SR-11-10-2015-3H
City Council
Report
City Council Regular Meeting: November 10, 2015
Agenda Item: 3.H
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To: Mayor and City Council
From: Gigi Decavalles-Hughes, Director, Finance Department, Risk Management
Administration
Subject: Award Agreement to Provide Commercial/Specialty Vehicle and Safety
Training
Recommendation:
Staff recommends that the City Council:
1. Award Request for Proposal (RFP) # 47 to Trukspect, Inc., a California -based
company, for safety training services; and
2. Authorize the City Manager to negotiate and execute a professional services
agreement with Trukspect, Inc. in an amount not to exceed $180,600 over a five
year period, with future year funding contingent on Council budget approval.
Executive Summary
Staff recently solicited proposals for safety training services to satisfy a variety of
Department of Transportation (DOT) and Cal OSHA regulations and City safety policies.
This process yielded one proposal, and it came from the City’s current safety training
contractor, Trukspect, Inc. The limited response to this Request for Proposals (RFP),
along with several other recent risk management-oriented RFPs, prompted staff to
reexamine the proposal to ensure the requirements and/or distribution were not
inadvertently inhibiting competition. This review revealed the City would likely receive a
greater response to the RFP if safety firms were provided with the flexibility to propose
on individual training program components as opposed to the entire training program.
Therefore, staff recommends the City pursue a two-phased approach for satisfying the
safety training needs set out in the RFP: 1) enter into a five-year agreement with
Trukspect, Inc. for the commercial vehicle and specialty heavy equipment safety training
component of the RFP only, and 2) issue a new RFP for the remaining general safety
training components of the RFP. The agreement with Trukspect, Inc. would not exceed
$180,600 over the five-year period. Further, funding for the Trukspect agreement and
any additional safety training firms selected through the new RFP proposed above is
contained in the Workers’ Compensation Self-Insurance Fund, which is funded with
contributions from all City departments.
Background
The Risk Management Division of the Finance Department is responsible for
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coordinating the Safety Program and providing operating departments with tools and
assistance to comply with federal, state, and local safety regulations and policies. One
aspect of the program includes safety training for City employees who engage in
manual labor and/or operate a commercial vehicle and/or heavy equipment. Trukspect,
Inc. holds the current contract for safety training services. The firm was awarded the
current contract in December 2010; the contract is set to expire in December 2015.
Council approved the contract on November 23, 2010 (Attachment A).
Discussion
The City employs several hundred staff across the organization to operate commercial
vehicles or specialty heavy equipment (e.g., sanitation trucks, street sweepers,
backhoes, forklifts, aerial lifts, etc.) and/or to engage in physically demanding manual
labor. These employees are subject to a wide range of Department of Transportation
(DOT), Cal OSHA, and City mandated training requirements that primarily fall into two
categories: 1) safe operation of commercial vehicles and heavy equipment (e.g., street
sweepers, forklifts, aerial lifts, backhoes, beach tractors, etc.), and 2) general safety
training (e.g., heat illness prevention, hearing conservation, confined space training,
lock out/tag out training, fall protection, ladder safety training, etc.). Due to the breadth
of up-to-date detailed technical knowledge required, the City has historically used
private safety consultants to deliver this training. Staff recommends the City continue
this practice, and to this end, issued a Request for Proposals (RFP) for safety training
services that mirrors the scope of work contained in the current contract. The results of
this procurement process led staff to consider an alternative approach to providing
these services. The alternative is detailed below.
Vendor/Consultant Selection
On August 24, 2015, the City issued an RFP for safety training services. The RFP was
posted on the City’s on-line bidding site, and notices were advertised in the Santa
Monica Daily Press in accordance with City Charter and Municipal Code provisions. A
total of 1,168 vendors were notified of the RFP and provided three weeks to submit a
proposal. Eighteen vendors subsequently downloaded the RFP.
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Trukspect Inc., the City’s current provider, submitted the only response to the RFP.
Staff’s review of Trukspect’s submittal confirmed the proposal met the RFP’s
requirements and offered competitive pricing. Further, the firm has a long track record of
providing the City with competent and cost-effective safety training services. That said,
the limited response to this RFP along with several other recent risk management-
oriented RFPs, prompted staff to reexamine the proposal to ensure the requirements
and/or distribution were not inadvertently inhibiting competition.
Staff was unable to obtain direct feedback on this from potential vendors through
Procurement’s formal request for information. However, research into the matter
revealed that, while very few safety training firms have the ability to satisfy the City’s
unique commercial vehicle and heavy equipment safety training needs like Trukspect, a
healthy pool of firms are available to supply general safety training services . Therefore,
staff recommends the City pursue a two-phased approach for satisfying the safety
training needs identified in the RFP: 1) enter into a five-year agreement with Trukspect,
Inc. for a total amount not to exceed $180,600 for the commercial vehicle and specialty
heavy equipment safety training component of the RFP only, and 2) issue a new RFP
for the remaining general safety training components of the RFP. This approach should
encourage greater vendor participation, and in turn, create the competition necessary to
help keep training costs in check, as well as, fresh and contemporary. Further, once the
results of the new RFP are available, staff will return to Council for appropriate
contracting authorization.
Financial Impacts and Budget Actions
The agreement to be awarded to Trukspect, Inc. is for an amount not to exceed
$180,600. Funds in the amount of $35,600 are included in t he FY 2015-16 budget in the
Finance Department. The agreement will be charged to 59235.555210. Future year
funding contingent on Council budget approval.
Prepared By: Don Cocozza, Safety Officer
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Approved
Forwarded to Council
Attachments:
A. November 23, 2010 Staff Report (Weblink)
Reference:
Agreement No. 10216
(CCS)