CC – Item 4A – Acceptance of Bids and Award of Contract – Street Improvements on Valley Blvd. •
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TO: FRANK G. TRIPEPI, CITY MANAGER R
FROM: KEN RUKAVINA, CITY ENGINEER
DATE: JUNE 2, 1998
RE: ACCEPTANCE OF BIDS AND AWARD OF CONTRACT - STREET
IMPROVEMENTS ON VALLEY BOULEVARD (CHARLOTTE AVENUE TO
EATON WASH); CDBG PROJECT NO. P76102 AND FEDERAL PROJECT
NO. DBL-5358 (003)
The following bids were received for the subject project on Wednesday, May 20, 1998:
1. Damon Const. Co. $3,334,632.10
2. Sully-Miller Contracting Co. $3,524,875.70
3. Griffith Company $3,575,987.70
4. Los Angeles Engineering $3,671,582.70
5. Gentry Brothers, Inc. $3,821,877.65
Attached are copies of the three low bids, including the bid from Griffith Company, a bid
analysis, and Dun and Bradstreet reports for the three low bidders.
The low bid was submitted by Damon Const. Co., a responsible contractor, in the amount
of $3,334,632.10, which is approximately 6 percent above the Engineer's estimate of
$3,151,000.00. The average bid was $3,588,242.04.
The bid submitted by Griffith Company was incomplete. Griffith Company failed to enter
the Unit Price for Bid Item No. 53 of Bid Schedule A; therefore, their bid must be deemed
non-responsive. Since the bid was incomplete, it was not included in the bid analysis.
COUNCIL AGENDA
JUN 091998
ITEM No. -I-IG • e6-4
K
June 2, 1998
Page 2
There was an irregularity in the low bid submitted by Damon Const. Co. The contractor did
not submit the CDBG Section 3 Economic Opportunity Plan with its bid as required by the
City's Section 3 procedures, which are modeled after the Los Angeles County procedures.
However, Damon Const. Co. submitted an appropriate Plan the day after the bid opening.
Staff contacted HUD; wherein staff was informed that there are no outstanding regulations
regarding such a circumstance, and that funds would not be jeopardized if Damon's bid
was accepted. The City Attorney determined that submittal of the Section 3 Economic
Development Plan was not required by State law and therefore the Council has jurisdiction
to waive the irregularity. The information contained in the Section 3 plan does not include
cost information; rather the Plan is a commitment to the employment of local low-income
residents and job creation. Information provided in the plan is weighed along with all other
Section 3 information pertaining to subcontractors, which is allowed to be submitted after
the time bids are received. Therefore, this is an immaterial irregularity and can be waived.
Damon Construction Co.'s Section 3 plan is attached and has been analyzed by staff and
is acceptable.
There were also irregularities in the bids submitted by Sully-Miller Contracting Co., Los
Angeles Engineering, and Gentry Brothers Inc. due to addition and extension errors. The
correct bid amounts are listed above.
RECOMMENDATION
1. Reject the bid submitted by Griffith Company.
2. Waive the irregularities in the bids submitted by Damon Construction Co., Sully-Miller
Contracting Co., Los Angeles Engineering, and Gentry Brothers, Inc.
3. Accept all other bids and award the project to Damon Const. Co. in the amount of
$3,334,632.10.
4. Authorize the Mayor to sign the contract on behalf of the City.
Attachments
KJRkr
1998/staff reports/city