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April 30, 2002
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SUBJECT: |
Rejection of Bid No. F0202-47 for Modification to the Power Generation Facility Drain Lines at the Water Pollution Control Plant (RTC#02-156) |
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REPORT IN BRIEF |
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Request is made that Council reject the only bid received in response to Invitation for Bids No. F0202-47 for the Power Generation Facility (PGF) Waste Heat Exchanger Drain Reroute Project (Public Works Project No. PR-95-02(I)). |
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BACKGROUND |
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The PGF Waste Heat Exchanger Drain Reroute Project includes enlarging the heat exchange system to increase the amount of excess heat that can be removed from the PGF system, thus improving efficiency and reducing heat- related maintenance and repairs to the engines. This requires modification of piping, valves, and appurtenances for new heat exchanger drain lines and header to the primary tank. Bid specifications were prepared by Public Works Engineering and Purchasing staff. The Notice Inviting Bids was published in The Sun on March 6, 2002. The bid package was distributed to Bay Area Builders Exchanges and broadcast to potential contractors through the DemandStar by Onvia public procurement network. Ten contractors requested bid documents. One sealed bid was received and publicly opened on March 20, 2002. |
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DISCUSSION |
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The only bid received was from D. W. Nicholson Corporation of Hayward in the amount of $60,645. This bid greatly exceeds the engineer's estimate of $34,100 as well as the funding available for this project. Staff recommends rejecting this bid and rebidding the project at a later date following a review and possible revision of bid specifications. |
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FISCAL IMPACT |
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A review and possible revision of bid specifications may result in better competition and more favorable bid pricing for the City. However, the actual fiscal impact cannot be determined at this time. |
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RECOMMENDATION |
| It is recommended that Council reject the bid received from D. W. Nicholson Corporation for the Power Generation Facility Waste Heat Exchanger Drain Reroute Project (Project #PR-95-02(I)) and authorize staff to rebid this project at a later date. |
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Prepared by: |
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Reviewed by: Mary J. Bradley Director, Finance
Marvin Rose |
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Approved by: Robert S. LaSala City Manager |
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