Title
MOTION TO APPROVE THE THIRD AMENDMENT TO THE AGREEMENT WITH INDUSTRIAL COMMUNICATIONS AND ELECTRONICS. INC., TO UPDATE THE UNIT PRICING IN THE ORIGINAL AGREEMENT, WITH NO INCREASE TO THE ANNUAL AMOUNT NOT-TO-EXCEED OF $60,000.
Summary Explanation and Background
PROCUREMENT PROCESS TAKEN:
- Chapter 35 of the City’s Code of Ordinance is titled “PROCUREMENT PROCEDURES, PUBLIC FUNDS.”
- Section 35.18 of the City's Code of Ordinances is titled "COMPETITIVE BIDDING OR COMPETITIVE PROPOSALS REQUIRED; EXCEPTIONS."
- Section 35.18(C) states that "Only the following situations are exempt from the competitive bid and competitive proposal requirements of this section:"
- Section 35.18(C)(6) states that “Cooperative purchasing. Cooperative purchasing plans are exempt from the competitive procurement process.”
- Section 35.21 of the City's Code of Ordinances is titled "AWARD OF CONTRACT."
- Section 35.21(A) of the City's Code of Ordinances is titled "City Commission approval."
- Section 35.21(A)(1) states, "An initial purchase of, or contract for, commodities or services, in excess of $25,000, shall require the approval of the City Commission, regardless of whether the competitive bidding or competitive proposal procedures were followed."
- Section 35.28 of the City's Code of Ordinances is titled "CHANGE ORDERS."
- Section 35.28(A) states, "City Managers authority. Subject to the restrictions contained in division (B) below, the City Manager or designee is authorized to approve and initial work on the following types of change orders determined in his or her judgment, to be in the public interest, as follows:"
- Section 35.28(B) states that "Notwithstanding the provisions of (A) above, the City Manager is not authorized to approve a change order without authorization of the City Commission where the initial purchase required the City Commission's approval and where the sum of all change orders issued under the contract exceeds 5% of the original contract amount or $25,000.”
SUMMARY EXPLANATION AND BACKGROUND:
1. On June 16, 2021, the City entered into an Agreement with Industrial Communications and Electronics, Inc. utilizing pricing established from the Lee County Contract # ITN N197372LN for an amount not to exceed $60,000 for an initial period, which expired on April 6, 2023.
2. Industrial Communications and Electronics, Inc. provides the City with two way radio equipment and services including repeaters, installation, maintenance, purchase, and repair, on an as needed basis.
3. Section 4 of the Original Agreement between the City and Industrial Communications & Electronics, Inc, authorizes the renewal of the Original Agreement under the same terms and conditions as set forth in ITN #197372LN. Section 5 of the Agreement between the School District of Lee County and Industrial Communications & Electronics, Inc. allows for the term to be renewed for three (3) additional one (1) year periods.
4. On February 21, 2023, the City entered into the First Amendment to the Original Agreement to renew the term for an additional one (1) year period that commenced on April 7, 2023 and expired on April 6, 2024.
5. On March 8, 2024, the School District of Lee County and Industrial Communications and Electronics, Inc. renewed their agreement for an additional one (1) year period.
6. On April 8, 2024, the City entered into the Second Amendment to the Original Agreement to renew the term for an additional one (1) year period that commenced on April 7, 2024 and shall naturally expire on April 6, 2025.
7. On July 24, 2023, the pricing associated with the agreement between the School District of Lee County and the Contractor was revised. The pricing change was not communicated to us since the pricing increase did not affect the Regulatory fees and Annual Airtime charges that the City typically purchases annually using this contract.
Even though the updated pricing exceeded 5% on various line items on the contract, the annual contract amount shall remain as an amount not to exceed $60,000, as the line items that the City pays for were not generally affected.
8. Motion to approve the Third Amendment to the agreement with Industrial Communications and Electronics, Inc., to update the unit pricing in the original agreement, with no increase to the annual amount not-to-exceed of $60,000.
Financial Impact
FINANCIAL IMPACT DETAIL:
a) Initial Cost: Not Applicable
b) Amount budgeted for this item in Account No: Not Applicable
c) Source of funding for difference, if not fully budgeted: Not Applicable.
d) 5 year projection of the operational cost of the project Not Applicable.
e) Detail of additional staff requirements: Not Applicable.
FEASIBILITY REVIEW:
A feasibility review is required for the award, renewal and/or expiration of all function sourcing contracts. This analysis is to determine the financial effectiveness of function sourcing services.
a) Was a Feasibility Review/Cost Analysis of Out-Sourcing vs. In-House Labor Conducted for this service? Not Applicable.
b) If Yes, what is the total cost or total savings of utilizing Out-Sourcing vs. In-House Labor for this service? Not Applicable.