Award Bid - WWTP Headworks Influent Gate Improvements Proj No 117-026 - HRP Construction Inc

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In reviewing the Bids, Thieneman Construction's Base Bid was $1,117,000 with domestically sourced sluice gates and $917,000 with globally sourced sluice gates. For the individual bidder, the use of globally sourced product would result in a potential cost savings of 17.9% in comparison to their domestic bid price. Thieneman Construction did not supply the lowest bid price for domestic sluice gates. HRP Construction, Inc. provided the lowest price for domestically sourced sluice gates at a Bid Price of $966,500. HRP Construction's bid price is $49,500 higher (+5.4%) than the lowest globally sourced bid. Indiana Code IC 5-16-8 Chapter 8. Steel Procurement for Public Works provides guidelines for the consideration of the use of globally, or foreign, sourced steel products. The globally sourced product or offered price of the like steel or foundry product would provide approximately 5.12% savings to the total project cost project if globally sourced materials are accepted in comparison to the lowest domestic bid price. The differential cost between the globally sourced product and the domestically sourced product must be greater than 15% to be considered an unreasonable cost to the City of South Bend by Indiana Code (IC 5-16-8). Since the bids did not require the bidders to specifically itemize the individual pricing of the sluice gate materials except for providing a deduct for the use of globally sourced steel products, the differential between the domestic and globally sourced bid prices can only be assessed in the total percentage cost savings in relation to the Base Bid amounts submitted for the project. The Division of Utilities understands that IC 5-16-8 is an important guideline for assessing both the potential cost savings to the City and the local benefits for supporting domestically sourced steel and foundry products. Since the City of South Bend Department of Public Works does not have a minimum differential cost requirement in excess of the percentages set by IC 5-16-8, the Division of Utilities recommends the use of 15% cost differential as the minimum savings for the comparison of bid prices for this assessment. As noted above, HRP Construction provided a domestically sourced product Base Bid which is 5.4% higher than the globally sourced bid provided by Thieneman Construction, Inc. Since the use of globally sourced steel will not provide a 15% differential savings for the overall project cost, it is the recommendation of the Division of Utilities that the Board of Public Works award the project to the lowest, responsive, responsible bidder as HRP Construction for the domestically sourced Base Bid amount of $966,500.00. The Board of Public Works has the option to reject the Award Recommendation and award to the lowest, responsive, responsible bidder with a globally sourced product. If the Board chooses to do so, the lowest bidder for the globally sourced sluice gates would be Thieneman Construction in the amount of $917,000.00. This would provide a 5.12% cost savings of $49,500.00 of capital funds which could be used to fund other Wastewater Capital projects and initiatives. The Division of Utilities — Environmental Services recommends award of the contract for Project No. 117-026 WWTP Headworks Influent Gates Improvements to the lowest, responsive, responsible domestic bidder, HRP Construction (South Bead, Indiana) at the total bid price of $966,500.00 lump sum not to exceed price for domestic sourced sluice gates. The Division of Utilities will appropriate sufficient funds from Utilities Wastewater, and Capital Account (642-0630-415-43-66) to fund the project. For questions regarding the above recommendation or the subject project, contact Al Greek (Ext. 4210) or Jacob M. Klosinski (Ext. 9496) at the Division of Utilities.