TRANSMITTAL LETTER FOR BOARD MEETING OF SEPTEMBER 16, 2010
COMMITTEE ON PROCUREMENT
Mr. Richard Lanyon, Executive Director
Title
Authority to award Contract 10-616-11, Switchgear Maintenance and Repair at Various Service Areas, to Magnetech Industrial Services, Inc., in an amount not to exceed $255,000.00, Accounts 101-67000, 68000, 69000-612600 and 612650, Requisitions 1295019, 1299681, and 1302107
Body
Dear Sir:
On June 17, 2010, the Board of Commissioners authorized the Director of Procurement and Materials Management to advertise for bids, Contract 10-616-11 Switchgear Maintenance and Repair at Various Service Areas.
In response to a public advertisement of July 7, 2010, a bid opening was held on July 27, 2010. The bid tabulation for this contract is:
MAGNETECH INDUSTRIAL SERVICES, INC. *$177,571.00
AMERICAN INDUSTRIAL MOTOR SERVICE, LLC $213,620.00
ANCHOR MECHANICAL, INC. $315,210.00
*corrected total
Four hundred twenty-six (426) companies were notified of the contract being advertised and nineteen (19) companies requested specifications.
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 $255,000.00.
Magnetech Industrial Services, Inc., the lowest responsible bidder, is proposing to perform the contract, in accordance with the specifications. The estimated cost for this contract was $255,000.00, placing the bid of $177,571.00, approximately 30.4 percent below the cost estimate.
The Multi-Project Labor Agreement was not included in this contract because the work involves the servicing, testing and calibration of switchgear and protective relaying. This work can only be performed by the equipment manufacturer’s engineers, or by other highly skilled technicians trained in the servicing of similar equipment and certified by a national accrediting body. If any trade work is required, it will be performed by in-house labor forces.
The Revised Appendix D was not included in this contract because the work involves the servicing, testing and calibration of switchgear and protective relaying. This work can only be performed by the equipment manufacturer’s engineers, or by other highly skilled technicians trained in the servicing of similar equipment and certified by a national accrediting body. As a result, there are no available subcontracting opportunities.
In view of the foregoing, it is recommended that the Director of Procurement and Materials Management be authorized to award Contract 10-616-11, to Magnetech Industrial Services, Inc., in an amount not to exceed $255,000.00, 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 are available in Accounts 101-67000, 68000, 69000-612600 and 612650.
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 16, 2010