REPORT TO COUNCIL
SUBJECT
Title
Action on Award of Purchase Orders with Grand Electric & Construction Company and True Blue Automation Services for Electrical Maintenance and Repair Services
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
The Department of Public Works (DPW), Facility Services Division (Facilities Division), oversees maintenance and repairs for approximately 1,200,000 square feet of buildings throughout the City including the Santa Clara Convention Center Complex Maintenance District #183 (MD #183). The Facilities Division is responsible for coordinating electrical repairs and minor electrical service modifications for client departments which includes items such as interior and exterior lighting, switches, equipment, and other miscellaneous items as needed.
DISCUSSION
Pursuant to City Code Section 2.105.330, a formal Statement of Qualifications (SOQ) was conducted as the solicitation method for this procurement, with the award recommendation based on “best value”. The factors considered in the evaluation were company and staff experience, project approach, and cost.
The City released a SOQ for Electrical Maintenance Services for MD #183 and As-Needed Electrical Repair Services Citywide including MD #183. The SOQ was published on Periscope Source (formerly BidSync), the City’s e-procurement platform. A total of 38 companies viewed the SOQ, and two proposals were received from the following firms:
1. Grand Electric & Construction Company
2. True Blue Automation Services
Evaluation Process: The proposals were independently evaluated by a three-member evaluation team with representation from the Departments of Public Works and the Library. The proposals were evaluated and ranked against the criteria published in the SOQ, experience of firm and staff, project approach, and cost. Both firms were required to participate in oral interviews to introduce their key personnel and demonstrate how they would meet the City’s requirements. The City also conducted a Best and Final Offer (BAFO) process to seek clarification and provide firms a final opportunity to revise their cost proposals in the light of any new information that was introduced during the oral presentations and the BAFO.
References for Grand Electric & Construction Company were checked with the County of Santa Clara and Jones Lang La Salle in Partnership with IBM. Both references were positive.
References for True Blue Automation Services were checked with the City of Santa Clara Water and Sewer Department and the County of Alameda. Both references were positive.
Based on receiving the highest overall score, staff recommends awarding a Purchase Order to True Blue Automation Services to provide electrical maintenance and repair services for MD #183 and as-needed electrical repair services citywide. Staff also recommends awarding a Purchase Order to Grand Electric & Construction Company to provide as-needed electrical repair services citywide, including as-needed electrical repair services at MD #183, based on receiving the second highest overall score. Two Purchase Orders will provide greater flexibility in assigning as-needed work based on their availability, capacity, and ongoing performance. Both firms demonstrated experience in providing electrical repair services and an excellent understanding of the City’s requirements and expectations.
Summary of Purchase Order for True Blue Automation Services: Under the Purchase Order, True Blue Automation Services will provide electrical maintenance and repair services for MD #183 and as-needed electrical repair services citywide. Compensation will be paid on a time and materials basis and are fixed for the initial three-year term. Invoices shall be submitted monthly for all services performed and will be paid in arrears. After the initial term, price adjustments may be considered if the contractor demonstrates that a price increase is warranted. There are two option years to extend the term of the purchase order by one year.
Summary of Purchase Order for Grand Electric and Construction Company: Under the Purchase Order, Grand Electric and Construction Company will provide as-needed electrical repair services citywide, including as-needed electrical repair services at MD #183. Compensation will be paid on a time and materials basis and are fixed for the initial three-year term. Invoices shall be submitted monthly for all services performed and will be paid in arrears. After the initial term, price adjustments may be considered if the contractor demonstrates that a price increase is warranted. There are two option years to extend the term of the purchase order by one year.
Both Purchase Orders require that applicable prevailing wages will be paid.
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 amount to be paid to True Blue Automation Services, Inc. for the initial three-year term is not-to-exceed $103,000 per year for a total of $309,000. This estimate is based on the past 3 years of electrical maintenance and repair services at MD #183 and electrical repair services citywide. The fourth- and fifth-year option, if approved, will also be $103,000 per year for a total not to exceed $515,000.
The amount paid to Grand Electric for on-call as needed service for City Facilities is estimated at $78,000 per year for 3 years for a total of $234,000. This estimate is based on the past 3 years of electrical service citywide, including as-needed electrical repair services at MD #183. The fourth- and fifth-year option, if approved, will also be $78,000 per year for a total not to exceed $390,000.
Appropriations for the current year have been incorporated in each applicable department’s 2021/22 annual budget including MD#183. Future year appropriations will be included as part of the annual budget development process.
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. Authorize the City Manager to execute a Purchase Order with True Blue Automation Services for as-needed electrical maintenance and repair services Citywide including Maintenance District #183, and for an initial three-year term, with maximum compensation not-to-exceed $309,000, subject to the appropriation of funds;
2. Authorize the City Manager to execute a Purchase Order with Grand Electric and Construction Company for as-needed electrical repair services Citywide including Maintenance District #183 for an initial three-year term, with maximum compensation not-to-exceed $234,000 and subject to the appropriation of funds;
3. Authorize the City Manager to adjust maximum compensation during the initial three-year term if the demand for services exceeds the forecasted amount, subject to the appropriation of funds; and
4. Authorize the City Manager to exercise up to two one-year options to extend the term of both purchase orders, subject to the appropriation of funds.
Staff
Reviewed by: Craig Mobeck, Director of Public Works
Approved by: Deanna J. Santana, City Manager