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New Richmond rejects noncompliant low bid, awards underground construction contract to next lowest bidder
Summary
Council rejected an abnormally low underground-construction bid that omitted hydrovac trenching and awarded the contract to the next lowest bidder, TD&I, for $96,205 after council debate about bid compliance and procurement procedure.
The New Richmond City Council voted to reject a low bid for contracted underground construction that staff and the utility commission found noncompliant and to instead award the contract to the next lowest responsible bidder, TD&I, for $96,205.
Staff told the council that one bidder submitted an unusually low bid (reported around $54,000) but omitted a price for hydrovac trenching and declined to accept any cap on hydrovac costs; that omission created an "open-ended" contract exposure. After discussions with staff and the utility commission, the recommendation was to reject that low bid as not meeting bidding specifications and to move forward with TD&I, whose $96,205 bid was close to the original project estimate.
Council members debated procurement fairness and whether a bidder that failed to meet bid specifications should be allowed to remain in the process. One councilor asked whether the low bidder should have been disqualified outright; legal counsel explained there is a statutory process to select the lowest responsible bidder and to address bid errors and that the city must ensure the selected bidder meets specifications.
A motion was made to reject Q3's bid without a cap and approve the TD&I contract for $96,205; the motion carried on roll call. Staff and council noted the record will reflect rejection of the first low bid and award to TD&I.
