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SR 08-24-2021 3B City Council Report City Council Meeting: August 24, 2021 Agenda Item: 3.B 1 of 4 To: Mayor and City Council From: Edward F King, Director, Department of Transportation, Transit Maintenance Subject: Award Bid to ACCO Engineered Systems, Inc. for Department of Transportation HVAC Maintenance and Repair Services Recommended Action Staff recommends that the City Council: 1. Award Bid #4407 to ACCO Engineered Systems, Inc. for maintenance and repair of heating, ventilation and air conditioning systems for the Department of Transportation Big Blue Bus (BBB) Division; 2. Authorize the City Manager to negotiate and execute an agreement with ACCO Engineered Systems, Inc., in an amount not to exceed $514,800, including a $46,800 contingency, for a five-year period with future year funding contingent on Council budget approval. Executive Summary The Big Blue Bus (BBB) Division of the Santa Monica Department of Transportation (DOT) operates 24 hours a day, seven days per week with campus facilities that include the operations/administrative building, maintenance buildings (maintenance shop, offices and training facility) and the bus fuel/wash facility. Each of these buildings include heating, ventilation, and air conditioning (HVAC) systems that require regular maintenance and repair to ensure they can reliably provide their temperature control functions. Staff recommends the award of Bid #4407 to ACCO Engineered Systems and to negotiate and execute an agreement with ACCO for the maintenance and repair of the Department of Transportation’s HVAC assets for a five-year period in an amount not to exceed $88,150 for the first year with the total five-year contract amount not to exceed $514,800 which includes a 10% contingency and a 3% cost escalator. Discussion The Department of Transportation’s HVAC systems at the BBB facility play an essential role in maintaining BBB’s 24-hour operation. Operating the HVAC system includes 3.B Packet Pg. 31 2 of 4 furnishing materials, parts, new equipment, and labor. These systems maintain stable, comfortable working conditions in DOT’s buildings and are part of BBB’s life safety systems by extracting air from its maintenance building in the event of lead or natural gas fuel emission. HVAC systems experience normal wear and tear through operation and need periodic repairs or replacements to keep performing their functions effectively. This contract would ensure that the DOT has prompt repair services for its HVAC and Air Movement systems. The vendor would be responsible for providing qualified personnel and any original equipment manufacturer parts or components needed to perform repairs. All installations are required to comply with applicable federal, state, and local laws and regulations. BBB has historically contracted the maintenance and repair of its HVAC systems due to the specialized technical expertise needed to perform the work. As an enterprise fund, BBB has not traditionally been served by the City’s Public Works department and its HVAC maintenance needs are not included in Public Works’ staffing levels. Additionally, Public Works received Council authority on May 8th 2018, to execute an agreement with ACCO to augment their staff to maintain the City’s intricate HVAC systems and perform large scale repairs. The “Contract and As-Needed Staffing Review Policy, Practice, Recommendations” report submitted to Council on January 13th, 2015 recommends that HVAC repair and maintenance be contracted out due to the specialized, technical nature of the work which is outside of the core service mission of the Transportation Department. The alternative to awarding this bid is to perform all periodic maintenance and repairs in-house. This would require one additional full-time employee and in-depth training with an anticipated annual expenditure of $115,632 in addition to the purchase of additional equipment needed to perform repairs. Additionally, contracted services would still be needed to perform equipment replacements and other large projects that require specialized licensing and equipment. Based on the added cost to bring this service in- house, staff recommend award of bid #4407 to ACCO Engineered Systems. 3.B Packet Pg. 32 3 of 4 Vendor/Consultant Selection Bidder Recommendation Best Bidder ACCO Engineered Systems, Inc. Evaluation Criteria Price, quality of services offered; ability to perform all services in accordance with City specifications; bidder experience and history providing these services to the Department of Transportation Municipal Code SMMC 2.24.180 Submittals Received ACCO Engineered Systems $514,800 A/C Control Inc. $521,915 A/C Pros $1,773,915 Bid Data Date Posted Posted On Advertised in (City Charter & SMMC) Vendors Downloaded Date Publicly Opened 3/1/2021 City’s online vendor portal Santa Monica Daily Press 20 3/19/2021 Best Bidder Justification Bids were evaluated based on the criteria in SMMC 2.24.180 including price, ability to provide the services according to City specifications included in the bid. ACCO Engineered Systems Inc. was the lowest cost bidder in addition to having a positive history providing HVAC maintenance and repair services to the Department of Transportation. Based on price and ability to provide services that meet the City’s specifications, ACCO Engineered Systems Inc. is recommended as the lowest and best bidder. Financial Impacts and Budget Actions Staff seeks authority to approve funding from the Big Blue Bus fund to award a contract with ACCO Engineered Systems to provide maintenance and repair services to HVAC systems at the Department of Transportation’s Big Blue Bus facilities. Funds in the amount of $63,150 are available in the Department of Transportation capital fund, and 3.B Packet Pg. 33 4 of 4 $25,000 are available in the Department of Transportation operating fund with future year funding contingent on Council budget approval. Contract/Agreement/Purchase Order Request FY 2021-22 Budget Department/CIP Account # Total Contract Amount Request Amount $63,150 C6004830.689000 $119,137 $25,000 60600011.550016 $395,663    Total $514,800 Prepared By: David Nanjo, Administrative Analyst Approved Forwarded to Council Attachments: A. ACCO Oaks 2021 3.B Packet Pg. 34 3.B.aPacket Pg. 35Attachment: ACCO Oaks 2021 (4567 : Award HVAC Bid) 3.B.aPacket Pg. 36Attachment: ACCO Oaks 2021 (4567 : Award HVAC Bid)