Salem, City of- Intergovernmental Agreement

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From this comparison the Pence/Kelly bid exceeds 120% of the median bid price by $247,gg3. Two of the five bid elements, Gene~al and Streetscape, are primarily ~esponsible for this high bid value. The combined total of these two elements as bid by Pence/Kelly is $934,688, an amount which exceeds the 120% median of all bidders for these two elements by $270,334. The General item which includes mobilization, bonds, permits. and traffic cont~ol is 504% o( the median of all bidders. This excessive bid amount may suggest that the bidder did not understand or the bid documents were not sufficiently clear in designation that this element is to represent a cost for only the items of Agency participation. Our staff had p~eviously requested your architectural team to insure that this factor was clear to all prospective bidders. With regard to bid alternate three, the Pence/Kelly bid is 166% of the median of all bids. This bid amount of $27p,347 exceeds 120% of inedian by $75,275. The apparent cause to this high bid value is an excessive unit cost assigned to several of the 25 line items comprising the streetscape element. Bid alternatives two and eleven both relate to wealher protection and are limited to a maximum of $160 per lineal foot. These bid items are acceptable for Agency participation at $6,080 and $53,760 respectively. In summary, given execution of the participation agreement, the Agency will accept for the base bid a maximum pa~ticipation o( $1,067,096 notwithstanding future change orders. This is $247.883 less than amount bid for Agency (unded elements, after adjustment fo~ maximum participation in weather protection. We request that the General and Streetscape elements be reduced by an amount of $247,gg3. Should you elect to award alternative three, the agency will accept a maximum participalion of $795,072. This is $75,275 less than the amount bid. We request that the Streetscape element be reduced by this amount. ~~~ Alternatives two and t~e as noled above are acceptable at a participation level of $6,080 and $53.760 respectively should you elect to award these items. We feel this level of participation is reasonable. The bid price tendered bv all other bidders (or elements of Agency participation is less than our offered level of participation. S~ncerely, ~~ ~~~~~ Larry~VVacker City Manager