REPORT TO COUNCIL
SUBJECT
Title
Action on Award of Purchase Order to Bay City Boiler and Engineering Company, Inc. for Boiler Maintenance and Repair Services Citywide
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
The Department of Public Works (Public Works), Facility Services Division (Facilities Division), oversees maintenance and repairs for approximately 900,000 square feet of buildings throughout the City. The Facilities Division is responsible for coordinating mechanical repairs such as boiler maintenance and repair for client departments and facilities such as the Police Department, Senior Center, City Hall, Libraries, and various pools.
DISCUSSION
Pursuant to City Code Section 2.105.330, a formal Request for Proposal (RFP) was conducted as the solicitation method for this procurement, with the award recommendation based on best value. The factors considered in the evaluation were experience, technical capability, and cost.
The City released a RFP for Boiler Maintenance and Repair Services Citywide. The RFP was published on the City’s e-procurement platform. A total of 39 companies viewed the RFP, and seven proposals were received from the following firms:
- A & B Mechanical, Inc.
- ACCO Engineered Systems, Inc.
- Bay City Boiler and Engineering Co., Inc.
- Ciari Plumbing and Heating, Inc.
- Mesa Energy Systems, Inc.
- Prime Mechanical Service, Inc.
- San Jose Boiler Works, Inc.
Proposals were independently evaluated by three representatives from Public Works. Finalists were required to participate in oral interviews, and the City elected to conduct a Best and Final Offer (BAFO) to memorialize any final clarifications that were discovered through the process and provide a final opportunity to revise cost proposals.
Staff recommends award of contract to Bay City Boiler and Engineering Co., Inc. for having submitted the best value proposal. They demonstrated experience in operation, maintenance, repair and replacement of boilers and hot water systems.
Under the proposed purchase order, Bay City Boiler and Engineering Co., Inc. will provide boiler maintenance and repair services citywide. Compensation will be fixed for the initial one-year term and paid annually for maintenance and inspection services for each boiler. Any necessary repairs discovered during the annual maintenance efforts will be paid on a time and materials basis. See Pricing Summary (Attachment 1). After the initial term, price adjustments will be considered if the contractor demonstrates that a price increase is warranted. The City may extend the term of the purchase order for four additional years after the initial term for a total of five years provided all options to extend are exercised by the City. The purchase order includes the necessary language regarding prevailing wage.
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 not to exceed amount for the initial one-year term is $50,000 which includes $23,380 for annual preventative maintenance and $26,620 for any required repairs which is an estimate based on the age and condition of the boilers. These costs will be covered by funds in the FY 2021/22 and FY 2022/23 Adopted 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. Authorize the City Manager to execute a purchase order with Bay City Boiler and Engineering Company, Inc. for boiler maintenance and repair services citywide for an initial one-year term, with a maximum compensation not-to exceed $50,000;
2. Authorize the City Manager to execute change orders for a not-to-exceed contingency amount of $10,000 in the event actual repairs exceeds the aforementioned forecast of $26,620, subject to the appropriation of funds; and
3. Authorize the City Manager to execute up to four one-year options to extend the purchase order after the initial term, subject to the appropriation of funds.
Staff
Reviewed by: Craig Mobeck, Director of Public Works
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. Pricing Summary