ITEM #:
34
 
DATE:
11-10-26
 
DEPT:
W&PC
 

COUNCIL ACTION FORM

SUBJECT:

TECHNICAL SERVICES COMPLEX HVAC IMPROVEMENTS PROJECT

 
BACKGROUND:

The Technical Services Complex (TSC) houses the Water Meter Division and Laboratory Services Division. In February 2026, the City Council approved a professional services agreement for design services associated with the renovation of the TSC. The original project scope included HVAC system improvements, interior finish updates, lighting upgrades, building accessibility improvements, and other building renovations.

 

As design progressed, staff evaluated project costs against available funding and determined that it would be prudent to proceed with the HVAC improvements as a standalone project at this time. The HVAC work addresses the most pressing building needs and is necessary to replace aging and failed heating, ventilation, and air conditioning equipment. Architectural renovations and other building improvements originally included in the project have been deferred and will be evaluated and prioritized separately through future capital improvement planning efforts.

 

On September 22, 2026, City Council approved preliminary plans and specifications for the Ames Technical Services Complex HVAC Renovations. An Invitation to Bid was advertised on AmesBids and a Legal Notice was published on the websites of a contractor plan room service with statewide circulation. On October 28, 2026, three bids were received as shown below. 
 
BIDDER BID AMOUNT

Core Construction Services, LLC

Des Moines, IA

 $1,260,000

Story Construction

Ames, IA

 $1,268,700

All Iowa Mechanical

Des Moines, IA

 $1,430,200

Engineer's Estimate

 $1,570,878
 
While the low bid was 20% below the engineer's estimate, staff is recommending that all bids be rejected. Shortly before the bid opening, a draft addendum prepared by a sub-consultant was improperly distributed to some contractors outside of the City's official bidding process. City staff only became aware of the draft addendum two days prior to the bid opening. Staff's opinion was that the proposed changes were material and significant.
 
 
 
There was insufficient time for staff to properly review and approve the changes, and it was too close to bid day to alter the bidding timeline. Additionally, the unauthorized distribution to bidders created the potential for inconsistent information among bidders. To maintain the fairness, transparency, and integrity of the competitive bidding process, staff recommends rejecting all bids received.  
ALTERNATIVES:
  1. Accept the report of bids and reject all bids.

  2. Accept the report of bids, approve the final plans and specifications (without the addendum), and award a contract to Core Construction Services, LLC, of Des Moines, IA, in the amount of $1,260,000.

  3. Accept the report of bids, approve the final plans and specifications, and award a contract to one of the other two bidders.

  4. Do not award a contract at this time.  
CITY MANAGER'S RECOMMENDED ACTION:

Staff received a very late addendum to the specifications that did not allow time for proper review and distribution. The addendum was distributed by the consultant to some, but not all prospective bidders outside of the City’s official bidding process, creating the potential for unequal access to project information and an inconsistent scope of work being assumed by bidders.

 

Rejecting all bids and restarting the project will ensure a fair, transparent, and competitive bidding process for all prospective bidders. Staff will confer with the design consultant and determine the best manner in which to proceed with the issuance of a new invitation to bid.

Therefore, it is the recommendation of the City Manager that the City Council approve Alternative No. 1, as described above.