R-43-05 Authorizing Award Of Contract For Well NO. 6 Softening PlantRESOLUTION q °05-
RESOLUTION AUTHORIZING AWARD OF CONTRACT
FOR WELL NO. 6 SOFTENING PLANT
WHEREAS, the Village of Lemont requires that the Well No. 6 Softening Plant project be
completed; and
WHEREAS, the Village seeks to utilize the construction firm of IHC Construction, Inc. for
such work; and
WHEREAS, IHC Construction, Inc. submitted a low bid for such work in the amount of
$2,724,000.00.
NOW, THEREFORE, BE IT RESOLVED, by the President and Board of Trustees that the
Contract with IHC Construction, Inc. is hereby approved.
PASSED AND APPROVED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE
VILLAGE OF LEMONT, COUNTIES OF COOK, WILL AND DuPAGE, ILLINOIS, on this 8th day
of August, 2005.
Debby Blatzer
Peter Coules
Clifford Miklos
Brian Reaves
Ronald Stapleton
Jeanette Virgilio
AYES
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NAYS PASSED ABSENT
Approved by me this this 8th day of August, 2005.
Attest:
CHARLENE SMOLLEN, Village Clerk
HARLENE SMOLLEN, Village Clerk
Approved as to form:
JOHN ANTONOPOULOS, Village Attorney
Date: August 8, 2005
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Bids Received:
BID TABULATION SUMMARY
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Bid
Alternative
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Henderson & Son, Inc
P.O. Box 9 10% Yes
Gurnee, IL 60031
Meccon Industries, inc. 1O%
2703 Bernice Road Yes
Lansing, IL 60438
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June 13, 2005
Mr. Dan Fielding, Director of Public Works
Village of Lemont
418 Main Street
Lemont, IL 60439
Re: Well No. 6 Softening Facility
Contract 1 -2004
Dear Mr. Fielding:
Bids for the above - referenced project were opened on June 2, 2005. The bids included a
lump sum bid for construction of the Well No. 6 softening plant plus bid alternatives to
replace softeners at Well No. 3 and Well No. 4. Three bids were received with the
resulting bid tabulation enclosed.
Apparent Low Bidder
1HC Construction, Inc (IHC) of Elgin, Illinois, was the apparent low bidder with a lump
sum base bid of $2,724,000. IHC included a bid bond for 10 percent and acknowledged
receipt of Addendum No. 1. The second low bidder was J.J. Henderson and Son, Inc. of
Gurnee, Illinois, with a lump sum base bid of $2,813,500. This second bid was within
3.3 percent of the low bid.
IHC was the low bidder on all of the alternative bids, with the exception of Bid
Alternative No. 4 (SCADA graphics). This alternative had a small dollar value of only
$23,000; hence the decision to accept this alternative (or any of the other alternatives)
does not have any influence on determination of low bidder, as IHC will always be the
low bidder under any scenario considered. IHC also submitted supplemental unit prices
for replacing potential unsuitable foundation materials, which also appear reasonable.
Comparison of Bid with Budget
The low bid of $2,724,000 was more than is currently budgeted for this project
(currently noted at $2,000,000). We have reviewed a breakdown of the low bid project
components with our most recent project budgets. The primary reasons for the
discrepancy between the low bid amount and the budget can be attributed to the
following areas:
• Concrete and Steel Price Increases
• Project Scope Additions
Mr. Dan Fielding, DPW
Village of Lemont
Page 2
June 13, 2005
These two items are discussed in more detail below.
Concrete and Steel Price Increases
The original project budget was established in January of 2003. While some minor
increases to this budget have occurred since the original project was conceived, the
amount of money added to the project has not matched the 30 to 40 percent increase
seen in recent concrete and steel prices. As a result, our estimate for the main building,
which is largely comprised of a concrete basin, concrete floors, and masonry walls, was
off by more than $200,000. Additional costs for interior piping, valves, and meters were
also observed.
Project Scope Additions
Nearly every project undergoes some changes during design that add to the complexity
and cost of the project. This project included several features which added to the cost of
the facility. These included blending the building into the residential neighborhood with
additional brick and high roof lines, added landscaping and berming for screening, a
natural gas generator versus a diesel generator, and other security improvements, which
were not originally budgeted.
We have reviewed potential changes to reduce the cost of this facility. These specific
items and their approximate dollar value are noted below.
Item Description of Change
Well Pump Eliminate Bronze Bowls or Alternative
Manufacturer
Generator Change to Diesel or Replace with
Portable Plug Option (includes building
and HVAC reduction)
SCADA/Electrical Revised Scope Review /Change
Other Items To be determined
Approximate Value
$150,000+
$100,000 to
$300,000
$200,000
$100,000
Award Options
With the concurrence of the Village Attorney, the following options appear reasonable:
1. Reject all bids.
2. Award to IHC for low bid of $2,724,000.
3. Award to IHC for low bid of $2,724,000 plus any or all of the bid alternatives.
4. Award to IHC for low bid of $2,724,000 with change order to reduce cost as
outlined above.
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Mr. Dan Fielding, DPW
Village of Lemont
Page 3
June 13, 2005
Rejecting all bids will ultimately require the project to be rebid as the facility must be
built to allow water to be delivered into the system. Currently, the project is scheduled
to allow for completion in advance of 2006 summer demands. Rebidding the project
could compromise this completion date. Additionally since it appears that this project
received competitive bids, it is unlikely that any savings would be unlikely unless
accompanied by a change in project scope.
Awarding the project to IHC for the low bid or any of the added bid alternates is
possible, but this will require an increase in budget.
Awarding the project to IHC with an ultimate change order to reduce costs to a lower
amount has been done on other projects with similar budget constraints. The change
order would need to be negotiated with IHC with a firm reduction in price known prior
to signing of the contracts. This process would appear to bring about the desired savings
without added time and expense of rebidding the project.
Contractor Work Experience
Strand Associates, Inc .® has previously worked with IHC on the construction of the last
well project in Lemont (Well No. 5). Based on this previous experience, we have found
IHC to be responsible.
We have previously sent additional information to you regarding IHC's general
experience and company information. We have not evaluated this information or IHC's
financial status. Please consider review of the financial and other pertinent information
submitted to you prior to making an award.
After your review of this letter please feel free to discuss this in more detail. We could
also attend a Board meeting to discuss the potential award to IHC, with or without a
change order, as you desire.
Sincerely,
STRAND ASSOCIATES, INC.
Gerald D. Groth, P.E.
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