LTC 441-2019 INDIAN CREEK DRIVE PHASE III BID RESULTS SHOW SIGNIFICANT COST SAVINGS MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gav
Jimmy L. Morales, City Manager 441-2019
Tel: 305-673-7010 , Fax: 305-673-7782
NO. LTC # LETTER TO COMMISSION
TO: Mayor Dan Gelber and Members • the City •mmission
FROM: immL. Morales, i Manager
J y ty C ,'
DATE: August 8, 2019
SUBJECT: INDIAN CREEK DRIVE PHASE III :ID RESULTS SHOW SIGNIFICANT COST SAVINGS
In November 2018, the City received bids for the Indian Creek Phase III project. Upon review of these
bids the lowest, responsible, and responsive bidder provided a total cost of approximately $22 Million - a
sum that City staff believed not to accurately reflect the project scope. Therefore, at the January 2019
commission meeting, the commission resolved to reject all bids in question and resolicit the project. The
new solicitation culminated with a significant increase competition and approximately $8.4 Million in costs
savings.
After rejecting the previous bids, Public Works, CIP, and Procurement worked collaboratively to enhance
the contract documents and identify cost savings within the project. As part of their value engineering,
staff performed a detailed plan review that resulted in key cost saving initiatives. A few of the most pivotal
revisions include:
1. Conducting a voluntary one-on-one industry review meeting with potential contractors to address
possible concerns — additionally, contract documents were revised to address these construction
related comments and promote a higher quality finished product
2. Conducting a voluntary site visit with interested bidders, during which the engineer of record
provided an overview of the project scope and technical requirements
3. Minimizing the number and complexity of bid alternatives to facilitate the estimating and bid
process for contractors
4. Elaborating on the temporary drainage and maintenance of traffic requirements for the project to
reduce the perceived risk for potential bidders
Redesigning structural elements within the project to reduce unnecessary costs, including
eliminating costly permanent sheet piling
On Tuesday July 2nd, the City of Miami Beach opened bids for the resolicited Indian Creek Phase III
project. A total of 7 bids were received. The lowest bid provided an approximate cost of $13.6 Million for
the overall project (Indian Creek Drive from 25th St. to 41 St.) and $8.8 Million for Option B (Indian Creek
Drive from 25th St. to 35th St.)
Following receipt of these bids, the commission resolved to award the project to Ric-Man Construction
Florida for an amount not to exceed $13.6 Million. This award is contingent upon finalizing ongoing
negotiations with FDOT to obtain additional funding from the state for their share of the project. City staff
is expecting a formal agreement from FDOT within three months and anticipates commencing the project
by November 2019. The anticipated construction duration is approximately two years. Staff will continue
to work closely with stakeholders, during the entire process, to ensure a successful project execution.
JM/ / PJ/LBM