This item on the January 2, 2014 city council agenda doesn’t look good to me.
The item is for the re-re-re-re-construction of our San Jacinto Plaza of perpetual remodeling.
The city got three bids that they posted in their backup documentation.
- F. T. James $7,555,444
- Venegas Engineering Management. $7,012.468
- Basic IDIQ $4,484,488
How can that be?
Firstly why did we only three bidders respond? Construction work is not plentiful in El Paso.
Then how can the wild price discrepancy be explained?
Simple really
The price difference may turn out to the the simplest part to explain. According to the backup material:
“Work under this unit price contract is only an estimated value and will be ordered, performed, invoiced and paid by measured quantity. The actual cost of this contract may be higher or lower than the total estimated value and will be the sum total of unit prices at the end of the contract term.”
If it turns out that if you are the city’s go to contractor (the city has been used this firm to rebuild the various buildings it needed to replace city hall — without bidding) you might know more than what is written in the bid specifications. I don’t know this as a fact but am hard pressed to explain the price difference any other way.
Then again maybe the final bill will come in closer the the other bids.
What kind of council
What kind of city council would approve a construction contract without a maximum price. I hope that ours does not.
We deserve better
Brutus
Posted by Brutus 

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