DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: City Wide
SUBJECT:
City-Wide Maintenance and Repair of Generators and Associated Equipment
SUMMARY:
An Ordinance authorizing a contract with LJ Power, Inc. to provide the City with preventative maintenance and repair of generators at City locations for an estimated annual amount of $385,000.00 funded from various funds including the General Fund, Facility Services Fund, Convention and Visitor Facilities Fund, Aviation Fund, and Information Technology Services Fund. The initial term of the contract with LJ Power, Inc. is for a period of three years with two, three year renewal options.
BACKGROUND INFORMATION:
The City has approximately 143 generators and associated equipment that are currently on two maintenance and service contracts that require different levels of service. This contract will consolidate these contracts and service agreements and also add any generators and equipment that are not currently under contract.
Ensuring that all generator systems are in good operating condition is necessary for the health and public safety of the community in the event of power loss caused by natural or man-made disasters. In addition, this contract provides maintenance and repair levels in accordance with National and Industry Codes.
A Request for Competitive Sealed Proposal (RFCSP) was issued on July 8, 2016 to solicit submissions from qualified vendors. The RFCSP closed on November 4, 2016 and four responses were submitted. One respondent was disqualified for failure to meet the requirements specified in the RFCSP; specifically, respondent submitted a response to a prior version of the RFCSP that did not include scope revisions and new pricing requirements. An evaluation committee comprised of representatives from Convention Sports Facilities, Aviation, San Antonio Office of Emergency Management, Fire, Building and Equipment Services and Information Technology Services departments reviewed the remaining three proposals. The RFCSP was structured to allow for multiple / categorical awards based on manufacturer specific maintenance capabilities. The proposals were evaluated based on the firm’s qualifications, experience, and quality of service, previous performance, proposed plan and price schedule. For the purposes of evaluating for a potential multiple award scenario, the evaluation committee provided scores by each firm’s specific plan and experience with identified manufacturers. Additional categories of consideration included references and financial qualifications. The evaluation of each proposal response was based on a total of 100 points, 35 points allotted for experience, background, qualifications; 35 points were allotted for proposed plan; 25 points allotted for respondent’s price schedule. A total of 5 points was allotted for the Mentor Protégé Program.
The evaluation committee met on January 20, 2017 to evaluate the three responsive proposals received. After committee review and discussion, the evaluation committee elected to invite the three respondents for interviews. Interviews were held on January 27, 2017. The evaluation committee met again on February 2, 2017, individual scores were submitted and aggregate scores were presented. After scores were finalized by the selection committee, the pricing scores and the SBEDA scores were revealed. L.J. Power, Inc. received the highest ranking and was recommended for award by the evaluation committee. The consensus decision to award to one vendor also provides the City with the best value.
The initial term of the agreement shall be for a period of 3 years. Two additional three-year renewal options shall also be authorized by this ordinance.
ISSUE:
This contract will consolidate and standardize the level of maintenance for all City generators. Approval of this contract will provide for the routine maintenance and necessary repairs as required ensuring adequate power during emergency situations.
The Small Business Economic Development Advocacy (SBEDA) Program was applied to this Request for Competitive Sealed Proposal. LJ Power, Inc. did receive the five (5) mentorship incentive points that were allocated for respondents that applied to become a mentor in the City’s Mentor Protégé Program.
This contract is an exception to the Local Preference Program.
The Veteran-Owned Small Business (VOSB) Preference Program does not apply to non-professional service contracts, so no preference was applied to this contract.
ALTERNATIVES:
The alternative to implementing this contract would be to continue with multi-departmental maintenance contracts or request maintenance and repairs on an as needed basis. These alternatives would offer no standardized maintenance plan for the City’s generator sets potentially resulting in a higher overall maintenance cost and a potential lack of adequate power during an emergency.
FISCAL IMPACT:
Funds are not encumbered by this ordinance. All expenditures will be in accordance with the Department’s adopted budget approved by City Council. The estimated cost for the contracts listed on this ordinance is approximately $385,000.00. All expenditures made by the Department are as needed and dependent upon available funds within their adopted budget.
RECOMMENDATION:
Staff recommends the acceptance of this contract submitted by LJ Power, Inc., for the City-Wide Maintenance and Repair of Generators and Associated Equipment which will be utilized by various City Departments.
This contract is procured by means of Request for Competitive Sealed Proposal and a Contract Disclosure Form is required.