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SR-10-22-2013-3GCity Council Meeting: October 22, 2013 Agenda Item: To: Mayor and City Council From: Martin Pastucha, Director of Public Works Subject: Bid Award for Main Library Heating, Ventilation, and Air Conditioning (HVAC) Equipment Preventative Maintenance and Repair Services Recommended Action Staff recommends that the City Council award Bid #4099 for HVAC equipment preventative maintenance and repair services at the Main Library to ACCO Engineered Systems, a California -based company, in an amount not to exceed $50,000 for FY 2013 -14, with two one -year options to renew with an annual increase equal to the Consumer Price Index (CPI) for the Los Angeles area estimated at 5% each year, for a total award amount not to exceed $155,000 over a three -year period, with future year funding contingent on Council budget approval. Executive Summary The City contracts out HVAC preventative maintenance and repair services at the Main Library. In July 2013, the City solicited bids for such services. After reviewing the eight bids received, staff recommends ACCO Engineered Systems as the best bidder to provide HVAC preventative maintenance and repair services for a total not to exceed amount of $155,000 over a three -year period. Discussion The City requires periodic monthly, quarterly, semi - annual and annual services for the Main Library HVAC equipment that includes control panels, cooling towers, centrifugal chillers, pumps, boilers, and air handlers in order to ensure efficient operation and a safe temperature controlled environment for the public. The City further requires having a provision to address any equipment failures or repair work in a timely manner to prevent shutdowns. Vendor Selection On July 23, 2013, the City published Notices Inviting Bids to provide HVAC preventative maintenance and repair services. The bid was posted on the City's online bidding site, and notices were advertised in the Santa Monica Daily Press in accordance with City 1 Charter and Municipal Code provisions. Eight bids were received and publicly opened on August 13, 2013 per Attachment A. Bids were evaluated based on price, licenses, previous experience, ability to be on -site within two hours of notification for emergency service calls, and compliance with City specifications. BMD Technologies was the lowest bidder but did not meet the City's minimum emergency response time of two hours. ACCO Engineered Systems was the second lowest bidder by $15.00 per month more than BMD Technologies and has satisfactorily maintained Main Library HVAC equipment since the facility opened in April 2006 at a reasonable cost, and has the most familiarity with the HVAC equipment. In addition to having the required C -20 HVAC California State Contractor's License, ACCO Engineered Systems also possess licenses for general engineering & building, boiler, electrical, plumbing and refrigeration, which minimize the need to bring in additional contractors for specialized repairs. Based on these criteria, ACCO Engineered Systems is recommended as the best bidder to provide heating, ventilation, and air conditioning (HVAC) equipment preventative maintenance and repair services at the Main Library. Financial Impacts & Budget Actions The purchase order to be awarded to ACCO Engineered Systems is for an amount not to exceed $50,000 for the first year. Funds are included in the FY 2013 -2014 budget in division 452. The purchase order will be charged to account 014523.533226. Budget authority for subsequent years will be requested in each budget cycle for Council approval. Future funding is contingent upon Council approval. 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