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~,; From this comparison the Pence/Kelly bid exceeds 120% of the median bid price by $247,883. <br />Two of the five bid elements, General and Streetscape, are primarily responsible for this high <br />bid value. The combined total of these two elements as bid by Pence/Kelly is $934,688, an <br />amount which exceeds the 120% median of all bidders for these two elements by $270,334. <br />The General item which includes mobilization, bonds, permits, and traffic control is 504% of the <br />median of all bidders. This excessive bid amount may suggest that the bidder did not <br />understand or the bid documents were not sufficiently clear in designation that this element is to <br />represent a cost for only the items of Agency participation. Our staff had previously requested <br />your architectural team to insure that this factor was clear to all prospective bidders. <br />With regard to bid alternate three, the Pence/Kelly bid is 166% of the median of all bids. This <br />bid amount of $270,347 exceeds 120% of inedian by $75,275. The apparent cause to this high <br />bid value is an excessive unit cost assigned to several of the 25 line items comprising the <br />streetscape element. <br />Bid alternatives finro and eleven both relate to weather protection and are limited to a maximum <br />of $160 per lineal foot. These bid items are acceptable for Agency participation at $6,080 and <br />$53,760 respectively. <br />In summary, given execution of the participation agreement, the Agency will accept for the base <br />bid a maximum participation of $1,067,096 notwithstanding future change orders. This is <br />$247,883 less than amount bid for Agency funded elements, after adjustment for maximum <br />~ participation in weather protection. We request that the General and Streetscape elements be <br />reduced by an amount of $247,883. <br />Should you elect to award alternative three, the agency will accept a maximum participation of <br />$195,072. This is $75,275 less than the amount bid. We request that the Streetscape element <br />be reduced by this amount. <br />Alternatives two and three as noted above are acceptable at a participation level of $6,080 and <br />$53,760 respectively should you elect to award these items. <br />We feel this level of participation is reasonable. The bid price tendered by all other bidders for <br />elements of Agency participation is less than our offered level of participation. <br />Sincerely, <br />~~i~e~ <br />Larry acker <br />City Manager <br />~ <br />