Explanation
BACKGROUND: To modify the existing city-wide contract for the option to purchase Geologic Borings & Monitoring Wells for the Division of Water. Formal bids were opened by the Purchasing Office on September 8, 2005. The Purchasing Office advertised and solicited competitive bids in accordance with Section 329.06. (Proposal No. SA001720). FL002866, with Moody's of Dayton, Inc., dba G.M. Baker & Son was established in accordance with bids received. Their contract compliance number is 31-0641203, which expires 10/18/2008. This contract includes the requirement for Prevailing Wage rates. When the contract was bid, a job class of Well Driller was included in the State of Ohio's Prevailing Wage determination. However, shortly after the contract was complete, the classification of Well Driller was eliminated, and merged into a classification which resulted in a 55% increase in direct labor costs. That increase resulted in a 33% price increase for Items 2-30 only of the resulting bid, and is retroactive to December 1, 2005, until the contract expiration date of December 31, 2008.
1. Amount of additional funds: The estimated annual expenditure for the contract is $177,500.00. The Division of Water must obtain approval to expend from their own budgeted funds for their estimated expenditures.
2. Reason additional needs were not foreseen: The State of Ohio does not send out notification when a job classification is eliminated. The reclassification was not realized until a review by the City's Prevailing Wage Coordinator.
3. Reason other procurement processes not used: The Division of Water is currently in the midst of the geologic investigation and well installation projects. This increase is a direct result of the Prevailing Wage rates, and is beyond the control of the contractor.
4. How cost was determined: The price increase is directly attributable to the increase in prevailing wage rates.
FISCAL IMPACT: No funding is required to modify ...
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