2011-27763 Reso RESOLUTION NO., 2011 -27763
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, REJECTING ALL BIDS RECEIVED
PURSUANT TO INVITATION TO BID (ITB) NO. 39-10/11, RIGHT-OF-WAY
INFRASTRUCTURE IMPROVEMENT PROGRAM — VENETIAN ISLANDS
BID PACKAGE 13C, AND AUTHORIZING THE ADMINISTRATION TO
ISSUE A NEW BID FOR SAID PROJECT.
WHEREAS, Invitation to Bid (ITB) No. 39 -10/11 was issued on July 12, 2011, with an
opening date of August 18, 2011; and
WHEREAS, Bidsync issued bid notices to 3,278 prospective bidders with 49 having
viewed the notice of which resulted in the receipt of seven (7) bids; and
WHEREAS, on September 29, 2011, a Technical Review Panel (TRP) convened to
interview the three finalists for the aforementioned project; and
WHEREAS, upon completion of the interviews, the TRP discussed its individual
perceptions of each prospective bidder's qualifications, experience, and competence to
score and rank the firms accordingly; Ric -Man Construction received all five first -place votes
for contract award; and
WHEREAS, the current funding for this project is $6,951,114 plus $855,169 for
construction contingency, for a total budgeted amount of $7,806,283; and
WHEREAS, the total base bid amounts submitted by all bidders exceeds the current
available funding, as reflected in the adopted Capital Budget for FY 2010/2011; and
WHEREAS, the Administration recommends that the Mayor and City Commission
reject all bids received pursuant to Invitation to Bid (ITB) No. 39- 10/11, Right -of -Way
Infrastructure Improvement Program — Venetian Islands Bid Package 13C, and authorize the
Administration to issue a new bid for said project.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Clerk hereby reject all
bids received pursuant to Invitation to Bid (ITB) No. 39- 10/11, Right -of -Way Infrastructure
Improvement Program — Venetian Islands Bid Package 13C, and authorize the
Administration to issue a new bid for said project.
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COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution Of The Mayor And City Commission Of The City Of Miami Beach, Florida, rejecting all bids received
pursuant to Invitation to Bid (ITB) No. 39- 10/11, Right-of-Way Infrastructure Improvement Program — Venetian Islands
Bid Package 13C, and authorizing the administration to issue a new bid for said project.
Key Intended Outcome Supported:
1 Ensure value and the timely delivery of a quality capital project.
Supporting Data (Surveys, Environmental Scan, etc.):
I The 2007 Community Satisfaction Survey noted that 89% of residents rated capital projects as "excellent" or "good." I
Issue:
I Shall the City Commission adopt the resolution?
Item Summary/Recommendation:
Currently the total project costs exceed the available funding for the neighborhood as of the adopted FY 2011/2012 —
2016 Capital Improvement Plan.
Staff has retained the services of an independent constructability consultant (Pinnacle Engineering & Development,
Inc.) to further identify value engineering options as well as determining a projected bid price for this project. The
Consultant's (Schwebke) probable cost estimate for the project was $7,493,687. Pinnacle's probable cost estimate
was $8,079,517 The Consultant's probable cost estimate was 13% less than the Ric -Man Construction base bid price
of $8,605,080 compared to Pinnacle's estimate which was 6% less than the Ric -Man Construction base bid price.
The CIP Office has conducted thorough research to identify potential value engineering opportunities to reduce the
cost of this project. Value Engineering analysis and techniques identify and evaluate design changes that could result
in increased functional value in the completed project while reducing construction and /or operating and maintenance
costs without affecting the required level of service. Value engineering, opportunities have been identified after
thorough research by the design and constructability team. Staff is confident that these value engineering opportunities
will mitigate the shortfall between the budget and low bid price. However, administration feels that the potential
savings from these value engineering modifications could be better realized prior to award of the contract, thus
minimizing the need to resolve value engineering modifications through the change order process.
Furthermore, due to the current construction delays with the Metro -Dade County, Venetian Causeway Right -of -Way
Project, award of the Venetian Islands Right -of -Way Project is not recommended at this time. After consulting with
Metro -Dade County staff, completion of the Causeway project is anticipated by May, 2012.
As a result, the City Administration recommends against award of the contract and furthermore recommends that CIP
pursue all value engineering opportunities in an attempt to re- advertise for bid in March of 2012.
( Advisory Board Recommendation:
Financial Information:
Source of Amount Account
Funds: $1,677,538 Proposed Future Stormwater Bonds (Not available to appropriate
1 until the bonds are sold)
OBPI 2 $188,384 Stormwater Bonds Phase I — 428 -2127
3 $549,962 Water & Sewer GBL Series — 420 -2127
LYIC 4 $1,082,820 Water & Sewer Gulf Breeze Series 2006 — 423 -2127
5 $519,644 Water & Sewer Bonds 2000 Series — 424 -2127
6 $1,610,921 99 G.O. Bonds Neighborhoods (B) — 376 -2127
7 $1,321,845 2003 G.O. Bonds Neighborhoods 384 -2127
8 $193,097 Stormwater Bonds Phase I — 428 -2127 (Contingency)
9 $111,000 Water & Sewer GBL Series — 420 -2127 (Contingency)
$210,884 Water & Sewer Gulf Breeze Series 2006 — 423 -2127
10 (Contingency)
11 $340,188 99 G.O. Bonds Neighborhoods (B) — 376 -2127 (Contingency)
Total $1,677,538 (Available for appropriation at the time that the bonds are sold)
Total $6,128,745 (Available for appropriation now)
Grand Total $7,806,283
City Clerk's Of ice Legi = lative Tracking:
Aaron Sinnes, ext. 68A
Sign - •
De • art nt Dir Asst Cit M s er /Chief Financial Officer Cit - • er
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AGENDA 7 F
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MIAMI B EAC H DATE ITEM -19"
m MIAMIBEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO Mayor Matti Herrera Bower and Members of the ity Commission
FROM: Jorge M. Gonzalez, City Manager
DATE: October 19, 2011
SUBJECT' A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, REJECTING ALL BIDS RECEIVED PURSUANT TO INVITATION
TO BID (ITB) NO. 39- 10/11, RIGHT -OF -WAY INFRASTRUCTURE IMPROVEMENT
PROGRAM — VENETIAN ISLANDS BID PACKAGE 13C, AND AUTHORIZING THE
ADMINISTRATION TO ISSUE A NEW BID FOR SAID PROJECT.
ADMINISTRATION RECOMMENDATION
Adopt the resolution.
KEY INTENDED OUTCOME
Ensure value and the timely delivery of a quality capital project.
FUNDING
Construction funding in the amount of $6,951,114 is available in the Capital Budget as well as
$855,169 for construction contingency.
SCOPE OF WORK
The work specified in this bid consists of the construction of the infrastructure and site works for
Venetian Islands Right -of -Way Improvements Projects (Rivo Alto, DiLido and San Marino
Islands). The work will include but not be limited to demolition, tree removal and relocation, site
preparation, earthwork, roadway re- construction and resurfacing, asphalt pavement installation,
valley gutter installation, sidewalk restoration, signage, ;pavement marking, water main
improvements, storm water improvements, lighting improvements, vegetation and planting within
the Venetian Islands Neighborhoods.
INVITATION TO BID
Invitation to Bid (ITB) No. 39 -10/11 was issued on July 12, 2011, with an opening date of August
18, 2011. The pre -bid conference was held on July 19, 2011. During the pre -bid conference,
prospective bidders were instructed on the procurement process and the information their
respective proposals should contain. Bidsync issued bid notices which resulted in the receipt of
the following seven (7) bids:
Bidsync issued bid notices to 3,278 prospective bidders with 49 having viewed the notice of
which resulted in the receipt of the following seven (7) bids:
i
Commission Memorandum — ITB -39- 10/11— Venetian Islands ROW Improvements
October 19, 2011
Page 2 of 4
• Lanzo Construction Co. of Florida
• Ric -Man Construction, Inc.
• GlobeTec Construction
• Southeastern Engineering Contractors, Inc.
• Ric -Man International, Inc.
• Ocean Bay Construction, Inc.
• Man Con, Inc.
Through the Procurement Division's review of each bid for responsiveness, there were two (2)
bidders disqualified or deemed nonresponsive to the ITB. These bidders were disqualified for
failing to respond to the City's request for additional information within the deadline provided.
Ric -Man International, Inc. failed to meet the 75% self - performance minimum requirement.
Ocean Bay Construction, Inc. failed to meet the minimum construction experience. Ric -Man
International, Inc. and Ocean Bay Construction, Inc. were the fifth and sixth lowest bidders at
$9,777,273.80 and $10,508,264.10 respectively.
The following table provides the total base bid prices of the five (5) responsive bids:
_ , F ' Total BaseBld
Ric -Man Construction, Inc. $8,605,080.06
Lanzo Construction Co. of Florida $8,646,940.00
GlobeTec Construction $8,773,262.50
Southeastern Engineering Contractors, Inc. $9,241,437.95
Man Con, Inc. $11,359,227.96
It is common practice for the City to initially consider a prospective bidder's sum of the total base
bid price and alternates; however, as noted in the unit price breakdown form, acceptance of any
alternates is contingent upon the City's discretion and funding availability. Even though Lanzo
Construction Co. of Florida provided the lowest base bid price including all alternates, Ric -Man
Construction, Inc. submitted the lowest base bid price without alternates.
On September 29, 2011, a Technical Review Panel (TRP) convened to interview each of the
three (3) prospective bidders for the aforementioned project !(Man Con, Inc. and Southeastern
Engineering Contractors, Inc. declined the City's request to interview). The TRP consisted of the
following individuals:
• Aaron Sinnes, District Construction Manager — South Beach Neighborhoods, CIP Office
• Jose Perez, Capital Projects Coordinator, CIP Office' ,
• Janette Arencibia Fernandez, Capital Projects Coordinator, CIP Office
• Jose Rivas, Civil Engineer III, Public Works Department
• Josiel Ferrer, Civil Engineer I, Public Works Department
In addition to the TRP members, Eleanor Carney, resident of the Venetian Islands was in
attendance as a non - voting participant to provide her expertise and knowledge of the project
both as a professional engineer and resident. The purpose of the meeting was for the TRP to
evaluate the responsive bidders based on the following criteria:
Commission Memorandum — ITB -39- 10/11— Venetian Islands ROW Improvements
October 19, 2011
Page 3 of 4
• 50 Points - Base Bid Price
• 20 Points - Presentation and interview of key personnel
• 10 Points - Risk Assessment PlanNalue Added Submittals
• 10 Points - Past Performance Evaluation Surveys
• 10 Points — Qualifications of Bidder
Upon completion of the interviews, the TRP discussed their individual perceptions of each
prospective bidder's qualifications, experience, and competence to score and rank the firms
accordingly. Ric -Man Construction received all five first -place votes for contract award as
indicated below:
ITB 39 -10111 Evaluation Committee Rankings
Fernandez Total Total
- Arencibia Ferrer Perez Rivas Sinnes Votes Scores
Ric -Man Construction 96 (1) 94 (1) 93 (1) 93 (1) 57 (1) 433 5
Lanzo Construction 86 (2) 86 (2) 92 (2) 89 (2) 51 (3) 404 11
Globetec Construction 83 (3) 75 (3) 84 (3) 79 (3) 52 (2) 373 14
ANALYSIS
As indicated above, the current funding for this project is $6,951,114 plus $855,169 for
construction contingency, for a total budgeted amount of $7,806,283. Currently, the total base
bid amounts submitted by all bidders exceeds the current available funding as reflected in the
adopted Capital Budget for FY 2010/2011.
Staff has also retained the services of an independent constructability consultant (Pinnacle
Engineering & Development, Inc.) to further identify value engineering options as well as
determining a projected bid price for this project. The Consultant's (Schwebke) probable cost
estimate for the project was $7,493,687. Pinnacle's probable cost estimate was $8,079,517.
The Consultant's probable cost estimate was 13% less than the Ric -Man Construction base bid
price of $8,605,080 compared to Pinnacle's estimate which was 6% less than the Ric -Man
Construction base bid price.
The CIP Office has conducted thorough research to identify potential value engineering
opportunities. Value Engineering analysis and techniques identify and evaluate design changes
that could result in increased functional value in the completed project while reducing
construction and /or operating and maintenance costs without affecting the required level of
service. Value engineering opportunities have been identified after thorough research by the
design and constructability team. Staff is confident that these value engineering opportunities will
mitigate the shortfall between the budget and low bid price. However, administration feels that
the potential savings from these value engineering modifications could be better realized prior to
award of the contract, thus minimizing the need to resolve value engineering modifications
through the change order process.
In the event that design document modifications are required in order to realize potential value
engineering savings, a proposed schedule is as follows:
1. Amendment of Consultant's contract: 30 days
2. Modifications to documents: 30 days
3. Agency review of revised documents: 15 days
4. Invitation to bid process: 60 days
1 I
Commission` Memorandum — ITB -39- 10/11— Venetian Islands ROW Improvements
October 19, 2011
Page 4 of 4
Furthermore, an additional factor that concerns staff in regards to awarding the contract at this
time, are the on -going delays with the construction phase of Miami -Dade County's Venetian
Causeway Right -of -Way Project. After consult with Miami -Dade County staff, completion of the
Causeway project is anticipated by the second quarter, 2012. Commencing construction with the
CIP Right -of -Way Project, concurrent with the County's Right -of -Way Project, would inevitably
create logistical impacts that would further impact the residents of the Venetian Islands.
As a result, the City Administration recommends 'against award of the contract and furthermore
recommends that CIP pursue all value engineering opportunities in an attempt to re- advertise for
bid in March of 2012.
CITY MANAGER'S REVIEW
After considering the review and recommendation of City staff, the City Manager er exercised his
due diligence and carefully considered the specifics of this ITB process. As a result of the
budget shortfall as well as the County's delays on the causeway project, the City Manager
recommends to the Mayor and City Commission to reject all bids received, pursue all value
engineering opportunities and reissue the ITB; upon revisions of the project's plans and
specifications.
CONCLUSION
The Administration recommends that the Mayor; and City Commission reject all bids received
pursuant to Invitation to Bid (ITB) No. 39- 10/11, Right -Of -Way Infrastructure Improvement
Program — Venetian Islands Bid Package 13C; and authorize the Administration to issue a new
bid for said project.
T:WGENDA\2011 \October 19 \Regular\ITB 39 -10 -11 - Venetian Islands ROW - MEMO.docx