MEMORANDUM

DATE:April 22, 2010

TO:William Walsh, Buyer Manager

DTMB, Purchasing Operations

FROM:Kimberly Graham, Buyer Manager

DMVA, OFS, Purchasing and Contracts

RE:Award Summary for RFP No. 071I0200080 – Gravel Projects for CampGrayling

Statement of Work

The purpose of this RFP is for Contractor(s) to mobilize the proper equipment and staff to produce approximately 50,000 tons of 23A aggregate gravel and to recycle approximately 20,000 tons of stockpiled materials which consist of used concrete, asphalt, clay pipe, etc. and recycle into a reusable material 21AA dense graded aggregate to be utilized as road building base material. These services will be performed on-site at the Camp Grayling Cote Dame’ Marie Gravel Pit located on Camp Grayling in Grayling, Michigan. All aggregate production shall meet Section 902 Aggregates from the MDOT 2003 Standard Specifications for Construction, available on MDOT website at

Background Information

Proposed Contractor(s) shall mobilize the proper equipment and staff to the Camp Grayling Cote Dame’ Marie Gravel Pit to produce 23A gravel per MDOT specifications and to recycle a stockpile of used concrete, asphalt, clay pipe, etc located at the Cote Dame Marie gravel pit into reusable material of 21AA dense graded aggregate. The stockpiled materials must be recycled by the Contractor to be reused as road building base material and will be utilized on-site throughout CampGrayling in construction and road maintenance projects.

Buyer and Agency Review:

JEC MEMBERS:

Kimberly Graham, Buyer Manager, CPPBTom Perry, Engineering Consultant

DMVA, Office of Financial ServicesDMVA, Army National Guard, CampGrayling

Purchasing & Contracts

Robert Dunn, Building Construction Project Superintendent

DMVA, Army National Guard, CampGrayling

VENDORS WHO RESPONDED TO THE RFP:

1.Elmer’s Crane & Dozer, Inc. AKA Team Elmer’s

2.Rieth-Riley Construction Company, Inc.

3.Halliday Sand & Gravel, Inc.

Note: The RFP was posted on the Bid4Michigan website on 03/24/10 for 20 days. There were over 385 notifications of the RFP sent to prospective bidders.

SELECTION CRITERIA:

The award decision is based on Best Value/Combination of Score and Price. The award recommendation will be made to the responsive and responsible bidder who offers the best value to the State of Michigan, Department of Military and Veterans Affairs. Best value will be determined by the bidder meeting the minimum point threshold and offering the best combination of the factors stated in Section 3.020, and price, as demonstrated by their proposal.

Responses to this RFP were evaluated based upon the following factors:

Weight

  1. Statement of Work (Aricle 1)20
  2. Company Information/Capabilities (4.011)10
  3. Prior Experience (4.012)30
  4. Staffing (1.031 & 4.013)) 20
  5. Financial Stability (Section 4.502)20

Total 100

Price Analysis – only those proposals receiving a score of 80 pointsor more of the total maximum possible score will be considered for award. Only the price proposals meeting the minimum point threshold will be considered.

The committee met on 04/14/10 and reviewed the proposals submitted in order to make a "best value" determination of award. The following is a narrative of the JEC's results.

1. Elmer’s Crane & Dozer, Inc. AKA Team Elmer’s

  1. Statement of Work (Aricle 1)20 points

The vendor submitted a timeline and sufficient information detailing their capabilities of being able to do the work as specified for both projects, their ability to meet reporting requirements and provide sufficient equipment was all addressed, in addition to being able to complete the work within the specified time frame.

  1. Company Information/Capabilities (Section 4.011)10 points

Their primary type of business is a general construction contractor and has performed aggregate processing. All company information was provided.

  1. Prior Experience (Section 4.012)30 points

The vendor has extensive prior experience in providing road construction services for several very large projects with MDOT, DNR, and various counties, cities, townships, and municipalities. Provided detailed list of over 50 projects awarded.

  1. Staffing (Section 1.031 & 4.013)20 points

The vendor submitted a well-defined staffing plan for the project and how they would implement mobilization, start-up/break down operations and how they would be staffed.

  1. Financial Stability (Section 4.502)20 points

The vendor is a company who has been in business since 1956 with annual sales volumes exceeding $70 million for the past five years.

Team Elmer’s - Total Points Received: 100 points

Note: Since Team Elmer’s proposal met the minimum threshold of 80 points, their proposal and pricing is considered for award.

The total bid amount is $305,800,00 (for both projects). Pricing for 23A gravel is $4.04/ton X 50,000 tons = $202,000.00. Pricing for 21AA dense graded aggregate concrete of output of crusher was $5.19/ton X 20,000 = $103,800.00

A second round of pricing negotiations was submitted to Team Elmer’s for consideration. Their pricing came back as follows:

The total bid amount is $295,300,00 (for both projects). Pricing for 23A gravel is $3.87/ton X 50,000 tons = $193,500.00. Pricing for 21AA dense graded aggregate concrete of output of crusher was $5.09/ton X 20,000 = $101,800.00

NOTE: Total savings from second round pricing was $10,500.00, a savings of 3.4%

2. Rieth-Riley Construction Company, Inc.

  1. Statement of Work (Aricle 1)20 points

The vendor submitted a sufficient timeline and detailed information of their capabilities showing they are able to do the work as specified for both projects, their ability to meet reporting requirements and provide sufficient equipment was addressed, in addition to being able to complete the work within the specified time frame.

  1. Company Information/Capabilities (Section 4.011)10 points

Their primary type of business is a general construction contractor and has performed aggregate processing. All company information was provided.

  1. Prior Experience (Section 4.012)30 points

The vendor has extensive prior experience in providing road construction services for several very large projects with MDOT, DNR, and Counties over past several years. Provided detailed list of recent 13 projects awarded.

  1. Staffing (Section 1.031 & 4.013)20 points

The vendor submitted a list of staffing who would be assigned to the project and how they would implement mobilization, start-up/break down operations and how they would be staffed.

  1. Financial Stability (Section 4.502)20 points

The vendor is a company who has been in business for 47 years with annual sales volumes for past four years exceeding $5M.

Reith-Riley, Total Points Received: 100 points

Note: Since the Reith-Riley proposal met the minimum threshold of 80 points, their proposal and pricing is considered for award.

The total bid amount is $392,200.00 (total for both projects). Pricing for 23A gravel is $6.18/ton X 50,000 tons = $309,000.00. Pricing for 21AA dense graded aggregate concrete of output of crusher was $4.16/ton X 20,000 = $83,200.00.

A second round of pricing negotiations was submitted to Reith-Riley for consideration. Their pricing came back firm as originally submitted.

3. Halliday Sand & Gravel, Inc.

  1. Statement of Work (Aricle 1)0 points

The vendor failed to submit sufficient information requested as to how they would meet the proposed timeline, failed to show company capabilities to perform the work as specified for both projects, didn’t address ability to meet reporting requirements, or provide any information vendor would be able to complete the work within the specified time frame.

  1. Company Information/Capabilities (Section 4.011)10 points

Their primary type of business is a cement and gravel contractor and has performed aggregate processing. All vendor information was provided.

  1. Prior Experience (Section 4.012)15 points

The vendorprovided a paragraph summary of prior experience. However, failed to provide any detail or contact information of recent projects as requested.

  1. Staffing (Section 1.031 & 4.013)10 points

The vendor failed to provide sufficient list of staff and experience or any information as to how company would implement mobilization, start-up/break down operations. The did provide a list of equipment.

  1. Financial Stability (Section 4.502)20 points

The vendor is a company who has been in business for 94 years with annual sales volumes for past five years exceeding $300,000-$400,000.

Halliday Sand & Gravel, Total Points Received: 55 points

Note: Since Halliday Sand & Gravel’s proposal did not meet the minimum threshold of 80 points, their proposed pricing was not considered for award.

Price Comparison

Savings from Competitive

Team ElmersAgency Estimate Bidding

$295,300.00 – Total Bid$375,000.00 $79,700.00 (a savings of 21%)

Reith-Reiley

$392,200 – Total Bid - Exceeds Estimated budget by $17,200

Award Recommendation

The JEC was responsible for interpreting all information submitted, determining the quality of each vendor’s response to the requested information, and determining whether the information submitted demonstrated the bidder’s ability to sufficiently service the State and provide the statement of work as specified. Based on all of the information discussed above, the following bidder is recommended for award:

Elmer’s Crane & Dozer, Inc. AKA Team Elmer’s

The total estimated contract value is $ 295,300.00

Was a JEC utilized?

Yes.No.

How was pricing submitted?

One Step.Multiple Step (pricing separately sealed).

How was pricing factored into the award decision?

Best Value/Lowest Price Best Value/Combination of Score and Price

Signatures:

SignatureDate

SignatureDate

Signature Date

Reviewed and approved by DTMB, Division Director ______

Reviewed and approved by DTMB, Section Manager ______