Council Refers Rejected Low Bid for Oak Hills Lift Station Back for Rebid After SEB Certification Lapse
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Summary
After hearing from Judd's Brothers and Public Works, the Omaha City Council denied an appeal of a rejected bid and referred the Oak Hills Lift Station project back to Public Works for rebid because a subcontractor lacked current SEB certification; the motion passed 5-0.
Judd's Brothers Construction asked the Omaha City Council to overturn the rejection of its low bid for the Oak Hills Lift Station replacement, arguing the disqualification was caused by an unintended lapse in a subcontractor's small-emerging-business (SEB) certification.
Kevin Steele, representing Judd's Brothers Construction, said his firm submitted the low bid and intended to subcontract work to Bam Bam Construction. Steele said Bam Bam's SEB paperwork had lapsed and that the subcontractor "did...forgotten to, resubmit the paperwork, which they did immediately once they knew that they had lapsed." He urged the council to waive the irregularity to save taxpayer dollars and keep the low bidder on the project.
Public Works staff and city attorneys told the council the law requires SEB documentation be completed and approved before bid opening. Heather Tippi Pierce, Public Works, said the relevant section of the city code "specifies that the documentation for contractors and subcontractors must be completed and approved by the human rights and relations department prior to the date of bid opening." City staff noted Purchasing had also rejected the other bidders and that the project will be rebid.
Jeffrey Bloom, City of Omaha, added that Bam Bam Construction "has applied and is currently under consideration" but was not an approved SEB participant at the time bids were submitted and thus could not satisfy the documentation requirement.
Council Member Harding moved to refer the matter back to the Public Works Department for rebid rather than overturn the rejection; the motion was seconded and approved unanimously, with the council recording a 5-0 vote to deny the appeal and allow the project to be rebid. The council's action leaves open the opportunity for any bidder, including Judd's Brothers and Bam Bam once certified, to submit a new bid when the project is reissued.
The council’s decision followed discussion of statutory timing requirements and prior precedent that documentation must be approved before bid opening. City attorneys advised that referral to the department for rebidding is a legally acceptable course. The project will be reissued for bids; no award was made at the meeting.
