City staff asks council to add rescind‑award for ADA project after contractor bonding failure

At the Sept. 2 City of Mesquite technical review meeting, a city staff speaker reported that the contractor awarded the ADA accessibility project declined to proceed after its bonding company would not issue bonds and asked the council to place a rescind-and-reaward item on the next regular agenda.

"Their bonding company said that they would not bond them on this project, and it was creating a financial hardship," said Travis Anderson, identified in the meeting as a staff member. Anderson said Melee Construction, the originally awarded contractor, formally requested to withdraw from the project and cited Nevada law. Anderson read from the statute provided to the council: "NRS 338.13895 subsection 3" and said the statute allows a public body, after awarding and before commencement, to rescind an award if the awardee is deemed unacceptable and to accept the next lowest responsible bidder.

Anderson said the next lowest bidder was Las Vegas Paving Corporation at $1,800,000; Melee's bid was described in the meeting as $1.6 million. He also told the council that the Regional Transportation Commission (RTC) will fully fund the project and that the city and RTC previously approved an interlocal contract for $2,000,000.

Council members agreed the underlying procurement matter was not properly agendized for full debate at the technical review meeting but moved to place a formal rescind-and-reaward item on a future agenda so the council can consider rescinding the notice of award to Melee Construction and potentially awarding the contract to Las Vegas Paving Corporation.

Why it matters: rescinding an award and reassigning a public works contract affects project cost, schedule and contractor responsibility. The staff cited a specific Nevada statute that governs the process for rescinding an award and selecting the next lowest responsible bidder.

What happens next: staff will prepare the formal agenda item and legal analysis for the next meeting, which will include the statute cited and the recommended next steps for council action.