Spring City receives wide range of sewer bids; apparent low bidder offers about $2.7 million

Spring City officials and their consultant reviewed the results of a public bid opening for the sewer bypass project between Mount Pleasant and Spring City, saying the apparent low bid was substantially below the city’s engineering estimate and below other bidders.

Sunrise representatives reported that Intellix submitted the apparent low base bid at about $2,699,223, with alternates bringing that package closer to $3.0 million. Other bidders submitted amounts ranging from roughly $3.1 million to over $6.3 million. The city’s engineering estimate for construction was roughly $4.6 million and the project’s construction budget within authorized funding was about $3.9 million, which included a 10% contingency.

Why it matters: the size of the bid spread raises both opportunity and risk — the lower apparent low bid could create contingency funding for additional scope, but staff said the city must confirm a low bidder is both responsive (meets bid specifications) and responsible (has capacity and track record). Sunrise and city staff said they had done background checks and reference calls on the apparent low bidder and found generally positive references, though the firm is relatively new and some items in the low bid (notably trench backfill unit pricing) were materially lower than other offers.

Sunrise said that three firms submitted bids near the low end and that Intellix’s cited projects include large industrial infrastructure work in Cedar City (the Iron Springs/Commerce Crossing area). Sunrise said it spoke with Intellix’s project manager and superintendent by video call to ask whether anything material had been missed; the bidder acknowledged one trench-backfill line item looked low and said it would honor the quoted unit price.

City staff outlined technical details that will affect award decisions: the contract is unit-price based and the trench backfill item was bid at $10 per cubic yard by the low bidder while other bidders quoted $18–$25 per cubic yard. Staff said the contract documents allow the contractor to request unit-price reconsideration if quantities differ from the estimates by more than 15%, and any such request would be reviewed against market prices and the contract terms. The bid documents also include three bid alternates: a set of add-ons that would be included if funding allows, which is how the council could expand the project using the contingency created by a low base bid.

Staff said the city will prepare a draft recommendation and a notice of award if the council supports proceeding. The notice of award serves as formal evidence to the contractor’s bonding company and typically appears on the council agenda for approval; staff said they expect to bring the recommendation to the next council meeting but did not report a final award at this work session.

What city officials flagged - Background checks: staff reported no “red flags” showing imminent bankruptcy but noted the apparent low bidder has only a few years of corporate history and relied on experienced industry personnel. - Bonding: staff reminded the council that bonds cover the contract value and provide a remedy if a contractor defaults, but that bonding claims and re-procurement can be costly and delay completion. - Material/time risk: staff said suppliers for sewer pipe and standard materials are well-known and submittals will be reviewed prior to construction, but lead times and mobilization logistics will need monitoring given the contractor may stage equipment away from Spring City.

Key details from the bid recap - Apparent low base bid (Intellix): about $2,699,223; with alternates roughly $3.0 million total. - Next-low bids reported: roughly $3.1M, $3.8M, $3.9M, $4.2M, $4.5M, $4.8M and a high bid over $6.3M. - Engineering estimate: approximately $4.6M. - City construction budget with contingency: approximately $3.9M. - Trench-backfill estimated quantity: about 8,000 cubic yards; unit-price dispute point: $10/yd3 (low bidder) vs. $18–$25/yd3 (others). Quantity changes above 15% may permit unit-price re-evaluation per contract.

Next steps: staff and Sunrise will prepare a recommendation letter and notice of award for council consideration, include required lending/loan documentation for the city’s financing partner, and provide the council with the bidder investigation and submittal packages for review before any contract execution.