City Accepts $1 Million Bid for Pipeline Project

HCC 9-22-14
Hermiston City Manager Byron Smith goes over the monthly financial report during Monday's city council meeting. The council voted to accept a bid from R&G Excavating for construction of an outfall pipeline that will discharge recycled water from the city's new wastewater treatment plant.

When the city of Hermiston sought bids for an outfall pipeline project, seven companies responded – with the highest bid being nearly twice as high as the lowest bid.

The outfall pipeline will carry recycled water from the city’s new plant to two discharge locations. The pipeline is needed to comply with Department of Environmental Quality regulations for river protection. The pipeline will also provide a long-term solution for disposal of the treatment plant effluent. The outfall pipeline project is part of the final phase of the city’s wastewater treatment plant.

The seven bids received by the city range from a high bid of $2,053,744 to the low bid of $1,075,167. The high bid was within 3 percent of the project engineer’s estimate, while the low bid was 46 percent lower than the estimate. That bid, however was only 11 percent below the next lowest bid.

After researching the R&G Excavating, the engineering firm of Kennedy/Jenks Consultants recommended that the city award the project to R&G Excavating, the low bidder. The only issue that raised an initial concern in their research was a dispute filed against R&G Excavating in 2012. Kennedy/Jenks Consultants found the issue was resolved by mutual agreement this year.

“Therefore, Kennedy/Jenks views this as a minor issue that has little bearing on this project,” the consultants wrote to the city.

Hermiston City Manager Byron Smith said the city is confident the company can do the job and is not worried about unexpected issues that might arise.

“We’re not going to tolerate any change orders that would increase the cost of the project,” Smith told the Hermiston City Council Monday night. “They’re aware of the conditions and they’ve done other similar projects.”

The council voted 8-0 to award the bid to R&G Excavating.

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