Memorandum 12-156 Nick Dudiak Fishing Lagoon Dredging Contract Award

CITY OF HOMER
PUBLIC WORKS TELEPHONE (907)235-3170
3575 HEATH STREET HOMER, AK 99603 FACSIMILE (907)235-3145
 

MEMORANDUM 12-156

TO: Walt Wrede, City Manager

FROM: Carey Meyer, Public Works Director

DATE: October 3, 2012

RE: Nick Dudiak Fishing Lagoon Dredging
Construction Contract Award Recommendations
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Public Works recommends that a non-competitively bid, negotiated, sole source contract be awarded for the completion of the widely supported dredging of the Nick Dudiak Fishing Lagoon.

The City’s Procurement Policy and Procedures Manual authorizes negotiated procurement following unsuccessful efforts to obtain competitive bidding; when utilizing an existing government contract; or when approved by the City Council as in the best interests of the City.

Dredging of the Fishing Lagoon cannot be completed during normal summer construction windows. This work has to be completed when fish are not present, when other Kachemak Bay critical habitat wildlife are not present, and when winter weather does not negatively impact cost and productivity. Costs can be greatly reduced if the proper equipment has already on the Spit. The bids for mobilization for the Corps annual (2010 -2012) dredging contract ranged from $190,000 to $480,000 just to mobilize the necessary equipment onto the Spit.

Public Works evaluated two approaches to completing the work – land-based operations (construct a cofferdam across the lagoon opening, pump out the lagoon, and remove material utilizing dozers/backhoes), and barge-based suction dredging operation (similar to how the entrance to the small boat harbor/USCG berth is dredged annually.

The Corps of Engineers and the Alaska Department of Fish and Game have indicated agreement with the decision to utilize the barge-based suction dredging operation in an October timeframe recommended by Public Works. The decision by Public Works was based on belief that a barged-based operation would reduced the potential for sediment transported into Kachemak Bay and minimize negative impacts to wintering eiders and other endangered species.

Two barged based dredging operations currently have the equipment on the Spit that can accomplish the work in the timeframe established - the Contractor finishing the annual Corps of Engineers harbor entrance dredging contract (Alaska Marine Excavation, LLC) and a Contractor storing their equipment in the English Bay barge basin. These two contractors are in the best position to accomplish the work as scheduled and at a reasonable cost.

Using contractors already mobilized on the Spit is in the best financial interest of the City.

The Corp’s Contractor has provided Public Works with a quote to complete the lagoon dredging work (at a lower unit cost than the negotiated bid for this year’s Corps annual dredging work). Negotiated bid unit prices for this year’s Corps annual dredging work per cubic yard ranged from approximately $21 to $17. The bid per cubic yard provided by the Contractor for the Fishing Lagoon dredging work is $13.50. The lump sum mobilization bid proposed by the Contractor is $5,000.

The other Contractor was contacted, but did not show interest in providing a bid to complete the proposed dredging work.

The City Council should approve the award of a non-competitively bid, negotiated, sole source contract to complete the proposed dredging for the following reasons:

• Environmental permits require barge-based dredging in October,
• Public Works was unsuccessful in obtaining competitive bids from Contractors in a position to effectively complete the work within the established timeframe,
• The proposed sole source Contractor’s unit price bid is consistently lower than the Corps of Engineer’s negotiated bid for similar annual dredging maintenance contract work,
• It is in the best financial interest of the City to take advantage of equipment already mobilized to the site.

Recommendations: The City Council pass a resolution awarding the contract to dredge the Nick Dudiak Fishing Lagoon to Alaska Marine Excavation, LLC of Anchor Point, Alaska in the amount of $367,500 and authorize the City Manager to execute all appropriate documents.