“Don’t ask why we’re so expensive; ask why our competitors are so cheap…”
The leading competitor for the Holly Street Power Plant demolition contract has broken its silence in the wake of City Council’s decision last week to delay an approval vote to allow more time to study the differences in cost and qualifications between the top two firms vying for the project. Council is slated to take a fresh look at the matter on Jan. 27.
TRC Environmental Corp. is city staff’s preferred candidate to disassemble the massive East Austin power plant. But the company’s $24.9 million bid – the second-highest price among six submitted proposals – has provided sufficient ammo for two competitors to question the decision.
TRC project manager Mike Holder prefers to frame the question in reverse: “Why is our competition priced so low?” He says his company’s bid price is more realistic because it will translate, in the long run, to fewer change orders – the requests that contractors must submit when they need additional funds to complete particular projects.
Nevertheless, charges of fiscal imprudence on contractual matters tend to make council members squirm, particularly in an election season with three incumbents up for re-election. Some insiders suggest that the Holly item was postponed at the eleventh hour, when the vote appeared to be leaning away from TRC and in favor of the staff’s second-ranked firm, Dixie Demolition, whose bid is $6.1 million cheaper. That’s when TRC decided to speak up.
Read more here.