Laserfiche WebLink
Hakanson <br />Anderson <br />Assoc., Inc. <br /> <br />Engineers, Surveyors & <br />Landscape Architects <br /> <br />July 10, 1990 <br /> <br />Honorable Mayor & City Council <br />City of Ramsey <br />15153 Nowthen Blvd. N.W. <br />Ramsey, MN 55303 <br /> <br />Re: <br /> <br />Improvement Projects 90-7,8&9 <br />Bituminous Overlays, Autumn Heights, <br />Woodland Green and Halls' Dover Acres <br /> <br />Dear Council Members: <br /> <br />Since our letter of July 3, 1990 regarding the bids on the above <br />referenced projects, we have done additional research and have had <br />further discussion with Mn/DOT regarding unbalanced bids. <br /> <br />Mn/DOT analyzes unbalanced bids in accordance with the Federal <br />Highway Administration guidelines. Those guidelines define <br />unbalanced bids as either mathematically unbalanced or <br />mathematically and materially unbalanced. <br /> <br />Mathematically unbalanced bid is one containing lump sum or unit <br />bid items which do not reflect reasonable actual costs plus a <br />reasonable proportionate share of the bidder's anticipated profit, <br />overhead costs, and other indirect costs, which he/she anticipates <br />for the performance of the items in question. <br /> <br />While mathematically unbalanced bids are not prohibited per se, <br />evidence of a mathematically unbalanced bid is the first step in <br />proving a bid to be materially unbalanced. A materially unbalanced <br />bid has been defined as: <br /> <br />"A bid is materially unbalanced if there is a reasonable doubt that <br />award to the bidder submitting the mathematically unbalanced bid <br />will result in the lowest ultimate cost to the Government. <br />Consequently, a materially unbalanced bid may not be accepted." <br /> <br />In the case of the bid of Bauerly Bros., Inc., there is not <br />reasonable doubt that the award would result in the lowest ultimate <br />cost to the City. Therefore, we would recommend that the City <br />accept the bid of Bauerly Bros., Inc. in the amount of $118,099.95. <br /> <br />222 Monroe Street <br />Anoka, Minnesota 55303 <br /> <br />612/427-5860 <br />Fax 612/427-3401 <br /> <br /> <br />