DEPARTMENT: Facilities Management
FILE TYPE: Consent Action
TITLE
title
Authorization To Reject All Bids For Western Service Center Cooling System Replacement Project
end
PURPOSE/ACTION REQUESTED
Authorize the County Manager or their designee to reject all bids for the Western Service Center Cooling System Replacement project.
SUMMARY
The existing screw-type chiller currently located in the basement of the Western Service Center is beyond its useful life and needs replacement. The only way to move equipment in and out of the basement in the Western Service Center is through the freight elevator. This elevator has space and weight constraints that are not conducive to moving a new screw-type to the basement. Staff believes adding an air-cooled chiller in the outdoor housing, where the cooling tower currently is located, makes the most sense due to current and future costs of installation and operation.
On February 20, 2025, staff issued a request for bids for the installation of a new air-cooled chiller to serve the Western Service Center. The design and bid documents were provided to staff by Obermiller Nelson Engineering, LLC. Only one contractor, API HVAC Services, Inc., responded to the solicitation with a bid of $2,350,000. This bid amount was $530,000 (29%) over the engineer’s estimate of $1,820,000.
Late in the bidding process it was discovered that the contractors were having difficulties finding subcontractors to run the new pipe under a portion of the building that was identified in the plans. Staff believes the difficulty the prime contractors had finding a sub-contractor to run the new pipes negatively affected bidder turnout and drove the price up for the bid that was received. Staff recommends rejecting the low single bid and reissuing a request for bids solicitation with reduced scope and a new path for the chilled water pipes.
RECOMMENDATION
recommendation
Staff recommends that Dakota County reject the lone bidder, API HVAC Services, Inc., for the Western Service Center Cooling System Replacement project and re-bid the project with reformulated project requirements that are more advantageous to the County.
end
EXPLANATION OF FISCAL/FTE IMPACTS
None.
☒ None ☐ Current budget ☐ Other
☐ Amendment Requested ☐ New FTE(s) requested
RESOLUTION
body
WHEREAS, the 2025 Facilities Capital Improvement Program Adopted Budget authorized the Western Service Center Cooling System Replacement project; and
WHEREAS, bid documents and specifications were prepared by County staff and Obermiller Nelson Engineering, LLC; and
WHEREAS, one competitive bid was received on March 13, 2025; and
WHEREAS, the only bid received exceeds available project funding and was not advantageous to the County; and
WHEREAS, staff will work to reformulate and rebid the work to a better outcome in the future.
NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Board of Commissioners hereby authorizes the rejection of all bids for the Western Service Center Cooling System Replacement project.
end
PREVIOUS BOARD ACTION
None.
ATTACHMENTS
None.
BOARD GOALS
☐ Thriving People ☐ A Healthy Environment with Quality Natural Resources
☐ A Successful Place for Business and Jobs ☒ Excellence in Public Service
CONTACT
Department Head: Mike Lexvold
Author: AJ Ross