TRANSMITTAL LETTER FOR BOARD MEETING OF SEPTEMBER 2, 2010
COMMITTEE ON PROCUREMENT
Mr. Richard Lanyon, Executive Director
Title
Authority to award Contract 10-728-11, Furnish, Deliver, and Install Remote Telemetry Units at Unmanned Reservoirs, Pumping Stations and Aeration Stations in the North Service Area, to Divane Bros. Electric Company, in an amount not to exceed $479,000.00, Account 101-67000-612650, Requisition 1301542
Body
Dear Sir:
On May 20, 2010, the Board of Commissioners authorized the Director of Procurement and Materials Management to advertise for bids, Contract 10-728-11 Furnish, Deliver, and Install Remote Telemetry Units at Unmanned Reservoirs, Pumping Stations and Aeration Stations in the North Service Area.
In response to a public advertisement of July 14, 2010, a bid opening was held on August 10, 2010. The bid tabulation for this contract is:
DIVANE BROS. ELECTRIC COMPANY $479,000.00
Six hundred fifty-eight (658) companies were notified of this contract being advertised and twenty-nine (29) 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/or services outside their area of business, do not sell equipment, and bid as a subcontractor to a prime. 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.
Divane Bros. Electric Company, the lowest responsible bidder, is proposing to perform the contract in accordance with the specifications.
The estimated cost for this contract was $440,000.00, placing the bid of $479,000.00, approximately 8.9 percent above the estimate.
Divane Bros. Electric Company, is in compliance with the Revised Appendix D, as indicated on the attached report. The protected class utilization for this contract is 16 percent Minority Business Enterprise (MBE), 9 percent Women Business Enterprise (WBE), and the bidder offers MBE and WBE credits to satisfy the Small Business Enterprise (SBE) goal.
Divane Bros. Electric Company, has executed the Multi-Project Labor Agreement (MPLA) certificate, as required. The construction trades that are anticipated to be used on this contract are: electricians. The list of construction trades is not intended to confer any rights or jurisdiction upon any union or unions.
In view of the foregoing, it is recommended that the Director of Procurement and Materials Management be authorized to award Contract 10-728-11, to Divane Bros. Electric Company, in an amount not to exceed $479,000.00, 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 $239,500.00, are available in Account 101-67000-612650. The estimated expenditure for 2011 is $239,500.00. Funds for the 2011 expenditures are contingent on the Board of Commissioners’ approval of the District’s budget for that year.
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 September 2, 2010