TO:††††††††††††††††† Mayor and Town Council


FROM:††††††††††† W. Calvin Horton, Town Manager


SUBJECT:††††† Rejection of the Bid for the Town Operations Center Off-Site Improvement Project


DATE:††††††††††††††††††††††† May 23, 2005



The attached resolution would reject the bid for the Town Operations Center Off-Site Improvement Project on Millhouse Road.




On November 24, 2003, the Council approved two project ordinances, totaling $42,926,500 to fund construction of the Town Operations Center on Millhouse Road.† The Public Works and Public Housing portions totaled $24,391,000.† The Transportation project portion totaled $18,535,500.


The construction work for the Town Operations Center project is to occur in phases.† The first, Phase A is nearing completion and, includes clearing, grubbing, grading and installing erosion control measures and preliminary stormwater treatment facilities. †The remaining two phases B and C include off-site improvements required for the project and on site construction respectively.† On May 12, 2005, a single bid of $4,465,000 was received for the phase B work.




The single bid received at the May 12, 2005 bid opening was significantly higher than the Town Operations Center consultantís and exceeds the budget for that phase of construction.† We believe that the a large reason for the bid exceeding the budget was lack of competition between interested contractors available to do both the utility and roadwork elements of the phase B work.† We believe that if the project is separated into two sub-phases including one for the proposed utility work and one for the proposed road improvements and re-bid as two separate projects it is likely we will attract more bidders and receive more favorable bids.† We recommend that the single bid received be rejected and the project plans and specifications be revised into two separate projects.




We recommend that the Council adopt the attached resolution that would reject the bid of $4,465,000 from Mountain States Contractors for the Town Operations Center Off-Site Improvements Project.



WHEREAS, the Town of Chapel Hill has solicited formal bids by legal notice in the Chapel Hill News on March 27, 2005, and The Diversity News on March 31, 2005, and subsequently solicited re-bids in the Chapel Hill News on May 4, 2005, and The Diversity News on May 5, 2005, in accordance with General Statute 143-129 for the Town Operations Center Off-Site Improvements Project; and


WHEREAS, the following bid was received and opened on May 12, 2005:




††††††††††††††††††††††† Company:††††††††††††††††††††††††††††††††††††††††††††††††††††††† Total Bid:


††††††††††† Mountain States Contractors††††††††††††††††††††††††††††††††††††† $4,465,000.00


WHEREAS, the bid amount exceeds the amount budgeted for this project;


NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council rejects the bid.


This the 23rd day of May, 2005.