AGENDA CAPTION:
Title
Consider approval of Resolution 2025-116R, rejecting the only bid received in response to Invitation for Bids (IFB) No. 2025-089 for the Gateway Monument Signs along IH 35, received from G Creek Construction in the estimated amount of $943,710.58; and declaring an effective date.
Body
Meeting date: July 1, 2025
Department: Engineering & CIP
Amount & Source of Funding
Funds Required: $0.00
Account Number: FY179
Funds Available: NA
Account Name: Monument Signs on IH35
Fiscal Note:
Prior Council Action: 11/01/2022 & 04/04/2023 - Direction on Monument Design Concepts; 08/08/2023 - Approving design contract with MWM Design Group; 01/16/2024 - Council Provided Final Direction of Monument Design; and 10/15/2024 - Approving the design and location of two Gateway Monuments along IH-35 within Texas Department of Transportation (TxDOT) rights-of-way (2024-201R)
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Background Information:
The City of San Marcos (City) issued an Invitation for Bids (IFB 2025-089) for the Gateway Monument Signs Along IH-35 construction project on March 9th, 2025. On the closing date, i.e., April 10th, 2025, only one bid, which was from G Creek Construction, was received.
The project's scope includes the construction of two Gateway Monuments within the Texas Department of Transportation (TxDOT) right-of-way, located approximately 1,100 feet north of Yarrington Road and the IH-35 Southbound Frontage Road Overpass, and approximately 4,100 feet south of the Van Horne Trace and IH-35 Northbound Frontage Road Intersection. The engineer’s construction estimate for this project at the time of bidding was $377,905.00.
The only bid received, which was from G Creek Construction in the amount of $943,710.58, is approximately 2.5 times higher than the engineer’s estimate. Several bid items have significantly higher unit prices because at the time of bidding, tariffs on metals significantly increased on a weekly basis. Market instability led to the increased bid price as compared to the engineer’s estimate.
The design engineer’s bid evaluation memorandum is attached for reference with the recommendation to reject the only bid received at this time and rebid the Gateway Monument Signs Along IH-35 construction project after the tariff negotiations stabilize, which is estimated to be approximately 6 months.
Council Committee, Board/Commission Action:
NA
Alternatives:
NA
Recommendation:
Staff recommends the rejection of the only bid received at this time and rebid this construction project after 6 months.