A bureaucratic snafu is delaying more than six miles of water-main replacement throughout Casper, forcing the city to alter the scope of the work to make sure it's completed before next winter.

The city of Casper replaces water-mains every year, according to City Engineer Andrew Beamer. Once the city knew it was getting stimulus money for water projects, Beamer said the city drew up plans for a water-main replacement project and finalized them in March. This year's plans were more expansive because of the influx of federal money.

Because the project is funded by federal money, contractors bidding on the project are required to make "good faith efforts" to include "disadvantaged business enterprises" in their bids. Beamer said that means purchasing materials or labor from the DBEs, whether it's hiring flaggers or purchasing asphalt.

Bids for the project were opened June 2. The low bidder on the project, Hedquist Construction, waited until June 1 to seek help from minority- or women-owned companies in their proposal.

The Water Development Commission and the Environmental Protection Agency, which oversee the money Casper was going to use for the project, didn't think that waiting until the day before submission was a "good faith effort." They informed the city it couldn't contract with Hedquist even though the $5.76 million bid was more than $575,000 less than the next lowest bidder.

The company tried to adjust its bid - saying it would do all the work without seeking DBEs - but the city again rejected the bid.

"You can't go change your bid after the process is over. When you're applying for funds with the stimulus money, it's a different and intense process and you have to be careful to meet each detail and request they have," said Mayor Kenyne Schlager. "Unfortunately, I don't think [Hedquist] caught all the important details he needed and the state said 'if you choose him, you can't get your money.'"

The city's rejection of the low bid muddies an already complex process. All bids are public - so the other three companies know how low the winning bid was. The companies could lower their bids, putting Hedquist at a disadvantage, or Hedquist could raise its bid, knowing it was more than $500,000 cheaper than the next company.

Beamer didn't think the other companies would lower their bids, since it could eat into their profit margin, meaning the city could end up paying more than it would have if Hedquist submits a higher bid and still wins.

"You could argue, and [Craig] Hedquist has argued, he's tipped his hand. But that's really beyond our control. Once we've opened the bids they're a matter of public record."

Craig Hedquist, vice president of Hedquist Construction, didn't return repeated calls seeking comment. His attorney, John Robinson, declined comment on the record.

Beamer said the city is going to reopen the project for bids July 16.

"We've lost a good portion of the construction season this year. We were hoping to have construction going by now," he said. "Now we're looking at taking a contract to [the city] council in August and construction to begin the first part of September."

The city council could've rejected Hedquist's bid and gone with the next bidder, a notion Schlager dismissed as cost prohibitive.

"The next guy was over $500,000 higher than the staff projections had been," the mayor said, adding that the city could've run into similar legal problems with other contractors who may not have met the DBE requirements.

"I'm not sure [all the contractors] read what they needed to," Schlager said.

Reach city reporter Pete Nickeas at (307) 266-0639 or pete.nickeas@trib.com

Slated projects

More than 30 mini-projects across Casper are slated to begin in late August or early September.

Major components include:

East 24th Street between Lexington and Glendale avenues

Elk Street from A Street south to Fourth Street

Beech Street from just south of Fifth Street south to 11th Street

K Street between Bryan Stock Trail and Angus Street

More than 30 mini-projects across Casper are slated to begin in late August or early September.

Major components include:

East 24th Street between Lexington and Glendale avenues

Elk Street from A Street south to Fourth Street

Beech Street from just south of Fifth Street south to 11th Street

K Street between Bryan Stock Trail and Angus Street]]->