Council cancels negotiations on Rachel at the Well surround after bids spike, staff to re‑solicit

The City of Fort Myers council voted Feb. 18 to cancel negotiations with Newberg Construction and re‑solicit the surround repairs for the Rachel at the Well project after the contractor's re‑bid came in substantially higher than the independent cost estimate.

Pete Beeney, the city's public works director, told the council that the project was a FEMA‑funded repair and that the independent cost estimate (ICE) from Tetra Tech informed the original solicitation; the city received only one bidder on two separate solicitations. Beeney said the city offered a counterproposal to the contractor but the contractor declined. "We came to the council and asked the ability to negotiate... When I presented that counteroffer, I was told there's not enough profit in it," Beeney said, summarizing staff's account of the talks.

Contractor Tyler Neubert of Newberg Construction defended his price and described the detailed remedial sequence his firm proposed, including cutting channels, installing reinforcing steel and rebuilding elements where necessary. "You can't just dig straight down... then you've got a core drill at each location to put the steel in," Neubert said in explanation of the work that underlies his estimate. He also said his team included conservators and a structural engineer and that those obligations and warranty liability affect cost.

Architect Jeff Mudgett and others urged caution: Mudgett said structural engineers engaged by the city found no evidence of the types of failures that would require full reconstruction of the arches, and said the market — with high demand for contractors — helps explain elevated prices. "I would not recommend approval of $815,000," Mudgett said. Staff described an internal counteroffer of $300,000 plus a $50,000 owner contingency.

Council members pressed staff on whether FEMA would reimburse the city and whether re‑soliciting would produce better responses. Beeney said the city could front funds and seek reimbursement but warned that FEMA might not approve a given contract if the procurement record is not in order. After extended discussion about scope, RSMeans unit estimates and the fairness of the market price, council voted to cancel negotiations and proceed under the approach staff recommended in the agenda packet.