REPORT TO COUNCIL
SUBJECT
Title
Reject the Sole Bid Received for Fair Oaks Avenue Bikeway and Streetscape (PW18-16)
Report
REPORT IN BRIEF
Approval is requested to reject the sole bid received in response to Invitation for Bids PW18-16 for Fair Oaks Avenue Bikeway and Streetscape. The bid is significantly higher than the available budget.
EXISTING POLICY
Pursuant to Chapter 2.09.140(b) of the Sunnyvale Municipal Code, City Council approval is required to reject public works construction bids greater than $100,000.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
BACKGROUND AND DISCUSSION
The Fair Oaks Avenue Bikeway and Streetscape Project consists of improvements along Fair Oaks Avenue between Old San Francisco Road and Evelyn Avenue, and between Kifer Road and Ahwanee Avenue. The project scope of work along the project limits includes the installation of class III bikeways (sharrows) and appropriate signage, bicycle loop detectors, pull boxes and camera systems at intersections on existing signal mast arms and pedestrian push buttons. Additionally, the project includes upgrading existing non-ADA compliant ramps to ADA compliance, concrete improvements (sidewalk, curb and gutter, and valley gutter replacement), and utility work.
The construction project was advertised for competitive bidding on the City’s DemandStar public procurement network and distributed to Bay Area Builder’s Exchanges on March 9, 2018, with fourteen (14) contractors requesting bid documents. Sealed bids were opened on April 4, 2018, with one (1) responsive bid received. FBD Vanguard Construction submitted a bid in the amount of $1,309,598.50 as detailed in Attachment 1. After reviewing the bid, staff determined that the bid was 15% higher than the engineer estimate and significantly higher than the available budget. Therefore, staff recommends rejecting the bid received.
Staff is currently redesigning the project for re-bidding to reduce the project scope and remain within the available budget. Staff also intends to pursue additional grant funds to complete the remaining portion of the project in the future.
FISCAL IMPACT
No fiscal impact results from rejecting the bid.
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 sole bid received from FBD Vanguard Construction in response to Invitation for Bids PW18-16 for Fair Oaks Avenue Bikeway and Streetscape.
Staff
Prepared by: Gregory S. Card, Purchasing Officer
Reviewed by: Timothy J. Kirby, Director of Finance
Reviewed by: Chip Taylor, Director of Public Works
Reviewed by: Teri Silva, Assistant City Manager
Approved by: Kent Steffens, City Manager
ATTACHMENTS
1. Bid Summary