It Takes a Lot to Laugh, It Takes a Sound Transit Train to...
(Disclaimer: This story was written by a bad writer with his tongue in his cheek, and does not represent the opinions of Exit 133, Daniel Rahe or anyone associated with him.)
If you are 20 minutes late for a train, you’ve missed it and will have to wait for the next. That is what Sound Transit told MidMountain construction when their bid packet for the D to M Street Connection project was found to be incomplete. The missing form was finally added to the packet 20 minutes after the submission deadline. This oversight was most unfortunate because MidMountain’s bid for the project was the lowest.
Sound Transit has estimated the cost of this project to be $66.4 million. MidMountain’s bid came in at $40.8 million. The next lowest bid came from PCL Construction, out of Denver, CO, and is higher than MidMountain’s by $800,000.
MidMountain, based in Kirkland, is not going to walk away quietly. In a press release quoted on the Tacoma News Tribune politics blog,, the company has expressed significant grievance with their disqualification by Sound Transit. In the release, penned by the public relations firm they have hired, MidMountain points out that the bid submittal mistake was a minor one, and that the cost difference between their bid and PCL’s should not be passed on to the taxpayers. They even went to the extent of listing several public expenses to which $800,000 could be advantageously applied.
Before I rushed to my calculator to extrapolate which tiny fraction of this $800,000 comes directly out of my pocketbook, I had to stop and jot down a few questions and observations. I am, after all, the low-bid alternative to a journalist – the standardized mediocrity accepted by the public when competence is unaffordable.
Suppose that rather than forgetting to submit one form in the bid package (which is admittedly large and detailed — but this is a $66.4-million-dollar passenger rail line we’re talking about, so let’s not whine about details), MidMountain’s representative was somehow waylaid during the journey to submit it (trapped in a Sounder train restroom en route perhaps, God forbid). Such a tragedy would be not only ironic, but also an understandable reason to be 20 minutes late submitting a bid. Even so, the bid would be disqualified. It would not be accepted because there are rules — not because Sound Transit hates saving money and spits on victims of coincidence.
Then, there is the issue of Sound Transit’s estimate for project cost: it is fully a third higher than both low bids. My eyebrow is so raised, it now communes with the birds. Why such a gaping difference? Which figure is closer to reality? And forgive me for my lack of faith that the public is better served by cost cutting.
A low bid is no good if additional cost overruns come further down the road — and we’ve learned that budget overages are probably more the rule than the exception. If anyone doubts how quickly hundreds of thousands of dollars can be added to a construction budget, the seemingly simple South Tacoma Way Paving Project went over-budget by $200,000. And this was merely a paving project. And let’s not even mention the $890,000 in additional costs due to the epic error on the SR 16 project.
So, is the MidMountain bid truly a lost opportunity, an unrealistic number or something else entirely? Before everyone goes hysteric over $800,000 wasted, this question needs to be answered.
UPDATE
Sound Transit Media Relations was kind enough to respond to our inquiry regarding the extremely low bids. It will be interesting to see how far any potential cost savings go toward covering the existing funding gap…
In answer to your question about the difference between the D-to-M Street estimate and submitted bids, no, there has not been a change in scope during the bidding process.
Construction and material prices were still relatively high when the estimate on the D-to-M Street project was completed in 2009. The project did not go out for bid at that time because construction was delayed to incorporate major design changes –a grade-separated crossing at Pacific Avenue – requested by the City of Tacoma.
During this time, the construction market took a downturn as a result of the recession, creating:
· A relatively low backlog of work for contractors, who are bidding more aggressively for fewer jobs
· An abundance of qualified contractor and supplier labor, which has historically been in short supply, thus generating more intense competition
Engineers’ estimates are typically conservative in order to protect a project against any potential, upward pricing changes in the market. Current conditions, however, have led to a drop in construction pricing, which has driven down contractor bids.
In addition, due to the requested design changes, the D-to-M project budget has increased more than twofold, from $76 million to $161 million. While Sound Transit has secured $62 million in grant funding to make up for much of this increase, a $23 million shortfall still exists. Any remaining difference between the estimate and contractor award will be used to cover these additional costs.
Kimberly M. Reason
Sound Transit Media Relations
18 comments
R RR Anderson July 27, 2010
have you tried emailing Sound Transit spokeswoman, Miss. Reason?
R RR Anderson July 27, 2010
man you’d think keeping all that money in Washington would be enough for Sound Transit to go with MidMountain.
T Tacoma1 July 27, 2010
This story doesn’t seem too plausible to me. There must be more to the story than this one sided letter states. Who knows. Maybe the low bid contractor has a history of shoddy work and wouldn’t get the job even if all the papers were turned in on time.
F frizzlebee July 27, 2010
Sadly, this process applies to any bid for any state entity project. If one iota of the the bid is wrong, from a missing comma all the way to a missing packet, the entire bid is rejected. The rules are made so stringent in order to protect the taxpayers from an unscrupulous contractor.
Unfortunately in this economy, contractor bids differ by much larger amounts than normal. And, again unfortunately, this means more money out of the taxpayer’s pocket.
My bet, and I’ve seen this happen multiple times this year, is that Sound Trasit will throw out all bids and submit for a re-bid.
C captiveyak July 27, 2010
Tacoma1 – there may well be more to the story. But contract law is extremely rigid, especially for projects like this (as you probably know). If MM had been allowed to win the bid despite the initially incomplete package, the handful of other prospectives would have probably had every right to go after ST for unfair or prejudicial practices. MM’s people argue that the submittal requirements allow for “minor errors” in the paperwork, and feel their missing form falls into that category. Unfortunately, a missing form is a missing form, and is not the same as a typo or a misspelled word.
I’m not an expert on the topic by any means, but I’ve worked in the engineering business for a long time and have witnessed my fair share of bid processes.
That being said, I would be very interested in seeing Sound Transit’s explanation of the extremely low bids. I’m considering emailing them out of curiousity.
R RR Anderson July 27, 2010
Do it!
T Thom Tuttle July 27, 2010
The bid does not go to the lowest bid, it goes to the lowest qualified bid. MidMountain mismanaged their own application; why should we let them manage a multi million dollar project? Some lessons are hard to learn.
V Vince July 27, 2010
If there is anything I’ve learned is that bids mean nothing.
The chances of any winning bidder finishing the project anywhere close to the bid are nil.
This company waited until the very last minute and in fact missed the deadline. Just how good are they going to be at following directions on the construction job?
Sound Transit already has an abysmal record of botched plans and cost over runs. Last thing we need is a contractor that even get the paperwork done on time.
L lostinlosangeles July 27, 2010
Nice muckraking.
One thing I don’t get is where the fk the state gub’ment raises 66 mil from? It’s not state income taxes. But I am sure they’ll tax this fun choo choo ride as well for some other dumbsht project. And on, and on, and on. Damn where is Jack Rebney when you need him?
So how are things going with the educational infrastructure in Tacoma? Last time I was at Tacoma CC, it appeared they could have used the 66 mil. I say spend everything on education. Every last freaking tax dime until the words college tuition belong in a Latin dictionary. And then make it illegal to vote or have chilrin’ unless you hold a BA or a BS.
Fk a choo choo.
T Tacoma1 July 29, 2010
Captiveyak
I think your right on. After reading that last article, it sounds like ST wanted to use the low bid but the second lowest bidder called foul. Rules are rules. The document that the Kirkland firm left out happens to be on lobbying. They get booted for being late with their homework and they immediately start a public lobbying campaign to get reconsidered. Go figure.
So the taxpayers save $25M instead of $26M. I’m ok with that.
C captiveyak July 30, 2010
A big thanks to Sound Transit for providing this clarification to our story:
R RR Anderson July 30, 2010
Ms. Reason’s points are very reasonable.
A Altered Chords July 30, 2010
Hers is the voice of reason.
T Tacoma1 July 30, 2010
You guys are punny.
Unfortunately for the maddening crowd, there appears to be no controversy, conspiracy, or communists here.
C captiveyak July 30, 2010
No controversy — just cut-throat bids with near certainty of overages. But agency waste always makes a better headline than “Agency Makes Ethical Decision.”
A Altered Chords July 30, 2010
I agree w/ yak. Too bad we don’t have a city manager earning $800,000 per year and city council members earning $200,000/yr like in Bell, California.
T Tacoma1 July 30, 2010
Haha
“Agency Makes Ethical Decision” would be an unusual headline for sure.
L lostinlosangeles July 30, 2010
“I agree w/ yak. Too bad we don’t have a city manager earning $800,000 per year and city council members earning $200,000/yr like in Bell, California.”
You’re right about that one. But it’s only because they haven’t learned yet or perhaps because Tacoma and Bell are too different animals. Bell being a place that moves a lot more product than Tacoma I am assuming.