Public Works <br /> Engineering <br /> City of Eugene <br /> 244 East Broadway <br /> Eugene, Oregon 97401 <br /> (541) 682-5560 <br /> (541) 682-8410 FAX <br /> Memorandum <br /> Date: July 27, 2006 <br /> To: File <br /> From: Terry Colvin <br /> Subject: Upper Amazon 3951 Bid acceptance <br /> The bid for the Upper Amazon Project came in very high. In fact was almost $100,000 higher <br /> than the Engineers estimate. I see two factors to this that make a difference. One is the fact that <br /> we required apre-bid meeting and at that meeting few contractors capable of managing the entire <br /> work were present. I believe this gave the bidder little reason to tighten the bid prices. In the end <br /> Delta Sand and Gravel were the only bid submitted. Since the bid I have gone over certain items <br /> that I may have under estimated and much of those reflect transportation cost. Of the largest <br /> discrepancy I've found is mobilization. As I think about this now, I could have estimated this a <br /> little higher since the work is done in phases and with varied equipment. Stream work, pipe and <br /> culvert work, planting, and bridge work all require some variance in equipment. However I don't <br /> agree with the large amount bid here (over $68k more than estimated). Two items that are lump <br /> sum seem to be over inflated, Mobilization and Clear and Grub. Planting cost were 3-4 times <br /> what we usually observe yet excavation came in half of what I thought appropriate. <br /> The project could be re-bid next spring and we might receive other bids and lower, I'm also <br /> concerned that rising transportation and material cost may offset some of this savings and also <br /> <br /> I concerned that we may need to provide additional administration cost to extend our permits and <br /> what ever else might occur. <br /> With these and other less significant issues, I would like to request we accept this bid and see it <br /> through completion. This project is a significant milestone for Amazon Steam restoration and <br /> should provide a good example of what the City of Eugene can accomplish in this venue. With <br /> future work being discussed with other agencies and outside funding opportunities in our horizon <br /> the inflated cost of this bid may well be offset by the positive public relations it creates. <br /> We may well have opportunities to reduce cost as we work through this project and will attempt <br /> to do so within our means. I look forward to moving forward and getting to an end. <br /> Thanks <br /> <br />