Title
AWARD OF BID IFB 16-02, AUTHORIZATION TO ENTER INTO AN AGREEMENT WITH BORDER STATES ELECTRIC SUPPLY AND APPROVE EXPENDITURE OF FUNDS TO PURCHASE ELECTRICAL PARTS AND RELATED SUPPLIES
Staff Contact: Craig Johnson, P.E., Director, Water Services
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Purpose and Recommended Action
Recommendation
This is a request for City Council to award bid IFB 16-02, authorize the City Manager to enter into an agreement with Border States Electric Supply (Border) for the purchase of electrical parts and related supplies and approve expenditure of funds in an amount not to exceed $100,000 for the initial term; and authorize the City Manager, at his discretion, to extend the agreement for four additional one-year terms, in an amount not to exceed $500,000 for the entire term of the agreement.body
Background
The City has multiple facilities and buildings needing regular electrical maintenance and repair. For the most part, Facilities Management performs this service. The Water Services Department purchases and inventories a selection of wires and cables; conduit and fittings; outlets; lighting; ballasts; and other related supplies to fill other department’s need. This provides timely and economical source of electrical parts and supplies.
Analysis
The city's Material Management Division in conjunction with Water Services developed an Invitation for Bid (IFB) for 14 groups of various electrical parts and related supplies. Bid specifications provided for an initial term of agreement for one year with the option to extend at the discretion of the city for four years, in one-year increments. IFB 16-02 was published on March 17, 2016 and three responses were received by the due date of April 12, 2016. The notice of intent to award was sent on May 24, 2016. No protests were received.
For the IFB 16-02 groups 1, 5, 6, 11, 13, and 14, the award went to Border. Border submitted the lowest, responsive, and responsible bid for each of these groups.
Community Benefit/Public Involvement
Consolidating and aggregating purchases allows the City to receive favorable discounts on all purchases which can save money on delivering services to the public.
Budget and Financial Impacts
Purchases are made by Water Services and charged to the Material Warehouse inventory. As the various Departments place orders for the parts, their budget is charged. Total spending will be monitored by Water Services and over the entire term of the agreement, the total amount of the contract will not exceed $500,000.
Cost |
Fund-Department-Account |
$100,000 |
Various departments |
Capital Expense? No
Budgeted? Yes
Requesting Budget or Appropriation Transfer? No
If yes, where will the transfer be taken from?