Jackson firm may lose Sikeston police building construction bid

SIKESTON, Mo. -- Due to a clerical error, Penzel Construction may not be the low bidder on a proposed new Sikeston Department of Public Safety building.

Bids from the seven general contractors who submitted them were opened last week and were "very, very competitive," said Brett Patrick Dille of the Dille and Traxel architectural firm in Poplar Bluff, Mo., during a special Sikeston City Council meeting Tuesday. "We all were excited to see the bids we saw."

With a low base bid of $4,633,950, Penzel Construction Co. of Jackson appeared to be the lowest bidder followed by Olympus Construction, $4.736 million, and Brown Construction at $4.866 million, according to Dille.

In his letter of recommendation dated Friday, Dille also said "If all alternates are accepted, Penzel Construction still has the low bid of $5,089,107."

The three additional options are a finished basement, a three-bay vehicle garage and fencing.

"We know Penzel -- they've been a quality contractor," Dille said, noting the company has a 100-year track record in the region and recently built the Sikeston Board of Municipal Utilities building.

After the letter was drafted, however, "one little twist" surfaced Monday, Dille said.

The subcontractor for steel fabrication and erection, Drury Co., withdrew its bid after discovering a clerical error that resulted in its bid being $100,000 less than it should have been.

Phil Penzel, president of Penzel Construction, said his company is unable to "absorb" the $100,000 and, with "humiliation and remorse" must also withdraw its bid unless attorneys can find some sort of way to resolve the matter.

Jerry Cummins, president of Drury Co., offered an apology to the council for his company's error.

If $100,000 is added back into Penzel's bid with the three alternates being included, it comes in at $32,000 more than Olympus Construction's bid, which includes the three alternates.

Council members went into a closed session to discuss possible litigation following the open meeting attended by Dille, Penzel and Cummins.

"The council did not make any decision today," city manager Doug Friend said following the closed meeting. "They took everything under advisement and will have another meeting in the next few weeks."

The bids on the Department of Public Safety building are good for 90 days, according to Friend.