2007-26448 Reso
RESOLUTION NO. 2007-26448
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. 09-06/07 FOR CONSTRUCTION SERVICES FOR
THE SOUTH POINTE PARK IMPROVEMENTS PROJECT, AND AUTHORIZING
THE ADMINISTRATION TO ISSUE A NEW BID FOR SAID PROJECT
WHEREAS, the City requires the services of a construction firm for the South Pointe
Park Improvements Project (Project); and
WHEREAS, the City's proposed Project is based upon the Basis of Design Report
prepared by the City's AlE Consultant, Hargreaves Associates, Inc., and approved by the
City Commission on July 27,2005; and
WHEREAS, Invitation to Bid (ITB) No. 09-06/07 for Construction Services for the
South Pointe Park Improvements was issued on October 13, 2006 , with a pre-bid meeting
held on October 30, 2006 (the ITB); and
WHEREAS, RFP Depot issued notices to 1,155 prospective bidders, resulting in 47
bidders requesting the ITB document; and
WHEREAS, BidNet issued notices to 66 prospective bidders, resulting in 18 bidders
requesting the ITB document; and
WHEREAS, both bid notification systems resulted in the receipt of two (2) bids from
the following contractors:
. A2 Group, Inc.;
. Magnum Construction Management Corporation (MCM); and
WHEREAS, on November 27,2006, the Capital Improvement Projects Office (CIP)
provided a recommendation for aT echnical Review Panel (Panel), which was approved by
the City Manager consisting of the following individuals:
. Thomas Mooney, Preservation & Design Manager (Chair);
. Fernando Vazquez, City Engineer;
. Tim Hemstreet, Assistant City Manager;
. Kevin Smith, Park & Recreation Director;
. Mario Gonzalez-Pola, Senior Capital Project Coordinator;
. Eric Yuhr, Assistant Fire Chief; and
WHEREAS, on January 3, 2007, the Panel convened, and was provided with a
presentation on the Project by Jamie Maslyn and Gavin McMillan of Hargreaves
Associates, Inc.; and
WHEREAS, the Procurement Division provided past performance evaluation
surveys on the two (2) bidders; and
WHEREAS, following its review of the bids in response to the ITB and in accordance
with the advisory criteria set forth in the ITB, the Panel ranked the bidders as follows:
. 1st Ranked - A2 Group, Inc.;
. 2nd Ranked - Magnum Construction Management Corporation (MCM); and
WHEREAS, as part of the Administration's on-going due diligence and review,
designees of the City Manager and City Attorneys Office met on January 10, 2007, to
review issues raised by MCM Corp. (in a letter to the City dated 1/8/07) with regard to A2
Group, Inc.'s responsiveness to the ITB; and
WHEREAS, during the course of this process, the ITB (in particular the Minimum
Requirements thereto), and the respective bidders' responsiveness thereto were reviewed
again, and it was concluded that both bidders were not responsive as a result of failure to
comply with certain of the Minimum Requirements of the ITB; and
WHEREAS, accordingly, and in light of the finding of non-responsiveness by both
A2 Group, Inc and MCM Corp., the City Manager hereby recommends that the City
Commission hereby reject all bids received pursuant to the ITB, and that a new bid be
issued.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission accept the recommendation of the City Manager pertaining to the rejection of
all bids received pursuant to Invitation to Bid (ITB) No. 09-06/07 for Construction Services
for the South Pointe Park Improvements Project, and authorize the Administration to issue
a new bid.
PASSED and ADOPTED this .J.Z!llday 0 J nu
,2007.
ATTEST:
~\r~
CITY CLERK
Robert Parcher
(
AYOR
David Dermer
(T:\AGENDA\2007\jan 1707IRegulanS-SPTPK-Q2-RESO.01.17 .07.doc)
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
~#
COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution Rejecting All Bids Received Pursuant to Invitation To Bid (ITB) No. 09-06/07
for Construction Services for the South Pointe Park 1m rovements Pro'ect.
Issue:
Shall the Ci Commission ado t the Resolution?
Item Summa IRecommendation:
It was the intent of the City to secure General Contractor that could provide all labor, material,
equipment, supervision, mobilization, demobilization, survey, overhead and profit, bonds,
insurance, permits and taxes to complete the work to the full intent as shown or indicated inion
the Bid Documents in reference to ITB No. 09-06/07 for the Construction Services for the South
Pointe Park Improvements Project.
The evaluation process used by the City for this bid is one of "Best Value Procuremenf', meaning
that the City will, in addition to price, will consider past performance on previous contracts, Risk
Assessment Plans for this ITB, Qualifications of Personnel proposed, and presentation and
interview of Contractor's personnel.
The Technical Review Panel ranked the 2 bidders accordingly:
1) A2 Group, Inc.
2) MCM Corp,
As part of the Administration's due diligence in confirming that both bidders were responsive to
all the bid's requirements, the Administration in coordination with the City Attorneys Office has
evaluated both bidders and their responses and has determined that both bidders are not
responsive to the "Minimum Requirements" of the bid.
ursuant ITB-09-06/07,
Advisory Board Recommendation:
I N/A
Financial Information:
Source of Amount Account Approved
Funds: 1
D 2
3
4
aBPI Total
Financial Impact Summary:
islative Trackin
JMG
ce MIAMI BEACH
Agenda Item R~ I
Date.-1-1l-0,?
lD
-
MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
FROM:
Mayor David Dermer and Members of the City Commission
Jorge M, Gonzalez, City Manager ~...r ~
January 17,2007 ()
TO:
DATE:
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. 09-06/07 FOR CONSTRUCTION SERVICES FOR
THE SOUTH POINTE PARK IMPROVEMENTS PROJECT, AND AUTHORIZING
THE ADMINISTRATION TO ISSUE A NEW BID FOR SAID PROJECT.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
ANALYSIS
It was the intent of the City to secure a General Contractor that could provide all labor,
material, equipment, supervision, mobilization, demobilization, survey, overhead and profit,
bonds, insurance, permits and taxes to complete the work to the full intent as shown or
indicated inion the Bid Documents in reference to ITB No. 09-06/07 for the Construction
Services for the South Pointe Park Improvements Project.
ITB PROCESS AND CONTRACTOR EVALUATION
On October 13,2006, the City's Procurement Division issued Invitation to Bid (ITB) No. 09-
06/07 for Construction Improvements for the City of Miami Beach South Pointe Park. The
purpose of this ITB is to obtain bids from qualified General Contractors to provide all labor,
material, equipment, supervision, mobilization, demobilization, survey, overhead and profit,
bonds, insurance, permits and taxes to complete the work to the full intent as shown or
indicated inion the Bid Documents,
A non-mandatory Pre-Bid meeting was held on October 30, 2006 at the City of Miami Beach
City Hall. Prospective bidders were provided information as to the Scope of Work, the
Evaluation Criteria, Best Value Procurement Process, and of all required documentation to
be submitted with their bid.
RFP Depot issued bid notices to 1,155 prospective bidders, resulting in 47 bidders
requesting the ITS documents. Additionally, the bid was also provided to prospective bidders
by Sid Net, which issued bid notices to 66 prospective bidders, resulting in 18 bidders
requesting the ITS document. Both bid notification systems resulted in the receipt of 2 bids
from the following Contractors:
. A2 Group, Inc.
. Magnum Construction Management Corporation (MCM)
Commission Memorandum
Invitation to Bid (ITB) No. 09-06/07 for Construction Improvements for the City of Miami Beach
South Pointe Park (South Beach)
January 17, 2007
Page 2 of 19
On January 3,2007, a Technical Review Panel convened, in accordance with the City's Best
Value Procurement process, to evaluate the technical qualifications of the two bidders. The
bidders were evaluated and the panel recommended A2 to the City Manager as the most
qualified bidder.
On January 5, 2007, the Procurement Division received two (2) Public Records Request
letters from MCM Corp., please find attached letters labeled Attachment A.
On January 8, 2007, the City Manager's office received a bid protest letter from MCM Corp.,
attached is the letter received labeled Attachment B.
On January 10, 2007, the City Manager's office received a bid protest letter from A2 Group,
Inc., attached is the letter received labeled Attachment C.
As part of the Administration's on-going due diligence and review, designees of the City
Manager and City Attorney's Office met on January 10, 2007, to review issues raised by
MCM Corp. (on a letter dated 1/8/07) with regards to A2 Group, Inc. responsiveness to the
ITB. During the course of this process, the ITB (in particular the Minimum Requirements
thereto) and the respective bidders' responsiveness were reviewed again and it was
concluded that both bidders were not responsive as a result of failure to comply with the
Minimum Requirements of the ITB.
The Minimum Requirements of the ITB, as amended by Addendum NO.3 to the ITB, dated
November 16, 2006, require that the successful bidder meet the following criteria:
"General Contractor certified in the State of Florida with a minimum of five (5) vears
experience as a General Contractor. Bidder to have performed a minimum of three
(3) Projects within the last 5 years, with a minimum of eight (8) million dollars in
construction costs, with emphasis on heavy civil, ecological sensitive environments
and landscaping construction for beautification of Parks, and/or Beach/Bay Front
related construction projects."
In examining this issue over the past few days, it is important to understand that the issue of
non-responsiveness is directly related to the specific projects submitted by the two bidders
and how those projects compare against the Minimum Requirements in the bid, The two
bidders are most likely capable of building the job; however, the projects submitted c1ear1ydo
not meet the Minimum Requirements of the bid; and, in accordance with State law, the
bidders must be declared non-responsive to the ITB, Since there are no responsive bidders,
all bids should be rejected.
Attached are both letters prepared by the City Attorney's Office to MCM and A2 Group in
response to their bid protest letters, see Attachment D). Accordingly, and in light of the
finding of non-responsiveness by both A2 Group, Inc. and MCM Corp., the City Manager
recommends that the City Commission reject all bids received pursuant to the ITB, and that a
new bid be issued, Based on the issues identified in reviewing the issue of responsiveness,
staff intends to modify the Minimum Requirements for the subsequent bid to reduce the
emphasis on the type of project, i.e., park beautification or beachlbay projects, and to focus
better on the disciplines involved, i.e., civil and landscaping,
Commission Memorandum
Invitation to Bid (ITB) No. 09-06/07 for Construction Improvements for the City of Miami Beach
South Pointe Park (South Beach)
January 17, 2007
Page 3 of 19
ON-GOING ACTIVITIES
Should a new bid be issued, staff anticipates that such a process can conclude in time for a
City Commission award at the March 14, 2007 meeting. As previously reported to the
Commission, the City still has the option of proceeding with The Related Group ("TRG") to
construct the project. The purpose of the current bid process was to verify the pricing that
TRG had submitted to the City fall of 2006. It was decided at that time, however, to have
TRG commence with early works construction to prepare the site for the contractor that will
build the project. These activities, such as demolition of the current buildings and pavilions,
are scheduled to proceed in late January or early February, The facilities have already been
vacated by City staff, The demolition sites will be graded and sodded as a temporary
measure until new construction commences. Staff is also evaluating the possible need for
portable toiletsltemporary facilities in the interim months until construction commences, The
City has also taken delivery of approximately 6,000 cubic yards of beach quality sand, which
is currently being stored near the 46th Street parking lot.
The initial pricing provided by TRG and the pricing that the City received pursuant to this ITB
process are comparable, with a variance between all prices of five (5%) percent or less.
While it is possible to proceed with TRG, an appropriate agreement should be presented for
consideration by the City Commission. The earliest this agreement could be presented for
Commission approval is the February 14th meeting, although it is possible that it could slip to
March 14th or later. It also needs to be noted that TRG has indicated that the City's standard
form construction agreement is inappropriate for them to execute as it places considerable
liability on TRG that was not agreed to as part of the settlement agreement where they
offered to perform the work at their cost. A separate "at-cost" agreement will need to be
negotiated for this purpose, and, it should be noted, that the City would be taking on liability
that it typically passes along to the contractor that builds the job,
For the timing reasons articulated above, I believe that it is appropriate for the City to
conclude a subsequent bid process prior to making a decision as to who should construct the
project.
CONCLUSION
The Administration recommends approval of the attached Resolution rejecting all bids
received pursuant to Invitation to Bid (ITB) No. 09-06107 for Construction Services for the
South Pointe Park Improvements Project.
Attachments
T:IAGENDA\2007\jan1707lRegularIS-SPTPK-02.Memo.Rejecl 1.doc
Commission Memorandum
Invitation to Bid (ITB) No, 09-06/07 for Construction Improvements for the City of Miami Beach
South Pointe Park (South Beach)
January 17, 2007
Page 4 of 19
ATTACHMENT A
-----------..--...- _.----
l;NGINQ;RS &< G!;N!;RAL CONTRACTORS
- ---...-- ..._.---------. ..---.-. ..- --
January 5"', 2007
VIA FAX & E-MAIL
Roman Martinez
Senior Procurement Specialist
1700 Convention Center Drive
Procurement Division, 3'" Floor
Miami Beach, FL 33139
Ref: Construction Improvements for the City of Miami Beach South Polnte Park
(South Beach) ITB # 09-06/07
Dear Mr. Martinez,
In accordance with FS 119 this will serve as MCM's Public Records request for the
following documents.
1. All communications to and from The City of Miami Beach and the bidder A2 Group Inc.
(A2) including all communications and packages submitted to the City by A2 in response
to the RFP as well as its presentation to the selections committee
2. All communications and or minutes or memoranda inciuding worksheets relative to all
phases of the review of the RFP including but not Iimlled to each reviewers grading of
the respective bidders.
3. Any and all documents and communications relating to the make up of the Selections
Commillee that reviewed the bids, including but not limited to the communications
between whoever selected the commillee members and each of the respective
members.
This request is time sensitive. Most respectfully, we request that these documents be provided
as soon as possible and at any rate prior to a racommendation being made by the Manager to
the Board of Commissioners.
In compliance with the Freedom of Information Act, MCM hereby tenders payment for all costs
related to this request Our offices will be contacting each of you shortly to coordinale delivery.
If you have any questions. please do not hesitate to contact the undersigned.
Thank you in advance for your cooperation and prompt attention to this meller.
pha Ie Rodriguez
Contract Compliance Department
CC- Clerk of the City
City Allorney, Jose Smith
&201 S"117~\' STRf:l;T' sum; 200. MIAMI, t=LORlDA' ~143
PCIONl; 305.541.686<;>. .........mcmc01'p.com. t=AX 305.541.9771
Commission Memorandum
Invitation to Bid (ITB) No. 09-06/07 for Construction Improvements for the City of Miami Beach
South Pointe Park (South Beach)
January 17, 2007
Page 5 of 19
ATTACHMENT A
C!K il[[~.lc,; (,. CCI',,[R;\L CO\JTPACTOf-2'..;
January 5"',2007
VIA FAX & E.MAIL
Roman Martinez, Senior Procurement Specialist
1700 Convention Center Drive
Procurement Division
3'" Floor
Miami Beach, FL 33139
Ref: Work experience of A2 Group Inc.
Dear Mr. Martinez,
In acoordence with FS 119 this will serve as MCM's Public Records request for copies of
the following documents.
1. All contracts that have ever existed between the City of Miami Beach and A2 Group Inc.
including but not limited to the contract to Provide Program Management Services to
Manage Construction Projects for Facilities and Parks.
2. All addendums and change orders to the contract between the City of Miami Beach and
A2 Group Inc for providing Program Management Services to manage construction
projects for facilities and parks.
3. All requisitions for payments from A2 Group Inc. for work performed under the contract
for Program Management Services to Manage Construction Projects for facilities and
Parks.
4. All documents which would disclose whether A2 Group Inc was ever paid any funds
related to the design or construction of the South Pointe Park.
5. All surety bonds that served to guaranty the performance and or payment of A2 Group
Inc's work for the city of Miami Beach.
This request is time sensitive. Most respectfully, v.e request that these documents be provided
as soon as possible and at any rate prior to a recommendation being made by the Manager to
the Board of Commissioners on the award of the South Pointe Park Project.
In compliance with the Freedom of Information Act. MCM hereby tenders payment for all costs
related to this request. Our offices will be contacting each of you shortly to coordinate delivery.
If you have any questions. please do not hesitate to oontact the undersigned,
Thank you in advance for your anticipated considerations.
Sincerely.
MCM Corp,
Stephanie Rodriguez
Contract Compliance Department
CC- Clerk ofthe City (cltvclertU1ilmiamibeachft.aov - Fax: (305)673-7254)
City Attomey, Jose Smith Oosesmith@miamibeachfl.gov-Fax: 305-673-7002)
(/201
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LOa.'
/. .33143
,:C~).:;.ql .650<). 'X'~/'X' .mcrncc.'l"':J.CO('""1 .
30:).~4iQn\
Commission Memorandum
Invitation to Bid (ITB) No, 09-06/07 for Construction Improvements for the City of Miami Beach
South Pointe Park (South Beach)
January 17, 2007
Page 6 of 19
ATTACHMENT B
I;NGINQ;;RS &.. <*Nf:RAL CONTRACTORS
~,'y:>e::....
January S", 2007
Jorge Gonzalez, City Manager
City of Miami Beach
1700 Convention Center Dr.
Miami Beach FI 33139
Ref: Recommendation for award - Construction Improvements for the City
of Miami Beach South Pointe Park (South Beach) ITB # 09-06107
Dear Mr. Gonzalez,
As you may know the bid packages of MCM Corp (MCM) and A2 Group (A2) on the subject
Project were opened on January 3rd, 2007; and even though MCM's bid was iower than A2's by
at least $415,9561; the selection committee ranked A2 higher than MCM; There are various
reasons wtIy we believe the ranking was flawed, however, we need not address these at this
time. This writing addresses only those reasons why, most respectfully, we believe you should
find A2's bid was not responsive and therefore MCM should be found to be the lowest,
responsible and best value bidder.
1) A2 Group did not meet the qualifications of the bid and should be thenotore
disqualified.
Ie) the RFP addresses the p.....quatillclltions requirements in pertinent part as
follows:
Qualifications of Bidders: Bids shall be considered only from finns normallv
eneaoed In oerformine the tyee of work soeclfied within the Contract
Documents. Bidder must heve adeauate organization, facilities, eouioment.
and personnel to ensure prompt and efficient service to City.' .
C, PAST PERFORMANCE', Each Bidder shall orovide oroof of successful
oroiect comoletions for oroiects comoarative in size and comDiexity as
outlined on this bid.
Related Project Experience: (Minimum Requirements)
, . . . Bidder to have eerfonned a minimum of three oroiects within the last 5
years. raneina from 510 to $15 Million construction cost. . ..4 (The sinale
underline is oart of the bid document
1 The $415,956 figure Includes $150,000 for aecurfty that A2 Group warned the city in its risk #4; in Itts regIIfd, it shoukl be noted
that fI\J. 1iSt8d eleven I'illk.s under ft$ RiSk Assessment Pllin pIIrt of the bid, for which It wamecl the CIty might n.... to pay upwIIn:tI of
mllaans of additionsl dollars mote, 1rdl.Mi!ng the sum of SS.SOO pllr day for fi'*Y day of acMrse ~ tNs if eontrary b the
terms of lhe contr8Ct wnk:tl mllkeS it d~ that there W'l1l be no additional c;anpenselion for weather delay&. (This IS further
Jlddreased below as an addllic;lnal reaSOl'1 fnt disqualifying A2 Grou~):
: At pile- 27: articH 11.
) At page 42
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Commission Memorandum
Invitation to Bid (ITB) No. 09-06/07 for Construction Improvements for the City of Miami Beach
South Pointe Park (South Beach)
January 17, 2007
Page 7 of 19
Page 2 of 2
(b) A2's felled to comply with the minimum qualification requirement that it mullt have
auccessfUlly completed a minimum of three projectll of comparative size and
complexity .s outlined on this bid
i) AZ's very submission admits none of the three projects submitted to prove
compliance have been completed; Project #1 is scheduled to be completed on June,
2007: Project #2 and #3 still have no completion date as they are in the design
portion of the contract; AZ Group specifies the completion dale as "TBO' (To Be
Determined).
Ii) The budget for the project wes $15 million: but the minimum requirements state the
projects must range from $10 to $15 million; all three project listed by AZ fa~ In this
measure. Project #1 is for $7.2 million; and Projects #2 & #3, even though having
overall budgets of $80 million and $20 million respectively, the portion of the contract
of AZ Group in these projects amount to a mere $6.25 million and $1,95 million
respectively.
(c) Only one of the Contrects submitted by A2 to evidence its experience "in
performing the type of work specified within the Contract Documents" quailfies as
comparative work.
i) The work undertaken by AZ Group in projects #2 and #3 was not in the cepacity of a
general contractor, as required for the present project, but as a CEI (Construction
Engineering and Inspection Services), In fact this is not comparative of the work of a
General Contractor as required for the South Pointe Park Project where the contract
requires the General Contractor to "furnish all of the labor, materials, equipment
services and incidentals necessary to perform all of the work described in the
Contract Documents and related thereto for the Project.' As expressly set forth in
ARTICLE 1 - SCOPE OF WORK (see page 80)
ii) In this regard it is somewhat embarrassing; but we believe AZ made a signifIcant
misrepresentation when tt listed itself as the Prime on Project #2 and Project #3
leading the reader to believe that AZ was acting in the capacity of the Prime General
Contractor on these projects as necessary to comply with the past performance
experience, In fact. even though listing itself as the prime for projects #2 and #3, AZ
Group leaves the value of the work performed on these project blank - another
reason to disqualify AZ Group.
(d) A2 Group should not be qualified to bid 88 it is not . "firm normally engaged in
performing the type of work specified within the Contract Documents" 88 required
by the RFP.
I) AZ Group may have all the qualities as a CEI, and that may be the reason why the
selection committee may have ranked them higher than MCM, especially since as
we understand it, AZ Group presently is working as consultant for the City of Miami
Beach Parks department and may have even consulted in the design of the present
project, a matter which If true might lead to an acldllional basis to reject their bid; ll.I!!
the fact of the matter is that AZGrouo has little if anv excerience as a oeneral
contractor.
~ At page 158-
6'201 S'II 701;h ~ . 2nd R.OOR' MIAML R.ORIDA " 33143
Pl-lC)Nf; 305.541.0000' vww.mcmcarp.com . 'i'-IV( 305.541.9771
Commission Memorandum
Invitation to Bid (ITB) No. 09-06/07 for Construction Improvements for the City of Miami Beach
South Pointe Park (South Beach)
Januarv 17. 2007
Page 2 of 2
(1) A search for construction permits issued to the A2 Group as a General
Contractor has disclosed that no Construction Permits have ever been issued to
the A2 Group in Dade County or the City of Miami Beach.
Ie) A2 Group should not be qualified to bid as it does not have the adequate
equipment required. The RFP states: the "Bidder must have adeauete
organization, facilities, eaui"",ent end personnel to ensure prompt and efficient
service to City",
i) A2 Group admits it owns no equipment and all ollha equipment lor the project will be
rantad or sub-contracted
2) The bid of A2 Group Inc. should also be deemed unresponsive because It qualified Its
bid.
(a) By advising the City that it would charge over $5,000 per day for adverse weather and
$150,000 lor project security in a lump sum contract. A2 Group improperly qualified the
bid and should therefore be deemed not responsive.
Based on the above, most respectfully we submit that A2 Group should be deemed not qualified
to enter a bid and its bid should be deemed not responsive,
If you would like additional information on the reasons we deem the selection process was
flawed, we request that you schedule another meeting to re-interview the bidders and permit a
more completa presentation and an opportunity for A2 to respond to this request for the
selection committee and or the procurement department to reconsider its qualifications and
responsiveness.
Thanking you in advance for your anticipated considerations, we remain,
rely
C
CC Gus Lopez, CPPO, Procurement Director
Roman Martinez, Senior Procurement Specialist
City Clerk
City attorney
6101 <:NI 7ot.~ STRl*T . ?nJ r=LOOR' M"'-ML r=LORI[lA . 331LP
P\-IQNl; 305.541.0000' ...........mcmcorp.com.!'AX 305.541,<;>771
Commission Memorandum
Invitation to Bid (ITB) No, 09-06/07 for Construction Improvements for the City of Miami Beach
South Pointe Park (South Beach)
January 17, 2007
Page 9 of 19
ATTACHMENT C
A
...."""'"
5Q01SW.74"COllIt,SI*103
.......1.FIlJtide,3315!5
TEL: tJ05j668-893Q!
FAX {3115}666-MSI
I'IIID-I_.abauD.ccmJ
...... ........
PO.ao.43-2310
Sou1t\MIlml.FL ,33243.2310
January 10, 2007
OflLNIDO"""'"
4303ViM11rldRoecl.SMlF3
on.ndo, Fk:I'i>>32811
TEL: (..on 44H610
FAX {40T)o<<7.fi659
STATE OF FLORmA uCEM1E8
E.a...clOO7338
C<lC-O'5".
C...,.......
Mr. Jorge Gonzalez
City Manager
City of Miami Beach
1700 Convention Center Drive
Miami Beach. Florida 33139
Dear Mr. Gonzalez,
This letter serves as our response to MCM's letter dated January 8, 2007 regarding
"Recommendation for award - Construction Improvements for the City of Miami Beach
South Pointe Park (South Beach) ITB#09.06107." We would like to formally refute the
perceived issues raised in that letter and convey the reasons we believe A2 was favored.
1 (a) Minimum Requirement
. The related project experience requirement is incorrectly stated as $10.15 million.
In addition, MCM has not accurately reflected the related project type or
emphasis based on the modifications of addendum 3, Revised text follows:
Minimum Requirements: General ContrackJr certi{ied in the State of Florida with a
minimum of five (5) years experience as a General ContrackJr. Bidder kJ have
performed a minimum of three (3) projects within the last 5 years, with a minimum of
eight (8) million dolwrs in construction cost, with emphasis on heavy civil, ecological
sensitive environments and landscaping construction {or beautification of Parks,
and lor Beach I Bay Front related construction projects.
1 (b) (i) Minimum Requirement
. Based on the revised language of Addendum 3 and the comments in the pre.
proposal meeting, A2 provided three relevant projects with relevant services and
emphasis were performed. The language does not state "completed" but rather
"performed," which implies an action that follows established patterns or
procedures or fulfills agreed-upon requirements and often connotes special skill
such as construction management. Although not mandatory, please note that
MCM did not attend the pre-proposal conference.
. MCM has erroneously described that A' specified completion dates as "TBD" (to
he determined). This is false and the accurate completion dates are reflected in
the data sheets.
1 (b) (ii) Minimum Requirement
. A" GrouP, Inc. . 1IOO18W1~Court."'10S.1I"'.FL>>1Sl1 . r...(3e5)..... F_(3OI).......... ~.11www.2aro"aenrnl .
Commission Memorandum
Invitation to Bid (ITB) No. 09-06/07 for Construction Improvements for the City of Miami Beach
South Pointe Park (South Beach)
January 17, 2007
Page 10 of 19
City of Miami Beach
January 10. 2007
Page 2
. MCM confirms their lack of knowledge concerning the Addendum 3 revisions to the
minimum requirements addressed above. As to the value stated in the each project
sheet, please note the information requested is the "contract award amount" not the
current contract value. The current contract values, for all projects, exceed
$8,000,000.00 minimum requirement. Projects 2 and 3 clearly are identified in the
project sheets as CEI (Construction, Engineering and Inspection) projects. A' has not
misrepresented its role ofthese projects.
In accordance with Florida Statutes, when providing CEI services A' is responsible to
inspect all materials entering into the work in accordance with the plans and
specifications. A' must provide contract administration, project management,
scheduling and quality assurance by maintaining detailed accurate records of the
daily operations and of significant events that affect the work. This includes
monitoring and inspection of contract work and work zone traffic control plan. As
part of the CEI role, A' is responsible for the administration of the construction
project and the health, safety and welfare of the public. A CEI performs all the
administration and supervisory duties and roles performed by an at-risk contractor.
In summary, the CEI role in civil project is tantamount to a construction manager.
The State of Florida and the Orlando Expressway Authority has tasked A' to perform
CEI services on projects valued at over '$125 million, surely A' is qualified to perform
the required construction services on the $22 million South Pointe Park.
1 (c) (i) Comparative Work
. We have already responded to MeM's point on the aforementioned 1 (b) (ti). As to
the scope of work identified in Article 1, A' routinely performs at-risk construction
services and thereby furnishes labor. materials, equipment and incidentals.
1 (c) (ii) Significant Misrepresentation
. We disagree that A' has misrepresented their role on any on the relevant projects,
Please note that A' clearly identified itself as the CEI of the respective projects,
1 (d) (i) Consultant for Parks Department/General Contractor ExperiencelPermits
. MCM incorrectly assumes that A' is a consultant working for the City of Miami
Beach Parks Department and that we may have been consulted on the deeign of the
South Pointe Park project. A' has never provided professional services to the City of
Miami Beach Parks Department and has definitely not provided design services for
the South Pointe project.
. MCM falsely states that "A2 Group has little if any experience as a general
contractor." A' has been providing general contracting services since 1996 to the
federal, state and local governments. In addition to being a General Contractor, A' is
a licensed Underground Utility Contractor, Commercial Pool and Spa Contractor,
. AI Group,lnc:.. . SOOt SW 7"- Court, Ste t03, .........., FL 33155 . Tel. (305) MI-It3I Fu (30S)......,.. . htm.jlWww a2a<<luD camI .
Commission Memorandum
Invitation to Bid (ITB) No, 09-06/07 for Construction Improvements for the City of Miami Beach
South Pointe Park (South Beach)
January 17, 2007
Page 11 of19
City of Miami Beach
January 10, 2007
Page 3
Professional Engineering firm, and a Landscape Architectural firm. That mere fact
that A' performs and provides all of these services is an added value to the
City of Miami Beach,
. MCM's declaration that they cannot find any construction permite issued to A' is not
only invalid it is not applicable based on the nature, types of general construction
projects that A' performs on as well as the clients A' has. Our clients are primarily
federal, state and local government agencies. As such, A' is rarely required to obtain
building permits on projects, but we do obtain permits through the Miami-Dade
County Water and Sewer Department, Miami-Dade County Public Works, and
Florida Department of Environmental Protection (FDEP).
One of our current projects, the South National Florida Cemetery, is on federal
property. This is a 313 acre parcel that A' is developing for the Department of
Veteran Affairs in West Palm Beach. A' is the general contractor and is self-
performing the civil and building portion of the project. We are not required to
obtain any building permits.
1 (e) (i) Adequate Equipment
. Every contractor is required to have adequate equipment in order to perform the
required services for this project. A' has made a corporate decision not to own any
construction equipment but rather to rent any and all required project equipment.
For that specific reason, A' subcontracts some of its work and it also maintains open
accounts with several national and local rental equipment organizations. A' properly
identified this point in page 68 ofthe ITB.
2 Qualification of Bid
. According to the lTB, the Risk Assessment Plan (RAP) is not considered as the basis
or qualification of the bid price. Therefore, A' has not qualified its bid.
The significance of any minimum experience requirement is to establish that the
contractor has the pre-requisite experience in the areas of emphasis. A' and the
proposed staff have the pre~requisite experience in heavy civil, ecological sensitive
environments. water features, irrigation and landscaping construction of parks and
beachlbay front related construction projects. A"s project experience and the experience
of the assigned staff clearly demonstrates compliance with the pre-requisite experience.
A' is also licensed in the following disciplines:
1. Professional Engineers
2. Landscape Architect
3. General Contractor
4. Underground and Excavation Contractor
5. Commercial Swimming Pool Contractor
. AI Group, Inc. . 5OOtSW7~Court.St.1G),M-.nI.Fl>>1S$' r.I.(S05).... fa(30S)II8-J4S4' trtto.nwwwdarouDOOml .
Commission Memorandum
Invitation to Bid (ITB) No, 09-06/07 for Construction Improvements for the City of Miami Beach
South Pointe Park (South Beach)
January 17, 2007
Page 12 of 19
City of Miami Beach
Jenuary 10, 2007
Page 4
Although the City of Miami Beach has only required that the contractor be licensed as s
general contractor, there should be little doubt of the added value that A' brings to the
project,
We have responded to all of MCM's perceived issues in their letter of January 8, 2007
and would like to note that none affect the evaluation criteria. The evaluations were
based on the following four issues:
1. Risk Assessment
2. Surveys
3. Interview of Key Personnel
4. Bid Price
As further proof of our capacity to bid this project, A' has tendered a bid bond in the
amount of 5%, which guarantees that A' will enter into an agreement with the City of
Miami Beach and will provide 100% payment and performance bonds.
From Juan Munilla's email datedJanuary3.itis clear that MCM believes in the low bid
process. A', on the other hand, believes that qualifications and reputation of the
proposed team are better indicators of the future success of a project, It is evident from
the Technical Review Panels' scores, we were selected based on our preparation,
experience, knowledge of the project, unique approach, value added, and our proposed
team. We look forward to working on this project with the City of Miami Beach.
Sincerely,
~
Alberto G. Ribas, P.E., RLA
President
co: Gus Lopez, CPPO, Procurement Director
Roman Martinez, Senior Procurement Coordinator
. /Ii' Gmup,1nc:. . lIllO' sw Tif*' Court. ..'Ol. M-.i, FL 33155 . Tel. (3GS)....... Fa {30S)......54 . httD-IIWww..a20MUDcom! .
Commission Memorandum
Invitation to Bid (ITB) No. 09-06/07 for Construction Improvements for the City of Miami Beach
South Pointe Park (South Beach)
January 17, 2007
Page 13 of 19
ATTACHMENT D
OFl'lCl! OF THE CITY ATTOlINIY
JOSE SMI11I
CitJ AUor..,
~t/J6mI~
, LOll D A
.
Telep1aoae: (3OS) 673-747.
".a1alle: (305) 673-70ln
VIA FACSIMilE, EMAll AND U,S. MAil
January 11, 2007
MCM Corp.
Pedro MunUI~.. Vice President
6201 S.W, 700' Street, ~ Floor
Miami, Florida 33142
Re: City of Miami Beach Invitation to Bid No. 09-06107 for Conslrucllon
Improvements for the CIty of Miami Beach South Polnte Park (ITS#: 09-
06107 or the ITB)
Dear Mr, Munilla:
Following receipt of your letter, dated January 8,2007, setting forth MCM Corp.'s
(MCM) AllIsons why the bid submitted by A2 Group, Inc. (A2) in response to the
above-refereMed ITB, was not responsive and why MCM should therefore be
found to be the lowest responsible and best value bidder In response to the ITB,
o.n January 10, 2007, the deslgn_ from the CIty Admlnlstratlon and the CIty
Attorney's OffIce met to dJscu8a the Is8U85 relsed In your letter. which meeting
Included myself. Assistant City Man... Tim Hemstreet, Procurement Dinlctor
Gus Lopez, and membe18 of the Clty's Cepital Improvement Projects (CiP)
Office. During the couree of thI8 meeting, and In our ooIec:t1ve review of the
relevant portions of the ITB (partlcul8l1y the Minimum Requirements set forth on
page 7 thereof), and MCM and AXs respective responses thereto, we have
subsequently determined that neither bid compilll8 with certain of the Minimum
Requirement&, and are therefore both non-lll8Ponslve.
The Minimum Requirements of the ITB, as amended by Addendum No, 3 to the
ITB, dated November 16, 2006, require that the successful bidder meet the
foHowlng crlterla:
1708 Co_don Cenlel' Drift - Jovtb JIeor - M'_i BadI. FlorId. 33139
Commission Memorandum
Invitation to Bid (ITB) No. 09-06/07 for Construction Improvements for the City of Miami Beach
South Pointe Park (South Beach)
January 17, 2007
Page 14 of 19
General Contractor certified In the State of Florida with a minimum
of five 15\ wars &JlP8I1ence as a General Contractor. Bidder to
have performed a minimum of three (3) ProjllClls within the last 5
years. with . minimum of elaht ,8\ mllUon dollant In construction
costs, with emph88la on heavy civil, ecological &en8ltive.
environments and landscaplng conslNctlon for beautification of
Parka, .nel/ar BeachlBay Front related construction projllClls. (See,
Addendum No. 3 at page 2).
Of the eight (8) sample projects submitted by MCM, In accordance with the
Minimum Requlraments and pursuant to the form provided In SectIon 05000 of
the ITB, entIlIed "Customer Reference Ustlng". further review by staff has
determined, that only one of the submitted aample projecls (Dune House
Condominiums) satisfies all of the Minimum Requirements and, In particular. the
portion thereof which requires that the sample projects demonstrate an emphasis
on he8vy civil. ecological sensitive environments and land8caplng conlllructlon
for beautification of Parks and/or BeachlBay Front related construction projllClls,
With the exception of the Dune House Condominlllms project, the other
submltled sample projects do not demonstrate emphasis on ecologically
&en8ltlve environments and landscaping construction for beeutiftcatlon of Parka
and/or BeachlBay Front related constructlon.
Full compliance with the Minimum Requirements 18 a material provision of the
ITB (See, Section 00100 of the ITB, entllled "General Instructions to Bidders",
subsection 1 thereof, which states In part that the instructions to the ITB ... .haw
equal force and weight with other portions of the Contract Documents and strict
compliance is required with all the provisions contained In the InstructionS,., . .).
Whle It Is wen establl8hed law In the State of Florida thet pli:liic entitles enjoy a
significant amount of dlsa'eIion in formulating bids and awarding contracts, this
di8Cl'8tlon does not extend to the waiver of matarial ten1l8. Induding those set
forth in the Minimum Requirements of the ITB. A material variance, which
cannot be weived. Is one that gives a bidder a substantial advantage over other
bidders and restrlcl8 or stifles oompetition.
Pursusnt to the City's Bid ProteSt Ordinance. as oodllled In Section 2-371 of the
Miami Beach City Code (the Ordinance). prior to any decision being randered
under the Ordinance with respact to a bid protest, the City Manager and the City
Attomey, or their raspectlve designees ....shell certify whether theeubmlsslon of
the bidder to the bid in question 18 rasponsive. The parties to the protest shall be
bound by the determination of the City Manager and the Clly Attorney with regard
to the IS8ue of responsiveness.. (See, Section 2-371(e) of the Code).
For the reasons set forth abOve, It Is. at this time, the City Manager's intent to
recommend that the Mayor and City Commission reject aU bids received In
OfFICI OF TKI CITY ATTORNllV . .7GO CQNVINTlON CINTIlR DRive. -, 8EACH. .\.ORIOA ms
Commission Memorandum
Invitation to Bid (ITB) No. 09-06/07 for Construction Improvements for the City of Miami Beach
South Pointe Park (South Beach)
January 17, 2007
Page 15 of 19
reeponle to iTS No, 09-06107, IInd authDrIze the City Adminlslrlltlon to Issue II
new bid,
Should you have any questions or comments regarding the above. please do not
hesitate to contact me. AddlllDnaly, uthe CIty Manager has not yet made his
offlcIal written recommendation, u to di8poalllon of the 1T8. to the City
Commission. and ftnaI actiDn has net been taken by the City Commission, I
would remIn<I you 1h8t the provIslDne of the City's .Cone of Silence. Oldlnance.
al codified In Section 2-486 of the City Code. I'IIlllIIn In fuU force and elfecl
-
RJAled
c: Jorge M, Gonzalez. City Menager
JOIe Smkh, CIty Attomey
TIm Hemstreet. Aaalstant CIty Maneger
Jorge Chartnlnd, CIP DIr8ctor
JOIgll Cano, A881stant CIP Director
GUI Lopez, Procurement Director
Nurys Manlcucct, CIP CoordInator
Bob Parcher. City Clerk
F:~OotP..BId~ llIldoc
OFFICE Of THE CITY ATTORNIV . 11110 CONVlNnOlt CBfnfIl DRIVE. MIAMI BEACH. fU)fttOA 33138
Commission Memorandum
Invitation to Bid (ITB) No. 09-06/07 for Construction Improvements for the City of Miami Beach
South Pointe Park (South Beach)
January 17, 2007
Page 16 of 19
ATTACHMENT D
(Continued)
OI'l'lCe OF THE CITY ATTOllNEY
.JOSE SM1TII
Ck1 AtI8nley
~t/JI/6mI~
f LOll I D A
.
nlepllHe: (305) '73-7470
lIaalD11e: (315) li'l3-7002
VIA FACSIMILE, EMAIL AND U.S. MAIL
January 11, 2007
A2 Group, Inc.
Alberto G. Ribas, P,E., RLA. President
5001 S.W. 74" Court, SUite 103
Miami, Florida, 33155
Re: City of Miami Beach Invitation to BId No. 09-06107 for Con8trUc:llon
Improvemen18 for the City of Miami Beach SoutI1 Polnte Park (ITB#: 09-
06107)
Dear Mr, Ribas:
Colnclding with your letter, dated January 10, 2007, In responll8 to a letler to the
City by MCM Corp" dated January 8, 2007, both of which I'lIi8ed l88ues relative
to responsilleneaa pursuant to the above-referenced ITB, on January 10, 2007,
the designees from the City Admlnlstratlon and the City Attorney's Olftce met to
discuss said lseues raised in your letter, whIc:h meeting included myself,
Assi8tant CIty Manager Tim Hemstreet, PlOCUrement Director Gus Lopez, and
members of the City's Caplt8l Improvement Projecl8 (ClP) Office. During the
course of thfs meeting, and In our coUectlve review of the relevant portions of the
ITB (particularly the Minimum Requirements set rorth on page 7 thereof). and
MCM and A2's respective responses thereto, we have subsequently determined
that neither bid complies with certain of the Minimum Requirements, and 819
tllerefore both non-responsive.
The Minimum Requirements of the ITB, as amended by Addendum No, 3 to tile
ITB, dated November 16, 2006. require that the successful bidder meet the
foliowing criteria:
Generel ContraCtor certified In the State of Rorlda wllh a minimum
of five (5\ WI.... experience as a General eontractor, Bidder to
17" COIMIdIoa Ceater Drfye- rourtta JIoor-Miuli Beadl.Jlarida 33139
Commission Memorandum
Invitation to Bid (ITB) No, 09-06/07 for Construction Improvements for the City of Miami Beach
South Pointe Park (South Beach)
January 17, 2007
Page 17 of 19
have performed a minimum of three (3) Projec:\I within the last 5
years. wlth 8 mlnlml8'll of alaht '" million dol..... in construction
costs. wlth empl1esls on heavy c1v1. ecological sensitive
environments and landscaping construcllon for beaUtIflcatlon of
Parks. lIndIor BeachlBay Front reJated construction projects. (See.
Addendum No. 3 at page 2). '
Of the three (3) 88Illple projects submitted by fill, in accordance with the
Minimum RequJrernents and pursuant to the form provided In Section 05000 of
the ITB. entitled "Customer Reference Ll8tlng", further review by staff has
determined that the sample projects submitted do not comply. and therefore
render fill's response to the 118 non-reapon8lve. for the following reasons:
None of the sample projects sublYlitted represent proJect8
completed within the past five (5) years. Section 05000 of the 118.
entllled .Customer Reference UstIng". expressly requires bidders to
provide .... three (3) sample construction projeet8 that ~ur
company hall completed within the last 6 years... -"; and
Only one project, South RorIda National Cemetery. demonstrates
emphasis on heavy civil, ecologically sensitive envtronments, and
landscaping construction for beaullllcation of Parka. and Beach/Bay
Front related construction projects. The other two (2) submitted
sample projects do not. In the C888 of, JYP & Boggy Creek Road
Mainline SR-417 Tolls. demonstrate emphaals on ecologically
sensitive environments and landscaping construction for
beautllcetlon of Parks and/or BeechlBay Front reJated construction,
and. In the C888 of SR-826. c:temor""bale emphasis on the
landscaping construction component.
Full compliance with the Minimum Requirements is a material provision of the
iTB (See, Section 00100 of the ITB. entllled "General Instructions to Bidders.,
subsection 1 thereof; which statas In pert that the InstrUctions to the ITB ... .have
equal force end weight with oIher portions of the Contract Documents and strict
compliance 18 required with all the provisions contained In the instructions... ."),
1)
2)
Whle It Is well established law in the state of Florida that public entities enjoy a
significant amount of di8Cl'8t1on In formulating bids and awarding contracts, this
discretion does not extend to the waiver of material terms. including those set
forth in the Minimum Requirements of the ITB. A material variance. which
cannot be waived. Is one that gives a bidder a sub8lantlal edventage over other
bidders and restriCtS or atlfies competftion,
Pursuant to the Clty's Bid Protest Ordlnlll108. 88 codified In SecIiOn 2-371 of the
Miami Beach CIty Code (the Ordinance). prior to- eny decision being rendered
under the Ordinance with respect to a bid proteet, the CIly Managef and the CIly
Attomey. or their respective designees". ..shall certify whether the submission of
OfFICE DF T>le em ATTOflNEY _ 111lO CONVeNTIOll ceNTER DRiVe - MIAMI.EACH. PLORIDA U138
Commission Memorandum
Invitation to Bid (ITB) No, 09-06/07 for Construction Improvements for the City of Miami Beach
South Pointe Park (South Beach)
January 17, 2007
Page 18 of 19
the bidder to the bid In question Is responsive. The partlea to the pratest shal be
bound by the determination of the CIty Manager and the CIIy AttDmeY with regard
to the i88ue of responsiveness." (See. Section 2-37t(e) of the Code).
For the I'888OI1S set forth above. It is, at this time, the CIty Manager's Intent to
recorrwnenc1 that the Mayor and CIty Commission reject aU bids received In
response to ITB No. 09-06107. and authorize the City Mmlnlstratlon to islue a
new bid.
Should you have any questions or commentl regarding the above. please do not
hesitate to contact me. Additionally, 88 the CIIy Manager has nat yet made his
official written recommendation. 81 to dl8poaltlon of the ITB. to the CIty
Commission. and final action has not been taken by the CIty Commission. I
would remind you that the provtllons of the Clty's "Cone of Silence" Ordinance,
.. codified In SectIon 2-48e of the CIty Code. remain In full force and effect
c;<ow,..... (2., k--
Raul J, Aguna
First Assistant Attorney
RJAled
c: Jorge M. GonzaleZ. CIty Manager
Jose Smith. City Attorney
TIm Hemstreet. Assistant City Manager
Jorge Chartrand. CIP Dlredor .
Jorge Cano, Assistant CIP Director
Gus Lopez. procurement DIrectOr
Nurys Menlc:uccl, CIP Coordinator
Bob Parcher, City Clerk
F:\ItlO\AGURlLETTERIl\A2 a...p - Blcl__
OFFICE OF THE CITY ATlO,,"EV ..JOOCONVENTIOHCINTtRDllIVE ,_I.&ACH.f1.0R10A33..
Commission Memorandum
Invitation to Bid (ITB) No. 09-06/07 for Construction Improvements for the City of Miami Beach
South Pointe Park (South Beach)
January 17, 2007
Page 19 of 19
ATTACHMENT E
Primary Questions
I. Why were you selected for this project?
2. How many similar projects have you worked on?
3, What is different about this project than other projects you have done?
4. What are you doing differently on this project than you have done before?
5, Identify, Prioritize, and how you will minimize the risks of this project.
6, What are your personal goals on this project?
7. How are you going to measure your performance?
8. What value do you bring to the project in terms of differences based on cost,
quality, or time?
9. Draw out a minimum of six activities on the project. Identify the following on a
Gannt Chart: Major decisions, risks, how will risk be minimized, and estimated
times for each activity,