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HomeMy WebLinkAboutReso 1999-19493 RESOLUTION NO. 19493 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA REJECTING APPARENT LOW BID FOR THE "I- 805/TELEGRAPH CANYON ROAD INTERCHANGE IMPROVEMENTS IN THE CITY OF CHULA VISTA, CA. (STM- 304)" PROJECT DUE TO NON-WAIVABLE IRREGULARITIES tN THE BID PROPOSAL SUBMITTED; AND AWARDING CONTRACT TO THE LOWEST RESPONSIBLE BIDDER ARCHER WESTERN CONTRACTORS, LTD., IN THE SUM OF $2,539,785,85; AND APPROPRIATING $950,444.63 FROM FUND 621, TRANSPORTATION DEVELOPMENT FUND, TO CIP PROJECT STM-304 WHEREAS, on March 24, 1999, the following five bid proposals were received by the Director of Public Works for the "l-805/Telegraph Canyon Road Interchange Improvements in the City of Chula Vista, CA (STM-304)" Project: Contractor Bid Amount 1. Nicholas Grant Corporation, San Diego $2,466,651.60 2, Archer Western Contractors, Ltd., San Diego ~2,539,785.85 3. Wier Construction Corporation, Escondido $2,675,090.87 4. Asphalt Inc. $2,876,840.81 5. Scheidel Contracting and Engineer Inc. $2,956,507.05 WHEREAS, the apparent low bid proposal in the amount of $2,466,651.60 was submitted by Nicholas Grant Corporation; and WHEREAS, during the review of the bid proposal, numerous items were found to have been improperly completed and/or contained several discrepancies which included incorrectly listing the unit costs, incorrectly identifying a subcontractor, leaving a bid item blank and incorrectly summing the Grand Total for the construction cost; and WHEREAS, on April 1, 1999, Archer Western Contractors, Ltd,, sent a letter to staff protesting NichoLas Grant Corp.'s bid as non-responsive due to numerous discrepancies; and WHEREAS, Chula Vista City Charter Section 1009 provides that the City Council may reject any and all bids presented and may waive any defects in any bid to the extent it finds at a public hearing held for that purpose that it is necessary to do so for the benefit of the public; and WHEREAS, waivable defects are generally considered inconsequential deviations from the bid specifications, however, generally waivers should only be allowed if it would not give that bidder an unfair competitive advantage over other bidders; and WHEREAS, the Bid Proposal for this project states that "proposals may be rejected if they show any alterations of form, additions not called for, conditional or alternative bids, incomplete bids, erasures, or irreqularities of any kind" and further states that "in the case of Resolution 19493 Page 2 disparity in the proposal between the lump sum or unit bid price shown in figures and words, the unit bid price or lump sum amount as stated in words shall prevail or take preference; and WHEREAS, the bid submitted by Nicholas Grant Corp. contained approximately 40 omissions or irregularities including failure to include sums stated in words and discrepancies in the sum stated in words and the surn in nurnbers; and WHEREAS, the initial Grant Total stated a bid of $2,466,651.60 which did not equal the amounts listed in the total column (numbers) or the amount listed in the "Items with Unit Price Written in Words; and WHEREAS, staff's calculation was $2,453,016.30, a difference of $13,635.30; and WHEREAS, after an objection was made by Archer Western Contractors, Ltd., to the responsiveness of Nicholas Grant Corp.'s bid, Nicholas Grant Corp. submitted a third calculation of $2,446,016.30 on April 12, 1999; and WHEREAS, allowing Nicholas Grant Corp. to change its bid after the bidding deadline has occurred would, in staff's opinion, give Nicholas Grant Corp. an unfair competitive advantage over the other bidders in that they would have additional time to spend on its bid over and beyond the time limit set by the City for the acceptance of bids; and WHEREAS, additionally, Nicholas Grant Corp. 's failure to include in nurnerous instances the prices in words would give them additional time to prepare its bid (including securing subcontractor bids) if the City were to allow them to change the bid which was not afforded to the bidders who completed their proposals in conforrnance with the City's bid specifications, thus constituting, in staff's opinion, an unfair competitive advantage; and WHEREAS, because rnany of the errors made by Nicholas Grant Corp. are clerical in nature, Nicholas Grant Corp. had a legal remedy not available to other bidders of being able to withdraw its bid without forfeiting its bid bond, which is also an advantage over other bidders who are tied to their bids as they were submitted; and WHEREAS, the failure of Nicholas Grant Corp. to properly respond to the bid specifications renders its bid non-responsive and staff therefore recommends that Nicholas Grant Corp.'s bid be rejected; and WHEREAS, the second low bid was submitted by Archer Western Contractors, Ltd. and their bid proposal fully complied with all bid specifications but was above the engineer's estimate of $2,217,316.00 by $322,469.85 or 14.5 percent; and WHEREAS, the difference in Grand Totals between the low bidder, Nicholas Grant Corporation, and the second low bidder, Archer Western Contractors, Ltd. is $73,134.25 or 3 percent which difference is minor based on the overall cost for the project; and WHEREAS, staff believes a fair bid was received from Archer Western Contractors, Ltd. and therefore recomeqends awarding the contract to Archer Western Contractors, Ltd., San Diego. Resolution 19493 Page 3 NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby reject the apparent low bid as non-responsive due to non-waivable irregularities in the bid proposal submitted. BE IT FURTHER RESOLVED that the City Council does hereby award the contract for the construction of the "F805/Telegraph Canyon Road Interchange Improvements in the City of Chula Vista, Ca. (STM-304)" Project to the lowest responsible bidder, Archer Western Contractors, Ltd., in the amount of $2,539,785.85. BE IT FURTHER RESOLVED that the sum of $950,444.63 is hereby appropriated from the unappropriated balance of Fund 621, Transportation Development Funds to CIP Project STM-304. BE IT FURTHER RESOLVED that the Mayor of the City of Chula Vista is hereby authorized and directed to execute said contract on behalf of the City of Chula Vista. Presented by Approved as to form by i Resolution 19493 Page 4 PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 8th day of June, 1999, by the following vote: AYES: Councilnaembers: Davis, Moot, Salas and Horton NAYS: Councilmernbers: None ABSENT: Councilnqembers: Padilia ABSTAIN: Councih'nembers: None S~Mayo'~r'~ ATTEST: Susan Bigelow, City Clerk STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) CITY OF CHULA VISTA ) I, Susan Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 19493 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 8'h day of June, 1999. Executed this 8'h day of June, 1999. Susan Bigelow, City Clerk