SR-06-25-2013-3UCity Council Meeting: June 25, 2012
Agenda Item: S_ U
To: Mayor and City Council
From: Gigi Decavalles- Hughes, Director of Finance
Subject: Purchase Orders with multiple renewal option years exceeding $100,000
Recommended Action
Staff recommends that the City Council extend renewal options or authorize the
issuance of new Purchase Orders for the attached list of vendors whose cumulative
authorized purchase amount will exceed $100,000 in fiscal year 2013 -14. The total
cumulative amount of the purchase orders would not exceed $13,565,251 (includes a
10% contingency).
Executive Summary
The City informally bids goods or services throughout the fiscal year where vendors
have the ability in their bid response to extend renewal options typically up to two years.
Additionally, staff conducts new bid processes that result in award of a new contract to
an incumbent vendor for an ongoing purchase of a good or service. The attached
vendors will exceed $100,000 for the same good or service with the execution of the
renewal option or with an award of a new Purchase Order.
Discussion
The City's Purchasing Section bids goods or services as required by City departments
throughout the fiscal year. The original dollar amount for the purchase order as
projected by the end -using division is based on the fiscal year needs at the time of
bidding, with no presumption of renewal options. Interpretation of the Municipal Code
provisions related to purchasing previously determined that the limit was based on each
fiscal year, and that when the original purchase order and annual renewals individually
did not exceed $100,000, it was determined that Council approval was not necessary,
as it fell under the provisions of SMMC 2.24.090, informal purchasing.
A recent preliminary review of Purchasing Section operations identified several areas
where opportunities to clarify policies and procedures exist, including applicability of
1
formal bidding requirements, better management of purchases of ongoing goods or
services, and expansion of outreach efforts to facilitate greater responses to bidding
opportunities.
In order to facilitate a transparent purchasing process during the ongoing review of the
Purchasing Section, this report presents a list of vendors who experienced one of the
following situations:
1) Through execution of a renewal option, will exceed $100,000 in cumulative
purchases over multiple fiscal years; or
2) After an informal bid process, a new purchase order was issued to an incumbent
provider for the same good or service, where the cumulative amount exceeded
$100,000.
The attached list represents purchases that fall under one of the two categories above,
and were previously determined to fall under the City's informal purchasing
requirements yet exceed a cumulative amount of $100,000 to the same vendor for the
same good or service. In order to ensure a transparent purchasing process and follow
adopted Council policy requiring Council authorization for purchases in excess of
$100,000, and to ensure continuity of delivery of necessary goods or services, staff
recommends that Council approve the attached list of vendors to provide the specified
good or service through June 30, 2014.
Vendor Selection
Bids for each of the goods or services were posted on the City's online bidding system
in accordance with the City Charter and Municipal Code provisions related to vendor
selection, and were determined to be the best bidder as defined in 2.24.072 of the
Municipal Code.
Financial Impacts & Budget Actions
Funds are included in the FY 2013 -15 budget within Department budgets. Budget
authority in subsequent years will be requested in each budget cycle for Council
approval. Future funding is contingent upon Council approval.
Prepared by: Kellee Mac Donald, Senior Buyer
Approved:
AGi IIes- " hes
Director of Finance
Forwarded to Council:
Rod Gould
City Manager
Attachments:
A. Exercising Renewal Options / New Purchase Orders
4.1
ATTACHMENT A
NEW PO
VENDORNAME DEPARTMENT DESCRIPTION OF SERVICE / GOODS AMOUNT 2 -yr history TOTALOFPOs
ADB Airfield Solutions
All Pro Carpentry
Airport Maintenance
Pier
Airport runway /LED Signage
_$ 43,800.00
$ 57,638.80
$ 101,438.80_
�,.
Maintenance
Framing / carpentry contractor
$ 99,000.00
$ 217,452.56
$ 316,452.56
Best Contracting Services
Bound-Free Medical
Pier Maintenance
Various
Roofing contractor
Gloves
$ 50,950.00
$ 55,500.00
$ 117,834.47
$ 166,481.49
$ 168,784.47
$ 221,981.49
Bourget Bros.
Various
Hardware Supplies
$ 38,545.00
$ 117,950.55
$ 156,495.55
Coastal Building Services
Custodial
— .. -. -
Diamond Contract Services, Inc
Services
...
Custodial Services
Custodial Supplies _
-_-.
Custodial Supplies
$ 122,212.00_
$ 52,035.00
$ 183,766.00
$ 115,091.07
$ 305,978.00
$ 167,126.07
Donlite Associates
Facilities /Architecture
-
Engineering Services
$ 100,000.00
$ 32,600.00
132,600.00
F Enterprises
BBB
replace damaged /graffiti glass and
_$
_
Plexiglass window guards
$ 50,000.00
$ 71,676.80
$ 121,676.80
Electric Supply Connection
Pier Maintenance
Electrical supplies - local store
$ 82,250.00
$ 130,517.84
$ 212,767.84
Excello _ _.
CAD
_
Document Reproduction
$ 67,000.00
$ 63,264.62
$ 130,264.62
Federal Express
Various
Shipping
_
$ 58,000.00
$ 57,188.30
$ 115,188.30
Ferguson Enterprises
Facilities
Plumbing supplies
$ 49,775.00
$ 59,805.75
$ 109,580.75
Genfare
GFI Parts
Farebox Parts
$ 66,000.00
$ 207,782.53
$ 273,782.53
Golden State Fasteners _
BBB _
Fasteners
$ 41,000.00
79,376.36
$ 120,376.36
Golden West Electric
W - TP
_ _-
_
Electrical Repairs
$ 98,000.00
_$
$ 132,169.26
$ 230,169.26
Grainger
Various
_
Various Parts /Supplies
$ 87,931.00
$ 263,552.12
$ 351,483.12
Hirsch Pipe &Supply
Facilities _Plumbing
supplies
$
$ 77,743.91
$ 132,993.91
Howard Industries
Pier Maintenance
HVAC supplies
__55,250.00
$ 82,250.00
$ 114,320.57
$ 196,570.57_
J.H. Bryant
Pier Maintenance _
Painting contractor
$ 80,000.00
$ 49,629.50
$ 129,629.50
L:A. Hydrojet
Pi er Maintenance
Plumbing contractor - rooter services
$ 50,475.00
$
$ 143,933.50
Lincoln Car Wash
Various
Carwashing Services
$ 51,000.00
_93,458.50
$ 49,537.99
$ 100,537.99
Logans Marketing _
Street & Fleet Services
Various types of concrete mix
$ 102,942.00
$ 277,17721
$ 380,119.21
Major Cleanup Inc.
BBB
Sludge Removal
$ 25,869.00
+. $ 120,982.92
$ 14fi,851.92
Marx Bros Fire Extinguisher
_ —.
BBB
Fire Extinguisher Maintenance
$ 43,000.00
$ 57,287.16
$ 100,287.16
Master Cooling _Pier
Maintenance
HVAC Contractor
$ 51,950.00
$ 74,175.30
_. _.
$ 126,125.30
Monarch Plumbing & Mechanical
Maintenance
Plumbing contractor _
Printing Services
$ 157,125.00
$ 46,206.00
$ 345,566.72
$ 104,364.30
$ 502,691.72
$ 150,570.30
Pacific Rim
_Pier
BRO
Peterson Hydraulics
BBB
Hydraulic Lift Repair /Maintenance
$ 35,000.00
$ 262,678.77
$ 297,678.77
Pump Man
pier Maintenance
Pump contractor
$ 135,000.00
$ 526,532.41
$ 661,532.41
Randall /McAnany Company
Pier Maintenance
Painting contractor
$ 99,000.00
$ 124,329.00
$ 223,329.00
RC Foster
WTP
Pipe Valve Maintenance Repair
$ 80,500.00
$ 89,444.19
$ 169,944.19LL
Reliable Monitoring Services
Gas Detection Calibration
$ 61,000.00
$ 39,388.91
_
$ 100,388.91
Rick's Window Tint
Pier Maintenance
Blinds / shades contractor
$ 83,800.00
$ 99,715.50
$ 183,515.50
Ricoh .�
BRO
Copier
$ 369,453.00
$ 935,307.31
$ 1,304,760.31
Romaine Electric
BBB
_
Generators
$ 47,000.00
$ 60,738.46
$ 107,738.46
Royal Corporation
Facilities Maintenance
Paper Products
$ 218,000.00
$ 264,851.10
$ 482,851.10
Santa Monica Daily Press
Various
Legal Ads
$ 201,000.00
$ 231,799.79
$ 432,799.79_
Santa Monica Radiator Works �s
BBB _
Radiators
$ 51,500.00
$_ 93,843.06
$ 145,343.06
Schneider Electric
Pier Maintenance
Battery /UPS services -PSF
$ 95,000.00
$ 5,800.24
$ 100,800.24
Siemens Industry _
Per Maintenance
BAS contractor _
$ 50,475.00
$ 492,667.51
$ 543,142.51
SWL Painting
Facilities
Painting contractor
$ 50,000.00
$ 84,326.50
$ 134,326.50
The Lighthart Corporation _
Pier Maintenance
Plumbing contractor
$ 125,000.00
$ 155,061.38
$ 280,061.38
Tri- Signal
Pier Maintenance
Fire protection - repair /remodels/
_
testing /inspections
$ 94,710.00
$ 79,234.97
$ 173,944.97
Vehicle Technical Consul
Bus Build Consultants /Inspection
$ 90,00000
$ 44,125.00
$ 134,125.00
Weck Laboratories Inc
ources
Water Laboratory Analysis
$ 140,000.00
$ 57610.50
$ 197610.50
Weldworx
Metal Refuse Container Repair
$ 50,000.00
$ 114,188.164,18824
West Coast Air Conditionenance
I
HVAC contractor
$ 366,625.00
$ 143,003.16
$ 509,628.16
West Group Print
ney
Legal Books Subscription
$ 46,000.00
$ 235,291.90
$ 281,291.90
Ye Olde Upholstry Shopp
Upholstry Repair
$ 93,000.00
$ 117,882.10
$ 210,882.10
Zumar Industries
leet Services
Traff ic Signs
$ 27,500.00
$ 120,933.31
$ 148,433.31
Subtotall
$ 4,517,628.00
$ 7,817,145.91
$ 12,334,773.91
10% contingency 1
1
$ 1,233,477.39
Totall
1
1
$ 13,568,251.30