Repository: UIHistories Project: Board of Trustees Minutes - 1970 [PAGE 80]

EXTRACTED TEXT FROM PAGE:

80

BOARD OF TRUSTEES

[September

18

Walsh Bros., Inc., Chicago, the apparent low bidder with a base bid of $2,879,421, qualified its base bid, thereby rendering this proposal unacceptable. The lowest acceptable bid is that of the Erik A. Borg Company, Skokie, with a base bid of $2,946,800. Other acceptable base bids received are as follows: S. N. Nielsen Company $2 997 000 00 T h e George Sollitt Construction Company 3 195 484 00 B. W. Handler Construction Co 3 267 988 00 There are no irregularities in the bid proposal of the Erik A. Borg Company, which is deemed fully qualified to construct the project. The project is part of the construction for the Medical Center campus which the Board, at its meeting on July 26, 1967, requested the Illinois Building Authority to provide. The Authority will finance the construction and will lease the facilities to the University. Funds for rental payments are available in state appropriations to the University. Jurisdiction of the land on which the project will be constructed will be transferred to the Authority. While the total funds required to complete construction are within the amount declared in the public interest by the Seventy-fifth General Assembly, the Illinois Board of Higher Education has arranged with the Illinois Building Authority that the Authority will not use a portion of the amount declared by the General Assembly to be in the public interest until the State Board specifically approves such use. These reserved amounts consist of a "cost increase reserve" to be used for the purpose of offsetting cost increases determined by actual bid experience and a "federal fund reserve" to be used to make up the difference between estimated and realized federal funding. In accordance with the procedure adopted by the Board of Higher Education at its meeting on October 3, 1967, and in order t o complete construction as planned, it is necessary that the University request the Board of Higher Education and the Illinois Building Authority to release $52,050 of the $192,550 in the "cost increase reserve" for this project and $1,460,000 from the "federal funding reserve." Accordingly, the President of the University, with the concurrence of appropriate administrative officers, recommends: 1. The base bid submitted by Walsh Bros., Inc., Chicago, be rejected for the reasons stated above. 1 2. T h e Board of Higher Education be requested to release $52,050 from the "cost increase reserve" and $1,460,000 from the "federal funding reserve." 3. The Illinois Building Authority be requested to award the construction contract for this work to the lowest acceptable base bidder, Erik A. Borg Company, Skokie, in the amount of $2,946,800 and proceed to procure this facility for the use of the University. The President also recommends that the Comptroller and the Secretary of the Board be authorized to make, execute, acknowledge, and deliver such instruments of transfer, conveyance, lease, contract, and other documents as are necessary to provide for the carrying out of the foregoing project and facility by the Illinois Building Authority. The President further recommends the adoption of the resolutions submitted herewith to implement the official actions required including authorization of the instrument of transfer of jurisdiction of real estate to the Illinois Building Authority. The plans and specifications of this project comply with the requirements of the Facilities for the Handicapped Act. Submitted herewith is a report of the Physical Planning and Construction Office, including a schedule of the base bids received, a copy of which is being filed with the Secretary of the Board for record. Resolution WHEREAS the Seventy-fifth General Assembly of the State of Illinois has declared it to be in the public interest that the Illinois Building Authority construct,

1 It was reported as a matter of record that by letter dated September 9, 1968, subsequent to the opening of bids, Walsh Bros., Inc., attempted to rescind the qualification. However, this does not alter the University's view that the principles of competitive bidding should be observed, and does not constitute justification for a change in the recommendation that this bid be rejected.