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SR 05-22-2018 3I City Council Report City Council Meeting: May 22, 2018 Agenda Item: 3.I 1 of 3 To: Mayor and City Council From: Susan Cline, Director, Public Works, Architecture Services Subject: Award of Construction Contract for Public Safety Facility HVAC Replacement Project Recommended Action Staff recommends that the City Council: 1. Award Bid #SP24311 to BMD Technologies, Inc., a California-based company, for the Public Safety Facility (PSF) Heating, Ventilation, Air Conditioning (HVAC) Replacement Project; 2. Authorize the City Manager to negotiate and execute a contract with BMD Technologies, Inc., in an amount not to exceed $664,883 (including a 10% contingency); and 3. Authorize the Director of Public Works to issue any necessary change orders to complete additional work within contract authority. Executive Summary The two air-cooled chiller units servicing the Public Safety Facility (PSF) have reached the end of their useful lifespan and need to be replaced. Staff recommends awarding a contract to BMD Technologies, Inc. in an amount not to exceed $664,883 (including a 10% contingency) for the PSF Heating, Ventilation, Air Conditioning (HVAC) Replacement Project. Discussion The two air-cooled chiller units serving the PSF were installed with the construction of the new building and put into service in 2003. The units each provide a cooling capacity of approximately 125 tons and are designed to run in parallel, meaning the building is fully served by one unit while the other acts as a ready backup for resiliency purposes. The expected lifespan of this equipment is generally anticipated to be 15 to 20 years. Despite regular maintenance, time, the harsh marine environment and consistent use have taken their toll on the equipment. An evaluation of the units by staff and outside 2 of 3 vendors concluded that the units have reached the end of their useful lifespan and must be replaced. Vendor Selection On March 19, 2018, the City published Notices Inviting Bids for construction services to replace the chiller units at the PSF 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 the City Charter and Municipal Code Section 2.24.071(a). Thirty-five vendors downloaded the bid. Two bids were received and publicly opened on April 11, 2018. The bid results are as follows: Vendor Bid Amount BMD Technologies, Inc. $ 604,438.50 ACCO Engineering Services $ 739,000.00 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. Staff contacted references for BMD Technologies to review work experience and obtained positive reviews. All respondents reported that the work by BMD Technologies, Inc. was completed in a timely and cost-efficient manner while maintaining consistent quality. BMD Technologies, Inc. also demonstrated similar previous work experience at local hospital sites and with the City of Santa Monica. Staff also verified with the Contractors State License Board that BMD Technologies has a license that is current, active, and in good standing. Based on these criteria, BMD Technologies, Inc., the lowest bidder, is recommended as the best bidder. Financial Impacts and Budget Actions The contract to be awarded to BMD Technologies, Inc. is for an amount not to exceed $664,883 (including 10% contingency). Funds are available in the FY 2017-18 Capital Improvement Program budget in the General Fund at account M010085.589000, Citywide Facilities Maintenance Program. 3 of 3 Prepared By: Sebastian Felbeck, Senior Construction Manager Approved Forwarded to Council Attachments: A. BMD Technologies Oaks Initiative Form REFERENCE: Contract No.10683 (CCS)