TRANSMITTAL LETTER FOR BOARD MEETING OF JUNE 17, 2010
COMMITTEE ON PROCUREMENT
Mr. Richard Lanyon, Executive Director
Title
Authority to award Contract 10-654-11, Maintenance and Repairs of Limitorque Valve Actuators at Various Service Areas, to Vanda, Inc., in an amount not to exceed $442,100.00, Accounts 101-67000, 68000, 69000-612600, 623070, 623270, 612650, Requisitions 1289888, 1291929, 1291930, 1297565, 1290652, 1296501, 1291270, and 1291329
Body
Dear Sir:
On March 18, 2010, the Board of Commissioners authorized the Director of Procurement and Materials Management to advertise for bids, Contract 10-654-11, Maintenance and Repairs of Limitorque Valve Actuators at Various Service Areas.
In response to a public advertisement of April 28, 2010, a bid opening was held on May 18, 2010. The bid tabulation for this contract is:
VANDA, INC. $418,280.00
Seven hundred eighty-four (784) companies were notified of this contract being advertised and fifteen (15) companies requested specifications.
The Director of Procurement and Materials Management has reviewed the bidders’ list for this contract, and is satisfied that the market for this service has been adequately solicited. A planholders’ survey revealed the following reasons for not bidding: goods and services outside their area of business and not the type of work they do. In light of these findings, the Director of Procurement and Materials Management is of the opinion that the bid received is a fair and reasonable price, and nothing would be gained by rejecting the sole bid and re-advertising this contract.
The quantities specified in the contract documents were used for the purpose of comparing bids and establishing unit prices. The total amount to be expended on this contract, should usage differ from the quantities, is not to exceed $442,100.00.
Vanda, Inc., the lowest responsible bidder, is proposing to perform the contract in accordance with the specifications.
The estimated cost for this contract was $442,100.00, placing the bid of $481,280.00, approximately 8.9 percent above the estimate.
The Multi-Project Labor Agreement (MPLA) is not included in this contract because the classification of work does not fall within the provisions of the MPLA.
The revised Appendix D was not included in this contract because the District is seeking a vendor to provide unspecified services to repair and maintain valve actuators on an as-needed basis over a three-year period, and because of the specialized nature of the work.
In view of the foregoing, it is recommended that the Director of Procurement and Materials Management be authorized to award Contract 10-654-11, to Vanda, Inc., in an amount not to exceed $442,100.00, subject to the contractors furnishing a performance bond in form satisfactory to the Law Department and approved by the Director of Procurement and Materials Management.
Funds for the 2010 expenditure, in the amount of $138,700.00, are available in Accounts 101-67000, 68000, 69000-612600, 623070, 623270, 612650. The estimated expenditure for 2011 is $151,700.00, and for 2012 is $151,700.00. Funds for the 2011 and 2012 expenditures are contingent on the Board of Commissioners’ approval of the District’s budget for those years.
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management, DAL:SEB:klv
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 17, 2010