Dubuque Industrial Center South_Grading and Utilities 2012 Phase IMasterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Dubuque Industrial Center South
Grading & Utilities - 2012, Phase I
CIP 3602160 - Design, South Siegert Farm
DATE: May 31, 2012
Dubuque
bierd
All-America City
1
2007
Sealed bids were received for the Dubuque Industrial Center South Grading and
Utilities — 2012 Project, Phase I. City Engineer Gus Psihoyos and Economic
Development Director Dave Heiar recommend rejection of all competitive bid proposals
and that the City Council authorize staff to immediately re -bid the project and authorize
the City Clerk to advertise for proposals.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
dbt)144
Michael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Gus Psihoyos, City Engineer
David Heiar, Economic Development Director
Masterpiece on the Mississippi
TO: Michael C. Van Milligen, City Manager
FROM: Gus Psihoyos, City Engineer
David Heiar, Economic Development Director
SUBJECT: Dubuque Industrial Center South
Grading & Utilities - 2012, Phase 1
CIP 3602160 - Design, South Siegert Farm
DATE: May 31, 2012
INTRODUCTION
Dubuque
btrid
All- America City
hill!
2007
The enclosed resolution authorizes the rejection of all competitive bid proposals and
authorizes the advertisement of proposals for the Dubuque Industrial Center South
Grading & Utilities - 2012 Project, Phase 1.
BACKGROUND
The Dubuque Industrial Center South Grading & Utilities - 2012 Project, Phase 1
includes the mass grading of approximately 1,350,000 cubic yards of earthwork and the
following work:
• Temporary and permanent erosion control measures: Sediment basins;
detention basins; vegetated swales; seeding; inlet and outlet projection; and
energy dissipaters.
• Grading: Clearing and grubbing topsoil removal; stockpile and spreading;
removal of unsuitable material; subdrains; excavation; and embankment fill.
• Deconstruction and demolition: Removal of existing structures; well
abandonment; and septic system removal.
• Storm sewer: Approximately 600 lineal feet of storm sewer pipe.
• Sanitary sewer: 2,788 lineal feet of 8- and 12 -inch sanitary sewer pipe.
BID RESULTS
Competitive sealed bids were received on the Dubuque Industrial Center South Grading
& Utilities — 2012 Project, Phase 1 on May 10, 2012. Eight bid proposals were received,
with base bids ranging from $2,504,366.45 to $4,851,250.18.
DISCUSSION
In accordance with owner instructions, bids for the Dubuque Industrial Center South
Grading and Utilities 2012 Phase I project were opened and read at 2:00 p.m. on May
10, 2012. Eight bids were received for this project.
After reviewing the submitted bids, it was initially considered that the apparent low bid
was submitted by C.J. Moyna & Sons, Inc. of Elkader, Iowa, in the amount of
$2,504,366.45. Subsequently IIW Engineers issued a letter recommending award.
However, after further review of the bid unit prices for the excavation and placement of
top soil bid items, it was noted that those respective bid items contained very small unit
prices and a larger than normal unit price for another bid item. The noted bid unit prices
identify two potential scenarios that could result in disputes:
1. An apparent unbalance of unit prices relative to costs incurred to accomplish the
work, which could be considered an irregularity; or
2. Confusion of the method of measurement and basis of payment for the
Contractor's preferred method to accomplish the work because of the apparent
duplication of some quantities of work items.
The proposal from the low bidder included unit prices of $0.01 for two substantial earth -
moving bid items 46 and 47 in the bid tabulation summary. This could mean that either
the bidder does not intend to perform the work under these items or the bidder has
transferred all of the costs for the work under these items into another bid item or bid
items. Also the low bidder included a unit price for bid item 44 (excavation and spread
unsuitable material) that is approximately double the price of all other bidders for the
same item. It appears the bidder may have planned on transferring all of the quantities
from either or both of items 46 and 47 into the quantity for item 44. IIW, PC cautions that
this situation may leave the City susceptible to an increase in project costs, by
anywhere from $100,000 to $200,000 (See IIW letter dated May 31, 2012).
In addition, IIW, PC states "this situation may constitute what is referred to as an
unbalanced bid ". The Iowa DOT defines an unbalanced bid as "a bid containing lump
sum prices or unit bid prices which do not reflect reasonable actual costs plus a
reasonable proportionate share of the bidder's anticipated profit, overhead costs, and
other indirect costs to complete that item ". The City of Dubuque Standard Specifications
Section 2, Information for Bidders, paragraph 2 -2.60 addresses the subject of Irregular
Proposals. The last sentence in this paragraph states, "Bids which in the opinion of the
City are considered unbalanced, may be deemed irregular."
When this situation was brought to the attention of the City Engineer, City staff reviewed
the information provided by IIW, PC. During this review it was discovered that a
substantial error in one of the affected bid item quantities was made. This might have
led to some of the confusion in the bid results. Further review discovered a sentence in
Addendum #1 which appeared to be unclear or confusing and may have been a
contributing factor to the unit pricing discrepancy discovered in the base bids.
RECOMMENDATION
We recommend that the City Council reject all competitive bid proposals received for
the Dubuque Industrial Center South Grading & Utilities - 2012 Project, Phase I due to
unbalanced bidding, the discrepancy in the specifications, and an error in one of the bid
quantities.
We also recommend that the City Council authorize staff to immediately re -bid the
project and authorize the City Clerk to advertise for proposals.
RE -BID PROJECT SCHEDULE
The rebid schedule for the Dubuque Industrial Center South Grading & Utilities - 2012
Project, Phase I is as follows:
Re- Initiate Public Bidding Process
Publish Notice to Bidders, Advertise for Bids
Pre -Bid Conference
Receipt of Bid Proposals (Bid- Letting)
Award Construction Contract
Roadway Subgrade Areas Completed
Final Project Completion Date
June 4, 2012
June 8, 2012
June 14, 2012
June 21, 2012
July 2, 2012
July 1,2013
November 1, 2013
The project specifications also provide for a $750 /day cost mutually agreed between the
City and contractor if the roadway subgrade areas are not completed by July 1, 2013,
and /or the total project is not complete by November 1, 2013.
The specifications also provide for an incentive of $1,000 per day for early completion of
the subgrading for the streets and /or the total project. The total incentive for the
completed project cannot exceed $50,000. The incentive for the street subgrading area
cannot exceed $25,000 of this total incentive available for the overall grading project.
BUDGET IMPACT
The estimate of probable cost for Dubuque Industrial Center South Grading & Utilities —
2012 Project, Phase I is summarized as follows:
Estimate
Phase I: Construction Contract - Base $3,518,967
Phase I: Construction Contract - Alternates 405,080
Contingency 392,405
Consultant Services: Design, Construction Admin & Inspection 428,120
Total Phase I Cost $4,744.572
The project funding summary is as follows:
CIP No. Fund Description
3602160 General Obligation (GO) Bonds (TIF Abated)
Transfer from Unused Portion of North Siegert G.O. Bond Sale
Total Project Funding
Fund Amount
$4,585,004
1,000,000
$5.585,004
The maximum budget for the project is $5,585,004 including preliminary and final
design, environmental review and construction of public infrastructure (Phase II). The
estimate of probable cost of Phase I include a 10% contingency and will also include
several alternate bid items to allow for flexibility when reviewing bid proposals to ensure
that the project remains within budget.
The initial CIP had shown $990,548 in funding coming from land sales. With the savings
from the North Siegert project, this funding source is not needed. Land sales revenue
can now be used for other purposes including the annual contribution to the Greater
Dubuque Development Corporation.
The bond sale for this project has been initiated and the award of a bond sale is
scheduled for the June 4 City Council meeting.
ACTION TO BE TAKEN
The City Council is requested to reject all bid proposals received and to authorize the
City Clerk to re- advertise for proposals through adoption of the enclosed resolution for
the Dubuque Industrial Center South Grading & Utilities - 2012 Project, Phase I.
Prepared by Todd Irwin, Engineering Technician
cc: Jenny Larson, Budget Director
Bob Green, Water Department Manager
Bob Schiesl, Assistant City Engineer
May 31, 2012
Dave Heiar, Economic Development Director
City of Dubuque
50 W. 13th Street
Dubuque, IA 52001
Re: City of Dubuque
Dubuque Industrial Center South
Grading and Utilities 2012 Phase I
Supplement to Award Recommendation Letter
IIW Project No.: 11083 -01
Dear Dave:
In accordance with owner instructions, bids for the Dubuque Industrial Center South Grading and
Utilities 2012 Phase I project were opened and read at 2:00 p.m. on May 10, 2012. Eight bids were
received for this project.
After reviewing the submitted bids, it was determined the apparent low bid was submitted by C.J.
Moyne & Sons, Inc. of Elkader, Iowa, in the amount of $2,504,366.45 and IIW issued a letter
recommending award. However, further review of the unit prices bid for the work items of excavation
and placement of topsoil materials contained very small unit prices for two bid items and a larger
than normal unit price for another bid item. These bid prices identify two potential scenarios that
could result in disputes:
1. An apparent unbalance of unit prices relative to costs incurred to accomplish the work, which
could be considered an irregularity; or
2. Confusion of the method of measurement and basis of payment for the Contractor's preferred
method to accomplish the work because of the apparent duplication of some quantities of work
items.
The specified method of measurement and basis payment for the bid items would result in
substantially increased payment for the same work using the apparent low bidder's unit prices
(unbalanced bid). Making an interpretation that would not increase those costs would require the
adjustment of the bid item by limiting the maximum quantity for that item contrary to the specified
method of measurement, which is not a legal procedure for bidding (other bidders were not given
the same conditions).
Given the possibility of either an unbalanced bid, or modification of bidding procedure to limit the
cost of the low bidder's awarded contract, it may be in the City's best interest to reject all bids and
rebid the project. We can be available to discuss the details of this analysis at your convenience.
Sincerely,
IIW, P.C.
?Sy)._
�
0ILnal itid2t
n F. Wandsnider, P.E.
Project Manager & Municipal Engineer
Copy: Gus Psihoyos
Dennis Waugh, P.E., S.E.
President/Principal Civil & Structural Engineer
IIW, P.C.
www.iiwengr.com
ARCHITECTURE
CIVIL ENGINEERING
CONSTRUCTION SERVICES
ENVIRONMENTAL ENGINEERING
LAND SURVEYING
MUNICIPAL ENGINEERING
STRUCTURAL ENGINEERING
TRANSPORTATION ENGINEERING
Dennis F. Waugh, PE /SE*
Charles A. Cate, PE**
Gary D. Sejkora, PE
Michael A. Jansen, PE/SE
Ronald A. Balmer, PE /SE /AIA
John M. Tranmer, PLS / RLS
Timothy J. Tranel, PE*
John F. Wandsnider, PE
Julie P. Neebel, PE
James P. Kaune, PE
Thomas J. Oster, PLS**
Wray A. Childers, PLS
Geoffry T. Blandin, PE
Mark C. Jobgen, PE
Lauren N. Ray, PE/SE*
Bradley J. Mootz, PE/SE
Cody T. Austin, PE*
Marc D. Ruden, PE
Mark R. Fassbinder, AIA*
Michael A. Ruden, NCARB /AIA*
Alice M. Ohrtmann, PE
Craig J. Elskamp, AIA
Robert W. Blok, PE
Eric J. Helminiak, PE /SE*
Steven J. Munn, PE
Jeffrey J. Brandt, PLS / RLS
* LEED AP
** Retired
4155 Pennsylvania Avenue, Dubuque, IA 52002 -2628 ♦ IPj 563.556.2464/800.556.4491 ♦ [F] 563.556.7811
ENGINEERS. ARCHITECTS. SURVEYORS.
jiw
RESOLUTION NO, 137 -12
REJECTING ALL COMPETITIVE BID PROPOSALS RECEIVED FOR THE DUBUQUE
INDUSTRIAL CENTER SOUTH GRADING & UTILITIES - 2012 PROJECT, PHASE I
AND DIRECTING THE CITY CLERK TO RE- ADVERTISE FOR BIDS FOR THE
PROJECT
Whereas, competitive sealed bid proposals have been submitted by contractors
for the Dubuque Industrial Center South Grading & Utilities - 2012 Project, Phase I (the
Project) pursuant to Resolution No. 78 -12 and Notice to Bidders published in a
newspaper published in the City of Dubuque, Iowa on the 19th day of March, 2012.
Whereas, said competitive sealed proposals for the Project were opened and
read on the 10th day of May, 2012; and
Whereas, the City Council has deemed it advisable to reject all bid proposals for
the Project.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. All bid proposals for the Project are hereby rejected.
Section 2. The City Clerk is authorized and instructed to return the bid
deposits of the unsuccessful bidders for the Project.
Section 3. The City Clerk is hereby directed to re- advertise for bids for the
Project by publishing the attached Notice to Bidders to be published in a newspaper
having general circulation in the City of Dubuque, Iowa, which notice shall be published
not less than four but not more than forty -five days before the date for filing bids before
2:00 p.m. on the 21st day of June, 2012. Bids shall be opened and read by the City
Clerk at said time and will be submitted to the City Council for final action at 6 :30 p.m.
on the 2nd day of July, 2012, in the Historic Federal Council Chambers (second floor),
350 West 6th Street, Dubuque, Iowa.
Passed, approved and adopted this 4th day of June , 2012.
Attest:
Kevin rnstahl, Ci y Clerk
Roy D. Buol, Mayor
NOTICE TO BIDDERS
CITY OF DUBUQUE PUBLIC IMPROVEMENT PROJECT
DUBUQUE INDUSTRIAL CENTER SOUTH
GRADING & UTILITIES - 2012, PHASE I
Time and Place for Filing Sealed Proposals. Sealed bids for the work comprising
each improvement as stated below must be filed before 2:00 p.m. on June 21, 2012, in
the Office of the City Clerk, City Hall - First Floor, 50 West 13th Street, Dubuque, Iowa.
Time and Place Sealed Proposals Will be Opened and Considered. Sealed
proposals will be opened and bids tabulated at 2:00 p.m. on June 21, 2012, at City Hall
- Conference Room B, 50 West 13th Street, Dubuque, Iowa, for consideration by the
City Council (Council) at its meeting on July 2, 2012. The City of Dubuque, Iowa,
reserves the right to reject any and all bids.
Time for Commencement and Completion of Work. Work on each improvement
shall be commenced within 10 days after the Notice to Proceed has been issued based
on the following schedule: Roadway subgrade areas completed by July 1, 2013, and
final completion by November 1, 2013.
Bid Security. Each bidder shall accompany its bid with a bid security as security that
the successful bidder will enter into a contract for the work bid upon and will furnish after
the award of contract a corporate surety bond, acceptable to the governmental entity,
for the faithful performance of the contract, in an amount equal to one hundred percent
of the amount of the contract. The bid security shall be in the amount of ten percent
(10 %) of the amount of the contract and shall be in the form of a cashier's check or
certified check drawn on a state - chartered or federally chartered bank, or a certified
share draft drawn on a state - chartered or federally chartered credit union, or the
governmental entity may provide for a bidder's bond with corporate surety satisfactory
to the governmental entity. The bid bond shall contain no conditions excepted as
provided in this section.
Contract Documents. Copies of the plans and specifications prepared by IIW, PC, are
available from Tri -State Blueprint & Framing Co. /Rapids Reproduction, 696 Central
Avenue, Dubuque, IA 52001. Telephone number: 563 - 556 -3030. No plan deposit is
required.
Copies of the construction documents may be viewed at: the Office of Economic
Development, City Hall - Second Floor, 50 West 13th Street, Dubuque, Iowa; or at the
Office of IIW, P.C., 4155 Pennsylvania Avenue, Dubuque, Iowa. If there are questions
and /or additional information is needed, contact IIW Project Manager John Wandsnider,
PE at j.wandsnider @iiwengr.com or by calling (563) 556 -2464.
Project information will also be posted on the City's website at www.cityofdubuque.orq.
Preference for Iowa Products and Labor. By virtue of statutory authority, preference
will be given to products and provisions grown and coal produced within the State of
Iowa, and to Iowa domestic labor, to the extent lawfully required under Iowa statutes.
Sales Tax. The bidder should not include sales tax in its bid. A sales tax exemption
certificate will be available for all material purchased for incorporation in the project.
General Nature of Public Improvement.
Dubuque Industrial Center South Grading & Utilities — 2012 Project, Phase I
The Dubuque Industrial Center South Grading & Utilities — 2012 Project, Phase I
includes the grading of approximately 1,350,000 cubic yards of excavation. The project
includes:
— Temporary and permanent erosion control measures: Sediment basins; detention
basins; vegetated swales; seeding; inlet and outlet projection; and energy
dissipaters.
— Grading: Clearing and grubbing topsoil removal; stockpile and spreading; removal
of unsuitable material; subdrains; excavation; and embankment fill.
— Deconstruction and demolition: Removal of existing structures; well abandonment;
and septic system removal.
— Storm sewer: Approximately 600 lineal feet of storm sewer pipe.
— Sanitary sewer: 2,788 lineal feet of 8- and 12 -inch sanitary sewer pipe.
Pre -Bid Conference. Each prospective bidder is encouraged to attend the Pre -Bid
Construction Conference to be held at 10 AM Central Time on June 14, 2012, at the
Historic Federal Building Council Chambers (second floor), 350 West 6th Street,
Dubuque, Iowa. Attendance by all prospective bidders is not mandatory but highly
recommended.
Published in the Telegraph Herald, June 8, 2012.
NOTICE TO BIDDERS
CITY OF DUBUQUE 1
PUBLIC
IMPROVEMENT
PROJECT
DUBUQUE
INDUSTRIAL CENTER
SOUTH
GRADING & UTILITIES
- 2012, PHASE
Time and Place for
Filing Sealed Pro-
posals. Sealed bids for
the work comprising
each improvement as
stated below must be 1
filed before 2:00 p.m.
on June 21, 2012, in the
Office of the City Clerk,
City Hall - First Floor,
50 West 13th Street,
Dubuque, Iowa.
Time and Place
Sealed Proposals
Will be Opened and
Considered. Sealed
proposals will be
opened and bids i
tabulated. at 2:00 p.m.
on June 21, 2012, at
City Hall - Conference
Room B, 50 West 13th ,
Street, Dubuque, Iowa,
for consideration by
the City Council
(Council) at its meeting
on July 2, 2012. The
City of Dubuque, Iowa,
reserves the right to
reject any and all bids.
Time for Com-
mencement and
Completion of Work.
Work on each
improvement shall be
commenced within 10
days after the Notice to
Proceed has been,
issued based on the 1
following schedule:
Roadway subgrade
areas completed by
July 1, 2013, and final
completion by Novem-
ber 1, 2013. •
Bid Security. Each I
bidder shall accom-
pany its bid with a bid
security as security
that the successful
bidder will enter into a
contract for the work
bid upon and will
furnish after the award
of contract a corporate
surety. bond, accept -'
able to the 'govern -.
mental entity, for the
faithful performance of
the contract, in an
amount equal to one
hundred percent of the
amount of the con-
tract. The bid security
shall be in the amount
of ten percent (10 %) of
the amount of the 1
contract and shall be in
the form of a cashier's
check or certified
check drawn on a state- I
chartered or federally
chartered bank, or a
certified_ share draft
drawn on a state -
chartered or federally
chartered credit union,
or the governmental
entity may provide for
a bidder's bond with .
corporate surety
satisfactory to the
governmental entity.
The bid bond shall
contain no conditions
excepted as provided
in this section.
Contract Docu-
ments. Copies of the
plans and specifi-
cations prepared by
IIW, PC, are available
from Tri -State Blue- I
print & Framing Co./
Rapids Reproduction,
696 Central Avenue,
Dubuque, IA 52001.
Telephone number:563-
556 -3030. No plan
deposit is required.
Copies of the
construction docu-
ments
may be viewed
at: the Office of
Economic Develop-
ment, City Hall -
Second Floor, 50 ,West
13th Street, Dubuque,
1 Iowa; or at the Office
of IIW, . P.C., 4155
Pennsylvania Avenue,
Dubuque, Iowa. If there
are questions and /or
additional information
is needed, contact IIW
Project Manager John
Wandsnider, PE at
j.wandsnider@iiwengr.
corn or by calling (563)
556 -2464.
Project information
will also be posted on
the City's website at
www.cityofdubuque.org.
Preference for Iowa
Products and Labor.
By virtue of statutory
authority, preference
will be given to
products and pro-
visions grown and 'coal
produced within the
State of Iowa, and to
Iowa domestic labor, to
the extent lawfully
required under Iowa
statutes.
Sales Tax. The bidder
should not include_
sales tax in its bid. A
sales tax exemption
certificate will be
available for all
material purchased for
incorporation in the
project.
General Nature of
Public Improvement.
Dubuque Industrial
Center South Grading
& Utilities - 2012
Project, Phase I
The Dubuque
Industrial Center South
Grading -& Utilities -
2012 Project, Phase I
includes the grading of
approximately.
1,350,000 cubic yards
of excavation. The
project includes:
Temporary and
permanent erosion
control measures: Sedi-
ment basins; detention
basins; vegetated
swales; seeding; inlet
and outlet projection;
and energy dissipaters.
-- Grading: Clearing
and grubbing topsoil
removal; stockpile and
spreading; removal of
unsuitable material;
subdrains; excavation;
and embankment fill.
-- Deconstruction and
demolition: Removal of
existing structures;
well abandonment; and
septic system removal.
- Storm sewer: Ap-
proximately 600 lineal
feet of storm sewer
pipe.
-- Sanitary sewer:
2,788 lineal feet of 8-
and 12 -inch sanitary
sewer pipe.
Pre -Bid Conference.
Each prospective bid-
der is encouraged to
attend the Pre -Bid
Construction Confer-
ence to be held at 10
AM Central Time on
June 14, 2012, at the
Historic Federal Build-
ing Council Chambers
(second floor), 350
West 6th Street,.
Dubuque, Iowa. Atten-
dance by all
prospective bidders is
not mandatory but
highly recommended.
Published in the
Telegraph Herald, June
8,2012.
it 6/8
STATE OF IOWA {SS:
DUBUQUE COUNTY
CERTIFICATION OF PUBLICATION
I, Suzanne Pike, a Billing Clerk for Woodward Communications, Inc., an Iowa
corporation, publisher of the Telegraph Herald,a newspaper of general circulation
published in the City of Dubuque, County of Dubuque and State of Iowa; hereby
certify that the attached notice was published in said newspaper on the following
dates: June 08, 2012, and for which the charge is $60.72.
(---9G0DV.AA.AAJZ._ 131(.11)
Subscribed to before me, otary Public in and for Dubuque County, Iowa,
this ,'M day of , 2 %Z .
Notary Public in and for Dubuque County, Iowa.
Commission
R Plumbgi 954SF-2r -.
Kevin Firnstahl - "Contact Us" inquiry from City of Dubuque website
From: "Citizen Support Center" <dubuqueia @mycusthelp.com>
To: <kfirnsta @cityofdubuque.org>
Date: 6/4/2012 2:57 PM
Subject: "Contact Us" inquiry from City of Dubuque website
Page 1 of 1
RECEIVED
12 JUN -4 PM 3: 42
Contact Us
Name: Allen R. Taylor
Phone: (563) 245 -1442 Ext 8
Email: ataylor @cjmoyna.com
City Clerks Office
Dubuque: IA
City Department: City Council
Message: John P Moyna President of C.J. Moyna & Sons, Inc. at tonights City Councils meeting will ask the City Council to
consider removing Consent Item 11 for separate discussion and consideration. Attached is information supporting this
request.
file: / //C :/ Users /kfirnsta/AppData/Local/ Temp /XPgrpwise /4FC CC CD2DB Q_D ODB Q_PO 1... 6/4/2012
This Email is to bring to the attention of the Mayor and City Council our concerns in regards to Consent
Item # 11, Dubuque Industrial Center South- Grading & Utilities Bid Rejection. The City Manager has
recommended the City Council reject all competitive bid proposals on the Dubuque Industrial Center
South- Grading & Utilities Bids. C.J. Moyna & Sons, Inc. plans to attend the council meeting and request
Item # 11 be removed from the Consent Items and discussed separately for the following reasons.
Eight qualified construction companies submitted bids on the Dubuque Industrial Center South Grading
& Utilities. All Bidders had access to the same plans, Contract Documents, including addendums and the
site of work. All bidders have the responsibility to satisfy themselves as the nature of work and all
reasonably ascertainable conditions which may affect their performance under the Contract.
C.J. Moyna & Sons, Inc. was low bidder on this project. Our bid was over $900,000, below the engineer's
estimate and approximately $100,000 below the second bidder. The bid was properly completed using
the Standards Specification dated March 31, 1995, the Standard Details of the City of Dubuque and in
accordance with the special provisions of the project.
At the pre -bid meeting the question was raised by other contractors how topsoil excavation and spread
would be paid vs. stockpile and spread of topsoil. The matter was discussed and Addendum 1 was
issued, clearly defining how topsoil excavation and spread would be paid under the contract.
Our team worked diligently and in good faith to provide the City of Dubuque with a competitive bid. In
the course of putting the bid together, our team carefully reviewed the specifications, including the
addendums, and developed a plan we felt would provide the City the lowest cost, while maintaining the
high standards of quality our Company is noted for.
The City engineer questioned why bid item 46- Topsoil -Strip and & Stockpile and 47- Topsoil —Spread unit
price was only $.01. In our approach the project, we did not plan to perform work under these pay
items. Therefore $.01 was used because the bid specifications state "Any proposal may be deemed
irregular which does not contain prices opposite to each of several items for which there is a quantity
exhibited." C.J. Moyna & Sons, Inc's bid did not intend to transfer quantities on any items. We used bid
quantities per items as per the specifications.
In the discussion of item #44, the engineer states "44 (excavation and spread unsuitable material) that is
approximately double the price of all other bidders for the same item" is incorrect. Only two of the
eight bidders were less than 500 of the bid submitted by C.J. Moyna & Sons, Inc on item 44. The
average price of item #44 of the top six bidders was 29% below our bid. The second highest bidder on
item 44 used a price of $2.90 which was only 17% below our bid number.
The bid tabulations showing the unit prices used by each bidder on all items of the project have already
been released to the bidders. This places the low bidder at a disadvantage, allowing the other bidders
the ability to adjust their prices accordingly if the City rejects the bids and rebids the project.
The City has the right to reject any and all bids, if in its judgment it is for the best interest of the City to
do so. We respectfully request the City Council carefully consider all factors in determining what is in the
best interest of the City prior to deciding this issue. Please consider the cost associated with re- bidding
a project and the risk of an increase in the low bid. To preserve the integrity of the Competitive Bidding
Process, it is not in the best interest of anyone to reject a bid after the bid tabs have been released.