Forensic Audit Report-WPCA Phase IV, Part B. Contract ... - Trumbull

Forensic Consulting Services Report
Town of Trumbull, Connecticut
Page 12
It appears construction bids were advertised, received and opened in accordance with the policies
and procedures of the Town’s Purchasing Department, and in the proper sequence, timeframe and
format typically found within the utility construction industry. Although there appears to be a wide
variation of some unit prices between bidders, as well as the total cumulative amounts, no
mathematical errors were found that would have altered either the dollar amounts bid or the overall
ranking of the contractors bidding the project. Mark IV Contraction’s total bid amount was indeed
the lowest bid received. Reference is made to the attached “Bid Tabulation/Evaluation” attached to
this Report as Exhibit E.
There are however four primary items contained within Mark IV Construction’s bid that seems to
have been the source for most (95%) of the $2.59 million difference between their low bid and that
of the next lowest bid submitted by Guerrera Construction. These items include the following:
Item Item Description Mark IV Guerrera Tabulated Bid
No. Unit Price Unit Price Difference
27 15-inch CPP Storm Drainage $1.00/LF $36/LF $ 802,935
(0 to 10 foot depth)
33 Trench Dam $0.01/EA $2,500/EA $ 50,000
47 Trench Excavation – Rock $0.01/CY $34/CY $1,528,326
(Assumed 7-ft Plus)
51 Gutter-Milling of Existing $0.01/SY $2.25/SY $ 78,848
Pavement
Total Tabulated Bid Difference (of the above four items): $2,460,109
It is difficult, if not impossible to ascertain a contractor’s overall bidding strategy, the manner in
which he may prepare his bid, or the risks that he may or may not be willing to take in setting certain
unit prices lower than expected. However, based on Mark IV’s prior history and experience of
completing sewer related work within the Town, it is certainly a possibility that the company gained
a bidding advantage knowing that certain items of work are not typically required or used in much
lesser amounts, and thus lowering the his unit prices accordingly. Specific reference is made to Item
Nos. 27, 33 and 51.
In addition, there familiarity with the type of Contract Documents (both Design Drawings and
Specifications) typically used by the Town and the manner and level of which they were interpreted
and enforced by Town representatives, as well as a thorough examination of the actual documents
being bid may have potentially opened the door of opportunity for gaining substantial increases to