HomeMy WebLinkAbout2009-06-22 09-224 ORDERCOUNCIL ACTION
Item No. 09 224
Date: June 22, 2009
Item/Subject: ORDER, Awarding Contract for Pickering Square Parking Garage Restoration
Project, Phases 3, 4, and 5
Responsible Department: Community & Economic Development
Commentary: On May 22, 2009, the City received four bids for Pickering Square Parking Garage
Restoration Project, Phases 3, 4 and 5. The total bid prices ranged from $690,502.24 - $1,805,039 —
see attached bid tabulation for breakdown of phases.
On June 15, 2009, the Finance Committee reviewed staff recommendation to award the contract
to Hascall & Hall of Portland, Maine, the low bidder, in the three-year amount of $690,502.24,
subject to annual appropriation. This recommendation was based on the low bid submitted and
the recommendation of Becker Structural Engineers, the design firm on this project, which
interviewed the references submitted by Hascall & Hall and inspected the work they performed
at the site of a similar project that they undertook for Unum Insurance in Portland. A copy of
Becker's review of bids is attached.
John Hanson, Executive Director of the Maine State Building and Construction Trades Council
appeared before the Finance Committee and asked the Committee to recommend the bid be
awarded to Contracting Specialist, Inc on the basis of their pre-existing relationship with the City
on the first two phases of the garage restoration, the quality of their work, their relationship with
the Trades Council and use of local workers, and the benefits they provide their workers.
Contracting Specialist bid was $729,734.12, $39,231.88 higher than Hascall & Hall.
After some discussion and a request for additional information, which will be available prior to
the Council meeting, the Committee voted to refer this item to the full Council without
recommendation.
Manager's Comments:
Associated Information:
Bid Tabulation/ IS4rr1
Budget Approval:
Legal Approval:
Introduced for
X Passage
First Reading
Referral
F�
Department Head
City Manager
Finance Director
WA=004'
Page _ of _
09 224
Assigned To Councilor D'Errico June 22, 2009
CITY OF BANGOR
(TITLE.) Order, Awarding Contract for Pickering Square Parking Garage Restoration Project, Phases 3, 4,
and 5
By the City Council of the City of Bangor.•
ORDERED,
THAT Deborah Cyr, Finance Director, is hereby authorized to execute a contract
with in the amount of for phases 3, 4, and 5 of
the Pickering Square Parking Garage Restoration project, subject to annual
appropriation of the required funding.
IN CITY COUNCIL
June 22, 2009 # 09-224
Motion made and Seconded for Passage
Motion Made and Seconded to Amend by __ ORDER
Substitution
Motion Doubted
Vote: 5-3 (TITLE,) Awarding t:nntraet fnr
Councilors Voting Yes: Bronson,
D'Errico, Hawes, Palmer, Stone PirkeringySquare Parking Garage
Councilors Voting No: Blanchette,
Nealley and Wheeler Rpstnratinn Prnject, Phase 3 4 and 5
Councilors Absent: Gratwick
Passed
Motion Made and Seconded for Passage as
Amended
t
Doubted
Vote: 5-3 Assigned to Councilor
Councilors Voting Yes: Bronson, D'Errico,
Hawes, Palmer and Stone -gh�
Councilors Voting No: Blanchette, Nealley
and Wheeler
Councilors Absent: Gratwick
Motion Made and Seconded for Passage as Amended
Doubted
Vote: 5-3
Councilors Voting Yes: Bronson, D'Errico, Hawes,
Palmer and Stone
Councilors Voting No: Blanchette, Nealley and Wheeler
Councilors Absent: Gratwick
Passed As Amended
-t;tV CITY CLERK
09 224
AMENDED BY SUBSTITUTION
Assigned To Councilor D'Errico June 22, 2009
CI'T'Y OF BANGOR
(TITLE.) Order, Awarding Contract for Pickering Square Parking Garage Restoration Project, Phases 3, 4,
and 5
By the City Council of the City of Bangor.•
ORDERED,
THAT Deborah Cyr, Finance Director, is hereby authorized to execute a contract
with Hascall & Hall in the amount of$690,502.24 for phases 3, 4, and 5 of
the Pickering Square Parking Garage Restoration project, subject to annual
appropriation of the required funding.
09 224
City of Bangor
Bid Tabulation - Pickering Square Garage Restoration: 3, 4 & 5
Bid Opening: 05/22/09
Summary
Hascall & Hall
Contracting
Specialists
Knowles
Industrial
Sullivan & Merritt
Description
Total Price
Total Price
Total Price
Total Price
Phase 3
218,325.29
266,374.96
294,103.50
602,388.00
Phase 4
284,710.73
271,053.19
309,740.30
748,227.00
Phase 5
187,466.22
192,305.97
229,013.00
454,424.00
Total Bid Price:
690,502.24
1 729,734.12
1 832,856.80
1 1,805,039.00
09 224
B E C K E R
structural e n g i veers, inc.
June 10, 2009
Ms. Debbie Cyr
Finance Department
City of Bangor
73 Harlow Street
Bangor, ME 04401
Subject: Review of Bids
Pickering Square Parking Garage
Restoration Phases 3, 4 and 5
Bangor, Maine
Dear Debbie:
At your request Becker Structural Engineers,
Inc (BSE) has reviewed the bids for the above
project. The bids were opened and read aloud at 2 PM on
May 22, 2009. The four bids received
were as follows:
Contracting
Knowles Industrial
Sullivan & Merritt
Description
Hascall & Hall
Specialists, Inc.
Services Corn.
Constructors, Inc.
Phase 3
$218,325.29
$266,374.96
$294,103.50
$602,388.00
Phase 4
$284,710.73
$271,053.19
$309,740.30
$748,227.00
Phase 5
$187,466.22
$192,305.97
$229.013.00
$454,424.00
Total Bid Price
$690,502.24
$729,734.12
$832,856.80
$1,805,039.00
Our opinion of the probable construction cost for Phases 3, 4 and 5 which included a 3% annual
inflation factor was $880,000.00. Reflecting the current favorable bidding climate, three of the
four bidders were below this estimate. This is good news for the City during these difficult
economic times.
The two low bidders are Hascall & Hall and Contracting Specialists, Inc (CSI). The difference
between their bids is $39,231.88. CSI has two years experience working in the Pickering Square
Parking Garage (Restoration Phases 1 and 2) and the quality of their work is well regarded with
the City as well as BSE. The City of Bangor and BSE do not have prior experience working with
Hascall & Hall.
As part of the bid form, the contractors were required to list five similar projects which
demonstrate a minimum of five years experience in parking garage restoration work and provide
telephone numbers of appropriate contacts. We called all of Hascall & Hall references including
Ed Mirecki of Aramark Facilities Services, John Peverada, Parking Manager for the City of
Portland and Paul Ureneck of the Boulos Property Management Company.
Mr. Mirecki said that Unum hired Hascall & Hall in 2007 to remove and replace the joint sealant
in their three-story parking garage in Portland. Built in the late 1990's the garage joints had
significant leaks. Mr. Mirecki noted that the project was successful and that he would not
49 224.
Pickering Square
Bid Review
Page 2 of 2
hesitate to hire Hascall & Hall again. The contractor had one unexpected rain storm which
damaged some of the sealant before it was fully cured. Hascall & Hall replaced the effected work
without question. They stood behind their work and were responsive to any issues brought to
their attention. We visited the Unum garage to review Hascall & Hall's work first hand. The
sealant appears to have been properly installed and to be performing well.
John Peverada had similar positive experiences with Hascall & Hall. He said he would hire them
"any day of the week". The more recent projects with the City of Portland have been on a
smaller scale. The largest concrete restoration project Hascall & Hall performed for the City was
the Fore Street Parking Garage in 1998, eleven years ago.
Paul Ureneck said Hascall & Hall did an excellent job on the Portland Public Market Parking
Garage Repairs in 2008.
We examined the breakdown of Hascall & Hall's bid and raised concerns to them about the low
unit pricing compared to the other bidders on their DT to DT connection, jumper plate welding
and joint sealant repairs. Hascall & Hall reviewed the bid documents again and said that they
were comfortable with their pricing. They felt that they were low on some items and high on
others and that the difference tended to average out over the duration of the project.
CSI offers several intangible benefits to the City of Bangor including a proven record of success
in the garage, a positive relationship with the City and the advantage of having one contractor
perform all of the repairs in the Pickering Square Garage. A single contractor would allow the
City to deal with one entity for all warrantee issues. Although $39,000 higher than the low
bidder, CSI's bid was still $150,000.00 below the construction cost estimate. If the City decided
that these intangibles justified the additional cost, we would certainly not disagree.
It is our opinion that the City would be well served to accept the bid from Hascall & Hall. They
received positive recommendations from past clients and our review did not find any obvious
deficiency which would warrant the disqualification of their bid.
We trust this addresses your concerns at this time. We look forward to working with Hascall &
Hall and the City on this project. If you have any questions, please do not hesitate to contact me.
Regards,
Becker Structural Engineers, Inc.
Jack A. Burgess, P.E.
09 224
To: Finance Committee
From: Debbie Cyr
Date: June 16, 2009
RE: Pickering Square Restoration Bid Phase 3-5
Background
On June 15, 2009, the Finance Committee reviewed staff's recommendation to
award the contract for Pickering Square Restoration Phases 3-5 to Hascall & Hall
of Portland, Maine, the low bidder, in the three year amount of $690,502.24,
subject to annual appropriation. This recommendation was based on the bid
submitted and the recommendation of Becker Structural Engineers, the design
firm on this project, which interviewed the references submitted by Hascall &
Hall and inspected the work they performed at the site of a similar project.
John Hanson, Executive Director of the Maine State Building and Construction
Trades Council appeared before the Finance Committee and asked the
Committee to recommend the bid be awarded to Contracting Specialists, Inc on
the basis of (1) their preexisting relationship with the City on the first two phases
of the garage restoration, (2) the quality of their work, (3) their relationship with
the Trades Council and use of local workers, (4) the benefits they provide to
their workers, and (5) the idea that lowest bid is not always the cheapest bid
(citing the issue with the Police Dept HVAC system). Contracting Specialists Inc's
bid of $729,734.12 was $39,231.88 higher than Hascall & Hall.
Issues discussed by the Committee included: maintaining a known relationship
versus selecting a contractor with whom we have no direct experience; providing
opportunities for the local work force; the City's purchasing regulations; affirming
that the final decision rests with the Council; the provision of benefits to workers;
and the location of the companies. At the conclusion of the discussion, the
Committee requested additional information and voted to refer this item to the
Council without a recommendation.
City Policy & Charter Provisions
The purpose of the City's Purchasing Regulations/ Policy is to provide for the fair
and equitable treatment of all persons involved in City purchasing, to maximize
the purchasing value of public funds in procurement, and to provide safeguards
for maintaining a procurement system of quality and integrity. Without quality
and integrity in the process, the City's ability to attract competitive bids would be
severely compromised and we could be open to complaints of cronyism, a
common criticism of governmental entities.
09 224
Per the City's policy, bids are evaluated based on the requirements set forth in
the invitation for bids, which may include criteria to determine acceptability such
as inspections, testing, quality, workmanship, delivery, and suitability for a
particular purpose. Those criteria that affect the bid price and that should be
considered in evaluation for award shall be objectively measurable, such as
discounts, transportation costs, and total or life cycle costs. The invitation for
bids shall set forth the evaluation criteria to be used. No criteria should be used
in bid evaluations that are not set forth in the invitation for bids.
In accordance with the City's Code, the Finance Committee is charged with the
review of bids and advisory comment to the City Council on proposed contracts
for the purchase of supplies, equipment and services and the construction of
public facilities. The Committee has the authority to award bids for under
$100,000 while those over that amount must be awarded by the City Council.
Pickering Square Restoration Bid Criteria
The following excerpts are from the Project Manual and Specifications for the
Pickering Square Parking Garage Restoration Phases 3, 4 and 5 invitation for
bids;
Award of Contract will be based on the following considerations:
• Proposed Cost of Work to be completed within available resources as
determined by the City
• Qualifications, experience and capabilities of the Contractor
• Past experience, references and quality of work previously completed by
Contractor
• Demonstrated ability to complete projects on time and within budget.
Owner reserves the right to reject any or all Bids, including without limitation,
nonconforming, nonresponsive, unbalanced or conditional Bids. Owner
further reserves the right to reject the Bid of any Bidder whom it finds, after
reasonable inquiry and evaluation, to not be responsible. Owner may also
reject the Bid of any Bidder if Owner believes that it would not be in the best
interest of the Project to make an award to that Bidder. Owner also reserves
the right to waive all informalities not involving price, time or changes in the
Work and to negotiate contract terms with the Successful Bidder.
In evaluating Bids, Owner will consider whether or not the Bids comply with
the prescribed requirements, and such alternates, unit prices and other data,
as may be requested in the Bid Form or prior to the Notice of Award.
Owner may conduct such investigations as Owner deems necessary to
establish responsibility, qualifications, and financial ability of Bidders,
09 224
proposed Subcontractors, Suppliers, individuals, or entities to perform Work
in accordance with the Contract Documents.
If the Contract is to be awarded, Owner will award the Contract to the Bidder
whose Bid is in the best interests of the Project.
Issues/Questions Raised at Finance Committee Meeting
Continue Existing Relationships Versus Establishing New Vendor
Relationships — This issue arises on a fairly regular basis. In fact, this same
concern was raised when the Phase 1 work was awarded to Contracting
Specialist Inc (CSI) in 2007. At that time, neither the City nor Becker Structural
had any experience with CSI, who was the low bidder by $31,308. The second
bidder was Knowles Industrial of Gorham, with whom Becker had significant
experience and had developed a level of trust and mutual expectation of the
quality of their workmanship, managers and superintendents. The primary
concerns with the bid of CSI were that they were new to the Maine market, the
experience of their work force was unknown, and that their pricing appeared to
be developed to ensure they were low bidder and that it did not necessarily
reflect the actual cost to complete the project. In the end and based upon the
City's and Becker's interview and reference process, there was no clear or
compelling reason to recommend the bid be awarded to anyone other than the
low bidder, CSI.
In the current bid process, as neither the City nor Becker has had any direct
experience with Hascall and Hall, a similar process was undertaken. All of
Hascall and Hall's references were contacted, and one particular project was
reviewed first hand by Becker. All of the references (Unum, City of Portland,
Boulos Property Management) were positive and all who were contacted
indicated their willingness to engage them again. Becker's on site review of
Hascall and Hall's work at the Unum garage indicated that the sealant they
installed was properly applied and performing well.
Quality of Work — The City is pleased with the quality of CSI's work. Based on
the references and the review of Hascall and Hall's work, nothing has come to
our attention that would cause us to question the quality of their work.
Use of Local Workers — To date, experience on this restoration work shows
that, on average, there are four laborers and a supervisor on the job site daily.
CSI indicated that there was also a mason on site most days as well. CSI has
pulled from the local work force for the laborer and mason positions, and the
supervisor/foreman has been a regular CSI employee from the Skowhegan area.
Hascall and Hall anticipates staffing the project with their own year round full-
time work force and supplementing with local workers as needed.
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Benefits Provided to Workers — Mr. Hanson indicated that workers employed
by CSI are provided with healthcare benefits at no cost to the employee and that
the entire cost of the healthcare program offered by Hascall and Hall falls to the
employees. CSI has indicated that when using local union workers, the workers
do receive credit towards their individual healthcare coverage through the union
contracts. Hascall and Hall indicated that they do provide healthcare coverage to
their employees and, until recently, that they provided this at no cost to the
employees. This year they have asked their employees to pay a small share of
the cost. In addition, Hascall and Hall provides the usual array of benefits seen
in businesses (uniforms, 401k contributions, holiday and vacation pay, etc).
Lowest Bid not Always Cheapest Bid — The ultimate cost of any project is
subject to any number of factors, many of which are unknown at the time of the
bid. In evaluating bid responses, the cost of goods or services is one of the
common criteria used for the majority of City contracts. While we have certainly
had low bid situations that have not turned out as anticipated, the vast majority
of our vendor relationships based on our bid process have been and continue to
be positive and productive.
Location of the Companies — CSI was established in Attleboro, MA in 1996
and maintains offices in Fort Lauderdale FL, Washington D.C. and Portland, ME.
Hascall and Hall is located in Portland ME and has been in business since 1948.
Summary
It is our belief that this memo provides the additional information requested
during the discussion of this bid at the recent Finance Committee meeting. As
always, the award of a contract of this magnitude rests with the full City Council.
It has always been the preference of the Council that staff make a
recommendation based upon the information available through the bid process
and subsequent investigation. Staff's recommendation is as follows.
Recommendation
Staff recommends that the contract for Pickering Square Restoration Phase 3-5
be awarded to Hascall & Hall of Portland, ME, the low bidder at $690,502.24
(attached please find the Award Recommendation, Bid Tabulation, and Becker
Structural Engineers Memo from the June 15"' Finance Committee Agenda).
While it has been the City's practice to consider cost as one among a number of
components of most bids, it is normally the basis from which bid evaluations
begin. Sound and verifiable reasons are required for staff to disqualify the low
priced offer in a formal bid situation. Examples of such reasons include: failure
09 224
to meet specifications; cost savings and efficiencies that result from conformity
of inventory; past poor experience with a company; availability of parts;
warranty concerns; delivery issue; etc. Throughout this process, the City has
not come across or been made aware of any concerns related to Hascall and
Hall's qualifications and capabilities related to this type of project, the quality of
their work, or their ability to complete projects on time and within budget. We
have concluded that the only discernible difference between the two lowest bids
is overall price.
The quality and integrity of the City's bid process is paramount in maintaining the
credibility the City has established in the overall market place over the last
twenty plus years. In a bid situation, there is only one selected vendor and,
frequently, a number of disappointed bidders. Through our honesty and
commitment to the process, we have continued to maintain long term productive
relationships with vendors even when they are not the recommended vendor. All
understand that the City will be in the marketplace again for similar or other like
services and that they will be treated fairly and equitably based on their
submission at any given time.