TRANSMITTAL LETTER FOR BOARD MEETING OF AUGUST 14, 2008
COMMITTEE ON PURCHASING
Mr. Richard Lanyon, General Superintendent
Title
Authority to award Contract 08-616-11 Preventive Maintenance Services for Switchgear in Various Service Areas, to Magnetech Power Services, LLC, in an amount not to exceed $527,000.00, Accounts 101-67000, 68000, 69000-612600, 612650, Requisitions 1233552, 1235349, and 1233603
Body
Dear Sir:
On March 6, 2008, the Board of Commissioners authorized the Purchasing Agent to advertise for bids, Contract 08-616-11 Preventive Maintenance Services for Switchgear in Various Service Areas.
In response to a public advertisement of April 23, 2008, a bid opening was held on May 13, 2008. The bid tabulation for this contract is:
AMERICAN INDUSTRIAL MOTOR SERVICE, LLC $410,135.00
MAGNETECH POWER SERVICES, LLC *$424,357.00
EESCO, A DIVISION OF WESCO DISTRIBUTION, INC., *$596,425.00
D/B/A ENGLEWOOD ELECTRICAL SUPPLY
* corrected total
Three hundred ninety-four (394) companies were notified of the contract being advertised and thirteen (13) companies requested specifications.
The low bid, submitted by American Industrial Motor Service LLC, provided a letter dated May 12, 2008 at the time of the bid opening which stated that the company would not furnish a contractors bond for one hundred percent of the value of the contract as required on page A-2 of the contract documents. American Industrial Motor Service LLC offered a letter of credit which is unacceptable to the District. Therefore, the bid was considered non-responsive and was rejected in the public’s best interest. The Purchasing Agent has notified American Industrial Motor Service LLC of this action.
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 $527,000.00.
Magnetech Power Services, LLC, the lowest responsible bidder, is proposing to perform the contract in accordance with the specifications. The estimated cost for this contract was $527,000.00, placing the bid of $424,357.00 approximately 19.5 percent below the cost estimate.
The Multi-Project Labor Agreement (MPLA) and Appendix D was not included in the contract because of the specialized nature of the work.
In view of the foregoing, it is recommended that the Purchasing Agent be authorized to award Contract 08-616-11, to Magnetech Power Services LLC, in an amount not to exceed $527,000.00, subject to the contractor furnishing a performance bond in form satisfactory to the Law Department and approved by the Purchasing Agent. Funds are available in Accounts 101-67000, 68000, 69000-612600, 612650.
Recommended, Darlene A. LoCascio, Purchasing Agent, DAL:SEB:klv
Respectfully Submitted, Barbara J. McGowan, Chairman Committee on Purchasing
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for August 14, 2008