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04a Mr. Russell Spivey Bid Award Recommendation — San Lee Park Sewer Service January 20, 2017 Page 2 of 2 • W-9 • Iran Divestment Act Certification The Total Unit Price Bid amount of $64,740.00 by EU, Inc. is 30% higher than my Engineer's Estimate for the Construction Cost ($49,660.00). Because the bid amount exceeds the Engineer's Estimate by a significant margin, it was decided to not accept the bid and enter into negotiations with EU to review options to reduce the project scope and cost. EU agreed to reevaluate their unit prices after our initial negotiations meeting. EU proposed a reduction of $10,500 in unit prices, reducing the Total Unit Price amount from $64,740.00 to $54,240.00. In an effort to further help reduce the project cost, it was agreed the County would provide the 'Clearing / Tree Removal' ($9,000 line item), the 'Asphalt Pavement Repair' ($2,000 line item) and the 'Temporary Seeding' ($2,000 line item) separately. The final proposed contract amount has been negotiated for a Total Unit Price amount of $41,240.00. ELJ, Inc. is a licensed Public Utilities Contractor in the State of North Carolina and based in Jacksonville, NC. ELJ recently completed two projects for Lee County: 1) OT Sloan Park Sanitary Sewer Rehabilitation and 2) Government Center Waterline Replacement. Both projects were completed in a satisfactory manner. If the County determines it has the funds available to proceed with this project, I hereby recommend award of the negotiated project to ELJ, Inc. for the negotiated Total Unit Price Amount of $41,240.00. Please keep in mind that the proposed contract amount is 'unit price' and the final cost will depend on the actual units installed plus any change orders that may be necessary. A 20% contingency is advised for this project. If you have any questions, please contact me at your earliest convenience. Sincerely, J Thomas Engineering, Inc. Jeremy U.' -°Y �g�me�ln9 M«u, Thomas` °m"'„'mxm97 on.:onoi.:o u.mra usw Jeremy R. Thomas, P.E. President Enclosures: EU Bid Package Bid opening certification Bid tabulation Unit Price Schedule for Revised Project ,J Thomas j✓n ineerinYy Inc.