REPORT TO COUNCIL
SUBJECT
Title
Reject Bids Received in Response to Invitation for Bids No. PW15-04 for Baylands Park Equipment Replacement
Report
REPORT IN BRIEF
Approval is requested to reject the three bids received in response to Invitation for Bids No. PW15-04 for the construction of Baylands Park Equipment Replacement (Public Works Project No. PR-13/07-14).
ENVIRONMENTAL REVIEW
N/A
BACKGROUND AND DISCUSSION
The Baylands Park Equipment Replacement project consists of work to be done at three playground locations inside the park (Discovery Play Area, Owl Burrow Play Area, and Bay Breeze Play Area), and includes removal of the existing playground equipment and necessary footings, removal of the top 12" of sand surfacing materials, procurement and installation of new playground equipment, and other incidentals (such as mobilization and obtaining permits).
The project was bid as follows:
Bid Notice: Advertised in The Sun on August 1, 2014;
Provided to 18 Bay Area Builder's Exchanges;
Posted on Onvia Demandstar public procurement network; and
Published on the City's Website.
Bid Response: 11 contractors requested bid documents.
Bid Results: Sealed bids were publicly opened on August 20, 2014;
Three responsive bids were received.
The lowest responsive and responsible bid was from Hobbs Construction, Inc. of Fresno in the amount of $261,900. The bid amount is significantly over the engineer's estimate of $185,000 and the available project budget of $200,000. The Bid Summary is attached. Rising labor and material costs is likely attributable to the high bid pricing.
Staff recommends rejecting the three bids received for Invitation for Bids No. PW15-04. The project scope will be decreased, only encompassing the Discovery Play Area (the largest of the three play areas from the original bid package), to be within the available budget. Replacement of the equipment at the other play areas will be evaluated for funding during the next capital projects budget cycle.
FISCAL IMPACT
Capital Project 830280 (Sunnyvale Baylands Park Infrastructure) is budgeted in the amount of $200,000 and is funded by the Park Dedication Fund. Rebidding the smaller scoped construction project should result in bids within the available project budget.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City's official-notice bulletin board outside City Hall, at the Sunnyvale Senior Center, Community Center and Department of Public Safety; and by making the agenda and report available at the Sunnyvale Public Library, the Office of the City Clerk and on the City's website.
RECOMMENDATION
Recommendation
Reject the three bids received in response to Invitation for Bids No. PW15-04.
Staff
Prepared by: Pete Gonda, Purchasing Officer
Reviewed by: Grace K. Leung, Director, Finance
Reviewed by: Kent Steffens, Director, Public Works
Reviewed by: Robert A. Walker, Assistant City Manager
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. Bid Summary