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Council clarifies contingency rules, approves 46 kV transmission materials awards totaling about $1.28M
Summary
The council approved awards for 46 kV transmission line materials to three vendors and added explicit language limiting contingencies to quantity increases rather than scope or price increases above 10%.
The Fairhope City Council approved awards for materials for the 46 kV transmission line project and added clarifying language addressing contingency allowances and rebidding requirements.
Council approved awards to three vendors for the base bid and alternates: Gresco Utility Supply, Tri State Utility Products, and WESCO International. The total award including contingencies for the base bid materials was presented as $802,345.36; for Alternate 1 the total with contingency was $474,448.02, as read into the record.
During the discussion council and staff added two clarifying sentences to the resolution: contingency allowances are limited to quantity increases and not to changes in scope of work or price increases, and any price increase or scope change in excess of 10% of the bid amount must be subject to additional bidding requirements. Councilmember Marcus read the language aloud for the record and the council approved the amended resolution.
Staff explained that contingencies were included to cover quantity differences (for example, buying 15 units instead of 12) and not to permit open‑ended price or scope increases without returning to competitive procurement. The council approved the amended resolution and the awards after a motion and second; one staff member noted the contingencies on some line items exceeded 10% because of quantity uncertainty.
The council’s action authorizes the procurement of materials under the clarified contingency rules and requires additional competitive bidding if price or scope changes exceed the 10% threshold the council adopted.
