COUNCIL AGENDA ITEM
SUBJECT:
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Award of Contract for YMCA Retro Fit Project (ITB 21-PR-001and authorization for associated budget amendment
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DEPARTMENT:
Finance
SUMMARY:
The City of Edgewater issued an Invitation to Bid (ITB 20-ES-004 - YMCA - Wind Retrofit Project) on August 5, 2020 with the sole purpose and intent of obtaining Bids from qualified and licensed State of Florida Contractors to provide all permits, insurance, manpower, material and supervision for the FEMA Hazard Mitigation Grant Program (HMGP) funded YMCA Wind Retrofit Project that includes the removal of existing exterior windows, doors and louvers at this facility, and the installation of hurricane rated windows, doors and louvers as specified. This proposal also includes the removal of the existing roof and the installation of a metal roof system in compliance with current Code.
The ITB was broadcast on the City’s bidder notification service, the State of Florida Office of Supplier Diversity website, the City’s website as well as advertised in Daytona Beach News Journal.
Five vendors attended the Non-Mandatory pre-bid meeting held on August 18, 2020 and completed a walk thru of the facility.
On October 6, 2020 one single bid was received and deemed responsible/responsive from A.G. Pifer in the amount of $399,900.
Per Section VII of the Purchasing Policy, “Where only one response is received to a solicitation, an award may be made to such respondent if the City determines: (1) that the price submitted is fair and reasonable; (2) that other prospective respondents had a reasonable opportunity to respond; and (3) that it is in the best interest of the City to proceed with award. Otherwise, a single response to a solicitation may be rejected pursuant to Section VII, and the Purchasing Specialist may: (1) cancel the proposed procurement; (2) solicit new bids, proposals, or sealed replies; or (3) proceed with procurement as otherwise provided in this Manual.”
Based on discussions with our representative from the Florida Department of Emergency Service staff believes that in an effort to minimize the risk of potential deobligation, it is not in the best interest of the City to move forward with the sole bid. Staff further reached out to the Contractors that were in attendance at the pre-bid meeting, but did not submit a bid and determined that there is a better likelihood of additional submissions, if the Invitation to Bid was reissued with options to bid on the roof and the windows/doors as separate items including the possibility of award to multiple contractors.
On November 5, 2020, the modified ITB was rebroadcast with the recommended changes. The Rebid ITB was broadcast on the City’s bidder notification service, the State of Florida Office of Supplier Diversity website, the City’s website and advertised in Daytona Beach News Journal.
On January 5, 2021, 6 bids were submitted, however 3 were deemed as non-responsive for failure to submit required documents per Bid Specifications.
The following bids were received and determined to be responsible and responsive:
Total Pricing for Total Pricing for
Bidder Name Doors and Windows Roof Replacement
A.G Pifer Construction $162,328.03 $609,156.97
APM Construction Corp $75,000.00 $390,000.00
EB Morris Gen. Contractors $213,240.36 $364,759.64
APM Construction Corp. (“APM”) made the lowest responsible and responsive bid for doors and windows and City staff informed APM that staff would recommend that the City Council approve the award of contract for doors and windows to APM. In response, APM stated that it would not accept an award for the doors and windows as it would not accept any award in piecemeal as it intended its bid to be a lump sum for the entire contract and its bid for the doors and windows did not include associated costs such as a bid bond. However, section 4.1 of the ITB provides that:
The City reserves the right to award one or more contracts on the bids submitted, either by award of all items to one bidder or by award of separate items or groups of items to various bidders as the interests of the City may require, unless the bidder clearly specifies otherwise in his bid.
Therefore, the ITB clearly states that the City may award multiple contracts to various bidders.
Also, section 9 of ITB clearly states that bid prices must include all costs, as follows:
ALL AMOUNTS INCLUDE SALARY COST, FRINGE BENEFITS, OVERHEAD, OPERATING MARGIN AND PROFIT, AND ALL DIRECT AND INDIRECT EXPENSES.
Therefore, the ITB provides that bids must include all associated costs. For these reasons, APM’s refusal to enter into a contract with the City for the doors and windows is unjustified.
Both the ITB and the City’s Purchasing Policy have the following provision:
In the event of default of the successful bidder, or their refusal to enter into the City contract, the City reserves the right to accept the bid of any other bidder or to re-advertise using the same or revised documentation, at its sole discretion.
Therefore, since APM has indicated it refuses to enter into a contract with the City for doors and windows the City may accept the bid of the next lowest bidder, which was A.G. Pifer Construction.
Due to the lowest responsible, responsive bids coming in well over the grant and budget amounts, City Staff is working with FDEM representatives to request additional grant funds for the project. HMGP has currently approved $190,223 towards this project. The City currently has $63,408 in City Match funds identified with the current year’s budget. If the grantor is not willing to provide additional grant funds, the City would need to fund an additional $273,456.67 for total project funds of $527,088.67.
BUDGETED ITEM: ☒ Yes ☐ No ☐ Not Applicable
BUDGET AMENDMENT REQUIRED: ☒ Yes ☐ No ☐ Not Applicable
RECOMMENDED ACTION:
Staff recommends that City Council approve the award of contract for Doors and Windows to A.G. Pifer Construction and the contract for roof replacement to EB Morris Gen. Contractors and authorize the City Manager to sign the necessary contracts and amend the budget accordingly.