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Staff recommends rejecting airport water/sewer bids after $402,000 price gap
Summary
Staff reported a significant bid discrepancy for airport water/sewer work — a low bid near $679,000 versus another near $1.1 million — and recommended rejecting all bids and rebidding to keep the project under the $1,000,000 threshold; council discussed bonding and procurement implications.
Staff told the council that bid tabulations for water and sewer installation at the airport showed a low bid of about $679,000 and the next-lowest bid of nearly $1.1 million, a difference of roughly $402,000.
"...the 1 contractor the low bid contractor was at 679,000 and some change, and then the next 1 was a little over ... almost $1,100,000. So that basically is $402,000 there," staff said, and recommended that the council reject all bids and rebid the project to try to keep it below a $1,000,000 threshold.
Council discussed statutory bonding requirements and whether the city could go to the next bidder if the low bidder could not obtain a bond; staff said all bidders are eligible for review but bonding availability influenced the recommendation to rebid. No final bid award was recorded at the meeting; staff plans to rebid the project.
