Parkway Class 1 and 2 Bike Lanes (Harvard to Green Valley) Project (Project) because the two (2) bids received exceeded the direct construction budget.
DISCUSSION / BACKGROUND
On June 6, 2017 (Item 29), the Board adopted and approved the Contract Documents and authorized advertisement for construction bids for the Project.
On June 28, 2017 Transportation opened bids for the Project. Two (2) bids were received ranging from $1,630,571 to $2,923,750.00 (Engineer’s Estimate was $1,167,400.00). The apparent low bid exceeded the Engineer’s Estimate by $463,171.00.
The Project is included in Transportation’s Proposed 2017 CIP with a Direct Construction Costs budget of $1,347,000.00 and a Construction/Engineering and Admin budget of $160,000.00 for a total construction budget of $1,507,000.00. The Direct Construction budget includes the bid amount, supplemental items of work (4.35%), and contingency (10%). The total for direct construction for this Project based on the low bid is $1,875,157.57, which exceeds the CIP amount by $528,157.57.
Transportation will re-evaluate the Project scope and estimate and return to the Board later in the year with a request for the Board to re-authorize advertisement for bids.
ALTERNATIVES
1) Award the contract to the lowest responsive, responsible bidder.
2) Cancel the Project. Note: The Board has previously approved the Project and canceling the Project may include the consequence of reimbursing all grant funding received to date.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
County Counsel and Risk Management have reviewed and approved the Contract Documents.
CAO RECOMMENDATION
FINANCIAL IMPACT
There is no change to Net County Cost associated with this item. Funding for this Project is budgeted in the Transportation’s Proposed 2017 Capital Improvement Program which was approved by the Board June 27, 2017 (Item 25).
CLERK OF THE BOARD FOLLOW UP ACTIONS
None
STRATEGIC PLAN COMPONENT
Infrastructure
CONTACT
Bard R. Lower, Interim Director
Community Development Services, Department of Transportation