The bid is in for Carseland Lagoon

Times Contributor

 

BBC Contractors won the bid for the Carseland Lagoon Earthworks and Piping Modifications, coming in with a low bid of $1,605,379.55, which allowed some savings for the County from the predicted budget. 

Due to cuts by the province to programs for these types of projects, the funds will be taken from the AMIT reserve fund. Brooks Asphalt gained the Carseland and Gleichen Underground Upgrade contract at $900,488.29 and again savings were realized.

These bids had the largest number of tenders in recent years and were valued over $2 million. Applications came in from all over Alberta. 

“Alberta Transportation has really limited their jobs this year, so there are lot more companies putting in for the smaller jobs,” said Michael Ziehr, Assistant Manager of Transportation and Infrastructure.

Ziehr said it was good for the County, in respect that companies are more willing to drop their bid price, just to get the job and keep their employees working. He said there were some of the bigger companies bidding on the two contracts that normally don’t bid on the smaller jobs.

The County is required under the Alberta Government legislation and regulation to tender capital works projects in excess of $75,000.

“We put it out there for anyone who fits the requirements to submit a bid. It is to make sure it is fair and so we aren’t sole sourcing, providing all contractors and services the same opportunities,” said Ziehr.

The contracts usually involve specialized services with special equipment, so the County tenders them out, rather than employing in-house crews for the work. 

Water, sewer treatment, some infrastructure and six miles of annual pavement upgrades are also tendered. They must be done to Alberta Government guidelines and there are requirements for the County to adhere to those. Time, manpower, and equipment are the factors that indicate whether outside contractors are required.

“It is job specific. The people that apply for a lagoon bid are not the people that are applying for the booster station in Rosebud. In the end, it is much cheaper to have outside contractors do it than to acquire our own equipment, or have our own people do it. We have limited staff that is kept busy year round,” said Ziehr.

County projects are reviewed annually and submitted in the budget plan. 

Staff consult with engineers retained by the County, to determine the approximate cost of the expected jobs and approach council for preapproval of a Capital budget for the departments’ needs. The engineering company used by the County is also awarded by tender process.

When a project is approved, the engineers draw up the design plan, drawings and contracts for specific jobs. The designs are posted on the purchasing website www.purchasingconnection.ca, for the contractors to review. 

Companies that are interested pick up hard copy packages at the County office. The County records who picks up a package, so they can see who actually submits a bid and contact them if there any changes or addendums to the job. Advertising in the newspaper and notices to contractors are posted for the jobs. 

The packages are hefty and multipage. They contain the bid sheet, which gives an itemized checklist of the many essential details regarding the work, bond verifications, and specific calculations needed for materials and equipment. Work must be defined and costed-out in the bid. 

All bids submitted require a Certificate of Recognition in Health and Safety (COR). Number, which is a government certified safety certificate and employee WCB coverage. The bids are not considered a legal or adequate bid without it. A bid bond is also required to ensure that the company is invested in the project. Some of the bidders retain sub-consultants to bid for the project, or employ subcontractors to complete the projects.

Completed bid packages can be mailed or delivered back prior to the opening date. Packages must be sealed, have no price indication on the outside and be in prior to the required date and time, or they are immediately eliminated. A revised bid, prior to the closing time, can be submitted by fax which is attached to the original package. All bids are kept sealed and locked up in a vault at the County, until the packages are opened in Council. Tender openings are usually about one month after postings.

“It is kept as secure as we can. We want the process to be as unbiased as possible,” said Ziehr.

After opening, all packages are evaluated, cross checked and calculated. If there is an error, whatever is listed in the package is binding. Ziehr said bids often vary widely in price. The contractors take a risk and set the price that will pay for their profit margin, staff, subcontractors, equipment and provision of services in a specified time. As for vetting the companies, Ziehr said word in the industry usually goes around on a company’s consistent work ethic or if a contractor is substandard. Ziehr said they often have the same companies bidding on contracts year after year, but just because they received the contract one year, does not give the company an edge following years.

“It is all about what they can do. Nine times out of ten the lowest bid wins, unless there is a real concern with the company,” said Ziehr. “We get a lot of interest from some of the smaller people wondering who got the job, and I am sure they contact them. We do suggest companies do their homework on the job and they know what contractors they will be using before they submit for the job,”

The awarded bid is held for sixty days at the designated price. All jobs are inspected by the County engineering consultants and they do testing to ensure the quality of the work. Payment is staggered throughout with the final payment hold back given at the completion of the job.