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Michael Beason

Wed, Jan 29, 2020 10:26 PM

My municipality bid a project in compliance with the Competitive Bidding Act. As the project developed it would have been considerably more cost than originally anticipated. The City Engineer and the company that won the bid have tentatively agreed upon a new site and project changes that result in an agreed reduction in the bid price ... specifically it reduces the bid price by $100,107.80 (56%).

Does this revised project need to be bid again?

Looking for opinions.

Thank you.

My municipality bid a project in compliance with the Competitive Bidding Act. As the project developed it would have been considerably more cost than originally anticipated. The City Engineer and the company that won the bid have tentatively agreed upon a new site and project changes that result in an agreed reduction in the bid price ... specifically it reduces the bid price by $100,107.80 (56%). Does this revised project need to be bid again? Looking for opinions. Thank you.

JM

Jon Miller

Wed, Jan 29, 2020 11:27 PM

Depends. Is this a public improvement subject to the Public Competitive Bidding Act? I will assume that it is, and that the City's bidding ordinances are either consistent with the PCBA. Are the reductions the result of less units on items that were bid on unit pricing? Or is the bid lower because of alternatives that were set out in the bid process that were optional to the City? If so, then there may not be a need to rebid. If neither of those two items apply, and the reduction results form changes to the overall project specifications, then I believe that the changes are such that the project is no longer the same as what was originally bid and the City would therefore need to rebid the project. Given the size of the project (less than $1,000,000), any change orders would be limited to 15% of the total project. A change order reducing the contract by 56% would not be permitted.

Jonathan E. Miller
City Attorney
City of Mustang
P.O. Box 850854
Yukon, Oklahoma 73085
Telephone: (405) 938-9108

This message is sent by a lawyer and may contain information that is privileged or confidential. If you received this transmission in error, please notify the sender by reply e-mail and delete this message and any attachments. This e-mail is intended for the addressee(s) only, and may not be distributed to any other person without written consent of the sender.

From: Oama oama-bounces@lists.imla.org On Behalf Of Michael Beason
Sent: Wednesday, January 29, 2020 4:26 PM
To: oama@lists.imla.org
Subject: [Oama] Competitive Bidding and a Revised, Lower Bid

My municipality bid a project in compliance with the Competitive Bidding Act. As the project developed it would have been considerably more cost than originally anticipated. The City Engineer and the company that won the bid have tentatively agreed upon a new site and project changes that result in an agreed reduction in the bid price ... specifically it reduces the bid price by $100,107.80 (56%).

Does this revised project need to be bid again?

Looking for opinions.

Thank you.

Depends. Is this a public improvement subject to the Public Competitive Bidding Act? I will assume that it is, and that the City's bidding ordinances are either consistent with the PCBA. Are the reductions the result of less units on items that were bid on unit pricing? Or is the bid lower because of alternatives that were set out in the bid process that were optional to the City? If so, then there may not be a need to rebid. If neither of those two items apply, and the reduction results form changes to the overall project specifications, then I believe that the changes are such that the project is no longer the same as what was originally bid and the City would therefore need to rebid the project. Given the size of the project (less than $1,000,000), any change orders would be limited to 15% of the total project. A change order reducing the contract by 56% would not be permitted. Jonathan E. Miller City Attorney City of Mustang P.O. Box 850854 Yukon, Oklahoma 73085 Telephone: (405) 938-9108 ********************************************************************************************* This message is sent by a lawyer and may contain information that is privileged or confidential. If you received this transmission in error, please notify the sender by reply e-mail and delete this message and any attachments. This e-mail is intended for the addressee(s) only, and may not be distributed to any other person without written consent of the sender. From: Oama <oama-bounces@lists.imla.org> On Behalf Of Michael Beason Sent: Wednesday, January 29, 2020 4:26 PM To: oama@lists.imla.org Subject: [Oama] Competitive Bidding and a Revised, Lower Bid My municipality bid a project in compliance with the Competitive Bidding Act. As the project developed it would have been considerably more cost than originally anticipated. The City Engineer and the company that won the bid have tentatively agreed upon a new site and project changes that result in an agreed reduction in the bid price ... specifically it reduces the bid price by $100,107.80 (56%). Does this revised project need to be bid again? Looking for opinions. Thank you.

MS

Mike Segler

Wed, Jan 29, 2020 11:40 PM

The act only prohibits excessive change orders for an increase in price

Get Outlook for iOShttps://aka.ms/o0ukef

From: Oama oama-bounces@lists.imla.org on behalf of Jon Miller jonmiller@jem-pc.com
Sent: Wednesday, January 29, 2020 5:27:34 PM
To: Michael Beason mbeason@altusok.gov; oama@lists.imla.org oama@lists.imla.org
Subject: Re: [Oama] Competitive Bidding and a Revised, Lower Bid

Depends. Is this a public improvement subject to the Public Competitive Bidding Act? I will assume that it is, and that the City’s bidding ordinances are either consistent with the PCBA. Are the reductions the result of less units on items that were bid on unit pricing? Or is the bid lower because of alternatives that were set out in the bid process that were optional to the City? If so, then there may not be a need to rebid. If neither of those two items apply, and the reduction results form changes to the overall project specifications, then I believe that the changes are such that the project is no longer the same as what was originally bid and the City would therefore need to rebid the project. Given the size of the project (less than $1,000,000), any change orders would be limited to 15% of the total project. A change order reducing the contract by 56% would not be permitted.

Jonathan E. Miller

City Attorney

City of Mustang

P.O. Box 850854

Yukon, Oklahoma 73085

Telephone: (405) 938-9108

This message is sent by a lawyer and may contain information that is privileged or confidential. If you received this transmission in error, please notify the sender by reply e-mail and delete this message and any attachments. This e-mail is intended for the addressee(s) only, and may not be distributed to any other person without written consent of the sender.

From: Oama oama-bounces@lists.imla.org On Behalf Of Michael Beason
Sent: Wednesday, January 29, 2020 4:26 PM
To: oama@lists.imla.org
Subject: [Oama] Competitive Bidding and a Revised, Lower Bid

My municipality bid a project in compliance with the Competitive Bidding Act. As the project developed it would have been considerably more cost than originally anticipated. The City Engineer and the company that won the bid have tentatively agreed upon a new site and project changes that result in an agreed reduction in the bid price … specifically it reduces the bid price by $100,107.80 (56%).

Does this revised project need to be bid again?

Looking for opinions.

Thank you.

The act only prohibits excessive change orders for an increase in price Get Outlook for iOS<https://aka.ms/o0ukef> ________________________________ From: Oama <oama-bounces@lists.imla.org> on behalf of Jon Miller <jonmiller@jem-pc.com> Sent: Wednesday, January 29, 2020 5:27:34 PM To: Michael Beason <mbeason@altusok.gov>; oama@lists.imla.org <oama@lists.imla.org> Subject: Re: [Oama] Competitive Bidding and a Revised, Lower Bid Depends. Is this a public improvement subject to the Public Competitive Bidding Act? I will assume that it is, and that the City’s bidding ordinances are either consistent with the PCBA. Are the reductions the result of less units on items that were bid on unit pricing? Or is the bid lower because of alternatives that were set out in the bid process that were optional to the City? If so, then there may not be a need to rebid. If neither of those two items apply, and the reduction results form changes to the overall project specifications, then I believe that the changes are such that the project is no longer the same as what was originally bid and the City would therefore need to rebid the project. Given the size of the project (less than $1,000,000), any change orders would be limited to 15% of the total project. A change order reducing the contract by 56% would not be permitted. Jonathan E. Miller City Attorney City of Mustang P.O. Box 850854 Yukon, Oklahoma 73085 Telephone: (405) 938-9108 ********************************************************************************************* This message is sent by a lawyer and may contain information that is privileged or confidential. If you received this transmission in error, please notify the sender by reply e-mail and delete this message and any attachments. This e-mail is intended for the addressee(s) only, and may not be distributed to any other person without written consent of the sender. From: Oama <oama-bounces@lists.imla.org> On Behalf Of Michael Beason Sent: Wednesday, January 29, 2020 4:26 PM To: oama@lists.imla.org Subject: [Oama] Competitive Bidding and a Revised, Lower Bid My municipality bid a project in compliance with the Competitive Bidding Act. As the project developed it would have been considerably more cost than originally anticipated. The City Engineer and the company that won the bid have tentatively agreed upon a new site and project changes that result in an agreed reduction in the bid price … specifically it reduces the bid price by $100,107.80 (56%). Does this revised project need to be bid again? Looking for opinions. Thank you.

MR

Michael R. Vanderburg

Thu, Jan 30, 2020 4:31 PM

While I can see Mike Segler's interpretation that 61 O. S. §121 A & B are focused on change orders which increase the price, I am concerned that the changes are not only price but also a new site. I think that makes this a situation that needs to be rebid. Therefore, I vote with Jonathan.

Mike Vanderburg
Ponca City

From: Oama [mailto:oama-bounces@lists.imla.org] On Behalf Of Mike Segler
Sent: Wednesday, January 29, 2020 5:41 PM
To: Jon Miller; Michael Beason; oama@lists.imla.org
Subject: Re: [Oama] Competitive Bidding and a Revised, Lower Bid

CAUTION: This email originated from outside of the organization. Do not click any links or open any attachments unless you recognize the sender and know the content is safe.

The act only prohibits excessive change orders for an increase in price

Get Outlook for iOShttps://aka.ms/o0ukef

From: Oama oama-bounces@lists.imla.org on behalf of Jon Miller jonmiller@jem-pc.com
Sent: Wednesday, January 29, 2020 5:27:34 PM
To: Michael Beason mbeason@altusok.gov; oama@lists.imla.org oama@lists.imla.org
Subject: Re: [Oama] Competitive Bidding and a Revised, Lower Bid

Depends. Is this a public improvement subject to the Public Competitive Bidding Act? I will assume that it is, and that the City's bidding ordinances are either consistent with the PCBA. Are the reductions the result of less units on items that were bid on unit pricing? Or is the bid lower because of alternatives that were set out in the bid process that were optional to the City? If so, then there may not be a need to rebid. If neither of those two items apply, and the reduction results form changes to the overall project specifications, then I believe that the changes are such that the project is no longer the same as what was originally bid and the City would therefore need to rebid the project. Given the size of the project (less than $1,000,000), any change orders would be limited to 15% of the total project. A change order reducing the contract by 56% would not be permitted.

Jonathan E. Miller

City Attorney

City of Mustang

P.O. Box 850854

Yukon, Oklahoma 73085

Telephone: (405) 938-9108

This message is sent by a lawyer and may contain information that is privileged or confidential. If you received this transmission in error, please notify the sender by reply e-mail and delete this message and any attachments. This e-mail is intended for the addressee(s) only, and may not be distributed to any other person without written consent of the sender.

From: Oama oama-bounces@lists.imla.org On Behalf Of Michael Beason
Sent: Wednesday, January 29, 2020 4:26 PM
To: oama@lists.imla.org
Subject: [Oama] Competitive Bidding and a Revised, Lower Bid

My municipality bid a project in compliance with the Competitive Bidding Act. As the project developed it would have been considerably more cost than originally anticipated. The City Engineer and the company that won the bid have tentatively agreed upon a new site and project changes that result in an agreed reduction in the bid price ... specifically it reduces the bid price by $100,107.80 (56%).

Does this revised project need to be bid again?

Looking for opinions.

Thank you.

While I can see Mike Segler's interpretation that 61 O. S. §121 A & B are focused on change orders which increase the price, I am concerned that the changes are not only price but also a new site. I think that makes this a situation that needs to be rebid. Therefore, I vote with Jonathan. Mike Vanderburg Ponca City From: Oama [mailto:oama-bounces@lists.imla.org] On Behalf Of Mike Segler Sent: Wednesday, January 29, 2020 5:41 PM To: Jon Miller; Michael Beason; oama@lists.imla.org Subject: Re: [Oama] Competitive Bidding and a Revised, Lower Bid CAUTION: This email originated from outside of the organization. Do not click any links or open any attachments unless you recognize the sender and know the content is safe. The act only prohibits excessive change orders for an increase in price Get Outlook for iOS<https://aka.ms/o0ukef> ________________________________ From: Oama <oama-bounces@lists.imla.org> on behalf of Jon Miller <jonmiller@jem-pc.com> Sent: Wednesday, January 29, 2020 5:27:34 PM To: Michael Beason <mbeason@altusok.gov>; oama@lists.imla.org <oama@lists.imla.org> Subject: Re: [Oama] Competitive Bidding and a Revised, Lower Bid Depends. Is this a public improvement subject to the Public Competitive Bidding Act? I will assume that it is, and that the City's bidding ordinances are either consistent with the PCBA. Are the reductions the result of less units on items that were bid on unit pricing? Or is the bid lower because of alternatives that were set out in the bid process that were optional to the City? If so, then there may not be a need to rebid. If neither of those two items apply, and the reduction results form changes to the overall project specifications, then I believe that the changes are such that the project is no longer the same as what was originally bid and the City would therefore need to rebid the project. Given the size of the project (less than $1,000,000), any change orders would be limited to 15% of the total project. A change order reducing the contract by 56% would not be permitted. Jonathan E. Miller City Attorney City of Mustang P.O. Box 850854 Yukon, Oklahoma 73085 Telephone: (405) 938-9108 ********************************************************************************************* This message is sent by a lawyer and may contain information that is privileged or confidential. If you received this transmission in error, please notify the sender by reply e-mail and delete this message and any attachments. This e-mail is intended for the addressee(s) only, and may not be distributed to any other person without written consent of the sender. From: Oama <oama-bounces@lists.imla.org> On Behalf Of Michael Beason Sent: Wednesday, January 29, 2020 4:26 PM To: oama@lists.imla.org Subject: [Oama] Competitive Bidding and a Revised, Lower Bid My municipality bid a project in compliance with the Competitive Bidding Act. As the project developed it would have been considerably more cost than originally anticipated. The City Engineer and the company that won the bid have tentatively agreed upon a new site and project changes that result in an agreed reduction in the bid price ... specifically it reduces the bid price by $100,107.80 (56%). Does this revised project need to be bid again? Looking for opinions. Thank you.

MS

Mike Segler

Thu, Jan 30, 2020 4:36 PM

I agree. At some point it becomes a different project

Michael D. Segler
Wheatley, Segler & Osby, LLC
501 W. Main
P. O. Box 850126
Yukon, OK 73085
Telephone: (405) 354-5276
Facsimile: (405) 350-0537

This message is confidential and is intended for the addressee(s) only. It may contain material protected by the attorney-client and/or work product privileges. All applicable rights and privileges are expressly reserved. If you received this email in error, please reply to inform the sender of the error and delete this message from your system. Your cooperation is appreciated. This email address is not to be distributed to any entity without written consent.

From: Michael R. Vanderburg vandemr@poncacityok.gov
Sent: Thursday, January 30, 2020 10:32 AM
To: Mike Segler MSegler@yukonlaw.net; Jon Miller jonmiller@jem-pc.com; Michael Beason mbeason@altusok.gov; oama@lists.imla.org
Subject: RE: Competitive Bidding and a Revised, Lower Bid

While I can see Mike Segler's interpretation that 61 O. S. §121 A & B are focused on change orders which increase the price, I am concerned that the changes are not only price but also a new site. I think that makes this a situation that needs to be rebid. Therefore, I vote with Jonathan.

Mike Vanderburg
Ponca City

From: Oama [mailto:oama-bounces@lists.imla.org] On Behalf Of Mike Segler
Sent: Wednesday, January 29, 2020 5:41 PM
To: Jon Miller; Michael Beason; oama@lists.imla.org mailto:oama@lists.imla.org
Subject: Re: [Oama] Competitive Bidding and a Revised, Lower Bid

CAUTION: This email originated from outside of the organization. Do not click any links or open any attachments unless you recognize the sender and know the content is safe.

The act only prohibits excessive change orders for an increase in price

Get Outlook for iOShttps://aka.ms/o0ukef

From: Oama <oama-bounces@lists.imla.org mailto:oama-bounces@lists.imla.org> on behalf of Jon Miller <jonmiller@jem-pc.com mailto:jonmiller@jem-pc.com>
Sent: Wednesday, January 29, 2020 5:27:34 PM
To: Michael Beason <mbeason@altusok.gov mailto:mbeason@altusok.gov>; oama@lists.imla.org mailto:oama@lists.imla.org <oama@lists.imla.org mailto:oama@lists.imla.org>
Subject: Re: [Oama] Competitive Bidding and a Revised, Lower Bid

Depends. Is this a public improvement subject to the Public Competitive Bidding Act? I will assume that it is, and that the City's bidding ordinances are either consistent with the PCBA. Are the reductions the result of less units on items that were bid on unit pricing? Or is the bid lower because of alternatives that were set out in the bid process that were optional to the City? If so, then there may not be a need to rebid. If neither of those two items apply, and the reduction results form changes to the overall project specifications, then I believe that the changes are such that the project is no longer the same as what was originally bid and the City would therefore need to rebid the project. Given the size of the project (less than $1,000,000), any change orders would be limited to 15% of the total project. A change order reducing the contract by 56% would not be permitted.

Jonathan E. Miller

City Attorney

City of Mustang

P.O. Box 850854

Yukon, Oklahoma 73085

Telephone: (405) 938-9108

This message is sent by a lawyer and may contain information that is privileged or confidential. If you received this transmission in error, please notify the sender by reply e-mail and delete this message and any attachments. This e-mail is intended for the addressee(s) only, and may not be distributed to any other person without written consent of the sender.

From: Oama <oama-bounces@lists.imla.org mailto:oama-bounces@lists.imla.org> On Behalf Of Michael Beason
Sent: Wednesday, January 29, 2020 4:26 PM
To: oama@lists.imla.org mailto:oama@lists.imla.org
Subject: [Oama] Competitive Bidding and a Revised, Lower Bid

My municipality bid a project in compliance with the Competitive Bidding Act. As the project developed it would have been considerably more cost than originally anticipated. The City Engineer and the company that won the bid have tentatively agreed upon a new site and project changes that result in an agreed reduction in the bid price ... specifically it reduces the bid price by $100,107.80 (56%).

Does this revised project need to be bid again?

Looking for opinions.

Thank you.

I agree. At some point it becomes a different project Michael D. Segler Wheatley, Segler & Osby, LLC 501 W. Main P. O. Box 850126 Yukon, OK 73085 Telephone: (405) 354-5276 Facsimile: (405) 350-0537 ***************************************************************************** This message is confidential and is intended for the addressee(s) only. It may contain material protected by the attorney-client and/or work product privileges. All applicable rights and privileges are expressly reserved. If you received this email in error, please reply to inform the sender of the error and delete this message from your system. Your cooperation is appreciated. This email address is not to be distributed to any entity without written consent. From: Michael R. Vanderburg <vandemr@poncacityok.gov> Sent: Thursday, January 30, 2020 10:32 AM To: Mike Segler <MSegler@yukonlaw.net>; Jon Miller <jonmiller@jem-pc.com>; Michael Beason <mbeason@altusok.gov>; oama@lists.imla.org Subject: RE: Competitive Bidding and a Revised, Lower Bid While I can see Mike Segler's interpretation that 61 O. S. §121 A & B are focused on change orders which increase the price, I am concerned that the changes are not only price but also a new site. I think that makes this a situation that needs to be rebid. Therefore, I vote with Jonathan. Mike Vanderburg Ponca City From: Oama [mailto:oama-bounces@lists.imla.org] On Behalf Of Mike Segler Sent: Wednesday, January 29, 2020 5:41 PM To: Jon Miller; Michael Beason; oama@lists.imla.org<mailto:oama@lists.imla.org> Subject: Re: [Oama] Competitive Bidding and a Revised, Lower Bid CAUTION: This email originated from outside of the organization. Do not click any links or open any attachments unless you recognize the sender and know the content is safe. The act only prohibits excessive change orders for an increase in price Get Outlook for iOS<https://aka.ms/o0ukef> ________________________________ From: Oama <oama-bounces@lists.imla.org<mailto:oama-bounces@lists.imla.org>> on behalf of Jon Miller <jonmiller@jem-pc.com<mailto:jonmiller@jem-pc.com>> Sent: Wednesday, January 29, 2020 5:27:34 PM To: Michael Beason <mbeason@altusok.gov<mailto:mbeason@altusok.gov>>; oama@lists.imla.org<mailto:oama@lists.imla.org> <oama@lists.imla.org<mailto:oama@lists.imla.org>> Subject: Re: [Oama] Competitive Bidding and a Revised, Lower Bid Depends. Is this a public improvement subject to the Public Competitive Bidding Act? I will assume that it is, and that the City's bidding ordinances are either consistent with the PCBA. Are the reductions the result of less units on items that were bid on unit pricing? Or is the bid lower because of alternatives that were set out in the bid process that were optional to the City? If so, then there may not be a need to rebid. If neither of those two items apply, and the reduction results form changes to the overall project specifications, then I believe that the changes are such that the project is no longer the same as what was originally bid and the City would therefore need to rebid the project. Given the size of the project (less than $1,000,000), any change orders would be limited to 15% of the total project. A change order reducing the contract by 56% would not be permitted. Jonathan E. Miller City Attorney City of Mustang P.O. Box 850854 Yukon, Oklahoma 73085 Telephone: (405) 938-9108 ********************************************************************************************* This message is sent by a lawyer and may contain information that is privileged or confidential. If you received this transmission in error, please notify the sender by reply e-mail and delete this message and any attachments. This e-mail is intended for the addressee(s) only, and may not be distributed to any other person without written consent of the sender. From: Oama <oama-bounces@lists.imla.org<mailto:oama-bounces@lists.imla.org>> On Behalf Of Michael Beason Sent: Wednesday, January 29, 2020 4:26 PM To: oama@lists.imla.org<mailto:oama@lists.imla.org> Subject: [Oama] Competitive Bidding and a Revised, Lower Bid My municipality bid a project in compliance with the Competitive Bidding Act. As the project developed it would have been considerably more cost than originally anticipated. The City Engineer and the company that won the bid have tentatively agreed upon a new site and project changes that result in an agreed reduction in the bid price ... specifically it reduces the bid price by $100,107.80 (56%). Does this revised project need to be bid again? Looking for opinions. Thank you.