SR 11-27-2018 3G
City Council
Report
City Council Meeting: November 27, 2018
Agenda Item: 3.G
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To: Mayor and City Council
From: Susan Cline, Director, Public Works, Architecture Services
Subject: Award Construction Contract to ACCO Engineering Services, Inc. for the
Public Safety Facility HVAC Replacement Project
Recommended Action
Staff recommends that the City Council:
1. Award Bid #SP2431 to ACCO Engineering Services, Inc., a California-based
company, for the Public Safety Facility (PSF) Heating, Ventilation, Air
Conditioning (HVAC) Replacement Project for the Public Works Department;
2. Authorize the City Manager to negotiate and execute a contract with ACCO
Engineering Services, Inc., in an amount not to exceed $812,900 (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.
Summary
The two existing air-cooled chiller units servicing the Public Safety Facility (PSF) have
reached the end of their useful lifespan and need to be replaced. On May 22, 2018 , the
City Council approved awarding Bid #SP2431 to BMD Technologies, Inc. and
authorized the City Manager to negotiate and execute a contract in an amount not to
exceed $664,883 including a 10% contingency (Attachment A). Unfortunately, BMD
Technologies, Inc. declined to enter into an agreement with the City. Staff therefore
recommends awarding a contract to the second-best bidder, ACCO Engineering
Services, Inc., in an amount not to exceed $812,900 (including a 10% contingency) for
the PSF Heating, Ventilation, Air Conditioning (HVAC) Replacement Project.
Discussion
Following Council’s award of Bid #SP2431 to BMD Technologies on May 22, 2018, staff
initiated the process to enter into an agreement with BMD to complete the HVAC
replacement work at the PSF. After several months of negotiations, BMD Technologies,
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Inc. declined to enter into an agreement with the City, citing their limited resources that
were committed to other projects. Due to the urgent need to complete the HVAC
repairs, staff determined that the time and effort to rebid the project was not in the City’s
best interest. Therefore, staff recommends entering into a contract with the second-best
bidder, ACCO Engineering Services, Inc.
Past Council Actions
05/22/18
(Attachment A)
Award Construction Contract to BMD Technologies, Inc.
for PSF HVAC Replacement Project
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Vendor Selection
Bid Data
Bid Posting
Date Bid Posted On
Bid
Advertised In
(City Charter
& Muni Code)
# of
Vendors
Downloade
d
# of
Submitta
ls
Receive
d
Date
Publicl
y
Opene
d
03/19/2018 City's Online
Bidding Site
Santa Monica Daily
Press 35 2 04/11/2018
Submittals Received Selection Criteria
BMD Technologies $604,438.50
Municipal
Code SMMC 2.24.072
ACCO Engineering
Services $739,000
Evaluation
Criteria
Price, previous experience, ability to
deliver, quality of product and
compliance with City specifications
Best
Bidder
ACCO Engineering Services,
Inc.
Best Bidder Justification
Bids were evaluated based on the criteria in SMMC 2.24.072, including price, previous
experience, ability to deliver a quality work product and compliance with City specifications. Both
bidders were deemed to be very qualified and capable of performing the work . The original
recommendation was based largely on the difference in price. ACCO Engineering Services, Inc.
has completed numerous similar projects and has a long history of successful projects with the
City. Their bid is still within the approved budget allocated for the project. Their bid includes a
10% contingency, bringing the total award amount to $812,900.
Financial Impacts and Budget Actions
Staff seeks authority to award a contract with ACCO Engineering Services, Inc. to
provide construction services for the PSF HVAC Replacement Project.
Contract Request
Request Amount
(including contingenc y)
FY 2018-19 Budget
CIP Account #
Total Contract Amount
$812,900 C0104580.689000 $812,900
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Prepared By: Sebastian Felbeck, Senior Construction Manager
Approved
Forwarded to Council
Attachments:
A. May 22, 2018 Staff Report (Web Link)
B. ACCO Oaks Initiative Disclosure Form
REFERENCE:
Agreement No. 10780
(CCS)