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RES 2008-1427 - Dostal Construction Co INc appeals bid rejection on Whispering Ridge Park Improvements (denied) l � , ✓ Dostals Construction Company Inc. 13680 South 220`h Street,Gretna,NE 68028 — rn (402)670-8506(Bodie) __1 -� C, 1"u To: City of Omaha, City Council rp T3 �. From: Bodie Dostal - fl Date: October 8, 2008 7` Re: Whispering Ridge Park Appeal to Whispering Ridge Bid Rejection Dostals Construction Co. Inc is small construction company. Including myself, Bodie Dostal and my father James Dostal there are 19 employees. In return 19 families that count on income for their livelihood. Our goal is to take care of our family, our employees' families. Dostals Construction works had to line up work in advance to insure its employees' families have a consistent income. Dostals construction has not ever or will not ever discriminate against any one. We give everyone the equal opportunity to work with us as a subcontractor or for us as an employee. Everyone should and must be created equal. Whispering Ridge Park consists of grading, seeding, wetland improvements, playground area with play equipment and a small amount of equipment. Going into the bid I, Bodie Dostal saw the goal was at 10% on the total job if the project reached over $200,000. I looked thought the DBE list. There are two playground equipment companies on the list, which neither submitted their information to the park planner, Pat Slaven, to be approved on time. There were three DBE companies on the bidders list that are direct competition to Dostals Const. Dostals Construction could not us them, and all three companies are larger in size than us. (Swain Const., TAB Const. and Navarro Enterprises) All three of those companies did not bid on this project. They must not have needed the work. Dostals Construction was the only bidder out of seven companies on the bidders list. 1 r 10/27/2008 related to the extension column to the right. Since that was fairly vague. I assumed that if the calculation was asking, for my total to be multiplied by 12 then it must be asking for a monthly figure. However. that would never equate properly except i'or in the last category where it actually asks for a monthly amount. My interpretation then of this calculation was that it was asking for the total dollar figure for daily services in a month multiplied by 12 (rather than just one daily amount by 12)and the total dollar figure for weekly services in a month multiplied by 12 (rather than just one weekly amount by 12). Doing it this way does lead to the annual amount. which is what was listed on each extension line. The overall effect is that the unit prices arc correct, and the amounts listed in the extension line represent the overall annual bid amount (with the rationale described above). a subsidiary of!M Industries Inc. s , Dostals Construction used Armbrust Excavation for the grading on this project. They're • a small company that will not gross $150,000. I felt that I was trying to help out the small company. Them being a smaller company they did not have the high overhead and in return would save the city $5,000 of the tax payer's money. When bidding publicly bid projects it is always the low bid wins. That is what I am concerned with. Being the low bidder and being awarded the jobs. The human relations department only cares if the goal is met. The majority of the time when bidding projects with DBE goals the prices that come in higher from the DBE's companies than non DBE's companies. That makes is hard for us as a company when only low bid matters in being awarded a contract. There needs to be regulations on the size of DBE companies on the list, as the state of Nebraska has on their minority owned company list. The low bid should always be awarded the job, especially with tax dollars being used. Dostals Construction has lost two jobs in the last three years in which it could not meet its goals and in return cost the tax payers seventy plus thousand dollars. Dostals Construction has successfully completed many projects with the Parks and Recreation Dept. and with the Public Works Dept. for the City of Omaha. We wish to continue the great working relationship. We believe that is would be unfair not award this project to us for not reaching the DBE goal. Dostals Const. does not discriminate against anyone and ask the City of Omaha not to either. We believe the families that we support are equal to in importance to the families of DBE companies. In closing Dostals Construction supports the thought in trying to help the DBE companies get established. Though all companies have to fight to stay afloat, especially with economy today. Dostals Construction really needs this job and want to build a quality project for the City of Omaha. Thank you for your time, Bodie Dostal 2 that was fairly vague. I assumed that if the calculation was asking, for my total to be multiplied by 12 then it must be asking for a monthly figure. However. that would never equate properly except i'or in the last category where it actually asks for a monthly amount. My interpretation then of this calculation was that it was asking for the total dollar figure for daily services in a month multiplied by 12 (rather than just one daily amount by 12)and the total dollar figure for weekly services in a month multiplied by 12 (rather than just one weekly amount by 12). Doing it this way does lead to the annual amount. which is what was listed on each extension line. The overall effect is that the unit prices arc correct, and the amounts listed in the extension line represent the overall annual bid amount (with the rationale described above). a subsidiary of!M Industries Inc. 1J-)14X114' NF %Cit o Omaha f illebras a P 1819 Farnam —Suite LC 1 2 f� ;t Omaha, Nebraska 68183-0112 0E:� �,�� ,.�-;- Buster Brown (402) 444-5550 ic: ti" City Clerk FAX (402) 444-5263 04,4TP13 FE1 9. October 9, 2008 Bodie Dostal Dostals Construction Co., Inc. 13680 South 220 Street Gretna, NE 68028 Dear Mr. Dostal: This letter is notification that a hearing before the Omaha City Council on the appeal of your rejection for "Whispering Ridge Park Improvements" has been set for October 21, 2008. The City Council Meeting begins at 2:00 P.M. in the Legislative Chamber, (LC-4), Omaha/Douglas Civic Center, 1819 Farnam Street, Omaha, Nebraska. This is your opportunity to present your case to the City Council. Sincerely yours, Buster Brown City Clerk BJB:te y "v. Ob n • o 0 al.og r CD CD CD S CD a � 0* I , ..ii N m c„ a. x5 4 ' 0 (7) 'CS ooR t 0 5' It. ,P (q: _4-,'" --a k N, • . 2. cD n td ��\ �. u: 5' o IIh1• \\' •ck .) ...k-r AtL (N , . ki .\` ',, (.1::tf.'\\.! oN GI s been set for October 21, 2008. The City Council Meeting begins at 2:00 P.M. in the Legislative Chamber, (LC-4), Omaha/Douglas Civic Center, 1819 Farnam Street, Omaha, Nebraska. This is your opportunity to present your case to the City Council. Sincerely yours, Buster Brown City Clerk BJB:te 6 N. all , ors outdoor recreation products 1055 North.205th St,. Elkhorn,Nebraska 68022 Phorte;402-28 400 Fax:402-289-0300 Toll free:800-747-KIDS(5437) vww.outdoorrecreationproducts.cor ; October 28, 2008 Mr. Bodie Dostal Dostals Construction Company Inc. 13680 South 220th St. Gretna, Nebraska 68028 Re: Whispering Ridge Park Bodie, This is letter is to confirm our conversation regarding the referenced project. Prior to the bid date we spoke about Outdoor Recreation Products' inability to submit a proposal for the play equipment and other associated items. This was a result of our equipment not being approved by the Engineer. Respectfully, Bill Pospichal Vice-President opportunity to present your case to the City Council. Sincerely yours, Buster Brown City Clerk BJB:te ] I • \ q § / q 2 01 g P 9 o P ?Hi i! UI —. 00 n \ 7 ¢ "' o .iI. CD is; 0 0 \ , 2 .. n 47 VP00K 0 q R o ° F ¢ ' p G # R 7 K \ • A _. a R• 9 § f ? spoke about Outdoor Recreation Products' inability to submit a proposal for the play equipment and other associated items. This was a result of our equipment not being approved by the Engineer. Respectfully, Bill Pospichal Vice-President opportunity to present your case to the City Council. Sincerely yours, Buster Brown City Clerk BJB:te • INTER-OFFICE COMMUNICATION October 27, 2008 TO: Councilmembers, Warren Weaver FROM: Dean Miller, Council Staff Assistant SUBJECT: Dostal Construction Appeal Summary - AGENDA ITEM #56 Agenda item #56 is the bid appeal, regarding the Park Department Improvement project, opened on September 17, 2008. The PBE/DBE goal for this project was set at 10%. • Dostal's was the only bidder, but failed to get any PBE/DBE participation on this project. Fatally, they did not provide any good faith effort as defined in Section 10- 196 of the City Municipal Code. The failure to submit any documentation showing "good faith" effort requires the HRR Department no choice but to recommend a bid rejection - see attachment #1 of Section 10-196. Although Dostals Construction did supply a letter (attachment #2) explaining they do not discriminate and they thought about contacting two companies, the letter provides no proof of any effort taken to get participation (ie advertising, phone conversations, faxes, emails, PBE/DBE bids or follow-up calls to potential contractors). Unfortunately, the City Council can only rely upon the documentation submitted at the time of bid as per Section 10-196 dictates. Council Staff recommends the Council request Dostals Construction to meet "one-on- one" with the HRR staff before bidding on their next project to understand the program in greater detail. This strategy has an excellent record of educating specific contractors on the intricacies of the program and frequently, the appellant wins a bid shortly thereafter. Furthermore, it is recommended the bid be rejected and returned to the Parks Department for disposition (re-bid). Please refer to the memos which have similar conclusions from the HRR Director Gail Thompson and Michelle Peters, from the Law Department. dm c: Council Staff, Gail Thompson, HRR Director Kathy Hendrix Steve Scarpello, Parks Department Paul Kratz, City Attorney City Clerk IA - e'Y\ C% Dostals Construction Company Inc. • 13680 South 220'h Street.Gretna,NE 6 028 Office: (402)332-4537 Fax:(402)332-2881 Mobile Phones: (402)690-9468(Jim) (402)670-8506(Bodie) To: City of Omaha . From: Bodie Dostal Date: September 17, 2008 Re: Whispering Ridge Park Good Faith Effort e_o_t5-71. „let dc • evc_iy e pt-017-7- Tip /✓jGG 14- A9E/OZE d 44. /i -, 07 our- GC7,,,` L)p Gve-i"-G oPit Plc W cy> 145 c-- e-o-vkfa y4:xxid h7LA f , rl A S f1 Cu-) �•1 t•,a era) - ira-c- ✓` LG c /c) 11C)\it4 t-14 Ar% U S /4'J'(G 4\('0j/ h 6\ 3111u// CIY1.c)✓LY f � I /4k71-f tut u-G\ doe> AGe c0 73 0 COO, %fit a�`c Flo Ge i"li- i`tcA Ogf iLe_x c+t )-%00 kl‘k5 , � ')1` / Aoc, rt,04- aken to get participation (ie advertising, phone conversations, faxes, emails, PBE/DBE bids or follow-up calls to potential contractors). Unfortunately, the City Council can only rely upon the documentation submitted at the time of bid as per Section 10-196 dictates. Council Staff recommends the Council request Dostals Construction to meet "one-on- one" with the HRR staff before bidding on their next project to understand the program in greater detail. This strategy has an excellent record of educating specific contractors on the intricacies of the program and frequently, the appellant wins a bid shortly thereafter. Furthermore, it is recommended the bid be rejected and returned to the Parks Department for disposition (re-bid). Please refer to the memos which have similar conclusions from the HRR Director Gail Thompson and Michelle Peters, from the Law Department. dm c: Council Staff, Gail Thompson, HRR Director Kathy Hendrix Steve Scarpello, Parks Department Paul Kratz, City Attorney City Clerk IA - e'Y\ C% Sec. 10-196. Disadvantaged business enterprise and protected business enterprise subcontractors to be listed in the bid documents; compliance determination; recommendation by human rights and relations director. (a) All bidders shall complete the requisite forms in the bid documents listing all disadvantaged business enterprise and protected business enterprise subcontractors to be utilized and the total amount of dollars or percentage of total dollars of each subcontract shall be designated at the time the bid is opened. If the bid fails to meet the city's overall yearly participation goals as set forth in section 10-200, the bidder must demonstrate the bidder's good faith effort to do so. At the time the bid is opened, or not later than 2:00 p.m. on the day of the opening of the bids, the bidders must submit verification in writing from all disadvantaged business enterprise or protected business enterprise subcontractors that said subcontractors have agreed to perform the subcontracting work identified in the bid submitted by the bidder. The verification shall be submitted to the city clerk. All other information required by the bid specifications, including the designation of the percentage or dollar amount of the DBE/PBE utilization and the good faith efforts documentation must be submitted at the time the bid is opened. If a bidder or any of its designated subcontractors desires to be considered a disadvantaged business enterprise or protected business enterprise, the requisite forms need to be completed and approved by the human rights and relations department prior to the date of bid opening on the project for which they are submitting a bid. (b) The human rights and relations director shall determine whether or not the apparent successful bidder has a contract compliance form (CC-1) on file as required by section 10-194. In addition, if the apparent successful bidder or any of its designated subcontractors indicate that they are disadvantaged business enterprises or protected business enterprises on the bid documents, the human rights and relations director also shall determine whether or not the apparent successful bidder and its subcontractors have been approved as such by the department. The human rights and relations director shall determine whether or not the apparent successful bidder has complied with all provisions set forth in this division and shall submit his/her determination and recommendation thereon to the mayor or the director of the department involved. (c) After receiving the recommendation of the human rights and relations director, the mayor or the director of the department involved shall process the award recommendation to the city council. If the contractor or the listed disadvantaged business enterprise and/or protected business enterprise subcontractors have not complied with the requirements set forth in subsections (a) and (b) of this section, the bid shall be considered null and void and shall be rejected. (d) After the bid opening and during contract performance, the successful bidder/contractor shall make every reasonable effort to replace a disadvantaged business enterprise and/or protected business enterprise subcontractor, which the contractor has determined to be unable to perform successfully or is not performing satisfactorily, with another disadvantaged business enterprise or protected business enterprise. Prior to substituting such disadvantaged business enterprise and/or protected business enterprise, the apparent successful bidder/contractor must have approval from the human rights and relations director. The human rights and relations director shall approve all substitutions in writing. (e) The requirements of this section are not subject to waiver. (Code 1980, § 10-196; Ord. No. 35344, § 1, 9-26-00; Ord. No. 36071, § 1, 10-29-02; Ord. No. 36923, § 1, 2-8-05; Ord. No. 37101, § 2, 8-9-05) w ss 9 A \ 7 § �` ° o 2 E ® n b• -? § 7 k U ' - / 3' 2. �` § 54 2 o k tQ _. g o coo RD — ogk � �. » cA c° \ 3 2 > o N5• 0 / § 410 IT CA o \ § cr C,. 7 fa m ). . D § K c q 9 C f k \ o e § ' q P . K -q � � \ r , Inter Office Communication Confidential Memo To: Warren Weaver, City Council Chief of Staff From: Gail Kinsey Thompson, Director , Human Rights and Relations Department Date: October 22, 2008 Re: Whispering Ridge Park Improvements Bid rejection The Human Rights and Relations Department and the Planning Department set a goal of 10% on this project. A pre-bid was not held for this project. The request for bid was sent out on September 3, 2008 and bids opened on September 17, 2008. There was one bidder on this project: Dostals Construction Company Inc. for $222,400.00. Dostals Construction Company Inc. submitted exhibits A and B with the bid. Exhibits were signed and dated, but listed no PBE/DBE company on exhibit A. The total participation amount for Dostals Construction Company Inc. was $0 or 0%. Dostals Construction Company, Inc. did not submit any good faith efforts documentation. Dostals Construction Company, Inc.'s submitted the following: • A letter stating that the company "made every effort to meet the PBE/DBE goals". Accompanying this letter was a list of companies with two PBE companies highlighted. According to the letter submitted, Dostals did not contact these companies because they are his competitors and are capeable of bidding on their own as prime contractors. There was no documentation indicating that any certified contractors were considered or contacted or what the outcome of that contact might have been. We have always been consistent on following the procedures set forth by the Ordinance throughout the life of the program and therefore cannot approve this bid. Dostals Construction Company, Inc. failed to meet the 10%goal for this project and did not submit sufficient goad faith efforts documentation with their bid. The Dostal bid is,therefore, not in compliance with Section 10-196 of the Omaha Municipal Code. Based on the foregoing and as mandated by the Ordinance Section 10-196(c),I hereby )?6 recommend rejection of this bid due to my determination of the failure by the bidder to comply with the requirements of the Ordinance. The following is the current Ordinance language: Sec. 10-196. Disadvantaged business enterprise and protected business enterprise subcontractors to be listed in the bid documents; compliance determination; recommendation by human rights and relations director. (a) All bidders shall complete the requisite forms in the bid documents listing all disadvantaged business enterprise and protected business enterprise subcontractors to be utilized and the total amount of dollars or percentage of total dollars of each subcontract shall be designated at the time the bid is opened. If the bid fails to meet the city's overall yearly participation goals as set forth in section 10-200, the bidder must demonstrate the bidder's good faith effort to do so. At the time the bid is opened, or not later than 2:00 p.m. on the day of the opening of the bids, the bidders must submit verification in writing from all disadvantaged business enterprise or protected business enterprise subcontractors that said subcontractors have agreed to perform the subcontracting work identified in the bid submitted by the bidder. The verification shall be submitted to the city clerk. All other information required by the bid specifications, including the designation of the percentage or dollar amount of the DBE/PBE utilization and the good faith efforts documentation must be submitted at the time the bid is opened. If a bidder or any of its designated subcontractors desires to be considered a disadvantaged business enterprise or protected business enterprise, the requisite forms need to be completed and approved by the human rights and relations department prior to the date of bid opening on the project for which they are submitting a bid. (b) The human rights and relations director shall determine whether or not the apparent successful bidder has a contract compliance form (CC-1) on file as required by section 10-194. In addition, if the apparent successful bidder or any of its designated subcontractors indicate that they are disadvantaged business enterprises or protected business enterprises on the bid documents, the human rights and relations director also shall determine whether or not the apparent successful bidder and its subcontractors have been approved as such by the department. The human rights and relations director shall determine whether or not the apparent successful' bidder has complied with all provisions set forth in this division and shall submit his/her determination and recommendation thereon to the mayor or the director of the department nvolved. (c) After receiving the recommendation of the human rights and relations director, the mayor or the director of the department involved shall process the award recommendation to the city council. Tf the contractor or the listed disadvantaged business enterprise and/or protected business enterprise subcontractors have not complied with the requirements set forth in subsections (a) and (b) of this section,the bid shall be considered null and void and shall be rejected lI (d) After the bid opening and during contract performance, the successful bidder/contractor shall make every reasonable effort to replace a disadvantaged business enterprise and/or protected business enterprise subcontractor, which the contractor has determined to be unable to perform successfully or is not performing satisfactorily, with another disadvantaged business enterprise or protected business enterprise. Prior to substituting such disadvantaged business enterprise and/or protected business enterprise, the apparent successful bidder/contractor must have approval from the human rights and relations director. The human rights and relations director shall approve all substitutions in writing. (e) The requirements of this section are not subject to waiver. (Code 1980, §P-196; Ord.No. 35344, § 1, 9-26-00; Ord.No. 36071, § 1, 10-29-02; Ord.No. 36923, § 1, 2-8-05; Ord. No. 37101, § 2, 8-9-05) 2 % �Ob CD CD P � CD• O 0 t..) a. 0 o CD CD ... Cr1 :3 :3 ° n °° o d 4 �, C.� ,-n -. ° 0 -----.3 Sis\ 0 C cm D D • c ~ ,-o '.`� rn ( � ° o co o, c ac.i) • ,• lJ A