Title
a. Reject the sole bid presented for Medical Surgical 3, Project No 9600-55; and
b. Direct Staff to reevaluate the plans, specifications and cost estimate, implement minor modifications to the bid documents, and then readvertise for bids at a later date.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Reject the sole bid presented for Medical Surgical 3, Project No 9600-55; and
b. Direct Staff to reevaluate the plans, specifications and cost estimate, implement minor modifications to the bid documents, and then readvertise for bids at a later date.
SUMMARY:
Natividad Medical Center (“Natividad”) received a single bid in response to the Medical Surgical 3 solicitation and as a result desires to reject the bid in the exercise of the County’s discretion under the bid documents in order to maintain a fair, competitive, and transparent procurement process. It has been determined that proceeding under these circumstances does not ensure adequate competition or guarantee the best value to Natividad and the County of Monterey (County). Accordingly, Natividad desires that the solicitation be revised and readvertised late spring, early summer of 2026 to encourage broader participation and achieve more competitive results.
DISCUSSION
Following approval to solicit competitive bids, in October 21, 2025, Natividad conducted the advertisement and solicitation of bids for the renovation and modernization of the Medical-Surgical Inpatient Unit on the third floor of Building 500, a project that includes enhancements such as new patient charting stations, improved lighting at headwalls, and updated interior finishes in patient care and corridor areas. California Public Contract Code (PCC) section 20150.9 provides that, “In its discretion, the county may reject any bids presented.” Consistent with PCC section 20150.9, the bid package for Project No 9600-55 expressly reserved the County’s right, in its sole discretion and in the County’s best interest, to reject any or all bids, or to waive any irregularities or informalities in any bids or in the bidding.
Design and construction documents were prepared by Hammel, Green and Abrahamson (HGA) under the On-Call Architectural Agreement (MYA6333) and received approval from the California Department of Health Care Access and Information (HCAI) following submission on May 23, 2024, with HCAI approval granted on May 7, 2025. The sole bid was opened publicly at the County Administration Building, located at the Monterey County Government Center in Salinas in compliance with public contracting procedures.
Because only one bid was submitted, moving forward with an award would limit competitive evaluation and may not yield the most advantageous outcome for Natividad and the County. Based on this information, to attract wider participation and improve competitiveness, it is recommended that all bids be rejected, that the bid documents be modified, and that the project be readvertised at a later date.
OTHER AGENCY INVOLVEMENT:
The Plans and Specifications were reviewed and approved by NMC’s Finance Committee and Board of Trustees on October 3, 2025. The Office of County Counsel has reviewed this Board request.
FINANCING:
NMC transferred $7,958,209 to Fund 404 to support the design and construction of the Medical-Surgical 3 Renovation Project. As of March 2026, current expenditures total $352,534. Based on the estimated probable cost, sufficient funding is available to cover construction. The total identified construction cost is $7,161,000, which includes $6,000,000 for construction and $1,161,000 allocated as a construction reserve. Rejection of the sole bid will have no impact on the General Fund.
BOARD OF SUPERVISORS STRATEGIC PLAN GOALS SECTION:
This project will significantly elevate the overall quality of the facility, creating a modern, comfortable, and patient-centered environment that supports the delivery of high-quality care, enhances the patient experience, and improves functionality for clinical staff.
_X_ Well-Being and Quality of Life
_X Sustainable Infrastructure for Present and Future
_ Safe and Resilient Communities
___ Diverse and Thriving Economy
___ Administrative
Prepared by: Brian Griffin, Project Manager (831) 783-2605
Approved by: Charles R. Harris, Chief Executive Officer, 783-2553