Agenda 01/13/2009 Item #10DAgenda Item No. 10D
January 13, 2009
Page 1 of 20
EXECUTIVE SUMMARY
Recommend approval by the Board of County Commissioners to award Bid #09-
5148 to Subaqueous Services, LLC in the total amount of $1,555,419.29 for 2008
Dredging of Doctors and Wiggins Passes and approve all necessary budget
amendments.
OBJECTIVE: Award the 2008 dredging of Doctors and Wiggins Passes to
Subaqueous Services, LLC for a contract value of $1,555,419.29. Award of this
contract will allow this dredging of these two passes to be completed before 5/1/2009,
the start of turtle nesting season.
CONSIDERATIONS: On November 3, 2008 Bid #09 -5148 was posted and 155
inquires were sent out. Out of the 155 inquires, 71 packages were requested, and only
4 bids were received. Bids were opened on December 5, 2008. Bid results were as
follows:
• MillMac Corporation - $1,368,200
• American Marine and Construction, Inc. - $1,399,000
• All American Concrete, Inc. - $1,479,809
• Subaqueous Services, LLC. - $1,755,095.84
Coastal Planning and Engineering, our design professional has evaluated each bidder
and is recommending the award of this contract to Subaqueous Services, Inc. for the
following reasons:
1. Subaqueous Services is the only bidder with the record of knowledge and
experience with projects similar in scope and complexity as Wiggins and Doctors
Passes.
2. MillMac, the low bidder, has experience with smaller dredging projects in largely
protected waters utilizing smaller equipment. MillMac does not have the ebb
shoal dredging experience with winter wave conditions in unprotected open Gulf
waters. In addition, MillMac would need to purchase or rent the dredge
equipment; assemble an operation system; overcome an equipment learning
curve and complete both these projects in a tight timeframe.
3. American Marine and Construction does not have dredge experience and plans
to subcontract out the entire project, providing only project management.
4. All American Concrete would subcontract out the dredging and monitoring and
did not provide sufficient information on references and past work experience.
Collier County's past experience is that dredgers with inadequate equipment or
experience risk not completing on time especially in these two passes. A Notice -to-
Mariners warning of inadequate water depths at the mouth of Wiggins Pass has been
posted for over 6 months. Dredging Wiggins and Doctors passes for safe navigation is
critical in this period before turtle nesting season begins.
Agenda Item No. 10D
January 13, 2009
Page 2 of 20
After determining that none of the first three bidders were considered to be qualified and
responsive, the bid from Subaqueous was reviewed. After determining that Subaqueous
was qualified and responsive, it was determined that their bid offer exceeded the project
budget and under Section VLD.2 of the County's purchasing policy, the Purchasing
Director is authorized to negotiate changes with the lowest, qualified and responsive
bidder to bring prices to within acceptable budget limits. Hence, staff conducted
subsequent negotiations with Subaqueous and obtained a price reduction of
$199,676.55 to a revised total price of $1,555,419.29.
A formal protest of the award recommendation was received prior to the Board acting
on this item. This item was pulled from the 12/16/2008 BCC agenda until the bid protest
could be reviewed. A copy of the protest and the Purchasing Director's decision is
attached.
ADVISORY COMMITTEE RECOMMENDATIONS: The TDC by a vote of vote of 7 to 2
at their November 24, 2008 meeting recommending that the contract be awarded to the
lowest qualified and responsive bidder. The CAC by a vote of 6 to 2 recommended at
their December 11, 2008 meeting that the contract be awarded to Subaqueous Services
LLC. This item was also presented and discussed at the Coastal Advisory Committee
(CAC) meeting on November 13, 2008.
COUNTY ATTORNEY FINDING: This item has been reviewed and approved by the
County Attorney's Office. This item is not quasi judicial, and as such ex parte disclosure
is not required. This item requires majority vote only. This item is legally sufficient for
Board action. - CMG
FISCAL IMPACT: The source of funds for this contract is Category "A" Tourist
Development Tax dollars. The original FY 09 approved budget for this contract in Beach
Reno urishment /Pass Maintenance Fund (195) totals $1,500,000 which is the amount
recommended by the Coastal Advisory Committee and Tourist Development Council.
The current bid submitted by Subaqueous totals $1,555,419.29 and a budget
amendment totaling $55,419.29 will be necessary from Fund (195) reserves in order to
fund this contract. Current Fund (195) budgeted reserves total $15,877,900 of which
$9,500,000 is set aside by policy for future beach renourishment and any catastrophe
events.
GROWTH MANAGEMENT IMPACT: There is no growth management impact
associated with this Executive Summary.
RECOMMENDATION: That the Board of County Commissioners award Bid #09 -5148
to Subaqueous Services, LLC for dredging of Doctors and Wiggins Pass at a cost not to
exceed $1,555,419.29 and authorize the Board Chairman to execute the standard
contract and approve all necessary budget amendments.
Prepared by: Gary McAlpin, CZM
Page I of 1
Agenda Item No. 10D
January 13, 2009
Page 3 of 20
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COLLIER COUNTY
BOARD OF COUNTY COMMISSIONERS
Item Number:
10D
Item Summary:
This item to be heard at 2:00 p.m. Recommend approval
by the Board of County
Commissioners to award Bid #09 -5148 to Subaqueous
Services, LLC in the total amount of
$1,555,41929 for 2008 Dredging of Doctors and Wiggins Passes and approve all necessary
budget amendments. (Gary McAlpin, Coastal Zone Management Director)
Meeting Date:
1/13/2009 9:00:00 AM
Approved By
Scoff Johnson
Purchasing Agent
Date
Administrative Services
Purchasing
12/31/2008 2:30 PM
Approved By
Kathy Carpenter
Executive Secretary
Date
Public Services
Public Services Admin.
12/31/2008 2:35 PM
Approved By
Gary McAlpin
Costal Project Manager
Date
Public Services
Coastal Zone Management
12131!2008 2:37 PM
Approved By
Colleen Greene
Assistant County Attorner
Date
County Attorney
County Attorney Office
12/3112008 2:43 PM
Approved By
Marla Ramsey
Public Services Administrator
Date
Public Services
Public Services Admin.
12131120084:11 PM
Approved By
Steve Carnell
Purchasing /General Svcs Director
Date
Administrative Services
Purchasing
1/6/2009 9:52 AM
.Approved By
Steve Carnell
Purchasing /General Svcs Director
Date
Administrative Services
Purchasing
1/6/2009 9:52 AM
.Approved By
Mark Isackson
Budget Analyst
Date
County Manager's Office
Office of Management & Budget
11612009 10:14 AM
Approved By
James V. Mudd
County Manager
Date
Board County
i5
Commissioners
County Manager's Office
1/612009 12:41 PM
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Agenda Item No. 10D
January 13, 2009
Page 4 of 20
MILLMAC.yW- M A_R I Nf_ 5_AECI A L T S £R_VI C ES
December 22, 2008
Mr. Steve Carnell, Manager of Purchasing Via Fax 239 - 732 -0844
Collier County Purchasing Department RECEIVED
3301 E. Tamiami Trail
Purchasing Building, Building G DEC '[ 2 2G08
Naples, FL 34112
Re: Solicitation Number 09 -5148 r UMbIlAaavo arm
Wiggins and Doctors Passes Dredging Project ; ia4/ ,
Dear Mr. Carnell: /—
As per your Protest of Bid or Proposal Award, we offer the following information;
Name and Address of County Agency affected and the Bid Number and Title
County Agency Collier County Purchasing Department
Bid Number 09 -5148
Bid Title Wiggins and Doctors Passes Dredging Project
Name and Address of Protesting Part y
Millmac Corporation
3700 NW 124 Avenue, Suite 102
Coral Springs, FL 33065
A statement of disputed issues of material fact. If there is no disputed material facts,
a written letter must so indicate.
The executive summary prepared by Mr. Gary McAlpin for the Board of County
Commissioners meeting on 16 December is wrong. The description of Millmac's work
experience mischaracterizes our ability to perform this work. Millmac has on order a new 14
inch dredge that is more than adequate to perform this work. An analogy would be just
because you have ordered a new car does not mean you don't know how to drive. This is
the "logic" that Mr. McAlpin and Coastal Planning and Engineering have used to disqualify
all the other low bidders and this is wrong.
Just because Subaqueous Services Inc., has more experience than Millmac, it does not
mean that Millmac Corporation does not have at least the minimum experience needed to
successfully complete this job.
Additionally, Mr. Stephen Keehn's email to Mr. Gary McAlpin of 12 December states that he
"interviewed the four bidders..." He did not interview Millmac. He only called and asked for
information. In this same email, he states that this information was not even submitted to
Mr. McAlpin for his review. He did not like the information, summarily dismissed the
information and kept this information from your department.
MILLMAC CORPORATION
3700 NW 124th Avenue, Suite 102 " Coral Springs, Ft 33065 • 954.345.4406 office " 954.345.4347 fau " wwmmillmaccom
0
Agenda Item No. 10D
January 13, 2009
Page 5 of 20
Lastly, Millmac Corporation is a State of Florida Certified General Contractor (CGC-
1516065). How can anyone state that we are not qualified to do this job when the State of
Florida says that we are?
relief.
Please review all of the documentation submitted with this protest. The facts are that
Millmac has the experience and is qualified to perform this work. We have the correct
equipment as specified by the bid specification and are fully prepared to perform this work.
A demand for the relief to which the protesting party deems himself entitled
Millmac Corporation respectfully requests that the contract to perform this project be
awarded to Millmac Corporation. Millmac will suffer great economic hardship if it is not
awarded this contract. It specifically ordered a new 14 inch dredge (Cost about $900,000.00
to perform this work. Your specification demanded a 14 inch dredge and this dredge is the
largest portable 14 inch dredge available on the market today. Our contract for the
purchase of this dredge is in jeopardy and we will suffer great losses.
Such other information as the protesting party deems to be material to the issues
Please review all the information submitted with this formal protest.
Contact me if you have any questions or comments.
Kind regards,
MILLMAC CORPORATION
Michael J. illeM rw
President
MILLMAC CORPORATION
3700 NW 124th Avenue, Suite 102 • Coral Springs, FL 33065 • 954.345.4406 office • 954.345.4347 fax • www.millmac.com
MILLMAC r'
December 22, 2008
Mr. Steve Carnell, Purchasing Director
Collier County Purchasing Department
Purchsing Building G, 3301 Tamiami Trail East
Naples, FL 34112
Re: Bid Number 09 -5148
Wiggins and Doctors Passes Dredging Project
Agenda Item No. 1 OD
January 13, 2009
Page 6 of 20
i A L T Y S E R V I C E S
Please allow this letter to serve as our formal protest of your department's recommended contract
award to Subaqueous Services, Inc, which was not the apparent low bidder, on the above competitive
bid.
Enclosed for your ready reference are the following documents:
Bid Tabulation Form (in your office)
Millmac Corporation's bid submission (in your office)
Millmac Corporation's post bid submission
The reason we are formally protesting this award are the following:
1. The County has not selected the lowest, responsive, qualified bidder.
2. Millmac Corporation and two other low, responsive and qualified bidders were bypassed and
dismissed so that the county could select Subaqueous Services Inc (SSI).
3. The County's vetting process in selecting the lowest responsive qualified bidder is flawed.
4. I attended the bid opening on Friday 5 December. There were only three contractors / bidders
identified at that bid opening. But on Monday, the bid tabulation form, showed that there were four
bidders.
5. At the above bid opening, SST's bid price was $ 1,755,095.84. 1 have correspondence received
from your office that they submitted a different price 1,566,419.29. Why is not the county selecting
SSI and using their lower bid price? (documentation enclosed).
MILLMAC CORPORATION
3700 NW 124th Avenue, Suite 101 • Coral Springs, FL 33065 • 954.345.4406 Office • 954.345.4347 fax • www. millmac.com
Agenda Item No. 10D
January 13, 2009
Page 7 of 20
In the end, how can the County's Purchasing Director, recommend to the county manager, who will
in turn make his recommendation to the Board of County Commissioners, a contractor, when the
county's own contractor vetting and selection process is flawed or broken?
Background
Millmac Corporation is a state certified general contractor and has been doing hydraulic dredging
since 2004. We have the experience, proven track record, personnel and a new dredge to complete
this job.
The bid opening for this project was 2:30 PM on Friday 5 December. On Monday December 8, 2008,
at about 11:00 AM, the writer received a call from Mr. Steve Keehn, of Coastal Planning and
Engineering, the County's hired design professional for this bid. He requested additional information
about our company but insisted that our information needed to be into his hands by email Monday
night because he was going to make his recommendation that night. My post bid submission is
enclosed for your review.
Since that time, until Thursday December 11, 2008 1:00 PM, we have learned that the County's
purchasing department has made a recommendation to use Subaqueous Services Inc for this project.
Please note that our price for this work was $ 1,368,200.
Subaqueous Services price for this work was 1,755,000.
Discussion
I am inquiring as to what was the selection process in jumping over three (3) other qualified
contractors to push the contract to SSI?
It is my impression that Coastal Planning and Engineering and your Purchasing Department has made
this selection without:
• Calling even one or our employees (which we supplied phone numbers) to verify their
qualifications.
• Calling even one of our vendors to make sure we pay our bills on time.
• Making one call to our bank or accountant to verify our financial strength.
• Calling our dredge manufacturer to verify that it meets the job specification.
MILLMAC CORPORATION
3700 NW 124th Avenue, Suite 102 • Coral Sonn9s, FL 33065 • 954.345.4406 office • 954.3454347 fax • www.millmacxom
Agenda Item No. 10D
January 13, 2009
Page 8 of 20
It is astounding to me that in the year 2008, a consulting company, Coastal Planning and Engineering,
can make a recommendation to your good selves, have it accepted by your purchasing department,
presented to the City Manager as fact and a vote will be taken on this important contract, at a cost of
approximately $ 400,000 over the lowest bidder.
How is this possible?
Coastal Planning is your DESIGN CONSULTANT and they are not marine engineers, marine
contractors or dredging contractors. They may not be qualified to make this decision on your behalf.
In today's economic environment, with reduced county revenues (taxes), is the Board of County
Commissioners prepared to authorize spending $ 400,000 more than they need to? In my humble
opinion, your Purchasing Department is not doing the citizens of Collier County justice by making a
recommendation without properly vetting all the contractors that submitted bids for this project.
Millmac Corporation is fully qualified and prepared to do this project, but if your purchasing
department does not make a concerted effort to check us out or even call one of our customers, how
can you be sure? This is also true of the number two (2) contractor, American Marine and
Construction. They have also not been properly vetted according to their representative.
It is apparent that a decision was made sometime after the bid opening on Friday December 5, to push
this project to Subaqueous Services. This is evidenced by the fact that no matter what material we (or
the other contractors) sent to Coastal Planning or your Purchasing Department, no one followed up on
this information. They found or imagined ways to disqualify all three lower qualified bidders.
The Board of County Commissioners may want to investigate if the vendor selection process is fair
and serves the taxpayers wisely. Your purchasing department and Coastal Planning and Engineering
has select the highest bidder for this project.
MILLMAC CORPORATION
3700 NW 124th Avenue, Suae 102 • Coral Springs, FL 33065 • 954.345.4406 office • 954.345.4347 fax • www. millmaccom
Agenda Item No. 10D
January 13, 2009
Page 9 of 20
A 1 mentioned earlier, you may also want to investigate why there were only THREE responsive bids
at the bird opening but your office posted FOUR bids AND if you are indeed insisting on using SSI,
why is your department not recommending their lower submitted price?
I respectfully request that you review this information and I stand ready to meet with you to discuss
this matter.
Respectfully submitted
MILLMAC CORPORTION
Michael J. Mi Ier
President
MILLMAC CORPORATION
3700 NW 124th Avenue, Suite 102 • Coral Springs, FL 23065 • 954.345.4406 office • 954.345.4347 fax • www.millmac.com
STATE OF FLORIDA
DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION
CONSTRUCTION INDUSTRY LICENSING BOARD
1940 NORTH
TALLAHASSEE STREET
S EE FL
32399 -0783
MILLER, MICHAEL JOSEPH
MILLMAC CORPORATION
3700 NW 124TH AVENUE
SUITE NO. 102
POMPANO BEACH FL 33065
Congratulations! With this license you become one of the nearly one million
Floridians licensed by the Department of Business and Professional Regulation.
Our professionals and businesses range from architects to yacht brokers, from
boxers to barbeque restaurants, and they keep Florida's economy strong.
Every day we work to improve the way we do business in order to serve you better
For information about our services, please log onto www.myfloricialicense.com.
There you can find more information about our divisions and the regulations that
impact you, subscribe to department newsletters and learn more about the
Department's ini5atives.
Our mission at the Department s: License Efficiently, Regulate Fairly, We
constantly strive to serve you better so that you can serve your customers.
Thank you for doing business in Florida, and congratulations on your new ficeose!
Agenda Item No. 10D
January 13, 2009
Page 10 of 20
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Agenda Item No. 10D
January 13, 2009
Page 11 of 20
STATE OF FLORIDA
DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION
CONSTRUCTION INDUSTRY LICENSING BOARD (850) 487 -1395
1940 NORTH MONROE STREET
`mom+ TALLAHASSEE FL 32399 -0783
MILLMAC CORPORATION
3700 NW 124TH AVENUE
SUITE NO. 102
POMPANO BEACH FL 33055
Congratulationsl With this license you become one of the nearly one million
Floridians licensed by the Department of Business and Professional Regulati
Our professionals and businesses range from architects to yacht brokers, fro
boxers to barbeque restaurants, and they keep Florida's economy strong.
Every day we work to improve the way we do business in order to serve you
For information about our services, please log onto www.mytioridalicense.c
There you can find more information about our divisions and the regulations t
impact you, subscribe to department newsletters and learn more about the
Department's initiatives.
Our mission at the Department is: License Efficiently, Regulate Fairly. We
constantly strive to serve you better so that you can serve your customers.
Thank you for doing business in Florida, and congratulations on your new lice
DETACH HERE
"A COLLIER COUNTY GOVERNMENT
PURCHASING DEPARTMENT
January 5, 2008
Mr. Michael J. Miller,
President
MillMac Corproation
3700 NW 124th Avenue, Suite 102
Coral Springs, FL 33065
Agenda Item No. 10D
January 13, 2009
Page 12 of 20
3301 EAST TAMIAMI TRAIL
PURCHASING BUILDING
NAPLES, FLORIDA 34112
(239) 774 -8407
FAX (239) 732 -0844
Re: Bid protest decision, ITS 09 -5148, Dredging of Wiggins and Doctors
Passes
Dear Mr. Miller;
This office has reviewed your protest of December 22, 2008 regarding the
recommended award of the referenced contract to Subaqueous Services LLC. The
following is a summary of the issues raised in your protest:
1. MillMac is a licensed general contractor and hence has been qualified by the
state of Florida to perform this work.
The State of Florida does not require contractors to have a general contractor's
license to perform dredge work. Hence, in this particular instance, a general
contractor's license is not needed or necessarily an absolute indicator of a
specific bidder's qualifications.
2. Coastal Planning & Engineering is not a marine engineer, a marine contractor or
a dredge contractor and is therefore not qualified to "make this decision" for the
County.
Coastal Planning and Engineering designed the plans and created the
specifications for this dredge project. Their contract also calls for them to
evaluate the qualifications of each bidder and the responsiveness of the bid
offers. Coastal Planning & Engineering is one of the top coastal engineering
consulting firms in Florida with extensive experience providing professional
services to public owners for dredge projects.
3. MillMac Corporation has the minimum experience and the appropriate dredge
needed to successfully complete the job.
Mr. Michael Miller,
January 5, 2008
Page 2 of 5
Agenda Item No. 10D
January 13, 2009
Page 13 of 20
In the original staff recommendation, the County's consulting engineer and the
County's Coastal Zone Management Director stated that they had concerns over
Mil/Mac's lack of experience with jobs of similar scope to that of Wiggins and
Doctors Passes collectively. They also expressed concerns over the fact that
MillMac had not identified any projects or provided any other specific evidence of
any experience of work completed with the use of a 14 inch dredge. They
reached this conclusion based upon the following bid evaluation process:
a. Subsequent to receipt of the bid offers, the County's consulting engineer and
the Coastal Zone Management Director reviewed the information submitted
by MillMac with their bid offer. This included all responses to the document
entitled "Pre -Bid Information" which contained eight questions pertaining to
topics including the bidder's method for completing the work, the equipment
to be used on the job, the personnel to be assigned to the project,
identification of the most recent project of similar scope and listing of ABS
certification.
b. Mil/Mac's response to the questionnaire included a list of 10 dredging projects
performed by MillMac Corporation over the past four years. The County's
consulting engineer reviewed the list and noted that the scope of most of the
listed jobs (seven) were described by MillMac as "dredge residential and
navigable canals ", which would not be considered 'open water, a key
consideration in the performance of the work at both Collier County sites,
which are highly turbid in lets.
c. MilMac's proposal indicates that it will be acquiring the specified dredge prior
and pursuant to commencing this project. It is the opinion of the engineer
and the Coastal Zone Management Director that the dredge proposed for the
job meets the requirements of the specifications.
d. The engineer contacted yourself on December e, (the first business day
after the bids opened) seeking more clarification regarding the projects listed
and the identification of any other jobs that would be comparable to the
scope set forth in the Collier County contract. The engineer also asked
questions about your firm's prior experience with the use of 14 inch dredges.
You forwarded to him a reply to his request later that day. The reply
provided by MillMac mentioned several jobs, most of which had been
previously mentioned in the bid submission. Initial review of the list does not
clearly indicate that any of the jobs appear to include 'open water" work.
Further, none of that work was performed using the size dredge specified in
the bid documents. Also, the information provided does not clearly document
any specific experience with the use of 14 inch dredges.
e. The engineer did not contact the references directly at the time of the review
as it did not appear that any of the listed jobs were performed in "open
water" conditions or were performed using the specified dredge. The
Mr. Michael Miller,
January 5, 2008
Page 3 of 5
Agenda Item No. 10D
January 13, 2009
Page 14 of 20
consultant did, however, provide County staff with references for three of the
projects listed by Mil/Mac that had been obtained within the last two months
for another client. Two of the three references were considered to be positive
overall regarding Mil/Mac's performance on their respective projects. The
third described Mil/Mac's performance as "not completely satisfactory'. In
each instance, the description of the project did not suggest that it was
sufficiently comparable to the Collier County work.
f. On December 30 'h, staff met with you to discuss your protest and the
rationale for the original staff recommendation. As with the information
provided by your office to the consulting engineer on the December 8`", no
new projects were identified. However, your written correspondence
identified a different contact person for one of the previously identified jobs
(Mr. Anthony Grannum on behalf of Smith Warner International). Also, you
verbally elaborated on the details of the Galveston Texas project. As a result,
the consulting engineer was directed to contact the new reference person
and also contacted the reference for the Galveston project.
g. The consulting engineer contacted Mr. Grannum regarding the work
performed for Smith Warner International (Montego Bay, Jamaica) and Mr.
Jonathan Hale with Gulf Cooper Drydock and Rig Repair (the Galveston Bay
project) on December 31'. The following is a verbatim synopsis of the
engineer's findings regarding each reference:
1. General comments. Both references (shown below) were positive about
MillMac job performance, but both jobs did not reach the level of difficulty
associated with inlet entrance dredging expected at Doctors or Wiggins
Passes. Inlet dredging calls for experience and equipment necessary in an
environment with strong tidal currents, waves peaking and breaking on
the ebb shoal and against the tidal currents, shallow shoals and the need
to dredge where these condition may be at their worst. The two jobs
described below are in a less severe environment using smaller dredges.
They are sheltered from larger waves and the Jamaica site has low tidal
currents. Mr. Miller appears to underestimate the difficulty of dredging in
an inlet entrance environment, based on his proposal to use only a
pumping system in Boca Raton Inlet (earlier bid) and his statement that
his 8 inch dredge could handle in the proposed projects (Dec 8, 2008
phone discussion with Steve Keehn), later changed to his 12 inch dredge.
Experienced boaters know that traversing an inlet is the most difficult part
of navigation, like boaters, the dredger cannot avoid the most turbulent
parts of the inlet, since this is where dredging is needed.
2. New References (specific comments regarding each):
a. Phone call December 31, 2008, Smith Warner International former
employee and project inspector: Anthony Grannum, said that
Mr. Michael Miller,
January 5, 2008
Page 4 of 5
Agenda Item No. 10D
January 13, 2009
Page 15 of 20
MillMac was very professions and knew what they were doing. The
work was near Montego Bay in Jamaica. The work area was near
shore, out a distance of 35 meters (115 feet) from the shoreline
removing unsuitable material and replacing it with sand. There were
delays in the project, but they were not the fault of MiIIMac. The
dredging area was in the shadow of a reef farther offshore. When
larger waves hit, the dredge was moved out of the way to the
shoreline. Mr. Grannum was the day to day inspector on the job.
b. Phone call December 31, 2008; Gulf Copper Drydock and Rig Repair,
Galveston. Texas - Mr. Jonathan Hale was the project manager and
said MillMac did a good job. The site was adjacent to the Galveston
Bay, and had major currents, but it was largely sheltered from waves.
Most of the dredging occurred in currents on an inside curve in
otherwise flat waters. MillMac used cables to stabilize dredge in tidal
currents. MillMac brought pipeline and assembled dredge for a long
pump for the size of dredge. Job was principally to clean up shoaling
and sediment accumulation from toe of bulkhead and wharfs with
depths of 20 to 60 feet. MillMac made the schedule.
3. While the County believes that the proposed dredge itself meets the
County's specifications, the engineer has concerns as to how quickly
- MiIIMac will be able to acclimate itself to the new vessel and all of the
attendant equipment. It is important that the selected dredge contractor
have the demonstrated experience with the type of dredging environment
and size of dredge. It is easy to underestimate the difficulty of mobilizing
new equipment for dredging in an inlet environment. Though MillMac may
be capable of learning to use the 14 inch dredge in an inlet entrance
environment, both the engineer and the Coastal Zone Management
Director believe that the ability of MillMac to perform all of the required
work on a timely basis is in doubt and the County would be bearing a
significant risk. The County has previous experience with dredgers that
proved incapable of performing inlet work in a timely and professional
manner, and staff does not want to experience this again.
In addition to the aforementioned issues, your protest also included questions
pertaining to the bidding and award processes. Enclosed is a summary of each
question and a brief reply:
1. Only three bid offers were received and read aloud at the public bid opening. Yet
four bid offers are recorded on the bid tabulation. How did the 4"' bid offer get
included in the bid tabulation?
The Invitation to Bid (ITB) specifically allows bidders to submit their sealed bids
electronically (through the County's on line bidding system) or by paper
hardcopy. In this instance, the Purchasing department received one electronic
Mr. Michael Miller,
January 5, 2008
Page 5 of 5
Agenda Item No. 10D
January 13, 2009
Page 16 of 20
and three paper bids all prior to the bid opening deadline. The electronic bid was
received on Wednesday December 3i° and remained electronically sealed until
the bid opening on Friday December P, at which time it was publicly opened
electronically and displayed on a viewing screen. The paper bids were publicly
opened immediately thereafter.
2. In the bid tabulation, the bid from Subaqueous Services is recorded as
$1,755,095.84. Yet in subsequent correspondence, their bid amount is shown as
$1,555,419.29. Why the difference in price amounts between the two?
Staff and the consulting engineer reviewed each of the bids in the apparent
order of price. After determining that none of the first three bidders were
considered to be qualified and responsive, the bid from Subaqueous was
reviewed. After determining that Subaqueous was qualified and responsive, it
was determined that their bid offer exceeded the project budget. Under Section
VLD.2 of the County's purchasing policy, the Purchasing Director is authorized
to negotiate changes with the lowest, qualified and responsive bidder to bring
prices to within acceptable budget limits. Hence, staff conducted subsequent
negotiations with Subaqueous and obtained a price reduction of $199,676.55.
Based on the information gathered and referenced herein, it is the position of
County staff that MillMac does not possess sufficient experience with projects of a
similar nature or with the specified dredge equipment. Hence, it is the decision of
this office to reject the protest and to proceed with the award as previously
recommended by County staff.
Under subsection XVIII.F of the Board's purchasing policy, the decision of the
Purchasing Director shall be considered final and conclusive unless the protestor
files a subsequent written objection to the Purchasing Director within two business
days of receipt of the decision. Hence, any subsequent written objection must be
filed with this office not later than close of business on Wednesday, January 7,
2009.
Sincerely,
h
Steve Carnell,
Purchasing /General Services Director
cc: Gary McAlpin, Coastal Zone Management Director
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Agenda Item No. 10D
January 13, 2009
Page 18 of 20
From: Cabell Acree ( mailto :CAcree @orionmarinegroup.com]
Sent: Thursday, December 11, 2008 5:13 PM
To: McAlpinGary; McAlpinGary
Cc: Curtis Huggins; Chris Giordano; Jim Rose; Mike Pearson
Subject: Subaqueous Services, LLC
Wqk
J. Cabell Acree, III
Vice President & General Counsel
Orion Marine Group, Inc. and Affiliates
12550 Fuqua St., Houston TX 77034
713- 852 -6505
Cell: 713 -560 -0684
Fax: 713-852-6594
cacree a orimimar."Ie " i om
Mr. Scott Johnson
Mr. Gary McAlpin
Collier County
Re: Subaqueous Services, LLC
Dear Messrs. Johnson and McAlpin
Curtis Huggins, President of Subaqueous Services, LLC ( "SSLLC "), asked me to provide
you some information regarding our acquisition of the assets of Subaqueous Services,
Inc. ( "SSI ") in February of this year, and the lack of SSLLC's involvement in the
pending federal investigation of JaxPort and certain individuals, including the President
of SSI, now known as Hawg Enterprises, Inc.
In February of this year, we formed SSLLC for the purpose of acquiring an operating
certain assets of SSI, and we closed the transaction at the end of February 2008. Included
in the assets we purchased were substantially all of SSI's equipment and machinery,
including equipment and machinery that SSLLC plans to use to discharge the Collier
County project if the successful bidder, and ongoing SSI project contracts. In addition,
we offered employment to substantially all SSI employees, including field employees,
with the exception of the administrative senior management of SSI, including its
President and CFO. After the acquisition, we have supplemented SSLLC's work force
substantially, and we have invested substantial capital in the refurbishment of its assets.
Two of the main attractions of this acquisition for Orion Marine Group were the
extensive experience of SSI's work force in the dredging and related marine services
fields, and the quality and utility of its dredges and other machinery and equipment.
Agenda Item No. 10D
January 13, 2009
Page 19 of 20
Thus, while SSLLC and SSI are completely independent, distinct and unrelated
companies, the operational staff and equipment that make up SSLLC are substantially the same
(if not stronger and better) than the staff that performed and equipment which was used to
perform previous projects of SSI, including dredging projects. It is our definitive view that
SSLLC clearly has substantial dredging and related marine services experience and extensive
related equipment capabilities.
With respect to the ongoing JaxPort investigation referenced above, and as we have reported to
the public and our stockholders in our securities filings with the Securities and Exchange
Commission, SSLLC is not a focus of the federal government's ongoing investigation. Their
focus instead appears to be with respect to certain alleged arrangements and activities of certain
Jaxport Board personnel that may (or may not) have involved the President of SSI and several
other third parties. Nevertheless, SSLLC and Orion Marine Group have fully cooperated with the
investigation and, in that regard, have provided documents and certain testimony related
exclusively to past, historical matters, which have no bearing on SSLLC, Orion Marine Group, or
any of their respective operations. At no time have we been treated as if, or informed that, any of
SSLLC, Orion Marine Group, or any of their respective employees is being investigated or
examined for any alleged wrongdoing.
I am happy to discuss these matters with you further and I am at your disposal to do so. Curtis
indicated that I may be receiving a call from you.
Thank you for your attention to these matters.
Very truly yours,
J. Cabell Acree, III
Vice President & General Counsel
Orion Marine Group, Inc. and Affiliates
12550 Fuqua St., Houston TX 77034
713 -852 -6505
Cell: 713 -560 -0684
Fax: 713-852-6594
cacreeedorionmariue > roup.eom
This email and attachments are confidential, attorney - client privileged, and /or attorney
work product. They are intended to be reviewed by the intended addressees only. Review by
others and any copying or dissemination are prohibited. Please notify sender immediately if you
are not an intended addressee and permanently delete this email and all attachments.
Agenda Item No. 10D
January 13, 2009
j� Page 20 of 20
MILLMAIC M d_R,l_N,£ S ,P E C 1, A,L „T.Y 5 f R.Y 1 C,.._F_5
January 7, 2009
Steve Carnell, Purchasing Manager Via Fax 239 - 732 -0844
Col liar County Government, Purchasing Department
3301 East Tamiami Trail
Naples, FL 34112
Re: Bid Protest Decision, ITB 09 -5148
Dredging of Wiggins and Doctors Passes
Dear Mr. Carnell;
1 am in receipt of your letter of January 5. Please be advised that we have no intention of appealing
your decision.
Contact me should you have any questions or comments.
Sincerely,
MILLMAC CORPORATION
r dG�Ga -�
Michael3. filler
President
MILLMAC CORPORATION
3700 NW 114ey Amnue, Suite 102 • Coral Springs, FL 33065 • 954.345.4406 oMeC • 954.345.4347 fax • WWW.mlllmac.mT