CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of Bid 23-151, Civil and Duct Work, to Meade Electric Company Inc., for an amount not to exceed $1,797,246.50, and for a one-year term
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DEPARTMENT: Electric Utility
SUBMITTED BY: Brian Groth, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The Electric Utility (“Utility”) operates 16 substations which facilitate the delivery of energy to approximately 62,000 residential and commercial customers. To provide timely and reliable service to its customers, the Utility requires assistance from a qualified underground contractor to provide the labor and equipment necessary to perform capital and emergency maintenance work.
In previous years, the Utility issued a single bid for civil, duct bank, overhead transmission/distribution and underground transmission/distribution work to be completed by one contractor. However, due to the limited number of contractors who can provide all types of work, this year the bids have been divided into three separate solicitations.
In August 2023, the Utility issued Bid 23-151, Civil and Duct Work to seek a qualified contractor that could provide supplementary labor and equipment to support department projects.
DISCUSSION:
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Advertisement Date: |
08/10/23 |
Notices Sent: |
428 |
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Opening Date: |
08/29/23 |
Planholders: |
29 |
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Proposals Received: |
03 |
Bids were received from the following vendors:
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Vendor Name |
Proposed Cost |
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Meade Electric Company Inc. |
$1,797,246.50 |
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Electric Conduit Construction |
$2,866,672.17 |
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Henkels & McCoy |
$3,680,703.30 |
Three bids were received from qualified contractors. Meade Electric Company Inc. was determined to be the lowest responsive and responsible bid. The engineers’ estimate for this contract was $1,517,110.
Meade Electric Company Inc. was 18% over the engineer’s estimate. Electric Conduit and Henkels & McCoy were 89% and 143% over the engineer’s estimate respectively.
Meade Electric Company Inc. directly cited contractual increases within collective bargaining agreements as well as direct inflationary costs for the bid. Meade Electric Company Inc. has a shop in the area and is also familiar with the Naperville area and associated workloads which allowed for a bid lower than competitors.
This contract is for work large in size and/or outside the Utility’s scope. Projects that will be completed under this contract in 2024 include the Edward Hospital duct bank expansion, Tollway Substation expansion, manhole lid lowering/replacements, and residential and commercial service work and emergency maintenance projects.
The term of this contract is one year from January 1, 2024, to December 31, 2024, with two, two-year options to extend.
FISCAL IMPACT:
CIP#: Various
Civil and Duct Work is budgeted in the below Infrastructure account. This work is to complete a number of capital projects. While the 2024 budget is still being developed the Electric Utility has proposed a budget of $19,796,200 for capital infrastructure projects. This award is within the proposed budget for this expense.
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Account Number |
Fund Description |
Proposed Budget Amount |
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40251300-551502 |
Electric Utility |
$19,796,200 |
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