Title
MOTION TO APPROVE THE PURCHASE OF TWO (2) ODYSSEY SPLIT SYSTEM INDOOR AC UNITS AND FOUR (4) SPLIT SYSTEM AIR CONDITIONING UNITS FOR FIRE STATION 79, AS WELL AS ONE (1) ODYSSEY SPLIT SYSTEM INDOOR UNIT AND ONE (1) ODYSSEY SPLIT SYSTEM OUTDOOR UNIT FOR FIRE STATION 99 FROM TRANE U.S. INC., IN THE AMOUNT NOT TO EXCEED $42,266, UTILIZING PRICING ESTABLISHED BY OMNIA CONTRACT # 3341 "HVAC PRODUCTS, INSTALLATION, LABOR BASED SOLUTIONS AND RELATED PRODUCT AND SERVICES", PURSUANT TO SECTION 35.18(C) OF THE CITY’S CODE OF ORDINANCES.
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 plans are exempt from this section.”
- 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."
SUMMARY EXPLANATION AND BACKGROUND:
1. The Fire Department, in conjunction with the Public Services Department, has identified the need to replace the existing AC units at Fire Station 79 and Fire Station 99.
The current units are outdated, resulting in higher maintenance costs and reduced cooling efficiency. Replacing these units with newer, energy-efficient models will improve energy efficiency, enhance cooling performance, and ensure reliable operation.
Upgrading to modern systems will also help lower operational expenses, reduce environmental impact, and provide a more consistent and comfortable indoor climate.
2. On June 15, 2022, Racine County, Wisconsin, acting as lead agency for OMNIA Partners, advertised IFB # RC2022-1001 to establish a national cooperative contract for HVAC products, installation, labor-based solutions, and related products and services.
3. IFB # RC2022-1001 specifically states that the resultant contract would be a National Contract / Master Agreement distributed by OMNIA Partners available to other public agencies nationally, including state and local governmental entities, public and private primary, secondary and higher education entities, non-profit entities, and agencies for the public benefit (“Public Agencies”).
4. Trane U.S. Inc. was the lowest responsive, responsible, and qualified bidder based on the requirements issued in the IFB. The County Executive, who was granted authority on January 11, 2022, by the Racine County Commissioners, approved the contract award. The contract was executed on August 17, 2022, with an effective date of September 1, 2022, through August 31, 2027.
5. Under OMNIA Contract # 3341, Trane U.S. Inc. can provide products and services covering the following areas:
Operate, Maintain & Repair
- Connectivity and Cloud Services
- HVAC System Management
- HVAC System Repair
- Rental Solutions
- Parts and Supplies
Energy & Sustainability
- Energy conservation Measures
- Energy Monitoring & Analysis
- Active Energy Management
- Financing & Energy Services Contracting
Design, Upgrade & Modernize
- Upgrading Existing Equipment
- Building Systems Design and Upgrades
- HVAC System Retrofits
- Indoor Air Quality (IAQ)
Building Systems and Technologies
- Variable Refrigerant Flow (VRF) and Ductless Systems
- Chillers
- Packages Units and Split Systems
- Air Handlers, Terminal Devices, Vav and Fan Coils
- Variable Frequency Drives (VFD)
- Energy Storage
- Precision Cooling
Building Management and Automation
- Solutions for Large Buildings and Campuses
- Small Building Solutions
- Air-Fi® Wireless Communications
- Lighting Solutions
- Controls Solutions for Light Commercial Contractors
Design and Analysis Software Tools
6. On March 18, 2025, the Public Services Department received two proposals from Trane U.S. Inc. for the purchase of HVAC equipment utilizing pricing established under OMNIA Contract # 3341, “HVAC Products, Installation, Labor-Based Solutions, and Related Products and Services.”
Proposal #H4-243283-33659-1, in the amount of $24,808, covers the purchase of two (2) Odyssey Split System Indoor Units, four (4) Split System Air Conditioning Units, and it's accessories for Fire Station 79.
Proposal #H4-244320-33795-1, in the amount of $17,458, covers the purchase of one (1) Odyssey Split System Indoor Unit, one (1) Odyssey Split System Outdoor Unit, and it's accessories for Fire Station 99.
The total cost for both proposals is $42,266.
7. For Proposal #H4-243283-33659-1 (Fire Station 79), the price is broken down as follows:
Equipment
Per OMNIA Contract # 3341, the two (2) Odyssey Split System Indoor Units have a discount multiplier of 0.3904 applied to their MSRP price of $20,772. This results in savings of $12,662.61, for a sell price of $8,109.39.
Per Omnia Contract # 3341, the four (4) Split System Air Conditioning Units (Small) have a discount multiplier 0.4242 applied to their MSRP price of $26,878. This results in savings of $15,476.35, for a sell price of $11,401.65.
Accessories
Per OMNIA Contract # 3341, a discount multiplier of 0.34 is applied to the following accessories:
2" MERV 13 Filter
11.25/14.96kW (208/230/3/60)
This reduces the total cost of all accessories from $2,387 to $811.58.
Miscellaneous Material
OMNIA Contract # 3341 allows Trane to account for a 28.5% miscellaneous material margin for necessary work to complete the project.
Miscellaneous material pertaining to this proposal includes cost for:
Corrosion Protection Condenser Coil Coating - $3,193
Applying the margin, the final selling price for miscellaneous material is $4,465.73, reflecting the 28.5% margin over the total cost.
Warranty
Both the Odyssey Split System indoor units and the Split System air conditioning units include a one-year parts and labor warranty, as well as a compressor parts warranty covering years two through five, for a total cost of $960.
Additional Discounts
In addition to the contract discounts, Trane has also offered an additional discount of $940.35 off the discounted proposal price, which brings the cost of the proposal from $25,748.35 to $24,808.
8. For Proposal #H4-244320-33795-1 (Fire Station 99), the price is broken down as follows:
Equipment
Per OMNIA Contract # 3341, the Odyssey Split System Indoor Unit has a discount multiplier of 0.3904 applied to the MSRP price of $13,724. This results in savings of $8,366.15, for a sell price of $5,357.85.
Per Omnia Contract # 3341, the Split System Air Conditioning Unit has a discount multiplier 0.3999 applied to the MSRP price of $26,290. This results in savings of $15,776.63, for a sell price of $10,513.37.
Accessories
Per OMNIA Contract # 3341, a discount multiplier of 0.34 is applied to the following accessories:
2" MERV 13 Filter
11.25/14.96kW (208/230/3/60)
This reduces the total cost of all accessories from $1,696 to $576.64.
Miscellaneous Material
OMNIA Contract # 3341 allows Trane to account for a 28.5% miscellaneous material margin for necessary work to complete the project.
Miscellaneous material pertaining to this proposal includes costs for:
Coated Coil w/ Guards(MCHE) - $698.13
Applying the margin, the final selling price for miscellaneous material is $976.41, reflecting the 28.5% margin over the total cost.
Warranty
Both the Odyssey Split System Indoor Unit and the Split System Air Conditioning Unit include a one-year parts and labor warranty, as well as a compressor parts warranty covering years two through five, for a total cost of $325.
Additional Discounts
In addition to the contract discounts, Trane has also offered an additional discount of $291.27 off the discounted proposal price, which brings the cost of the proposal from $17,749.27 to $17,458.
9. Request Commission to approve the purchase of two (2) Odyssey Split System Indoor AC units and four (4) Split System Air Conditioning units for Fire Station 79, as well as one (1) Odyssey Split System Indoor Unit and one (1) Odyssey Split System Outdoor Unit for Fire Station 99, from Trane U.S. Inc., in an amount not to exceed $42,266, utilizing pricing established by OMNIA Contract #3341, HVAC Products, Installation, Labor-Based Solutions, and Related Products and Services, pursuant to Section 35.18(C) of the City’s Code of Ordinances.
Financial Impact
FINANCIAL IMPACT DETAIL:
a) Initial Cost: Amount not to exceed $42,266.
b) Amount budgeted for this item is in Account No: 001-529-4003-546150-0000-000-0000 - R&M Land Building improvement
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.