111 E. Commercial Street
Willits, California 95490
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WILLITS CITY COUNCIL
AGENDA
SPECIAL MEETING
FEBRUARY 13, 2025 | 12:00 PM | CITY COUNCIL CHAMBERS
1. OPENING MATTERS
a. Call to Order. | b. Roll Call.
2. DEPARTMENT RECOMMENDATIONS (ACTION ITEMS)
Adopt a Resolution to Reject a Bid Protest by Argonaut Constructors and Award the Construction Contract of the Rail with Trail (Project No. 2021-03) to Bouthilliers Construction Inc. in an Amount not to Exceed $8,979,271.90. The Contract Award Requires the Rejection by the City Council of a Bid Protest by Argonaut Constructors. Authorize the City Manager to Execute the Contract and Approve Construction Change Orders up to a Cumulative Total of 10-Percent of the Total Contract Amount. A Subsequent Budget Amendment is Necessary to Cover Higher than Anticipated Costs.
3. ADJOURNMENT
Right to Appeal - Persons who are dissatisfied with the decisions of the City Council may have the right to a review of that decision by a court. The City has adopted Section 1094.6 of the Code of Civil Procedure, which generally limits to 90- days, the time within an individual and/or entity may judicially challenge the decisions of the City Boards and Agencies.
I hereby certify under penalty of perjury under the laws of the State of California that I posted the foregoing Agenda on the bulletin board at the main entrance of the City of Willits City Hall, located at 111 East Commercial Street, Willits, California, not less than 24 hours prior to the meeting set forth on this Agenda.
Dated this 12th day of February 2025.
Delores Pedersen, City Clerk
Americans with Disabilities Act (ADA) Compliance
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Additional Meeting Information for Interested Parties
Materials related to an item on this Agenda submitted to the Willits City Council, Planning Commission, or Community Development Agency after distribution of the agenda packet are available for public inspection at City Clerk’s office at 111 E. Commercial Street, Willits, during normal business hours, Monday through Thursday 9 AM to 5:30 PM.
Item No. 2
Meeting Date: February 13, 2025
AGENDA SUMMARY REPORT
To: Honorable Mayor and Council Members
From: Walter Kolon-Services and Facilities Director
Agenda Title: ADOPT A RESOLUTION TO REJECT A BID PROTEST BY ARGONAUT
CONSTRUCTORS, AND AWARD THE CONSTRUCTION CONTRACT OF THE RAIL WITH TRAIL (PROJECT NO. 2021-03) TO BOUTHILLIERS CONSTRUCTION INC. IN AN AMOUNT NOT TO EXCEED $8,979,271.90. THE CONTRACT AWARD REQUIRES THE REJECTION BY THE CITY COUNCIL OF A BID PROTEST BY ARGONAUT CONSTRUCTORS. AUTHORIZE THE CITY MANAGER TO EXECUTE
THE CONTRACT AND APPROVE CONSTRUCTION CHANGE ORDERS UP TO A CUMULATIVE TOTAL OF 10-PERCENT OF THE TOTAL CONTRACT AMOUNT. A SUBSEQUENT BUDGET AMENDMENT IS NECESSARY TO COVER HIGHER THAN ANTICIPATED COSTS.
Type: Presentation Consent Regular Agenda Public Hearing Urgent Time: 20 min Summary of Request: The Rail with Trail Project No. 2021-03 was advertised for two weeks over 68 days and had over sixteen contractors participated in the mandatory site review. On January 14, 2025, bids were publicly opened. The City of Willits received nine bids:
1 Bouthillier’s Construction Inc. $8,979,271.90
2 Argonaut Constructors Inc. $9,323,171.00
3 Ghilotti Bros. $9,417,456.99
4 Stacy & Witbeck Inc. $9,426,800.00
5 Rege Construction $9,781,380.00
6 Gordon N. Ball Inc. $10,401,209.00
7 Granite Construction Company $10,436,121.20
8 Ghilotti Construction Company $10,928,807.75
9 GR Sundberg Inc. $12,075,489.35
Staff conducted a comprehensive evaluation of all bids. However, before a recommendation could be made to award the contract, Argonaut Constructors filed a bid protest against the apparent low bidder, Bouthillier Construction. Staff, along with the City Attorney and Sally Riley of Riley Compliance, thoroughly reviewed the bid protest, carefully assessing its merits. After this review, it was determined that Bouthillier Construction Inc. submitted the lowest responsive and responsible bid. Please refer to the City Attorney’s memo for findings to sustain the rejection.
Staff recommends that the City Council award a construction contract to Bouthillier’s Construction Inc. for the not to exceed amount of $8,979,271.90. The difference of $745,881.90 is due to higher than anticipated costs and calculation errors on the submitted bid.
The Engineer’s Probable Cost Estimate was $8,233,390.00 as approved by the City Council.
This project is budgeted in the Capital Improvement Program in FY 2025. The project is scheduled to tentatively begin April 2025, and last for 290 working days.
Attached are the Bid Summary, Resolution and City Attorney Memo.
Recommended Action: By Resolution, award a contract to Bouthillier Construction Inc. in an amount not to exceed $8,979,271.90 for the construction of the Rail with Trail Project (Project No. 2021-03), and authorize the City Manager to execute the contract. This recommendation requires staff to secure additional funding to cover higher projected project costs. Once secured, staff will present the funds to the City Council as part of a budget amendment. Additionally, authorize the City Manager to approve construction change orders up to a cumulative total of 10-percent of the total contract amount.
Alternatives:
1) Reject the bid and rebid at a later date, which would result in the inability to start and complete the project within the next two years. There is a high likelihood that future bids will be significantly higher due to escalating material and construction costs. Additionally, the delay could jeopardize available funding. 2) Approve additional funds of $745,881.90 to cover the full cost of the bid. This amount represents the difference between the total project cost of $8,979,271.90 and the Engineer’s Estimate of $8,233,390.
Fiscal Impact: The estimated construction cost is $8,979,271.90, compared to the Engineer’s Estimate of $8,233,390. Staff is actively seeking external funding to cover the additional expenses. If additional funding is not secured, staff will need to modify the project to align with the available funds.
Personnel Impact: Staff from Services & Facilities and Community Development will provide technical and administrative oversight.
Identified City Council Conflict of Interest: Vice Mayor Alaniz and Member Gonzalez own real property within 500 feet of the project.
2021 Adopted Goals: This item meets Goal #1 for Services & Facilities…Maintain and improve infrastructure systems of water, wastewater, public facilities, and streets capable of managing future growth while responding to current City needs.
California Environmental Quality Act: Project construction will be subject to CEQA.
Reviewed by: City Manager City Attorney Assistant City Manager City Clerk Finance Director Human Resources Risk Manager
Council Action: Approved Denied Other: ________________________________________ Records: Agreement Resolution #_________ Ordinance #_________ Other _________ Resolution No. 2025-__ Page 1 of 1 February 13, 2025
RESOLUTION NO. 2025-
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF WILLITS TO REJECT A BID
PROTEST BY ARGONAUT CONSTRUCTORS, ACCEPT BID AND AWARD A CONSTRUCTION CONTRACT TO BOUTHAILLIERS CONSTRUCTION INC., IN AN AMOUNT NOT TO EXCEED $8,979,271.90 FOR THE CONSTRUCTION OF THE RAIL WITH TRAIL PROJECT (PROJECT #2021-03), APPROVE A BUDGET AMENDMENT TO COVER A BID HIGHER THAN THE ENGINEER’S ESTIMATE (OVERAGE OF $745,881.90), AND
AUTHORIZE THE CITY MANAGER TO EXECUTE THE CONTRACT AND APPROVE CONSTRUCTION CHANGE ORDERS UP TO A CUMULATIVE TOTAL OF 10-PERCENT OF THE TOTAL CONTRACT AMOUNT.
WHEREAS, staff developed a plan with the Great Redwood Trail Agency to add a 1.6- mile pedestrian trail to improve connectivity and improve access and safety for pedestrian and bicycle users as well as create opportunities for nature study and recreation within the City of Willits; and
WHEREAS, the Rail with Trail Project 2021-03 was approved to go to public bid by City Council as Resolution No.2022-25 on April 27th 2022, when plans were to be considered final; and
WHEREAS, Project 2021-03 consists of a 1.6-mile Class I bicycle and pedestrian multiuse trail within the Great Redwood Trail Agency (GRTA) right-of-way. The new multi-use trail will include, but not limited to, demolition of existing improvements, removal and storage of railroad track and ties, disposal of ties, adjustment of utilities, clearing and grubbing, tree removal, earthwork grading, construction of multi-use trail with aggregate base, hot mix asphalt and concrete materials, construction of three (3) pre-engineered and pre-fabricated clear span steel truss bridges, pile supported concrete bridge foundations, retaining walls, new striping, signing and markings, improvements at existing public and private trail crossings, including improvements of existing railroad at-grade crossings, concrete sidewalk, curb and gutter, driveways and pedestrian curb ramps, landscape and irrigation, tree planting, electrical and lighting, environmental mitigations, compliance with regulatory requirements, traffic control and erosion control measures. Off-site improvements include the creation of wetland, known as “Rail with Trail Project: Wetland and Riparian Establishment” located on the north side of E. Commercial Street adjacent to the Willits Skate Park. Work includes grading, topsoil preparation, erosion control, plantings and plant establishment; and
WHEREAS, the Project was advertised for competitive bids on November 7, 2024, and nine bids were received for the Project and publicly opened on January 14, 2025; and WHEREAS, staff received a bid protest by Argonaut Constructors Inc. against Bouthillier Construction Inc. (Attachment B); and
WHEREAS, staff, the City Attorney and a third-party Compliance Specialist did extensive research on the merits of the bid protest and recommend that the protest be rejected (see Attachment A); and
WHEREAS, the bid submitted by Bouthilliers Construction Inc., Willits CA, has been determined to be the lowest responsive bidder; and
WHEREAS, the Engineers Estimate of Probable Costs were $8,233,390.00 without 10- percent contingency; and
Resolution No. 2025-__ Page 1 of 1 February 13, 2025
WHEREAS, the submitted bid from Bouthilliers Construction Inc., exceeded the Engineers’ Estimate of Probable Costs by $745,881.90; and WHEREAS, a subsequent budget amendment is necessary if additional funding is secured, or staff will present a reduction in scope of work to align with the lowest bid received; and
NOW, THEREFORE, BE IT RESOLVED that the Willits City Council does hereby Reject the bid protest of Argonaut Constructors, Inc. as meritless, and authorize awarding and funding of the Rail with Trail Project 2021-03 and authorizes the Finance Director to coordinate with the Community Development Director to pursue the necessary additional funding in an amount of $745,881.90.
The above and foregoing Resolution was introduced by Councilmember seconded by Councilmember , and passed and adopted at a regular meeting of the City Council of the City of Willits, held on the 13th day of February 2025, by the following vote:
AYES:
NOES:
ABSENT:
ATTEST:
__________________________
_________________________________
LARRY STRANSKE Mayor
City Council of the City of Willits
DELORES PEDERSEN, City Clerk
ATTACHMENT A
1 Office of the City Attorney, City of Willits
Memo
To: Mayor Stranske and members of the Willits City Council From: H. James Lance, City Attorney
Date: February 12, 2025
CC: Brian Bender, City Manager
Re: Analysis and Recommendation for Rejection of Bid Protests from Argonaut Constructors regarding the Rail with Trail Project Introduction
This memorandum addresses a bid protest submitted by Argonaut Constructors Inc.
Concerning the apparent low bid of Bouthillier’s Construction, Inc. for the City’s Rail with Trail Project No. 2021-03. The Rail with Trail Project is a city approved and funded project with an Engineer’s Estimate of Probable Costs of $8.233,390. The project went out to bid on November 7, 2024 and sealed bids were submitted by nine contractors. The public bid opening occurred on January 14, 2025 and bid amounts ranged from $8,829,271.90 to $12,075,489.35. The apparent low bid of $8,829,271.90 was submitted by Bouthillier’s Construction, Inc. The next lowest bidder was Argonaut Constructors that bid $9,323,171.00.
All bids were carefully reviewed by the city’s Services and Facilities Department staff. The Bouthillier and Argonaut bids were both determined by staff to be materially responsive to the bid requirements.
The Argonaut protest asserts that the Bouthillier low bid is not “responsive” to the requirements of the City’s bid package and should be eliminated from consideration. In this regard, California public contracts law requires that public agencies award public works projects to the lowest “responsive” and “responsible” bidder. The Argonaut protest is attached hereto and cites two separate grounds of alleged non-responsiveness. First, that Bouthillier, did not identify subcontractors for certain landscaping and lighting components of the project per CA Public Contracts Code § 4104; and Second, that Bouthillier’s bid did not include a project task schedule per section 3.8 of the Bid Book and Project Specifications (“Bid Book”). Argonaut contends that these omissions rendered the Bouthillier bid as non-responsive to the bid requirements and also gave it an unfair advantage. For the reasons discuss below, it is the staff recommendation that Page 2
the City Council reject both grounds of the bid protest and award the project to Bouthiller’s Construction, Inc. as the lowest responsive and responsible bidder.
1. The Protest based upon Public Contract Code § 4104 is without merit California Public Contract Code § 4104 requires, in relevant part, that any person making a bid to perform a work of public improvement include in his or her bid the identity and contractor license number of each licensed subcontractor who will render service to the prime contractor in the construction of the work. In its protest Argonaut asserts that the low bidder is in violation of this code section for not identifying within the bid a licensed subcontractor to perform certain landscaping and electrical lighting work. Bouthillier Construction, however, has demonstrated to the satisfaction of City staff that it is both fully licensed and capable to perform this landscaping and lighting work in-house and without engaging a subcontractor. In this regard, Public Contract Code § 4106 states that:
“If a prime contractor fails to specify a subcontractor…… the prime contractor agrees that he or she is fully qualified to perform that portion himself or herself, and the prime contractor shall perform that portion himself or herself.”
In view of the foregoing, it is respectfully submitted that the claimed violation of Contract Code § 4104 is without merit.
2. The Omission of a Task Schedule from the Bid is Immaterial and should be Waived A second protest issue raised by Argonaut is that the low bid was not responsive because Bouthillier did not submit a schedule for each task of work pursuant to section 3.8 of the Bid Book. In this regard, Section 3.8 states that:
“As part of the Proposal Packet, Contractor must submit a schedule showing each task of work, sequence of each task, and the critical path controlling the completion of the entire work.”
Submitting a construction "task schedule” per Section 3.8 is not required by the Bidding Instructions, nor is it included on the Bidders’ Checklist of required submissions. Notably, it is not the practice or policy of City staff to deem a bid to be nonresponse for omission of a task schedule, and, only one of the nine bidders for this project submitted a task schedule within its bid proposal.
Detailed instructions and requirements for bidding are contained within the Bid Book at Section 1, entitled "BIDDING INSTRUCTIONS," and within Section 1.5 entitled "BIDDING PROCEDURE.” Section 1 of the Bid Book, for example, identifies 18 separate documents that together comprise the “Proposal Packet.” The Bidder’s “Checklist” is among those listed Page 3
items and the checklist identifies each specific document required to be included and “checked off” for submission of a valid bid.
As discussed below, the omission of a task schedule within the subject Project Packet, as required by Section 3.8, is not a material bid irregularity, and staff recommends that the City Council waive this requirement in its award of the subject project.
A bidder's task schedule as referenced in Section 3.8 is a suggested or preliminary schedule that is subject to revision and approval by the City Engineer. In this regard, the City’s standard draft contract that was provided to each bidder of this project, and which the successful bidder will be required to execute, describes the task schedule at Section 4 as “preliminary”:
"4. (a) Contractor agrees to commence the work on February 18, 2025, and work shall be completed within two hundred ninety (290) working days. The schedule provided with the bid documents is attached hereto and is considered preliminary. Contractor is responsible for updating the schedule during the course of work and/or as required by the City Engineer.” Further, the Contract Checklist on page 2 of the contract also provides the following notice to bidders in all caps:
"ALL PROPOSED PLANS AND/OR SCHEDULES ARE SUBJECT TO ACCEPTANCE BY CITY ENGINEER.”
Accordingly, any task schedule submitted by a bidder within his or her bid pursuant to Section 3.8 was simply a suggested or preliminary schedule that was subject to acceptance, modification or rejection by the City Engineer following the contract award and the issuance of a Notice to Proceed.
The omission of a preliminary task schedule “as part of the proposal packet” is also inconsequential because this same requirement is made of the successful bidder following the contract award at a Pre-Construction Meeting. In this regard, the Technical Specifications at page 53 of the Bid Book, provides:
"11.17 PROGRESS SCHEDULE: a. b. c. Progress schedules will be required for this contract and shall conform to the provisions in Section 81.02A, "Schedule," of the Standard Specifications. A preliminary progress schedule shall be submitted at the Preconstruction Meeting…”
City staff advises that, going back to at least 2015, no bid submitted for a public works contract has ever been determined by the City to be non-responsive for the failure to include a preliminary task schedule. Further, as mentioned above, of the nine bids submitted for the subject project only one bid included a task schedule. For each of the foregoing reasons, the “task schedule” omitted from the low bidder’s proposal was merely a tentative or preliminary Page 4
schedule, subject to review and modification at a Pre-construction meeting and approval by the City Engineer. Omission of the task schedule from the bidder’s Proposal Packet is immaterial and inconsequential.
3. The subject bid is “responsive” to the terms of the bid package, and the Council may waive any inconsequential deviation.
A minor deviation from the terms of a bid package does not render the bid nonresponsive. A bid must conform to the material terms of the bid package, and a bid is still responsive even if there is a discrepancy in the bid, as long as the discrepancy is inconsequential, that is, the discrepancy must not (1) affect the amount of the bid; (2) give a bidder an advantage over others; (3) be a potential vehicle for favoritism; (4) influence potential bidders to refrain from bidding; or (5) affect the ability to make bid comparisons. Ghilotti Constr. Co. v City of Richmond (1996) 45 CA4th 897; Bay Cities Paving & Grading, Inc. v. San Leandro (2014) 223 CA4th 118.
In this case the failure to include a preliminary, tentative task schedule, prior to award of the contract and issuance of a Notice to Proceed, was inconsequential and had no effect whatsoever on the bids. The omission did not give the low bidder an advantage over others; was not a vehicle for favoritism; did not influence others to refrain from bidding; and did not affect the ability to make bid comparisons.
4. Conclusion
For the forgoing reasons it is respectfully suggested that the City Council reject the bid protest on both of the stated grounds; and that the council waive that requirement at Section 3.8 of the Bid Book of including the bidder’s preliminary task schedule within the Project Proposal.
/ JL
360 Sutton Place Santa Rosa, CA 95407 PO Box 639 Santa Rosa, CA 95402 F. 707.542.3210 P. 707.542.4862 DIR 1000002969 www.argonautconstructors.com Contractors License No.171432 A California Corporation
January 17, 2025
City of Willits
Public Works Department
111 E. Commercial St.
Willits, CA 95490
Attn: Brandy Sanderson E-mail: [email protected] Reference: City of Willits Rail with Trail Project – Project No. 2021-03, Bid Date 1/14/25 at 2 pm Subject: Argonaut Constructors, Inc.’s Protest of Bouthillier’s Construction, Inc.’s Bid on the Willits Rail with Trail Project No. 2021-03
Dear Ms. Sanderson,
Argonaut Constructors, Inc. is hereby submitting a protest letter regarding Bouthillier’s Construction Inc.’s apparent low bid for the City of Willits Rail with Trail Project No. 2021-03 regarding the following bid package omission and violation of California Subcontractor Listing Laws that deem their bid non-responsive:
1. Bid Package Omission: Pursuant to General Provisions Section 3.8 Project Schedule a. “As part of the Proposal Packet, the Contractor must submit a schedule showing each task of Work, the sequence of each task, the number of days required to complete each task, and the critical path controlling the completion of the entire Work.” Upon examination of Bouthillier’s submitted bid package, they did not include a Project Schedule.
2. Public Contract Code §4104 expressly provides: “. . . any person making a bid or offer to perform the work, shall, in his or her bid or offer, set forth:
“(a) (1) The name and the location of the place of business of each subcontractor who will perform work or labor or render service to the prime contractor . . . in an amount in excess of one-half of 1 percent of the prime contractor's total bid or, in the case of bids or offers for the construction of streets or highways, including bridges, in excess of one-half of 1 percent of the prime contractor's total bid or ten thousand dollars ($10,000), whichever is greater.” Bouthillier’s did not list a Landscaping Subcontractor for Bid Items 19-27; 62-63; and 84. All other bidders listed a Landscaping Subcontractor for this work. Bouthillier’s also did not list an Electrical Subcontractor for Bid Item 81, Pedestrian Trail Lighting.
Awarding the contract to Bouthillier’s Construction thus gives Bouthillier’s a competitive advantage for its Subcontractor Listing Law violation by allowing only Bouthillier’s to decide whether to use or not use a subcontractor which every other bidder had to list and commit to.
ATTACHMENT B
360 Sutton Place Santa Rosa, CA 95407 PO Box 639 Santa Rosa, CA 95402 F. 707.542.3210 P. 707.542.4862 DIR 1000002969 www.argonautconstructors.com Contractors License No.171432 Under California law, a bid is non-responsive as a matter of law when either of the following is present:
1. The irregularity in a bid gives that bidder an unfair advantage over other bids or if it gives that bidder a last look at the other bids after the bid closing date in deciding whether to honor the bid; or
2. Waiving the irregularity would constitute favoritism to the non-responsive bidder. See, Valley Crest Landscape, Inc. v. City Council, (1996) 41 Cal.App.4th 1432; MCM Constr. v. City & County of San Francisco, (1998) 66 Cal.App.4th 359; Ghilotti Constr. Co. v. City of Richmond, (1996) 45 Cal.App.4th 897; Monterey Mechanical Co. v. Sacramento Reg'l County Sanitation Dist., (1996) 44 Cal.App.4th 1391.
If Bouthillier’s is awarded the contract in violation of §4104, Bouthillier’s would be the only contractor allowed to determine if a subcontractor or its own forces could perform a scope of work cheaper, which yields a competitive advantage to Bouthillier’s over each of the other bidders by allowing Bouthillier’s to add to its margin by shopping the landscaping and electrical scope of work to itself.
Based upon the above information, Bouthillier’s bid is overtly non-responsive and Bouthillier’s bid should be disqualified. Argonaut Constructors, Inc. is willing, able, and prepared to complete the work included in the Contract as the lowest responsive bidder.
Please call me on my cell phone at (707) 909-0547 or e-mail me at [email protected] should you have any further comments or questions regarding this matter.
Respectfully,
Lance A. Bushnell
Lance A. Bushnell
Vice President of Estimating
Cc: Bid Files; Matt Howell; Denise Whitfield; Walter Kolon – City of Willits; Jamie Bouthillier – Bouthillier’s Construction, Inc. – E-mail: [email protected]
CITY OF WILLITS
Services & Facilities Department
111 E. Commercial St., Willits, CA 95490
Voice: (707) 459-4605 Fax: (707) 459-2481
BID SUMMARY
Project Name:
Project Number:
Engineer's Estimate:
Bid Opening Date:
City of Willits Rail with Trail Project
2021-03
$ 8,233,390.00
Tuesday, January 14, 2025
Bids for the aforementioned project were opened on Tuesday, January lii 2025 at 2:00 P.M. by Walter Kolon, Services & Facilities Director for the City of Willits.
other City of Willits representatives in attendance included Brandy Sanderson, Contract Administrative Specialist; Jeanette Wilson, Project Coordinator; Dusty Duly, Community Development Director; Davey Bowles, Building Official; Phil Davidson, Code Compliance Officer
Nine (9) bids were received. Said bids were from:
01. 02.
03. 04.
05. 06.
07. 08.
09. Company Bid Total
Bouthillier's Construction Inc. $ 8,979,271.90 APPARENT LOW BIDDER Argonaut Constructors $ 9,323,171.00
Ghilotti Bros $ 9,417,456.99
Stacy & Witbeck Inc. $ 9,426,800.00
Rege Construction Inc. $ 9,781,380.00
Gordon N. Ball Inc. $ 10,401,209.00
Granite Construction Company $ 10,436,121.20
Ghilotti Constuction Company $ 10,928,807.75
GR Sundberg Inc. $ 12,075,489.35
The bids contained bid security in accordance with the Notice Inviting Bids for this project. The bids will be reviewed by the City and a recommendation will be made to the City of Willits City Council during the Regular City Council Meeting on February 12, 2025 at 6:30 pm.
Services & Facilities Director
City of Willits
111 E. Commercial St.
Willits, CA 95490
ATTACHMENT C
* Reflects price change from original bid. Line items contained addition errors not errors in unit pricing or quantity -allowed as per 1.8 Pricing in the Bid Book and Specifications.