Wednesday, July 8, 2015

Kriseman Administration is asking City Council to Waive City Procurement Rules to hasten DEMO of existing Pier.

Opinion by: E. Eugene Webb PhD
Coauthor of: So You Want Blog .

Here is the Pier Demolition Ordinance Preamble the Kriseman administration is asking City Council to approve.

A RESOLUTION WAIVING CITY ST.  PETERSBURG CODE SECTION 2-244(e) ACCEPTING THE BID AND APPROVING THE  AWARD OF A CONTRACT TO SONNY
GLASBRENNER INC. FOR THE ST. PETERSBURG MUNICIPAL PIER DEMOLITION PROJECT
(ORACLE NO. 11988) IN AN AMOUNT NOT TO EXCEED $3,158,281.47 WHICH INCLUDES
A 4.9% INCREASE TO THE ORIGINAL BID; AUTHORIZING THE MAYOR OR THE MAYOR'S DESIGNEE TO EXECUTE ALL DOCUMENTS NECESSARY TO EFFECTUATE THIS TRANSACTION;  AND PROVIDING AN EFFECTIVE DATE.

The vendor, Sonny Glasbrenner, Inc originally submitted the bid in 2012 and was awarded the contract. Glasbrenner wants a 4.9% increase in the cost to "account for escalation in the price of labor, equipment and materials from the September 6, 2012 bid date to June of 2015."

St. Petersburg City Code Section 2-244 Competitive Sealed Bidding
Bid acceptance and bid evaluation.
Bids shall be unconditionally accepted without alteration or correction, except as authorized in this section. Bids shall be evaluated based on the requirements and evaluation criteria set forth in the invitation for bids. Requirements and evaluation criteria may include criteria to determine acceptability, such as inspection, testing, quality, workmanship, delivery, and suitability for a particular purpose.

The Glasbrenner request does not seem unreasonable on the surface, but the Procurement Regulations do not allow for such an increase. Either Glasbrenner agrees to do the job for the original amount bid, about $3,000,352 or the demolition should be rebid.

In a rebid, which follows the rules, the price might go up or it might go down from Glasbrenner's new price of $3,158, 281.

But the money isn't the point and that's the issue.

The Kriseman team is so desperate to get the pyramid torn down and this project underway  to stop a Referendum that they are starting to hedge the rules day one.

Anyone who has worked any time at all in government and has half a brain will tell you that manipulating the procurement rules is the sure path to disaster. If this is the example of how Kriseman will run this project then the Skanska price guarantee is not worth the paper it is written on.

First time something goes wrong and Skanska looks like they will be on the hook Skanska, Kriseman and the whole Pier team will up to Council balling for a change and pointing at the Glasbrenner deal as an excuse.

Council needs to nip this one in the bud and send the Mayor and the dream team back to the table and get a commitment from Glasbrenner to do the job for the amount bid with no allowed change orders or put the demo work out for a rebid.

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