On August 22, 2000, Council awarded a contract to L & B Engineering, the lowest responsive and responsible bidder in response to Invitation for Bids #F9906-85 for the reconstruction of curbs, gutters, sidewalks and driveways for a one-year period with an option to extend the contract for an additional year (RTC 00-298).

The contract for the reconstruction of curbs, gutters, sidewalks and driveways differs from most construction contracts in that it is impossible to exactly define the work to be done in advance of contract execution. Instead, the contract establishes pricing for a variety of related tasks with estimated quantities. Actual quantities are determined in the field. Historically, quantities have also been increased during the contract term to take advantage of CDBG funding that becomes available.

This was the first time the Purchasing Division processed this recurring contract since assuming responsibility for public works contracts in January 2000. Purchasing staff was unaware of its differences from other public works contracts and included a specific dollar amount of $563,980 in its recommendation for contract award (total of all line item extensions, based upon estimated quantities).

Public Works staff did not notice the change in handling of the contract, that resulted in an actual not-to-exceed amount being placed on the contract; and decisions affecting the type and quantity of tasks continued to be made in the field without knowledge of, nor regard to, their impact on the contract amount authorized by Council. This problem was exacerbated by the fact that $200,000 in CDBG funding became available for the construction of handicap curb ramps.

The end result is that L & B Engineering was directed to perform additional tasks, the cost of which exceeded the Council award amount by $278,171. The work has been satisfactorily completed, and the amount is now due the contractor.

Total final cost to the City for the annual reconstruction of curbs, gutters, sidewalks and driveways is $842,151.