TRANSMITTAL LETTER FOR BOARD MEETING OF OCTOBER 17, 2024
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Authority to award Contract 24-030-11, Furnish and Deliver Lubricants to Various Locations for a One-Year Period, Items 1, 6, 8, 10, 11, 18, 21 and 22 to Valdes, LLC in an amount not to exceed $36,624.82; Items 2, 5, 9, 13, 14, and 20 to Quimex, Inc. in an amount not to exceed $23,111.50; Items 3, 4, 15, and 17 to Safety-Kleen Systems, Inc. in an amount not to exceed $27,087.70; and Items 7, 12, 16, 19, and 23 to Petroleum Service Company, in an amount not to exceed $56,465.00, Account 101-20000-623860
Body
Dear Sir:
On August 8, 2024, the Board of Commissioners authorized the Director of Procurement and Materials Management to advertise for bids, Contract 24-030-11 Furnish and Deliver Lubricants to Various Locations for a One-Year Period, beginning approximately November 1, 2024 and ending October 31, 2025.
In response to a public advertisement of August 21, 2024, a bid opening was held on September 10, 2024. The bid tabulation for this contract is attached.
The low bid for Item 2 from Safety-Kleen Systems, Inc., had proposed an alternate for this item. The proposed alternative was reviewed by the M&O Department and it was recommended to not accept the alternate bid. The reason for not accepting the alternate was because the contract specification stated that the kinematic viscosity needed to be between 80-82 Cst at 40C. The proposed alternate is 65.4 Cst at 40C which does not meet the requirements for the machinery that it will be used in. Therefore, the low bid for this item is being rejected for failure to comply with the contract specifications and in the public’s best interest. The Director of Procurement and Materials Management has notified Safety-Kleen Systems, Inc. of this action.
The low bid for Item 15 from J.T. Barrier, LLC, is being rejected because the Affidavit form was missing the notary public's signature. Therefore, the bid for Item 15 is being rejected for failure to comply with the requirements of the contract documents and is in the public’s best interest. The Director of Procurement and Materials Management has notified J.T. Barrier, LLC of this action.
The low bids for Items 16 and 22 from Quimex, Inc., had proposed alternates for these items. The proposed alternates were reviewed by the M&O Department and it was recommended to not accept the alternate bids. The alternative lubricants that are from different synthetic oil manufacturers can react with each other and degrade the oil in the machinery. As a result, it would ultimately cause a problem with operations of the equipment. To change brands of synthetic oil would require thorough cleaning of the equipment that use these items. This cleaning would require purchase of cleaning solvents, disassembly, cleaning, reassembly, and reinstallation of the equipment. The undertaking in terms of manpower, equipment down time, and cost would negate any savings if the proposed alternates were accepted. Therefore, the bids for Items 16 and 22 are rejected in the public’s best interest. The Director of Procurement and Materials Management has notified Quimex, Inc., of this action.
Valdes, LLC, the lowest responsible bidder for items 1, 6, 8, 10, 11, 18, 21, and 22, is proposing to perform the contract in accordance with the specifications. The estimated cost for items 1, 6, 8, 10, 11, 18, 21, and 22 was $46,000.00, placing the total bid of $36,624.82 approximately 20.38 percent below the estimate.
Quimex, Inc., the lowest responsible bidder for items 2, 5, 9, 13, 14, and 20 is proposing to perform the contract in accordance with the specifications. The estimated cost for items 2, 5, 9, 13, 14, and 20 was $27,000.00, placing the total bid of $23,111.50 approximately 14.40 percent below the estimate.
Safety Kleen Systems, Inc., the lowest responsible bidder for items 3, 4, 15, and 17, is proposing to perform the contract in accordance with the specifications. The estimated cost for items 3, 4, 15, and 17 was $48,000.00, placing the total bid of $27,087.70 approximately 43.57 percent below the estimate.
Petroleum Service Company, the lowest responsible bidder for items 7, 12, 16, 19, and 23, is proposing to perform the contract in accordance with the specifications. The estimated cost for items 7, 12, 16, 19, and 23 was $47,500.00, placing the total bid of $56,465.00 approximately 18.87 percent above the estimate.
The Multi-Project Labor Agreement (MPLA) is not applicable to this contract because it does not fall under the provisions of the MPLA.
The Affirmative Action Ordinance, Revised Appendix D and Appendix V, will not be included in this contract because the estimate, per each individually awarded group of the contract, 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 24-030-11, Furnish and Deliver Lubricants to Various Locations for a One-Year Period, Items 1, 6, 8, 10, 11,18, 21, and 22 to Valdes, LLC in an amount not to exceed $36,624.82; Items 2, 5, 9, 13, 14, and 20 to Quimex, Inc., in an amount not to exceed $23,111.50; Items 3, 4, 15, and 17 to Safety Kleen Systems, Inc., in an amount not to exceed $27,087.70; and Items 7, 12, 16, 19, and 23 to Petroleum Service Company, in an amount not to exceed $56,465.00.
No bid deposit was required for this contract.
Purchase orders will be issued for the material as required. Payment will be based on the unit cost as indicated in the contract documents. There were no bid deposits required for this contract.
Funds are available in Account 101-20000-623860.
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management, DAL:SEB:MS:sk
Respectfully Submitted, Marcelino Garcia, 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 October 17, 2024
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