HomeMy Public PortalAboutMcCall AIP 031-2020 Cost Analysis EH
March 1, 2022
Mr. Gary Gates, P.E.
Civil Engineer
FAA Helena Airports District Office
2725 Skyway Drive, Suite 2
Helena, MT 59602
RE: McCall Municipal Airport
AIP Project 3-16-0023-031-2021
Reconstruct Taxiway D, Reconstruct Taxiway E, and Rehabilitate Runway 16-34
Cost Reasonableness Analysis
Gary:
The recent bid opening for the project to Reconstruct Taxiway D, Reconstruct Taxiway E, and Rehabilitate Runway 16-34 (the project) attracted one bidder, Granite Excavation, Inc. of
Cascade, Idaho. As shown by the attached bid results, the bid submitted by Granite Excavation was higher than the estimate prepared by T-O Engineers, Inc. Based on my conversations
with Kevin Bissell of T-O Engineers, I have determined that every reasonable effort was made to obtain competitive bids for this project.
The project was advertised in the Idaho Statesman twice during the 30-day bidding period. This newspaper has the widest circulation in the state of Idaho and is also affiliated with
a national internet-based bid advertisement website. The project was also posted to the T-O Engineers online plan room, and a pre-bid conference was held at the airport on February
24, 2022. Additionally, T-O Engineers contacted local contractors and discussed the project with them to generate bidding interest. During these contacts, T-O Engineers determined that
Idaho contractors were hesitant to submit bids for this project due to the extensive backlog of construction work within the region. Granite Excavation was one of the contractors contacted,
and they indicated that they were considering bidding but were unable to secure commitments from subcontractors. The difficulty in finding subcontractors willing to commit to this project
is one of the main reasons for the disparity between the engineer’s estimate and the bid submitted by Granite Excavation. Additional reasons given for current bid pricing were the high
rate of inflation, the unwillingness of suppliers to commit to material prices, staffing shortages, and the length of time bids must be held open prior to award.
Post-bid opening conversations with Granite Excavation have indicated that this contractor is willing to enter into an agreement with the City of McCall to complete Schedule A: Reconstruct
Taxiway D and Schedule C: Rehabilitate Runway 16-34 if awarded. They are not willing to submit a bid for this project if it is rebid due to ongoing project commitments. We think rebidding
this project will result in either no bids submitted or significantly higher bid prices.
In the situation where one bid is submitted for a construction project, FAA Order 5100.38D, Table 3-67 requires that the City of McCall, (sponsor) perform a cost analysis of the bid
received. We have analyzed to bid submitted by Granite Excavation and think it is reasonable given the current bidding environment. We are seeking FAA concurrence to award Schedule
A in the amount of $1,826,801.12, and Schedule C in the amount of $250,654.35 to Granite Excavation, Inc. The total award amount for Schedules A + C will be $2,077,425.47.
Reviewing the FAA grant funding available for this project, it appears that construction of Schedule A and Schedule C is possible with the addition of BIL grant funding. We are requesting
a separate grant for the estimated $159,000 in BIL funding be made available for this project.
If you have any questions or comments about the above analysis and evidence of cost reasonableness, please contact me.
Sincerely,
/
Emily Hart
Airport Manager
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