TRANSMITTAL LETTER FOR BOARD MEETING OF AUGUST 12, 2010
COMMITTEE ON PROCUREMENT
Mr. Richard Lanyon, Executive Director
Title
Authority to award Contract 10-617-11 Services to Inspect Overhead Cranes and Hoists at Various Service Areas, to Sievert Electric Service and Sales Co., in an amount not to exceed $51,000.00, Accounts 101-68000, 69000-612240, Requisitions 1293107 and 1291346
Body
Dear Sir:
On January 7, 2010, the Board of Commissioners authorized the Director of Procurement and Materials Management to advertise for bids, Contract 10-617-11 Services to Inspect Overhead Cranes and Hoists at Various Service Areas.
In response to a public advertisement of May 5, 2010, a bid opening was held on May 25, 2010. The bid tabulation for this contract is:
SIEVERT ELECTRIC SERVICE AND SALES COMPANY $57,344.00
One hundred sixty-nine (169) companies were notified of the contract being advertised and nine (9) 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: do not do this type of work and busy with other projects. 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 estimated quantities, is not to exceed $51,000.00.
Sievert Electric Service and Sales Co., the lowest responsible bidder, is proposing to perform the contract in accordance with the specifications. The estimated cost for this contract was $51,000.00, placing the bid of $57,344.00, approximately 12 percent above the cost estimate.
Sievert Electric Service and Sales Co., has executed the Multi-Project Labor Agreement certificate, as required. It is anticipated that the following trades will be utilized on this contract: electricians. The utilization of any construction trades is not intended to confer any rights or jurisdiction upon any union or unions.
The Revised Appendix D was not included in this contract because the estimate is less than the minimum threshold established by Section 4 of the Affirmative Action Ordinance.
In view of the foregoing, it is recommended that the Director of Procurement and Materials Management be authorized to award Contract 10-617-11 to Sievert Electric Service and Sales Co., in an amount not to exceed $51,000.00, subject to the contractor 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 expenditures, in the amount of $9,000.00, are available in Accounts 101-68000, 69000-612240. The estimated expenditure for 2011 is $21,000.00 and for 2012 is $21,000.00. 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 August 12, 2010