Lincoln Avenue School Demolition Bidding Reopens After Cost Dispute

Milwaukee Public Schools announced on Thursday that it will restart the bidding process for the demolition of Lincoln Avenue School. The district agrees to reissue the request for proposals after a local firm successfully appealed the original award, which had selected a Chicago-based contractor at a cost roughly five times higher than the competing local offer.

The fire that destroyed the Lincoln Avenue School building in June prompted city officials to declare the structure a total loss by July. The district initially planned to contract with TW Chicago for approximately $4.8 million. That selection drew scrutiny when MRD Group, based in Milwaukee, revealed its rejected proposal stood at $928,000.

Marcus Dumke of MRD Group said his team reacted with surprise upon seeing the final contract figure. He noted that his company is located only ten minutes from the job site, a logistical advantage he believed should have translated into a more competitive price. Dumke stated that he did not lower his numbers dramatically and questioned why the district chose such a large discrepancy without clarifying additional scope items.

MPS Superintendent Brenda Cassellius addressed the cost difference by explaining that the district worked with its insurance company to cover the funding. She stated that the $4.8 million figure represented a negotiated rate with the insurer and was not a direct loss to the district. Cassellius added that the higher cost reflected the complexity of handling hazardous materials and maintaining 24-hour security to protect the immediate community from dust and environmental hazards.

When asked if the initial process was fair, Cassellius directed the question to the Office of Accountability and Efficiency, which handled the appeal. The office reviewed the documents and found the basis for the local bid to be valid under the original request for proposals.

The new bidding process begins next week. MPS aims to select a contractor during the first week of December. Once the contract is signed, demolition work is expected to begin and conclude by the end of March.

Dumke said the outcome of the appeal was a relief for his team, though he cautioned that a successful appeal does not guarantee a win in the next round. He indicated that MRD Group would review its internal numbers and prepare a competitive response once the new proposal request is released.