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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 file: / /C:\AgendaTest \Export\ 121- January %2013,% 202009 \10. %2000UNTY %20N1ANAGE... 1/7/2009 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 file: / /C:\AgendaTest \Export\ 121- January %2013,% 202009 \10. %2000UNTY %20N1ANAGE... 1/7/2009 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 (850) 487 -1395 i DETACH HERE acs 3965868 ►�`oF FLORIDA' �. 4 rtrx DEPARTMENT OF NE BIISSSS AND PROFESSIONAL REGULATION ,� CONSTRVCTS,DN4INDUSTRY LICENSING BOARD SEQ#- L08090200096. TheGENHRAL>CONTRACxOR r T'��,� �xi' i Under: the proua,sxons of ChagLd- r 8 S� Expiration date AIIG,31�;, 2010111 411 [In s .MILLER; MICHAEL 'JOSEPH 7-� 37000 NW-- 124TH AfiVE;3UE"' 5` of is / 7'i SUITE NO POMPANO BEACH z ' �CHARLIE CRZSTi; CHARLES W. DRAGO GOVERNOR - D151YA5REQUIREb BY lAW 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 $199,676.55. Based on the information gathered and referenced herein, it is the position of County staff that MillMac does not possess sufficient experience with projects of a similar nature or with the specified dredge equipment. Hence, it is the decision of this office to reject the protest and to proceed with the award as previously recommended by County staff. Under subsection XVIII.F of the Board's purchasing policy, the decision of the Purchasing Director shall be considered final and conclusive unless the protestor files a subsequent written objection to the Purchasing Director within two business days of receipt of the decision. Hence, any subsequent written objection must be filed with this office not later than close of business on Wednesday, January 7, 2009. Sincerely, h Steve Carnell, Purchasing /General Services Director cc: Gary McAlpin, Coastal Zone Management Director 0 o Q E Z m a" N Q n vO m E Odo mo °a yO �a f o �a o' Y t~ a A° m p O rn w O m w N O w N N w m N p N O w N O^i w A m w Q W q ct h w m N Z N } > U J cD r w a o w rn m w N o w ci t0 o °o ° N °o 0 a 2 J o ° p w w m w q w w N w n E w w P f°e o Z VO] w N N w N u N Q O Q o ° w m N } Y Y N } Z > Y w W w w y a F O Z z Z z Z z Z z Z z Z Z o 2 m j m a S U � y a D O 4 U v° O O c O Dv rn V Q Q O N ONi P J Q m 10 E a Q z o 0 � E lG n a U o J ¢ _ D o O U O U � O w J E C y O O � d O 0 U y N v v 5 Q �$ 5 a 9 3 @5 L 0 °e 9 E E E m 5 s L ; q Y E T� E m t E 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