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We Left $275,000 On The Table In The Boundary Rd Bid

By Ben Meisner

Wednesday, December 02, 2009 03:45 AM

Earlier this week L&M Engineering was awarded the design and construction management work on the Boundary Road development.

The Boundary Road expansion is estimated to cost about $28 million dollars, with the federal government contributing $7,500,000, the province $7,500,000, the private sector developers along the road $6,500,000 and the city will contribute $6,500,000.

The Boundary Rd project consists of approximately 6.8 kilometres of undivided two lane road connecting Highway 97south and Highway 16 East, also included are four intersections to facilitate future improvements to the Boeing/Gunn Rd intersection and the installation of water, sewer and storm drains.

The bids went as follows, Associated Engineering - $1,233,213.00, L&M Engineering $1,508,550.00, and Stantec Consulting with a bid of $1,796,878.73.

Now one would think that Associated would have been given the nod for the job at $1.2 million as opposed to L&M with a bid of $1.5 but it didn’t go that way.

L&M had said in their bid that they would devote 82 hundred hours to the project, while Associated would spend 6 thousand hours.

Now as the City (which looked after the bids) knows, Associated is a very large Engineering firm, quite frankly if they felt all it would take is 6,000 hours of their work, (they have never been known as a company that leaves a lot on the table) then that may be all the Engineering work that is required.

Instead, the City left $275,337.00 on the table, which is more than enough to fill a lot of pot holes in the city.

Insiders in the trade say that had the project been of a private nature, then Engineering costs  would have in all likelihood come in at about $1.1 million based on the cost of the project. That in itself raises a question of just how the bids are determined.

The matter of one of the principles of L&M Engineering  having a family member who is involved in a company which owns property in the area also raises a flag and while it is important to say that there is no suggestion of impropriety here, it does raise a concern with some taxpayers.

A much better explanation was in order by the City to explain the exact manner in which the bid was awarded, as it now stands it appears that the City rushed out of the gate without giving due diligence to the matter.

I’m Meisner and that’s one man’s opinion.

 


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Comments

Nope the comment thing is still up lol.

IMO the engineering for a road is not rocket science and involves little in the way of creative ability to earn 'points'. The extra quarter million was purely political... anyone that thinks Associate Engineers would not do an acceptable job guaranteeing their work has their blinders on.
A lot of city insiders own property in the area of this new road, and not just the L&M principle. This whole project IMO is about making money for property holders with tax payer dollars and political economics and a business plan that is non existent.
From Councilor Brian Skakun;


Ben I wanted to post my comments and say I agree with the article today regarding Boundry Rd engineering contract award . I did not vote in favor of this for many of the same reasons you metioned in your article. I think it was a waste of almost $300,000 dollars that could have been used elsewhere, thanks
In full agreement Ben.
Compare the two companies...

ASSOCIATED...700 EMPLOYEES
L&M..........40 EMPLOYEES

ASSOCIATED....60 YEARS IN BUSINESS
L&M...........25 YEARS IN BUSINESS

ASSOCIATED....PROJECTS WORLDWIDE
L&M...........PROJECTS LOCAL

When it comes to Capability,Methadology and Historical, how could anybody argue on behalf of L&M. Seems to me that Associated is a winner HANDS DOWN. If Associated says that it is going to take 6000Hrs vs.8200Hrs by L&M, I would tend to believe Associated. They didn't get this big by being stupid. I think we in good old PG just got the SHAFT. Wake up folks... Our city Admin and Council is out of control.

Hey Mayor Dan... Something stinks here and I don't think it is the pulp mill..
Can you spell PUBLIC ENQUIRY???
Why are we jumping on the backs of Dano here. I think that it is great that L&M got the job. Good for you guys, and if anything thanks to Dan for keeping it local. Think about it if we award a local company with the job then you can bet that they are going to spend a large portion of the profits right here in P.G. which in todays economy is great.

As far as the land ownership goes. good for them they made a smart investment. Why are you getting your panties in a bunch. we had the same opportunities to buy the land that they did. They had the insight to do it.

congrats l&m
Associated did the Cameron Street Bridge, didn't they? Seems to me like they could do the job.
Looks like Associated did the John Hart Bridge too.

http://www.opinion250.com/blog/view/6220
Based on the previous story about this issue, it looks like the bid scoring weighted each of the 4 criteria equally. Those criteria were:

- Capability
- Methodology
- Historical Performance
- Fees Amounts and Points (looks to be cost)

So, the issue as I see it is whether people think that the scoring process is reasonable and transparent. Lowest cost isn't always the best if it means that the whole thing will need to be redone in 5 years because it wasn't done properly the first time. That said, in a time of economic constraint, perhaps cost should be weighted higher than some of the other criteria, especially if the other bidders are also companies who have demonstrated their ability to complete similar projects in an adequate manner.

It would be more interesting to evaluate this specific bid if we knew how the points were allocated or awarded for the somewhat qualitative measures, since those are the ones that looked to have tipped the bid in L&M's favour. It may make perfect sense if you looked at all the data and not just cost estimates.
Seems one question to ask then, who is who is the "private money" in the deal? and do they have any business arrangements with either of the bidders? If they have business arrangements with L&M then someone should ask hard questions. With so little of its own money on the line here, and so much on the other 2 governments and "private" funds on the line, what do the others have to say about this award?
The Boundry Road expansion and cut off has no useful purpose except to allow access to the private developers property that it will front.

Seems they were able to get this propery out of the Agriculture Land Reserve with little or no trouble.

They used the Airport Runway Expansion as a **red herring** and the different levels of Government went along with it.

We already have a cut off between Highway 16 and Highway 97 North and South, its called the **Old Cariboo Highway** and it works just fine, so we know that the new connection will not make a significant difference to the movement of traffic.

It is highly unlikely that there will ever be any Air Cargo of any significance generated at the Prince George Airport.

So if we eliminate the need for the cut off, and the absence of any Air Cargo, we end up with spending $22 Million dollars of taxpayers money to service some private property on the West side of the new Boundry Road Cut Off. Rather interesting I should think.

My prediction is that this property is nothing more than a new industrial park,which will get industries from other areas of the City to locate there. We the taxpayers will get little if any benefit from the whole process.