REPORT TO COUNCIL
SUBJECT
Title
Action on Award of Contract for the 2019 Pavement Rehabilitation Project (CE17-18-19) and Related Budget Amendment
Report
BACKGROUND
The City's pavement network consists of 590 lane miles of arterial, collector, residential and local streets. Through the City's Annual Pavement Maintenance Program, staff prioritizes various street segments for rehabilitation based on condition, use and available funding.
The 2019 Pavement Rehabilitation Project (Project) proposes to rehabilitate approximately 18 lane miles of street pavement. A list of streets being rehabilitated under this Project is included in Attachment No. 1. The Project scope of work includes surface treatment consisting of slurry seal and rubber cape seal, as well as milling and replacing pavement on various streets. Ancillary work on all streets includes replacing failed asphalt areas, adjusting utility valves and covers, replacing traffic striping and pavement markings, and installing accessible curb ramps. These curb ramps will comply with the current Americans with Disabilities Act standards. The work also includes applying a seal coat and replacing small segments of concrete sidewalk and curb and gutter at the Santa Clara Convention Center and Franklin Square parking lots.
DISCUSSION
On February 20, 2019, bids were opened for construction of the Project. Five bids were received ranging from $4,815,652 to $5,971,210. The Bid Summary is included as Attachment No. 2.
The lowest bid submitted by MCK Services, Inc. (MCK) was in the amount of $4,815,652, however, immediately following the bid opening MCK submitted a letter requesting relief of their bid for the Project. MCK sent a follow-up letter on February 27, 2019, which stated in that due to a clerical mistake in filling out the bid, MCK's bid was materially different ($231,331) from what the company had intended to submit and that being required to perform as bid would cause MCK to incur a "substantial loss." MCK's re...
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