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Committee recommends awarding $5.79M Westside Interceptor rehab to Michael's Trenchless; award contingent on DNR funding confirmation
Summary
The committee recommended awarding the Westside Interceptor sewer rehabilitation contract to Michael's Trenchless Incorporated at the apparent low bid of $5,793,172; staff said city budget and DNR clean water fund principal forgiveness leave a funding gap and they have requested an increase from DNR, making the award contingent on that confirmation.
Committee members voted to award the Westside Interceptor sewer rehabilitation contract to Michael's Trenchless Incorporated, the apparent low bidder at $5,793,172. Staff (Joe) told the committee two bids were opened; the higher bid was $7,363,975. He said staff reviewed bidder documentation and recommended the low bidder contingent on confirmation from the Wisconsin DNR of increased clean water fund assistance.
Joe reported the city's current project cost estimate in the budget was roughly $4,745,000 with a $1,170,000 contingency (about $5.915M total). He said the DNR's approved project amount including principal forgiveness was just under $5 million; staff submitted a request to the DNR for an increase after consulting the DNR representative. Joe said it is not unusual to request increases but committee members should expect the award could be contingent on DNR confirmation prior to the council meeting.
A committee member asked whether the city had worked with Michael's Trenchless before; staff said the company had bid on other projects but staff did not recall direct past use. The committee discussed the roughly $1.5 million gap between the apparent low bidder and the next bidder; staff said the engineer's estimate and bid extensions to allow subcontractor pricing were among factors behind the pricing.
On a motion to award the contract to Michael's Trenchless in the amount of $5,793,172, the committee voted to approve the award. Staff noted the award recommendation is contingent on receiving additional information from the DNR about available funding.
