Title
AUTHORIZATION TO ENTER INTO A LINKING AGREEMENT WITH CLIMATEC, LLC, DOING BUSINESS AS CLIMATEC BTG, FOR FIRE SUPPRESSION, FIRE ALARM SYSTEMS, AND FIRE EXTINGUISHERS
Staff Contact: Jack Friedline, Director, Public Works
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Purpose and Recommended Action
Recommendation
This is a request for City Council to authorize the City Manager to enter into a Linking Agreement with Climatec, LLC, doing business as (dba) Climatec BTG, for fire suppression, fire alarm systems, and fire extinguishers, in an amount not to exceed $1,500,000 for the entire term of the Agreement (initial term plus any renewals), and to authorize the City Manager to renew the Agreement, at the City Manager’s discretion, for an additional four, one-year renewals. The initial term of the Agreement is effective until January 31, 2018.
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Background
The Agreement with Climatec BTG will be used for testing, inspection, repair, and replacement services of fire alarm systems, fire suppression, and fire extinguishers within city-owned buildings as required by National Fire Protection Act standards.
Climatec BTG was awarded a bid by the Maricopa County Office of Procurement Services to provide goods and services described in the Fire Suppression, Fire Alarm Systems and Fire Extinguishers Contract. Staff is requesting to utilize the cooperative purchase with Strategic Alliance for Volume Expenditures (SAVE). SAVE is a cooperative association of local municipalities, in which Glendale and Maricopa County are members. Contract No. 15048-RFP was awarded on January 13, 2016 (effective February 1, 2016) with an initial term effective until January 31, 2018, and includes an option to renew the contract for an additional four, one-year renewals, allowing the contract to be extended through January 31, 2022.
Cooperative purchasing allows counties, municipalities, schools, colleges and universities in Arizona to use a contract that was competitively procured by another governmental entity or purchasing cooperative. Such purchasing helps reduce the cost of procurement, allows access to a multitude of competitively bid contracts, and provides the opportunity to take advantage of volume pricing. The Glendale City Code authorizes cooperative purchases when the solicitation process utilized complies with the intent of Glendale’s procurement processes. This cooperative purchase is compliant with Chapter 2, Article V, Division 2, Section 2-149 of the Glendale City Code, per review by Materials Management outcome.
Analysis
The specialized maintenance and scope of work required is beyond the expertise of the city maintenance staff. Therefore, a contractor has been used to provide this service for over 12 years and the current Agreement for fire system support, repair and services with Climatec BTG expires on September 21, 2016. Entering into this Linking Agreement will ensure uninterrupted service and maintenance of life safety critical equipment.
Routine inspection and testing of fire alarm equipment averages $100,000 to $150,000 per year. The remaining expenditures would be used to repair any items found to be deficient during inspections or unforeseen failures that may occur throughout the term of the Agreement.
Previous Related Council Action
On November 24, 2015, City Council authorized entering into a Linking Agreement with Climatec, LLC, dba Climatec BTG, Contract No. C-10457, in an amount not to exceed $210,000, with a contract expiration date of September 21, 2016.
Community Benefit/Public Involvement
Maintaining the city’s fire alarm systems, fire suppression, and fire extinguishers within city-owned buildings is necessary for the safety of employees who work at and individuals who visit these public places.
Cooperative purchasing typically produces the lowest possible volume prices and allows for the most effective use of available funding. The bids are publicly advertised and all Arizona firms have an opportunity to participate.
Budget and Financial Impacts
Funding is available in the Fiscal Year 2016-17 Operating budgets for the various city departments. Expenditures with Climatec BTG are not to exceed $1,500,000 for the entire term of the Agreement (initial term plus any renewals), contingent upon Council budget approval.
|
Cost |
Fund-Department-Account |
|
$1,500,000 |
Varies |
Capital Expense? No
Budgeted? Yes
Requesting Budget or Appropriation Transfer? No
If yes, where will the transfer be taken from?