TRANSMITTAL LETTER FOR BOARD MEETING OF JUNE 21, 2018
COMMITTEE ON PROCUREMENT
Mr. John P. Murray, Acting Executive Director
Title
Issue purchase order for Contract 18-605-22 (Re-Bid), Furnish and Deliver Station Battery Equipment, to Harrison Electric, Inc., in an amount not to exceed $225,279.45, Account 201-50000-634650, Requisition 1473901
Body
Dear Sir:
On October 19, 2017, the Board of Commissioners authorized the Director of Procurement and Materials Management to advertise for bids, Contract 18-605-21, Furnish and Deliver Station Battery Equipment.
In response to a public advertisement of December 13, 2017, a bid opening was held on January 9, 2018. The bids were rejected as reported at the Board meeting of February 1, 2018.
In response to a public re-advertisement on March 28, 2018, a bid opening was held on May 8, 2018. The bid tabulation for this contract is:
ALPINE POWER SYSTEMS, INC. *$198,227.00
HARRISON ELECTRIC, INC. $225,279.45
STORAGE BATTERY SYSTEMS, INC. $228,438.90
STANDBY POWER SYSTEM CONSULTANTS, INC. $252,039.00
ATLAS & ASSOCIATES, INC. $271,700.00
*corrected total
One thousand two hundred thirty-seven (1,237) companies were notified of this contract being advertised and twenty-eight (28) companies requested specifications.
A review of the apparent low bidder, Alpine Power Systems, Inc. (Alpine), revealed that they failed to provide all the costs associated with their proposal such as taxes and shipping charges. A discussion with, and letter from, Alpine confirmed this finding. The contract document requires prices quoted to include all other direct or indirect costs which include shipping charges and taxes. Therefore, their bid is considered non-responsive and rejected in the public’s best interest. The Director of Procurement and Materials Management has notified Alpine Power Systems, Inc., of this action.
Harrison Electric, Inc., the lowest responsible bidder, is proposing to perform the contract in accordance with the specifications. The estimated cost of this contract was $275,000.00, placing their bid of $225,279.45 approximately 18 percent below the estimate.
The Multi-Project Labor Agreement (MPLA) was not included in this contract because it is primarily a furnish and deliver contract.
The Affirmative Action Ordinance, Revised Appendix D is not included in this contract because it is primarily a furnish and deliver contract.
In view of the foregoing, it is recommended that the Director of Procurement and Materials Management be authorized to issue a purchase order for Contract 18-605-22 (Re-Bid) to Harrison Electric, Inc., in an amount not to exceed $225,279.45.
All equipment shall be delivered to the various service areas within 220 calendar days from the mailing date of a purchase order.
The bid deposit, in the amount of $13,750.00, will be retained in lieu of a performance bond, which is satisfactory to the Law Department and approved by the Director of Procurement and Materials Management.
Funds are available in Account 201-50000-634650.
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management, DAL:SEB:cm
Respectfully Submitted, Barbara J. McGowan, Chairman Committee on Procurement
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for June 21, 2018