Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Wastewater Gmp topic
No spam. Unsubscribe anytime.
Council rejects $467 million GMP for wastewater plant, opens path to rebid or renegotiate
Summary
Council voted not to accept a guaranteed maximum price (GMP) of $467 million for Phase 1 of the wastewater treatment plant after staff and council described the bid as far above budget and raised oversight and procurement concerns.
Sioux City council members voted July 13 not to accept a guaranteed maximum price submitted by KeyWitt/ Kiewit Infrastructure for Phase 1 of the wastewater treatment plant facility improvement project after the GMP arrived far above the project's budget. Public Works Director Tom Pickle told the council the GMP came in at $467,000,000 against a budget of $285,000,000 and described committee procurement and oversight steps taken during design and preconstruction.
Council members praised staff for securing contract "off ramps" that give the city options, and one councilmember told the body the city has an opportunity to reject the GMP and rebid. Tom Pickle said rejecting the GMP would likely add roughly two months to the project schedule but kept the project within the federal consent-order deadlines; he said the city may negotiate with the contractor during a 30-day window before termination and potential rebid. Council then moved and passed a resolution not accepting KeyWitt's submitted GMP for Phase 1.
The council directed staff to pursue negotiations to reduce price or return termination paperwork and a plan for re-procurement; staff said they already have design work and permits and estimated six to eight weeks for a new bid period if rebid.
