Commission concurs with NDDOT and awards HSIP intersection contract after bid came in 38% over estimate
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Summary
City staff recommended and the commission approved awarding Project 22‑84 (HSIP turn‑lane realignments) to Northern Improvement Company despite a low bid of $656,717.20—about 37.9% above the engineer's estimate—after a DOT bid analysis and a $471,507.40 grant toward construction were noted.
The West Fargo City Commission on Dec. 15 voted to concur with the North Dakota Department of Transportation and award the Highway Safety Improvement Program (HSIP) Project 22‑84—intersection turn‑lane realignments at multiple locations—to Northern Improvement Company.
City Engineer Jerry Wallace said the city was awarded a grant totaling $471,507.40 toward construction costs but the low bid for construction totaled $656,717.20, roughly 37.9% above the engineer's estimate. Wallace said a DOT bid analysis attributed the discrepancy to a few specialized items—signal and lighting systems—with a limited pool of contractors, and that rebidding carried no assurance of lower bids given market conditions.
Wallace recommended concurring with NDDOT and awarding the contract to Northern Improvement Company; commissioners acknowledged the premium but said the work is necessary for safety. Commissioner Olsen moved to approve the award and Commissioner Jorgensen seconded; the motion carried by voice vote.
Staff noted remaining construction and soft costs would be covered from the capital improvement sales tax fund beyond the grant award.