CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of Bid 25-246, Gravel, Sand and Aggregate Materials, to Boughton Materials, Inc. for an amount not to exceed $528,871 and for a 15-month term
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DEPARTMENT: Water Utilities
SUBMITTED BY: Darrell Blenniss, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
In August 2025, staff issued Bid 25-246, Gravel, Sand, and Aggregate Materials, to solicit a qualified vendor to provide coarse and fine aggregates for use in various Water Utilities, Electric Utility, and Department of Public Works construction and repair projects. These materials are essential for projects such as underground utility work, duct bank bedding, street repairs, shoulder dressing, construction of public facilities, and winter operations (e.g., traction during ice events).
DISCUSSION:
Advertisement Date:
8/6/2025
Notices Sent:
252
Opening Date:
8/27/2025
Planholders:
16
Proposals Received:|1010|
Bids received from the following vendors:
Vendors Name
Proposed Cost
Boughton Materials
$528,871.00
Staff Estimate
$535,858.50
Only one bid was received from Boughton Materials with a proposed cost of $528,871, which is 1.3% below the City's estimate. No bid forms were submitted by other vendors, and the results varied.
To develop a reasonable cost estimate, the Water Utilities conducted a market analysis by comparing current pricing with cost trends over the past several years. Based on this analysis, staff applied a 6% escalation to 2024 figures, consistent with data from the Bureau of Labor Statistics (BLS) and industry reports. According to the BLS, the Producer Price Index (PPI) for construction sand, gravel, and crushed stone rose approximately 6% in the Chicago area from August 2024 to August 2025.
Previously, Bid 25-186 was rejected due to excessive pricing. The pricing submitted for Bid 25-246 is 24.4% lower than the rejected bid, indicating a significant market correction.
Staff considers the submitted pricing to ...
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