E2. Bid Award for Main & Headworks ProjectCITY �1�alN.
KALISPELL
MEMORANDUM
To: Doug Russell — City Manager
From: Keith Haskins, PE — Deputy Director Public Works / City Engineer
CC: Susie Turner, PE — Public Works Director
Re: WWTP Main & Headworks Structure Project
Meeting Date: 10/2/2023
BACKGROUND:
The impetus behind this project is to replace concrete pipe and structures which have been badly
corroded due to hydrogen sulfide attack. The section of main to be replaced by this project is the
most downstream portion of the sewage collection system and receives flows from the entire
City of Kalispell and Evergreen Water and Sewer District.
This project includes furnishing labor, materials, and equipment for the replacement of
approximately 360 linear feet of 36" RCP sewer main with approximately 312 linear feet of 54"
sewer main and 28 linear feet of 36" sewer main. The project also includes the replacement of a
cast -in -place box structure, partial replacement of connecting sewer mains, lining of concrete
structures, bypass pumping, dewatering, and other related items necessary for completion of the
work.
BIDS RECEIVED:
Bids were received and opened on September 21, 2023, at 2:00 PM. Three responsive bids were
received from contractors. Two deductive alternatives were bid for the large diameter sewer
main piping in an effort to allow more sewer main materials options to contractors and
potentially lower bids. Bid prices were not required for the deductive bids. The bids were
evaluated based on the Base Bid plus deductive alternatives in any order or combination.
Contractor Base Bid Ded. Alt. A Ded. Alt. B Total Bid Price
NCC Neumann $1,704,420.00 No Bid
Prospect Const. Inc. $2,012,277.00 ($38,821.60)
S&L Underground $2,189,425.00 No Bid
Eng. Estimate $1,243,950.00 ($99,000.00)
No Bid
($35,200.00)
No Bid
($49,500.00)
$1,704,420.00
$1,973,455.40
$2,189,425.00
$1,144,950.00
References for NCC Neumann Construction Co. were contacted and interviewed. NCC
Neumann was determined to be a responsible contractor, successfully completing projects of
similar size and scope in Northwest Montana.
201 1' Avenue E Phone (406)758-7720
Po sox 1997 Public Works Department Fax (406)758-7831
Kalispell, MT 59903 1 1 www.kalispell.eom
Doug Russell
WWTP Main & Headworks Structure Project
Page 2
FISCAL EFFECTS:
The project was budgeted from the following line items:
Budget #
Fund
Description
Amount
5720-410-430550-950
ARPA Funds
WWTP — Inf. Pipe/Div. Structure
$347,957.00
5310-455-430645-950
WWTP Fund
RR & Upsize
— WWTP Main
$314,406.00
5310-454-430630-950
Sewer Fund
RR & Upsize
— WWTP Main
$192,728.00
5311-454-430635-950
Sewer Impact
RR & Upsize
— WWTP Main
$275,721.00
5311-455-430644-950
WWTP Impact
RR & Upsize
— WWTP Main
$559,636.00
Total Budgeted =
$1,690,448.00
STAFF RECOMMENDATION:
Public Works recommends the award of the Base Bid to NCC Neumann Construction Co. in the
amount of $1,704,420.00. Funds can support the project in proportion to the increase necessary
to pay the full cost for the bid plus contingency.
DISCUSSION:
The apparent low bidder is $13,972 over the FY 24 budgeted amount for the project. This is the
second time the project has been bid. The first time the project was bid (1/26/23), 5 plan holders
were registered as prime bidders and no bids were received. After talking to plan holders, the
budget was increased and the project was bid a second time. In this current bidding cycle, there
were 8 plan holders registered as prime bidders and only 3 bids were received, all of the bids
were above the engineering estimate and project budget.
Bidders have had a hard time putting solid numbers to the bypass pumping effort, as this section
of main is the last section of sewer main prior to sewage entering the Wastewater Treatment
Plant, and therefore the bypass pumps must be capable of bypassing peak hour sewage flows for
all of Kalispell and Evergreen of 6,600 gpm. Bypass pumping failure carries a lot of risk. Also,
bidders must account for groundwater dewatering of the trench in a large excavation. This
portion of the existing main is fully submerged in groundwater at certain times of the year,
making the dewatering effort significant. Additionally, the pipe size to be used on this project is
very large and cumbersome to ship and construct.
The ARPA competitive grant funds for the project were awarded partially based on the timelines
provided in the competitive grant process. Delaying the project carries a risk of losing the
funding. Additionally, ARPA projects must be awarded by the end of the 2024 (calendar year)
and built by the end of 2026 (calendar year). Delaying award now decreases the window of time
allotted for award and construction of the project.
Doug Russell
WWTP Main & Headworks Structure Project
Page 3
Staff considered bidding the project a third time with other upcoming projects at the WWTP, but
this very likely carries more risk than reward. First, the projects proposed at the WWTP are
specialized facility projects which will be completed by a structural contractor, rather than a
utility contractor. The prices we received from the utility contractors on this current bid would
most likely be marked up from a utility subcontractor to the structural prime contractor, making
the bids higher rather than lower. Secondly, there is no guarantee the upcoming projects will be
within budget and awarded. If we wait to bid this project and the other projects are not awarded,
then this project will also not be awarded, further delaying the construction. Finally, bidders who
placed bids on this project may be disenfranchised to bid on the project again because other
bidders can see their unit prices on this current bid as part of the public record. With three total
bidders on two rounds of bidding, losing any bidders is a large risk.
ACTION REQUESTED: Motion to award the base bid to NCC Neumann Construction Co. in
the amount of $1,704,420.00.
ALTERNATIVES:
Reject bids and direct staff to bid the project for a third time, or as otherwise suggested and
approved by the City Council.