Wagner Construction Friday was to appeal a Minnesota Department of Transportation decision which denied its low bid for work on County State Aid Highway 155.
County Engineer Doug Grindall asked the Koochiching County Board Tuesday to sign a letter supporting the local company’s bid to do construction on the road which connects CSAH 332 and Highway 11 East. The board unanimously approved the motion.
A decision may come up to five days following the appeal, according to Grindall.
“They’ve probably got an uphill battle, but if we can help them out, this is the low bid so I am able to support that,” Grindall told the commissioners.
The contract under appeal with the state is for $1.36 million from low bidder Wagner Construction.
Grindall explained to the board that the contract was rejected because Wagner Construction did not meet the necessary percentage of Disadvantaged Business Enterprise (DBE) program participants. This program ensures that when a DBE goal is set for each project, a percent of the funds included in the project are used with DBE firms, including racial and ethnic minorities and women.
The CSAH 155 project had a DBE goal of 7 percent, which means, for example, a bid of $1 million would require that $70,000 be used for subcontractors in this category. If the subcontractor is a supplier of materials, then only 40 percent of that amount is considered in meeting the goal, explained Grindall. Wagner’s original bid was at 0.8 percent DBE, Grindall said, but indicated that Wagner had since contacted with more DBE firms to raise that to the necessary 7 percent.
Grindall said the 7 percent DBE was significantly higher than contracts accepted in neighboring counties within the last few weeks.
Grindall said cost is the problem with accepting the only bidder to match the DBE percent in its bid. That bid would cost the county nearly an additional $63,000.
Rebidding the project would mean the county would push the decision toward the end of the short construction season, he said. Original bids had been sought for the contract two months ago, he said.
Earlier, Grindall said the roadway cross section will consist of two 12-foot blacktop lanes with a paved 10-foot shoulder on each side. The south end of the project will be on new alignment. The northern section will be moved westerly about 50 feet from the existing road. Turn lanes will be provided where needed. The Minnesota Department of Transportation anticipates reconstructing Highway 11 in that area to provide for additional turn lanes also. An electronic railroad signal with gates will also be provided at the crossing.
The letter of support, signed by board Chairman Wade Pavleck, notes that the federal funding for the project is based on an original estimate of only $332,000 for shoulder widening. The rest of the money for the expanded project will come from a Koochiching County State Aid Highway construction allocation.
Federal funding for the project, Grindall said, has been designated but is not authorized until a contract is awarded. That money is waiting in the county’s “big account” with the state, Grindall explained, along with the CSAH funds.
Pavleck asked that Grindall be careful how the project would be paid for in light of a potential state shutdown Friday. County Attorney Jeff Naglosky said the county would look at each project individually when deciding whether the money was available to continue.
