REPORT TO COUNCIL
SUBJECT
Title
Action on Award of Purchase Orders to CD & Power and Odyssey Power for Citywide Stationary Generator Services
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
The Department of Public Works (DPW) and the Water & Sewer Utilities Department (WSUD) provide service and maintenance for 55 emergency standby generators throughout the City. The departments utilize a contractor to perform annual performance testing and maintenance procedures recommended by the National Fire Protection Association (NFPA) Standards for Emergency and Standby Power Systems. The contractor also assists with repairs identified during the annual performance testing and maintenance service, as well as emergency repairs on an as-needed basis. Typical repairs include standby generator systems such as engines, emissions, controls, fueling, cooling, and battery systems. Proactive performance testing and maintenance of emergency standby generators enhance their efficiency and reliability in the event of an emergency. DPW has managed scheduled generator maintenance for both departments under a blanket purchase order with Odyssey Power, which has now expired.
DISCUSSION
Pursuant to City of Santa Clara Code Section 2.105.140(d), a formal Request for Bids (RFB) was conducted as the solicitation method for this procurement, with the award going to the lowest responsive and responsible bidder(s).
In May 2024, staff published the RFB for Citywide Stationary Generator Services using the City’s e-procurement platform. Bidders were required to submit pricing for annual generator inspections, hourly rates, and percentage markup for materials. Seven responsive bids were received. The lowest bid was determined by the total of the following: 1) the total rate for the annual generator services, 2) the product of the hourly rates for as-needed repairs and DPW’s estimated annual usage, and 3) the product of the markup percentage for miscellaneous materials and DPW’s estimated annual amount. The estimated total bid amount for each bidder is listed below.
|
Bidder Name |
Total Bid Amount |
|
CD & Power |
$152,600 |
|
Odyssey Power |
$155,750 |
|
Collicutt Energy |
$164,107 |
|
PowerGen Inc. |
$186,219 |
|
State Electric Generator |
$203,378 |
|
Bay City Electric Works |
$232,276 |
|
Western Machinery Electric |
$291,125 |
To ensure service availability, staff recommends awarding Purchase Orders (POs) to both CD & Power as the primary contractor and Odyssey Power as the secondary contractor, as they are the lowest responsive and responsible bidders. Given the critical infrastructure supported under this contract, CD & Power will handle as much of the service and repair work as possible, while Odyssey Power will be utilized only if the primary contractor is unavailable.
The compensation under each PO will consist of a fixed fee for maintenance services and time-and-materials basis for as-needed repairs. Annual maintenance fees and hourly rates will be fixed for the initial one-year term. The total aggregate amount for the POs is $167,860 (including a contingency of $15,260), which is based on historical data and projected workload over a one-year period. After the initial term, price adjustments may be considered if sufficiently substantiated by the vendor and approved by the City. In addition, there are four one-year options to extend the term of the POs for a total of five years, assuming all options are exercised. Staff estimates that an additional $750,000 will be needed for services during the extended term, bringing the total maximum compensation to $917,860. Prevailing wages are included in the purchase orders.
ENVIRONMENTAL REVIEW
The action being considered is exempt for the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15301 “Existing Facilities” as the activity consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities mechanical equipment or topographical features involving negligible or no expansion of use beyond that existing at the time of the lead agencies determination.
FISCAL IMPACT
The aggregate amount to be paid to the contractors for generator services during the initial one-year term of the purchase orders shall not exceed $167,860, which includes a contingency of $15,260. Funding for this contract is accounted for and included in the Fleet Operations Fund Annual Operating Budget.
COORDINATION
This report has been coordinated with the Finance Department and the City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov>.
RECOMMENDATION
Recommendation
1. Determine that the proposed actions are exempt from CEQA pursuant to Section 15301 (Existing Facilities) of Title of California Code of Regulations;
2. Authorize the City Manager to execute Purchase Orders with CD & Power and Odyssey Power for stationary generator services, with a total aggregate maximum compensation not-to-exceed $167,860 for an initial one-year term starting on or around October 7, 2024, and ending on or around October 31, 2025, subject to the appropriation of funds, in final forms approved by the City Attorney; and
3. Authorize the City Manager to exercise up to four additional one-year options to extend the term of the Purchase Orders through October 31, 2029, adjust pricing consistent with applicable market indices, and increase the maximum compensation by an additional $750,000 for a total aggregate maximum compensation not to exceed $917,860, in final forms approved by the City Attorney.
Staff
Reviewed by: Craig Mobeck, Director of Public Works
Approved by: Jovan Grogan, City Manager