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SR 08-28-2018 3A City Council Report City Council Meeting: August 28, 2018 Agenda Item: 3.A 1 of 3 To: Mayor and City Council From: Susan Cline, Director, Public Works, Facilities Maintenance Subject: Award Bid to Ferguson Enterprises, Inc. and Hirsch Pipe & Supply for Plumbing Supplies Recommended Action Staff recommends that the City Council: 1. Award Bid #4327 to Ferguson Enterprises, Inc. and Hirsch Pipe & Supply, both California-based companies, for the purchase of plumbing supplies; and 2. Authorize the Purchasing Services Manager to issue purchase orders for plumbing supplies with Ferguson Enterprises, Inc. in the amount not to exceed $75,000 for one year, with four additional one-year renewal options, for a total amount not to exceed $595,000 over a five-year period; and Hirsch Pipe & Supply in the amount not to exceed $55,000 for one year, with future year funding contingent on Council budget approval. Summary The Public Works Department purchases a wide variety of plumbing supplies to maintain the plumbing systems at City facilities. Staff recommends a split award as follows:  Ferguson Enterprises, Inc. would be the primary plumbing supply vendor for one year, with four additional one-year renewal options, for a total amount not to exceed $595,000, and  Hirsch Pipe & Supply would be the secondary plumbing supply vendor for one year for a total amount not to exceed $55,000. Discussion The City employs four permanent in-house plumbers to provide various plumbing services at City facilities. Typical services provided by City staff include repairing drain line stoppages, installing fixtures, replacing water filters and performing tenant 2 of 3 improvement projects. To provide these maintenance services, staff requires a broad variety of plumbing fixtures and supplies. The table below lists a breakdown of the amount staff recommends awarding to Ferguson Enterprises, Inc. and Hirsch Pipe & Supply for plumbing supplies: Purchase Order Term Ferguson Enterprises, Inc. Hirsch Pipe & Supply Total Amount Year 1 $ 75,000.00 $ 55,000.00 130,000.00$ Year 2 $ 130,000.00 $ - 130,000.00$ Year 3 $ 130,000.00 $ - 130,000.00$ Year 4 $ 130,000.00 $ - 130,000.00$ Year 5 $ 130,000.00 $ - 130,000.00$ Total Amount Not to Exceed $ 595,000.00 $ 55,000.00 650,000.00$ Vendor Selection Bid Data Bid Posting Date Bid Posted On Bid Advertised In (City Charter & Municipal Code) # of Vendors Downloaded # of Submittals Received Date Publicly Opened 03/14/2018 City's Online Bidding Site Santa Monica Daily Press 13 02 03/29/2018 Submittals Received Vendor Selection Recommendation Ferguson Enterprises, Inc. $1,273 Municipal Code SMMC 2.24.072 Hirsch Pipe & Supply $1,523 Evaluation Criteria Price, previous experience, ability to deliver, quality of product, and compliance with City specifications. Best Bidders Ferguson Enterprises, Inc. and Hirsch Pipe & Supply Best Bidders Justification To ensure the City has access to the widest selection of products while obtaining the best available pricing, staff recommends splitting the award between Ferguson Enterprises, Inc. and Hirsch Pipe and Supply for the first year. Hirsch Pipe & Supply did not offer renewal options, so staff anticipates exercising four additional one-year renewal options with Ferguson Enterprises, Inc. so long as the available product selection remains consistent and pricing remains competitive. Both vendors have supply stores in Santa Monica and have satisfactorily provided the City with plumbing supplies for several years. Based on these criteria, Ferguson Enterprises, Inc. and Hirsch Pipe & Supply are recommended as the best bidders to provide plumbing supplies. 3 of 3 Financial Impacts and Budget Actions Staff seeks authority to award a purchase order with Ferguson Enterprises, Inc. for the purchase of plumbing supplies. Purchase Order Request Request Amount FY 2018-19 Budget Public Works Department Account # Total Purchase Order Amount $75,000 01500020.525080 $595,000 Future year funding is contingent on Council budget approval. Staff seeks authority to award a purchase order with Hirsch Pipe & Supply for the purchase of plumbing supplies. Purchase Order Request Request Amount FY 2018-19 Budget Public Works Department Account # Total Purchase Order Amount $55,000 01500020.525080 $55,000 Prepared By: Kyla Johnson, Senior Administrative Analyst Approved Forwarded to Council Attachments: A. Hirsch Pipe & Supply Oaks Form B. Ferguson Enterprises Oaks Form