Low Bid on Power Plant Work Sparks Concerns in Wyandotte

A deal some say is too good to be true has at least one resident crying foul, and officials questioning Wyandotte's bidding process.

The issue surrounds the installation of . The baghouse will help remove particles from the gas before it leaves the boiler. The device must be installed due to that claimed the city's power plant emitted unlawful levels of nitrogen oxide, sulfur dioxide and carbon monoxide.

The entire project is expected to cost the city about $12 million.

When the first phase of the three-phase project was put out for bids, four companies submitted proposals, including Ann Arbor-based Barr Engineering Co.

Barr bid $12,900 to do the job, which fell way short of the other bidders. Two other companies bid $68,750 and the fourth bid $173,372.

Barr officials acknowledged that they under-bid in hopes of continuing their working relationship with , which oversees the power plant.

John Lee, Barr’s vice president, said his company has worked for the city for the last three years and purposely offered “very competitive” pricing on the latest project in hopes that it would “position us well for future work.”

When the bid was up to be awarded at Monday night’s City Council meeting, some council members questioned whether the substantially lower price was appropriate.

James French of Wyandotte Municipal Services said he first estimated the project would cost $35,000 and later amended his estimate to between $50,000 and $70,000. He said he understands why Barr bid what it did and his department recommended to the council that Barr be awarded the bid.

Councilman Daniel Galeski was outspoken against the process used to solicit bids, noting that Barr had been given an opportunity to see some of the bidding specifications before the project was put out for bids–a luxury not afforded to every company who bid on the project.

French acknowledged that he allowed Barr to review the scope of the work prior to it going out for bids, but said he also allowed some, but not all, other companies the same courtesy.

“I question the process,” Galeski said.

His colleague, councilman Todd Browning, agreed.

“There’s no way I am going to support this tonight,” he said. “I’m not comfortable with that disparity.”

Further complicating the matter, council members learned mid-meeting that they had not been given a copy of Barr’s actual bid.

Some said that was a problem, but Melanie McCoy, general manager of Wyandotte Municipal Services, said it’s a standard operating procedure.

Her office prepared a summary of the bids and presented that to council, just as it has done in the past, she said. Never before, she said, have council members asked to see copies of the actual bids.

Councilman Leonard Sabuda, who also voted against awarding the work to Barr, said it was “negligent” that the council did not have all of the information in front of them before a vote was taken.

In the end, however, the contract was awarded to Barr on a 4-3 vote. The vote was tied 3-3, allowing Mayor Joseph Peterson, who normally doesn’t vote on resolutions, the opportunity to break the tie.

He said he is satisfied that the bidding was done legally and that everything is on the up and up. To stave off any concerns that Barr could come back later and ask for more money on the project, city officials put a caveat in the contract saying that $12,900 is the final price and that no change orders will be accepted.

Resident Richard Miller, a frequent council meeting attendee, said the bidding process was skewed and that he intends to contact the Wayne County Prosecutor’s Office and the Michigan Attorney General’s Office to investigate.

“I’m worried about (Barr) having an undue advantage over the other three bidders and that’s improper,” Miller said. “You guys do what you want, but this is going to be reviewed.”