Title
Recommendation to Award a One-Year Contract, with the Option of Four One-Year Extensions, for an Amount not to Exceed $105,600, for a Total Five-Year Expenditure not to Exceed $549,546.65, Subject to Budget Approval, to Prime Mechanical for Annual Heating, Ventilating, and Air Conditioning System Maintenance at City Facilities. (Public Works 706001)
Body
To: Honorable Mayor and Members of the City Council
From: Jill Keimach, City Manager
Re: Recommendation to Award a One-Year Contract, with the Option of Four One-Year Extensions, for an Amount not to Exceed $105,600, for a Total Five-Year Expenditure not to Exceed $549,546.65, Subject to Budget Approval, to Prime Mechanical for Annual Heating, Ventilating, and Air Conditioning System Maintenance at City Facilities.
BACKGROUND
Public Works maintains over 500,000 square feet of City buildings, roughly the size of the Golden Gate Bridge, with 3.5 full time staff. These buildings include heating, ventilating, and air conditioning (HVAC) machinery and associated equipment. The City requires the services of a HVAC specialist to ensure the machinery and equipment remains in good operating condition and is maintained to maximize performance, safety, and life span.
DISCUSSION
On May 25, 2017, the Public Works Department issued a Request for Proposal (RFP) for annual HVAC system maintenance at 26 City facilities. To solicit the maximum number of proposals and most competitive price, the RFP was provided to 19 separate builders’ exchanges throughout the Bay Area, and notices were sent to contractors on the list of qualified contractors maintained by the Public Works Department. A notice was also placed on the City’s web page on May 25, 2017, and published in the Alameda Journal on May 26, 2017. After a bidding period of 19 days, seven company’s submitted proposals on June 12, 2017.
|
Bidder |
Location |
Bid Amount |
|
Prime Mechanical |
Livermore, CA |
$ 94,000.00 |
|
Comfort Air Mechanical |
Alameda, CA |
$ 97,289.50 |
|
ACCO Engineered Systems |
San Leandro, CA |
$ 95,100.00 |
|
EMCOR Services |
San Leandro, CA |
$ 86,124.00 |
|
Marken Mechanical Services, Inc. |
Concord, CA |
$ 55,920.00 |
|
Honeywell |
San Bruno, CA |
$152,699.99 |
|
Air Systems |
San Jose, CA |
$ 86,264.00 |
Selection was based on the completeness and quality of the proposal response, the firm's ability to understand and articulate the project and City needs, the project plan, timeline, qualifications, references, past projects, and cost.
Staff recommends awarding a contract to Prime Mechanical for a first year total amount of $105,600, which includes a 12.34% contingency that can only be awarded at the discretion of the Public Works Director. EMCOR Services, Marken Mechanical and Air Systems, each with proposals that came in with a lower price, had exceptions to the scope of services, which prevent them from performing the services required for the City’s equipment. Prime Mechanical made no exceptions to the scope and has demonstrated their ability to perform the required services successfully over the last five years for the City.
This contract may be mutually extended on a year-by-year basis, for up to four additional years, based, at a minimum, on satisfactory performance of all aspects of the contract and upon the sole discretion of the Public Works Director. If extended, the contract would be for the same terms and costs, plus an annual increase equal to the consumer price index (CPI) increase for the San Francisco Bay Area. The total five year contract price shall not exceed a total five year expenditure of $549,546.65. The RFP also informed the successful bidder that they shall pay not less than the prevailing rate of per diem wages as determined by the Director of the California Department of Industrial Relations. The contract is attached as Exhibit 1.
|
Contract |
Estimated Consumer Price Index (CCI) |
CPI Total Each Year |
TOTAL |
|
Original FY17-18 |
0% |
$ 0.00 |
$105,600.00 |
|
1st Amend FY18-19* |
2% |
$2,112.00 |
$107,712.00 |
|
2nd Amend FY19-20* |
2% |
$2,154.24 |
$109,866.24 |
|
3rd Amend FY20-21* |
2% |
$2,197.32 |
$112,063.57 |
|
4th Amend FY21-22* |
2% |
$2,241.27 |
$114,304.84 |
|
TOTAL FIVE YEARS |
8% |
$8,704.83 |
$549,546.65 |
FINANCIAL IMPACT
Fiscal Year 2017-18 and FY 2018-19, budget is available in the Public Works Department Programs, with funds for this contract’s annual costs budgeted in the General Fund (001) Facilities Maintenance Program (706001); and Base Reuse Fund (858), Alameda Point Maintenance Program (818003). If the contract is extended, the cost for years three to five is subject to future budget approvals.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action does not affect the Municipal Code.
ENVIRONMENTAL REVIEW
In accordance with the California Environmental Quality Act (CEQA), this project is Categorically Exempt under the CEQA Guidelines Section 15301(c), Existing Facilities.
RECOMMENDATION
Award a one-year contract, with the option of four one-year extensions, for an amount not to exceed $105,006, for a total five-year expenditure not to exceed $549,546.65, subject to budget approval, to Prime Mechanical for annual heating, ventilating, and air conditioning system maintenance at City facilities.
Respectfully submitted,
Liam Garland, Acting Public Works Director
By,
Erin Smith, Acting Deputy Public Works Director
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibit:
1. Contract