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SR 09-26-2017 3C City Council Report City Council Meeting: September 26, 2017 Agenda Item: 3.C 1 of 3 To: Mayor and City Council From: Susan Cline, Director, Public Works, Facilities Maintenance Subject: Bid Award for the Purchase of Heating, Ventilation and Air Conditioning (HVAC) Units and Supplies Recommended Action Staff recommends that the City Council: 1. Award Bid #4283 to Howard Industries, a California-based company, for the purchase of heating, ventilation and air conditioning units and supplies for the Facilities Maintenance Division; 2. Authorize the Purchasing Services Manager to issue a purchase order with Howard Industries for the purchase of heating, ventilation and air conditioning units and supplies in an amount not to exceed $75,000 for one year, with two additional two-year renewal options, with an annual increase of 2%, for a total amount not to exceed $390,303 over a five-year period, with future year funding contingent on Council budget approval. Executive Summary The City purchases a broad variety of heating, ventilation and air conditioning (HVAC) units and supplies to maintain and repair the HVAC systems in City-owned facilities. On April 19, 2017, the City solicited bids for such units and supplies. After reviewing the three bids received, staff recommends Howard Industries as the best bidder for one year in an amount not to exceed $75,000, with two additional two-year renewal options with an increase based on manufacturer pricing, for a total amount not to exceed $390,303 over a five-year period. Discussion Facilities Maintenance staff completes approximately 800 HVAC work orders per fiscal year including the repair, replacement and maintenance of air conditioners, boilers, building automation systems, chillers, condensers, ductwork, fans, heaters, piping, thermostats and other equipment at various City facilities. These work requests require the purchase of HVAC supplies and new HVAC units. In 2014, the City awarded Bid 2 of 3 #4162 to Howard Industries and Airgas Refrigerants to provide HVAC units and supplies for one year in FY 2014-15 in an amount not to exceed $99,455. On June 23, 2015, Council awarded Bid #4162 to Howard Industries to provide HVAC units and supplies for the next two years, through June 2017, for a total not to exceed amount of $300,000 over a three-year period, per Attachment A. Vendor/Consultant Selection On April 19, 2017, the City published Notices Inviting Bids to furnish and deliver HVAC units and supplies for repairs and maintenance in accordance with City specifications. The bid 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 2.24.100(a) provisions. A total of 27 vendors downloaded the bid. Three bids were received and publicly opened on May 8, 2017 per Attachment B. Bids were evaluated based on the criteria in SMMC 2.24.072, including price, previous experience, ability to deliver, quality of product, and compliance with City specifications. Howard Industries is not the lowest bidder but offered competitive pricing, and four renewal options which are preferable as they allow the City to budget for upcoming years. The lowest bidder, Allied Refrigeration, Inc., did not offer any renewal options and neglected to bid on six items which resulted in a less comprehensive bid. The third bidder, Airgas Refrigerants, Inc., only provided pricing for two of the 14 items listed in the bid and was the highest bidder on both items. Howard Industries has satisfactorily supplied the City with HVAC units and supplies since 2014 under a previous contract. Based on these criteria, staff recommends Howard Industries as the best bidder. Financial Impacts and Budget Actions The purchase order to be awarded to Howard Industries is for an amount not to exceed $390,303. Funds of $75,000 are available in the FY 2017-18 budget in various departments. The purchase order will be charged to account 014523.544010, and expenditures will be transferred to departments incurring maintenance services. Future year funding is contingent on Council budget approval. 3 of 3 Prepared By: Kyla Johnson, Administrative Analyst Approved Forwarded to Council Attachments: A. June 23, 2015 Staff Report B. 4283 HVAC Supplies Bid Results C. Howard Industries Oaks City Council Report City Council Regular Meeting: June 23, 2015 Agenda Item: 3-C 1 of 3 To: Mayor and City Council From: Susan Cline, Interim Director of Public Works Subject: Purchase of Heating, Ventilation and Air Conditioning (HVAC) Units and Supplies Recommended Action Staff recommends that the City Council authorize the Purchasing Services Manager to exercise the first year renewal option of Bid #4162 and issue a purchase order with Howard Industries, a California-based company, for heating, ventilation and air conditioning units and supplies in an amount not to exceed $100,000 for one year, with one additional one-year renewal option with an increase based on manufacturer pricing for a total amount not to exceed $300,000 over a three year period, with future year funding contingent on Council budget approval. Executive Summary The City purchases a broad variety of heating, ventilation and air conditioning (HVAC) units and supplies to maintain HVAC systems at City facilities. In May 2014, the City solicited bids for the purchase of HVAC units and supplies. After reviewing the two bids received, Howard Industries and Airgas Refrigerants were selected to provide HVAC units and supplies for FY 2014-15 in an amount not to exceed $99,455. As Airgas Refrigerants did not offer renewal options, Howard Industries is recommended as the best bidder to provide HVAC units and supplies for the next two years through June 2017 for a total not to exceed amount of $300,000 over a three-year period. Discussion Staff completes approximately 600 heating, ventilation and air conditioning (HVAC) work orders per year including repair, replacement and servicing of air conditioners, boilers, building automation systems, chillers, condensers, ductwork, fans, heaters, piping, thermostats and other equipment. Vendor Selection In May 2014, the City published Notices Inviting Bids to provide HVAC units and 2 of 3 supplies as required by Facilities Services responsible for HVAC repair and maintenance in accordance with City specifications. The bid 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 297 vendors were notified, 24 vendors downloaded the bid (Bid #4162). Two bids were received and publicly opened on June 6, 2014 per Attachment A. Bids were evaluated based on the criteria in SMMC 2.24.072, including price, previous experience, ability to deliver, quality of product, and compliance with City specifications. Howard Industries offered the lowest bid pricing on 13 of 15 commonly purchased HVAC items and has supplied the City for several years at reasonable prices. Airgas Refrigerants offered the lowest bid pricing on R-22 refrigerant, but offered no renewal options past FY 2014-15. Based on these criteria, Howard Industries was recommended as the best bidder for the purchase of HVAC units and supplies; and Airgas Refrigerants was recommended as the best bidder for the purchase of R-22 refrigerant in accordance with the City specification. On December 4, 2014, the Purchasing Services Manager awarded Bid #4162 and issued purchase order #24290-OF to Howard Industries to provide HVAC units and supplies through June 2015 in an amount not to exceed $83,125. On January 21, 2015, purchase order #24316-OF was issued to Airgas Refrigerants in an amount not to exceed $16,330. At the time of issuance, the purchase orders were approved under the Purchasing Services Manager’s authority. This action incorporates purchase orders #24290-OF and #24316-OF and two additional one-year renewal options for a three- year total not to exceed $300,000. 3 of 3 Financial Impacts and Budget Actions The renewal option and purchase order to be awarded to Howard Industries is for an amount not to exceed $300,000. The purchase order will be charged to account 014523.544010 and expenditures will be transferred to departments incurring maintenance services. Funds in the amount of $100,000 are included in the FY 2015-17 Proposed Biennial Budget in various department budgets. Future year funding is contingent on Council budget approval. Prepared By: Kevin Nagata, Administrative Analyst Approved Forwarded to Council Attachments: A. Results for Bid #4162 HVAC Units and Supplies (PDF) BI D  RE S U L T S AT T A C H M E N T  A A. HO W  LO N G  WI L L  IN ‐ST O C K  IT E M S  TA K E  TO  BE  DE L I V E R E D  TO  SA N T A   MO N I C A  AF T E R  RE C E I P T  OF  OR D E R ? B. PL E A S E  IN D I C A T E  IF  YO U R  FI R M  OF F E R S  FR E E  DE L I V E R Y : C. PL E A S E  IN D I C A T E  TH E  TY P E S  OF  HV A C  SU P P L I E S  AN D  BR A N D S  KE P T  IN   ST O C K  AT  YO U R  LO C A L  ST O R E  LO C A T I O N : CO S T  ‐   IN ‐ST O R E CO S T  ‐   DE L I V E R E D CO S T  ‐   IN ‐ST O R E COST  ‐ DELIVERED 1 AD V A N C E D  DI S T R I B U T O R  PR O D U C T S  AX 3 6  AI R  HA N D L E R NO  BI D NO  BI D NO  BI D NO  BID 2 DA Y T O N  5. 0  TO N  14 . 5  SE E R  AC  CO N D E N S E R  R ‐41 0 A NO  BI D NO  BI D 1, 7 5 9 . 3 4 $                                                                    1,759.34 $                                                       3 DA Y T O N  V ‐BE L T ,  42  IN ,  A4 0 NO  BI D NO  BI D 7. 3 4 $                                                                                    7.34 $                                                               4 FO R A N E  RE F R I G E R A N T ,  30  LB  ‐   R ‐22 NO  BI D 23 4 . 7 9 $                                                                                                               29 8 . 0 0 $                                                                          298.00 $                                                          5 FO R A N E  RE F R I G E R A N T ,  25  LB  ‐   R4 1 0 A NO  BI D 94 . 7 9 $                                                                                                                     89 . 2 5 $                                                                               89.25 $                                                             6 LE N O X  BR A Z I N G  AL L O Y  RO D ,  CO P P E R ,  1  LB ,  1/ 8  X2 0  IN NO  BI D NO  BI D 60 . 7 6 $                                                                               60.76 $                                                             7 RA Y P A K  XF Y R E  HY D R O N I C  BO I L E R  H7 ‐05 0 0 NO  BI D NO  BI D 9, 0 3 1 . 0 0 $                                                                     9,031.00 $                                                       8 RA Y P A K  XT H E R M  CO N D E N S I N G  PO O L  HE A T E R  WH P ‐15 0 5 NO  BI D NO  BI D 22 , 3 2 4 . 0 0 $                                                               22,324.00 $                                                     9 RA Y P A K  XT H E R M  PO O L  TR A N S F E R  15 0 5  CU P R O  AS M E  KI T  01 2 5 7 5 F NO  BI D NO  BI D 10 , 3 3 0 . 3 1 $                                                               10,330.31 $                                                     10 SL I M L I N E  SP E C I A L T Y  SE R I E S  TH E R M O S T A T  ‐   TS T A T E Z NO  BI D NO  BI D 14 8 . 4 5 $                                                                           148.45 $                                                          11 SM I T H  RE F I L L  PO R T A B L E  CY L I N D E R ,  OX Y G E N ,  20  CU  FT  ‐   OC 2 0 NO  BI D NO  BI D 11 . 6 5 $                                                                               11.65 $                                                             12 SM I T H  RE F I L L  PO R T A B L E  CY L I N D E R ,  AC E T Y L E N E ,  10  CU  FT  ‐   23 2 9 E NO  BI D NO  BI D 22 . 6 9 $                                                                               22.69 $                                                             13 SQ U A R E  D  DP  CO M P A C T  CO N T A C T O R ,  24 V A C ,  20 A ,  OP E N ,  2P NO  BI D NO  BI D 7. 1 0 $                                                                                     7.10 $                                                               14 WH I T E ‐RO D G E R S  TR A N S F O R M E R ,  24 V  OU T P U T  ‐   90 ‐T4 0 F 3 NO  BI D NO  BI D 11 . 7 9 $                                                                               11.79 $                                                             15 YO R K  AF F I N I T Y  SE R I E S  SP L I T  SY S T E M  YZ H 0 3 6  HE A T  PU M P  18  SE E R NO  BI D NO  BI D 3, 2 0 0 . 6 9 $                                                                     3,200.69 $                                                       TO T A L  PR I C E ‐ $                                                                                       32 9 . 5 8 $                                                                                                               47 , 3 0 2 . 3 7 $                                                              47,302.37 $                                                    16 PL E A S E  IN D I C A T E  TH E  DI S C O U N T  OF F E R E D  OF F  OF  MS R P  FO R  OT H E R   SU P P L I E S : PA Y M E N T  TE R M S : PE R I O D  2  (F I R S T  AN N U A L  RE N E W A L  OP T I O N ) : PE R I O D  3  (S E C O N D  AN N U A L  RE N E W A L  OP T I O N ) : RE N E W A L  OP T I O N S : NO  RE N E W A L  OP T I O N  OF F E R E D SU B J E C T  TO  MANUFACTURER NO  RE N E W A L  OP T I O N  OF F E R E D SU B J E C T  TO  MANUFACTURER NE T  30 NET  30 PR I C I N G : PR I C E PRICE IT E M  ‐   PR I C E S  IN C L U D E  DE L I V E R Y  BU T  EX C L U D E  TA X 0%  TO  26 . 2 % 0%  TO  50%  FR E E  DE L I V E R Y  ‐   NO  MIN I M U M  OR D E R   FR E E  DE L I V E R Y  ‐   NO  MINIMUM  ORDE R  WE  AR E  ON L Y  SU B M I T T I N G  A  BI D  FO R  SU P P L Y  OF  RE F R I G E R A N T   GA S E S .   PL E A S E  SE E  AT T A C H E D  LINE  CARD  1 ‐3  DA Y S  AR O  (E M E R G E N C I E S  SO O N E R )   1  DAY   GE N E R A L  QU E S T I O N S : RE S P O N S E RE S P O N S E DE S C R I P T I O N BI D  #:  41 6 2 AI R G A S  RE F R I G E R A N T S ,  IN C . HO W A R D  INDUSTRIES BI D  CL O S E  DA T E :  06 / 0 6 / 1 4 BI D  TI T L E :  FU R N I S H  HV A C  UN I T S  AN D  SU P P L I E S  AS  RE Q U I R E D  BY   FA C I L I T I E S  SE R V I C E S Lo n g  Is l a n d  Ci t y ,  NY Cu l v e r  City, CA PAGE  1  OF  1 Project HVAC UNITS AND SUPPLIES (4283) Issued on 04/19/2017 Bid Due on May 8, 2017 3:00 PM (Pacific) Item Num Section Item Code Item Description Unit Of Measure Quantity Unit Price Responses Unit Price Responses Unit Price Responses 1 Pricing IN STORE PURCHASE ADVANCED DISTRIBUTOR PRODUCTS AX36 AIR HANDLER EA 1 N/A N/A NO RESPONSE NO RESPONSE 1 Pricing DELIVERED ADVANCED DISTRIBUTOR PRODUCTS AX36 AIR HANDLER EA 1 N/A $ 1,058.54 NO RESPONSE NO RESPONSE 2 Pricing IN STORE PURCHASE DAYTON 5.0 TON 14.5 SEER AC CONDENSER R- 410A - 6ELA8 EA 1 N/A N/A $ 1,846.46 4A7A6061J100A 2 Pricing DELIVERED DAYTON 5.0 TON 14.5 SEER AC CONDENSER R- 410A - 6ELA9 EA 1 N/A $ 1,592.11 $ 1,846.46 3 Pricing IN STORE PURCHASE DAYTON V BELT, 42 IN, A40 - 1A109 EA 1 N/A $ 5.53 $ 7.96 3 Pricing DELIVERED DAYTON V BELT, 42 IN, A40 - 1A110 EA 1 N/A $ 5.53 $ 7.96 4 Pricing IN STORE PURCHASE FORANE R22 REFRIGERANT, 30 LB - R-22 EA 1 N/A $ 765.00 $ 740.00 4 Pricing DELIVERED FORANE R22 REFRIGERANT, 30 LB - R-23 EA 1 $ 1,087.50 $ 765.00 $ 740.00 5 Pricing IN STORE PURCHASE FORANE REFRIGERANT, 25 LB - R410A EA 1 N/A $ 115.77 $ 119.90 5 Pricing DELIVERED FORANE REFRIGERANT, 25 LB - R410A EA 1 $ 249.98 $ 115.77 $ 119.90 6 Pricing IN STORE PURCHASE LENOX BRAZING ALLOY ROD, COPPER, 1 LB, 1/8X20 IN - WS78168 EA 1 N/A $ 41.11 $ 73.47 6 Pricing DELIVERED LENOX BRAZING ALLOY ROD, COPPER, 1 LB, 1/8X20 IN - WS78168 EA 1 N/A $ 41.11 $ 73.47 7 Pricing IN STORE PURCHASE RAYPAK XFYRE HYDRONIC BOILER H7-0500 EA 1 N/A N/A $ 9,218.00 7 Pricing DELIVERED RAYPAK XFYRE HYDRONIC BOILER H7-0500 EA 1 N/A $ 11,023.00 $ 9,218.00 8 Pricing IN STORE PURCHASE RAYPAK XTHERM CONDENSING POOL HEATER WHP-1505 EA 1 N/A N/A $ 24,281.00 8 Pricing DELIVERED RAYPAK XTHERM CONDENSING POOL HEATER WHP-1505 EA 1 N/A $ 25,698.00 $ 24,281.00 9 Pricing IN STORE PURCHASE RAYPAK XTHERM POOL TRANSFER 1505 CUPRO ASME KIT 012575F EA 1 N/A N/A $ 10,643.60 9 Pricing DELIVERED RAYPAK XTHERM POOL TRANSFER 1505 CUPRO ASME KIT 012575F EA 1 N/A $ 9,764.00 $ 10,643.60 10 Pricing IN STORE PURCHASE SLIMLINE SPECIALITY SERIES THERMOSTAT- TSTATEZ EA 1 N/A N/A $ 148.45 TH832OU1008 10 Pricing DELIVERED SLIMLINE SPECIALITY SERIES THERMOSTAT- TSTATEZ EA 1 N/A $ 68.00 $ 148.45 11 Pricing IN STORE PURCHASE SMITH REFILL PORTABLE CYLINDER, OXYGEN, 20 CU FT - OC20 EA 1 N/A $ 10.17 $ 11.65 11 Pricing DELIVERED SMITH REFILL PORTABLE CYLINDER, OXYGEN, 20 CU FT - OC20 EA 1 N/A $ 10.17 $ 11.65 12 Pricing IN STORE PURCHASE SMITH REFILL PORT CYLINDER, ACETYLENE, 10 CU FT - 2329E EA 1 N/A $ 17.13 $ 22.69 12 Pricing DELIVERED SMITH REFILL PORT CYLINDER, ACETYLENE, 10 CU FT - 2329E EA 1 N/A $ 17.13 $ 22.69 13 Pricing IN STORE PURCHASE SQUARE D DP COMPACT CONTACTOR, 24VAC, 20A, OPEN, 2P - 8910DP12V14 EA 1 N/A $ 9.32 $ 7.10 13 Pricing DELIVERED SQUARE D DP COMPACT CONTACTOR, 24VAC, 20A, OPEN, 2P - 8910DP12V14 EA 1 N/A $ 9.32 $ 7.10 14 Pricing IN STORE PURCHASE WHITE-RODGERS TRANSFORMER, 24V OUTPUT - 90-T40F3 EA 1 N/A $ 9.59 $ 12.15 5035A 14 Pricing DELIVERED WHITE-RODGERS TRANSFORMER, 24V OUTPUT - 90-T40F3 EA 1 N/A $ 9.59 $ 12.15 Question PLEASE INDICATE IF ANY DISCOUNTS ARE OFFERED FOR BULK PURCHASES OF ITEMS (INDICATE ITEM(S) AND QUANTITY OR $ VALUE NEEDED TO ACHIEVE PRICE BREAK POINTS):N/A N/A NO Question Describe any additional fees and charges not listed above.N/A NONE NO RESPONSE Question PLEASE INDICATE YOUR FIRM’S BUSINESS TAX ID #:26-2708880 95-282-8590 95-265-1899 Question DOES YOUR FIRM HAVE A STORE LOCATION IN THE VICINITY OF SANTA MONICA WHERE SUPPLIES MAY BE PURCHASED ON ACCOUNT?YES. PLEASE SEE ATTACHED YES. 3650 HOLDREGE AVE, LOS ANGELES, CA 90016 YES. 8855 WASHINGTON BLVD, CULVER CITY, CA 90232 Question PLEASE INDICATE YOUR METHOD OF DELIVERY, IF OFFERED (SHIP TO LOCATION WILL GENERALLY BE 2500 MICHIGAN AVENUE, SANTA MONICA, CA 90404):COMMON CARRIER COMPANY TRUCK COMPANY TRUCK, COMMON CARRIER, MANUFACTURER'S TRUCK Question FOR DELIVERIES, HOW LONG WILL IN-STOCK ITEMS TAKE TO BE DELIVERED TO SANTA MONICA AFTER RECEIPT OF ORDER?1-3 DAYS ARO 1 DAY 1 DAY Question PLEASE INDICATE IF YOUR FIRM OFFERS FREE DELIVERY OF ITEMS (SELECT ONE): FREE DELIVERY - NO MINIMUM ORDER FREE DELIVERY - NO MINIMUM ORDER FREE DELIVERY - NO MINIMUM ORDER Question PLEASE INDICATE WHAT TYPES OF SUPPLIES / MANUFACTURER’S BRANDS YOUR COMPANY OFFERS FOR DELIVERY. YOU MAY PROVIDE A WEBSITE ADDRESS AND/OR ATTACH A CATALOG AS APPROPRIATE.PLEASE SEE ATTACHED WWW.ALLIEDREFRIGERATI ON.COM SHOP ON LINE WWW.HOWIND.COM Question PLEASE INDICATE THE TYPES OF HVAC SUPPLIES AND BRANDS KEPT IN STOCK AT YOUR LOCAL STORE LOCATION (ATTACH ADDITIONAL SHEETS OR CATALOG IF AVAILABLE).REFRIGERANT GASES - VARIES WWW.ALLIEDREFRIGERATI ON.COM PRODUCTS WWW.HOWIND.COM PLEASE SEE ATTACHED LINE CARD Question Percent discount off of manufacturer's price list for related items subject to this bid not listed above: __________ % to_________ % 0% TO 5% PERCENTAGE DISCOUNT OFF OF OUR INTERNAL PRICE LISTING. SEE ATTACHED.NONE UP TO 50% Payment Terms Payment Terms (Enter payment discount terms; otherwise net thirty (30) days will apply.0% NET 30 NET 30 NET 30 Renewal Options Period 2 (First Annual Renewal Option) PRICING IS SUBJECT TO DOCUMENTED MANUFACTURER PRICE INCREASES WITH THIRTY (30) DAYS' ADVANCE WRITTEN NOTICE. NO RENEWAL OPTION OFFERED PRICING IS SUBJECT TO THE MANUF Renewal Options Period 3 (Second Annual Renewal Option) PRICING IS SUBJECT TO DOCUMENTED MANUFACTURER PRICE INCREASES WITH THIRTY (30) DAYS' ADVANCE WRITTEN NOTICE. NO RENEWAL OPTION OFFERED PRICING IS SUBJECT TO THE MANUF Renewal Options Period 4 (Third Annual Renewal Option) PRICING IS SUBJECT TO DOCUMENTED MANUFACTURER PRICE INCREASES WITH THIRTY (30) DAYS' ADVANCE WRITTEN NOTICE. NO RENEWAL OPTION OFFERED PRICING IS SUBJECT TO THE MANUF Renewal Options Period 5 (Fourth Annual Renewal Option) PRICING IS SUBJECT TO DOCUMENTED MANUFACTURER PRICE INCREASES WITH THIRTY (30) DAYS' ADVANCE WRITTEN NOTICE. NO RENEWAL OPTION OFFERED PRICING IS SUBJECT TO THE MANUF Required Forms Business License NOT REQUIRED REQUIRED NOT REQUIRED Required Forms Oaks Form INCOMPLETE COMPLETED INCOMPLETE Notes EXCEPTIONS TO TERMS AND CONDITIONS LETTER ATTACHED. PLANET BIDS VENDOR NOTIFICATIONS: 1049 VENDOR DOWNLOADS: 27 HOWARD INDUSTRIESCULVER CITY, CAALLIED REFRIGERATION, INCLOS ANGELES, CAAIRGAS REFRIGERANTS, INCLONG ISLAND CITY, NEW YORK