Financial- Salem, City of (Streetscape)

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From this comparison the Pence/Kelly bid exceeds 120% o( the median bid price by $247,883. Two of the five bid elements, General and Streetscape, are primarily responsible for this high bid value. The combined totat of these two elements as bid by Pence/Keily is $934,688, an amount which exceeds the 120% median of ail bidders for these two elements by $270,334. The General item which includes mobilization, bonds, permifs. and tra(fic cont~ol is 504% of 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 designalion that this element is to represent a cost for only the items oi Agency parlicipation. Our staff had previously 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°/a of the median of all bids. This bid amount of $270.347 exceeds 120% of inedian by $75,275. The apparent cause to lhis 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 ~elate to weather 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 participation oi ~1,067,096 notwithstanding future change orders. This is $247,883 less than amount bid for Agency funded elements, after adjustment for maximum participation in weather protection. We request lhat the General and Streetscape elemenls be reduced by an amount of $247,883. Should you elect to award alternative three, the agency will accept a maximum participation of $195,072. This is $75,275 less than the amount bid. We requesl that the Streetscape element be reduced by this amount. ~w~ Alternatives two and ttx~e as noted above are acceptable at a pa~licipation level of $6,080 and $53,760 respectively should you elect to award these items. We feel this level o( pa~ticipation is reasonable. The bid price tendered bY all other bidders for elements of Agency participation is less than our offered level of participation. Sincerely, ~~ ~~~S~ Larry~VVacker City Manager