3. Bid Award - US Highway 93 Utility Relocation Project201 Is' Avenue East, P.O. Box 1997, Kalispell, MT 59903 Plione (406)758-7720— Fax (406)758-7831
www. kalispell,com
REPORT TO: Mayor and City Council
FROM: James C. Hansz, P.E., Director of Public Works/City Engineer
SUBJECT: Bid Award —US 93 Bypass Utility Relocation Project
MEETING DATE: December 21, 2009
BACKGROUND: This project will relocate water and sewer utilities that are in conflict with the
planned Phase 1 construction of the US 93 Bypass Project. A total of five companies bid this
work and they are listed in the attached staff memo. Following completion of the bid analysis,
which included a review of sub -contractor qualifications and experience, the Public Works
Department staff determined that the low bid of LHC, Inc. in the amount of $362,741.72 is
reasonable and appropriate for the work to be performed.
Staff recommends bid award to LHC, Inc. of Kalispell.
ACTION REQUESTED: AT CITY COUNCIL MEETING OF DECEMBER 21St
MOTION TO AWARD THE BID FOR RELOCATING WATER AND SEWER
UTILITIES IN CONNECTION WITH THE US 93 BYPASS PROJECT TO LHC, INC.
OF KALISPELL, MONTANA.
FISCAL EFFECTS: The construction cost of this project was outlined in prior Council
discussions regarding the City/MDT construction agreement and budget amendments for Water
and Sewer, and was preliminarily estimated at that time to be approximately $797,309.00.
Funding for the work is budgeted in the current year budgets for Water, Sewer and Westside TIF
based on that preliminary estimate of costs. A substantial portion of the actual construction cost
will be reimbursed to the City by MDT. Based on this bid, the reimbursement is estimated to be
approximately $272,056.00. Therefore, based on the low bid by LHC, Inc. there will be
substantial savings to the City totaling approximately $434,567.00 for the overall project costs
with a net cost to the City after MDT reimbursements of approximately $90,686.00.
ALTERNATIVES: As suggested by the City Council
Jane Howington
City Manager
Attachment: Staff memo of December 9, 2009
'i Fal -I -Me
December 9, 2009
To: James Hansz, PE, Public Works Director/City Engineer
From: Frank Castles, PE, Deputy Public Works Director
Re: U.S. 93 Bypass Utility Relocations
Bids for the U.S. 93 Bypass Utility Relocations were opened on November 24, 2009 .
The project tasks include relocation by horizontal directional drilling of a water main and
a sewer force main at the intersection of Foys Lake Road and the U.S. 93 Bypass. In
additon, a water main and a gravity sewer main will be relocated at the intersection of
U.S. Highway 2 and the U.S. 93 Bypass.
Bids were received from HDD, LLC, , LHC Inc., Nelcon, Inc., Sandry Construction
Company, Inc., and Western Municipal Construction, Inc. Western Municipal's bid did
contain qualified bid items. All bids were in order, with the exception of Western
Municipal as noted, and contained the required Bid Bond. The bid analysis is as follows:
CONTRACTOR
HDD, LLC, - KALISPELL
LHC, INCORPORATED - KALISPELL
NELCON INC. — KALISPELL
SANDRY CONSTRUCTION — BIGFORK
WESTERN MUNICIPAL — BILLINGS
TOTAL BID PRICE
$ 499,150.00
$ 362,741.72
$ 499,930.00
$ 466,755.10
$396,691.00
2011" Avenue East, P.O. Box 1997, Kalispell MT 59903 Phone (406)758-7720 — Fax (406)758-7831
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The Engineers Estimate for this project was $797,309.00. The low bidder's (LHC, Inc.
bid is approximately 55% below the engineers estimate. The Engineers Estimate was
based on recent bid activity (2009) within the state of Montana. The second lowest
bidder was approximately 9% higher than the low bidder (a good spread for a project
of this magnitude). These low bids may be attributable to the current economic
conditions in the construction industry.
A total of $797,000 has been budgeted for the U.S. 93 Bypass Utility Relocations.
Reimbursement of construction costs totaling approximately $ 272,056 will be provided
by the State.
LHC, Inc., listed Advanced Boring Specialists, Inc. (ABS, Inc.), Vancouver, Washington,
as the subcontractor to be used for the horizontal directional drilling. Staff made
adequate investigations to determine that ABS, Inc., did have the equipment and
personnel to install the horizontal directional drilling in accordance with the approved
construction documents.
Staff recommends the bid for the U.S. 93 Bypass Utility Relocations be awarded to LHC,
Incorporated, in the amount of $ 362,741.72.
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