Title
MOTION TO REJECT ALL BIDS FOR IFB # PSUT-25-05 “EXTERIOR STRIPPING / COATING OF WATER STORAGE TANK” AND TO AUTHORIZE THE ADVERTISEMENT OF IFB # PSUT-26-01 "EXTERIOR STRIPPING / COATING OF WATER STORAGE TANK RE-BID”.
Summary Explanation and Background
PROCUREMENT PROCESS TAKEN:
- Chapter 35 of the City’s Code of Ordinances is titled “PROCUREMENT PROCEDURES, PUBLIC FUNDS.”
- Section 35.15 defines an Invitation for Bid as “A written solicitation for competitive sealed bids with the title, date and hour of the public bid opening designated therein and specifically defining the commodities or services for which bids are sought. The invitation for bid shall be used when the city is capable of specifically defining the scope of work for which a service is required or when the city is capable of establishing precise specifications defining the actual commodities required. The invitation for bid shall include instructions to bidders, plans, drawings and specifications, if any, bid form and other required forms and documents to be submitted with the bid.”
- Section 35.18 of the City's Code of Ordinances is titled "COMPETITIVE BIDDING OR COMPETITIVE PROPOSALS REQUIRED; EXCEPTIONS."
- Section 35.18(A) states, "A purchase of or contracts for commodities or services that is estimated by the Chief Procurement Officer to cost more than $100,000 shall be based on sealed competitive solicitations as determined by the Chief Procurement Officer, except as specifically provided herein."
- Section 35.19 of the City's Code of Ordinances is titled "SEALED COMPETITIVE BIDDING PROCEDURE."
- Section 35.19(A) states "All sealed competitive solicitations as defined in § 35.18 shall be presented to the City Commission for their consideration prior to advertisement."
- Section 35.19(F) states, "Rejection of bids. The City Manager and City Commission may reject bids, parts of all bids or all bids for any one or more commodities or services included in the proposed contract when the public interest will be served thereby. The Chief Procurement Officer shall not accept a bid from a contractor who is in default on payment of taxes licenses or other moneys due the city."
SUMMARY EXPLANATION AND BACKGROUND:
1. On April 2, 2025, the City Commission authorized the advertisement of IFB # PSUT-25-05 “Exterior Stripping / Coating of Water Storage Tank”.
2. The purpose of the solicitation was to clean, prepare, and coat the exterior of the City's 2.5-million-gallon pre-stressed concrete water storage tank, including repair of all exterior cracks and deficiencies.
3. On May 6, 2025, the City opened four (4) bid responses.
4. Through the City’s review of the submissions, bidder qualifications, and the requirements contained in the bid package, staff determined that certain requirements in the original solicitation may have been more restrictive than necessary and additional clarification in the scope was needed. In order to promote broader competition, reinforce transparency, and ensure the City receives the best overall value, staff recommends rejecting all bids and re-advertising the project with revised specifications to address:
- Explicitly clarifying that the scope of work includes coating of the tank dome, ensuring comprehensive treatment of all exterior surfaces of the water storage tank;
- Broadening acceptable manufacturer and certification requirements to reduce unnecessary restrictiveness while continuing to require compliance with recognized industry standards and performance specifications;
- Clarifying application methods and surface preparation requirements to better define contractor responsibilities and minimize the risk of overspray or damage to adjacent property;
- Refining contractor qualification language to ensure it is aligned with the scope and technical complexity of the project while preserving necessary experience and quality control standards.
5. Request the City Commission to reject all bids for IFB # PSUT-25-05 "Exterior Stripping / Coating of Water Storage Tank" and to authorize the re-advertisement of the solicitation as IFB # PSUT-26-01 "Exterior Stripping / Coating of Water Storage Tank Re-Bid".
Financial Impact
FINANCIAL IMPACT DETAIL:
PSUT-26-01 "Exterior Stripping/Coating of Water Storage Tank Re-Bid"
Funds are available in Account # 471-533-6031-546150-0000-000-0000 (R & M Land Bldg & Improvement)