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Project Name: RFP for Operated Equipment Rental Contract for Refuse Operations Division

Project # RFP-R01

November 26, 2001

TO:  REQUEST FOR PROPOSAL (RFP) HOLDERS

OPERATED EQUIPMENT RENTAL CONTRACT FOR REFUSE OPERATIONS DIVISION
 
ADDENDUM NO. 1

The following are the written questions received 7 days prior to the acceptance date for the RFP and the answers.  The information in the answers shall be considered addendum to the RFP.

1.  You provide expenditures for the past three equipment rental agreements.  Can you provide us with the name of the contractors who performed this work, the rental rates that were in these agreements and a breakdown of the number of hours that were utilized for each piece of equipment in the agreement?

Answer:  The expenditures provided were for the past three fiscal years.  The current agreement is similar to the proposal--it spans three years from January 26, 1999 to January 26, 2002.  The agreement is with Wise Construction.  The rates in the agreement are attached.  These were the rates for the first year and have been adjusted upward each year by 2.5%.  The figures on utilization of each piece of equipment for each year of the contract are not available.

2.  Will we be paid a minimum of 8 hours for each day that an operated piece of equipment is utilized?

Answer:  No.

3.  For Equipment Not Listed you indicated that "Contractor-owned equipment shall be paid at the rental rates listed for such equipment in the Department of Transportation publication entitled Labor Surcharge and Equipment Rental Rates, which is in effect on the date that the equipment is used.  Operators of such equipment shall be paid at actual cost of wages including any employer paid payments for Health and Welfare plus labor surcharge set forth in the above referenced publication."  Will these rates include the 15% markup on equipment and the 33% markup on labor that the Department of Transportation allows on Force Account Work?

Answer:  No.  There shall be allowed a 5% markup on the combined operated equipment rate as calculated above.

4.  For Payment for Overtime, will the Contractor be paid the labor surcharge and 33% markup that the Department of Transportation allows on Force Account Work on the overtime premium paid to the operator?

Answer:  No.  Contractor shall be paid the overtime rate with the applicable labor surcharge plus a 5% markup.

5.  You indicate that the "Contractor is required to provide a site superintendent/foreman for oversight of Contractor-performed work."  Compensation for the superintendent/foreman shall be included in the rental rates for the operated equipment."  How will the Contractor be compensated for the superintendent/foreman if we are using Equipment Not Listed?

Answer:  It has been our experience that use of Equipment Not Listed occurs rarely, and when it has, the Contractor normally has much of the equipment listed in use.  Therefore, no additional superintendent/foreman compensation is allowed for.

6.  Can the superintendent/foreman also operate a piece of equipment or work as a Grade Setter?

Answer:  If they can adequately fulfill the role of superintendent/foreman and still perform this work, yes, it is acceptable.

Please include a copy of this addendum with your proposal as acknowledgment of your receipt.

EDWARD J. WALKER, DIRECTOR
DEPARTMENT OF TRANSPORTATION AND PUBLIC WORKS

      Susan Klassen                             
Susan R. Klassen, Engineering and Operations Manager
Integrated Waste Division

(Attachment is available at the Department of Transportation & Public Works)