TRANSMITTAL LETTER FOR BOARD MEETING OF AUGUST 14, 2008
COMMITTEE ON PURCHASING
Mr. Richard Lanyon, General Superintendent
Title
Issue purchase order for Contract 08-629-11 Furnishing, Delivering and Rental of Arc Flash Personal Protective Equipment, Group B, to Lechner and Sons, Inc., in an amount not to exceed $223,200.00, Account 101-67000, 68000, 69000-612330, Requisitions 1237017, 1230817, and 1235334
Body
Dear Sir:
On February 21, 2008, the Board of Commissioners authorized the Purchasing Agent to advertise for bids, Contract 08-629-11 Furnishing, Delivering and Rental of Arc Flash Personal Protective Equipment.
In response to a public advertisement of May 21, 2008, a bid opening was held on June 10, 2008. The bid tabulation for this contract is:
GROUP A - FURNISH AND DELIVER ARC FLASH EQUIPMENT
SAF-T-GARD INTERNATIONAL, INC. $42,990.00
GROUP B - RENTAL OF ARC FLASH CLOTHING
LECHENR & SONS, INC. $209,246.40
Two hundred sixty-seven (267) companies were notified of this contract being advertised and sixteen (16) companies requested specifications.
The sole bid for Group A, submitted by Saf-T-Gard International, Inc., is approximately 33.8 percent above the estimate. It is anticipated that more competitive bids may be received for Group A if it were re-advertised. Therefore, the bid was rejected in the public’s best interest. The Purchasing Agent has notified Saf-T-Gard International, Inc., 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 $223,200.00, for Group B.
The Purchasing Agent 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 reason for firms not bidding: do not carry brand specified and outside their area of business. In light of these findings, the Purchasing Agent 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 for Group B.
Lechner and Sons, Inc., the lowest responsible bidder for Group B, is proposing to perform the contract in accordance with the specifications. The estimated cost for Group B was $223,200.00, placing the bid of $209,246.40, approximately 6.3 percent below the cost estimate.
The Multi-Project Labor Agreement (MPLA) was not included in the contract because it is for rental of equipment.
In view of the foregoing, it is recommended that the Purchasing Agent be authorized to issue a purchase order for Contract 08-629-11, Group B, to Lechner and Sons, Inc., in an amount not to exceed $223,200.00. The bid deposit in the amount of $11,200.00 will be retained in lieu of a performance bond, which is satisfactory to the Law Department and approved by the Purchasing Agent.
Funds for the 2008 expenditures in the amount of $74,400.00, are available in Account 101-67000, 68000, 69000-612330. The estimated expenditures for 2009 and 2010 are $74,400.00 for each year. Funds for the 2009 and 2010 are contingent on the Board of Commissioners’ approval of the District’s budget for those years.
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