Notes from the Bid Review Meeting
The Bid review team:
Terrence Justice, former KCB Interim Building Official
Lazaro Cabezon, LIVS architect
Pete Dietz, architect and KCB resident, tossed by the city attorney out for speaking to the bidders
Silvia Grantsee, city clerk
Dirk Smits, city attorney
In the audience:
Commissioner Joey Raspe, Commissioner Tom Harding, 15-16 people including Officer Jamie Buxton.
Meeting notes:Start: 09:43 End: 10:21
This was a public meeting, but only the "bid evaluation team," city clerk and city attorney were allowed to participate.
Silvia Grantsee opened the meeting requesting the participants identify themselves. The city attorney then asked if anyone had spoken to the bidders. When Pete Diez responded that he had, the city attorney dismissed him from the meeting and Diez left. Lazaro Cabezon also responded that he or someone at his office spoke to Persons Services on technical questions (unclear whether one or more), he was briefly and inaudibly questioned by the city attorney and remained a meeting participant.
Only two bids were received: H-O-B (lower bid at $8,375,000 with several addenda) and Persons Service (higher bid at $12,487,948.70).
Committee members had a bid evaluation scoresheet to check that each bid was legitimate as well as to assess and value each bidder's input. Justice led the discussion through the sheet gaining agreement from Cabezon as they progressed.
Justice: "The city should publish a new solicitation of bids."
Terry Justice had compared the bid forms prior to the meeting.
Justice said evaluation was done on spread sheet with various categories.
The H-O-B Addendum was acknowledged but not discussed. Both H-O-B and Persons Services signed and sealed the bids. Both bids were properly signed and notarized, both companies are bonded. There was a question about whether Persons Services is licensed in Florida but they have a Florida office. H-O-B has a Florida license. Both contractors were deemed to have adequate qualifications, financial statements, and insurance.
There is an error on the Bid Form of the Persons Service submittal. The "finishes" numbers are incorrect -- expressed as "way high" (not sure what that means). Both Justice and Cabezon agreed that any error on the Bid Form should disqualify the bidder as "nonresponsive." Justice deemed Persons Service bid nonresponsive because the internal numbers for finishes in the bid package did not match the final bid.
Both reviewers voiced concern over the large difference in the two bids. The Persons Service bid is about 50% higher than H-O-B. Some comments were made on the size and experience of the two bidders: H-O-B has not had a project of this magnitude (largest job to date around one million dollars?). And H-O-B's expertise is in interior finishing whereas commercial/municipal building construction is normally higher than residential type. It was also noted that the error on Persons Services Bid Form would not explain the higher value of their bid. (The large difference in the bid values remains unaddressed).
Justice stated H-O-B was fully responsive but he was concerned with minimal commercial work experience. H-O-B also provided only labor rates rather than unit prices which the reviewers found to be another shortcoming in the RFP.
Both Cabezon and Justice stated they were not happy that there were only two bids. Both agreed it would be better to have the job re-bid. Justice stated there was always a concern when the bid was low.
Cabezon stated contractors had requested additional time but request was denied. He stated maybe they would have had 2 or more additional bids if given the extra time.
It was agreed that with only one legitimate bid, a recommendation to rebid the project is appropriate. Also, two additional bidders requested an extension of the bid deadline of one week which was denied by city administrator Dave Turner.
Cabezon brought up an electrical question that 480V not in bid package resulting in uncertainty on how each bidder estimated the electrical cost. Justice commented they would need to acknowledge an alternate, include it in bid amount and contract. "No need to buy all those transformers." Clarification will be required prior to accepting a bid, another shortcoming in the RFP. The contract will need to specify the alternate electrical system.
Justice: "The city would be very ill advised not to provide owner's representative/project management day-to-day on site."
Justice and Cabezon agreed to recommend the KCB commissioners to either award to the low bidder or resolicit bids (based on having only one legitimate bid). "With just one responsive bid, the city should publish a new solicitation of bids," Justice said. This recommendation was made in writing, signed and delivered to the city clerk for transmittal to the commissioners for action in the upcoming Commissioners meeting.
Both Cabezon and Justice recommended:
1) Commission choose to re-solicit, or
2) Commission award to low bidder, H-O-BBoth reviewers agreed and recommended that it would be in the city’s best interest to rebid the project. The commission can decide to award to the low responsive bid or because of the low number of bids, publish a new solicitation of bids. The reviewers did not address H-O-B's addendums that would at on to costs.
Justice further noted, "The city would be very ill advised not to provide owner's representative/project management day-to-day on site at extra cost." That's a cost born by the owner and is typically 20% of the bid. Cabezon said the LIVs firm could have a change order and do contract administration.
Cabezon had Justice's evaluation sheet in hand as he filled out his own evaluation sheet.
Both Cabezon and Justice agreed to attend the July 20, 2023, commission meeting to answer any questions.
The following table shows the total "evaluation points" awarded. Visit the Terrence Justice Bid Tabulation or the Lazaro Cabezon Bid Tabulation to view the details.
Justice:
90 points to H-O-B
83 points to Persons but nonresponsive
Lazaro:
98 points to Persons but nonresponsive
97 points to H-O-B
Total Points:
187 points to Persons but nonresponsive
181 points to H-O-B
City Clerk Silvia Grantsee announced that the results will be presented to the city commission at the July 20, 2023, meeting. She told the audience the evaluations are public. The meeting adjourned. Read the draft minutes for this meeting.
Jim LaConti, commercial contractor and KCB resident, said he'll "be surprised if any bond company will write a performance bond for H-O-B."
The city clerk invoked the "cone of silence" when Mr. LaConti and others talked with Terry Justice after the meeting.