Title
MOTION TO APPROVE THE PURCHASE AND INSTALLATION OF THREE (3) CITY- STANDARD HOFFMAN (GARDNER-DENVER) MODEL 75107 MULTISTAGE CENTRIFUGAL AIR BLOWERS FROM THE SOLE SOURCE REPRESENTATIVE, TSC JACOBS, INC., IN AN AMOUNT NOT TO EXCEED $1,307,454, WHICH INCLUDES A 10% OWNER’S CONTINGENCY IN THE AMOUNT OF $114,314, AND AN AMOUNT TOWARDS THE COST OF THE PAYMENT BOND AND PERFORMANCE BOND EQUAL TO $50,000, PURSUANT TO SECTION 35.18(C)(3) 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 regarding "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)(3) of the City's Code of Ordinances states, "City Standard, single-source and sole-source commodities or services. City standard, single-source and sole-source commodities or services are exempt from competitive bidding."
- Section 35.21(A)(1) of the City’s Code of Ordinance 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 City owns and operates their Wastewater Treatment Plant (WWTP) located at 13995 Pembroke Road.
2. The City WWTP utilizes fresh air to facilitate biological treatment in five (5) wastewater treatment units, delivered by mechanical air blowers. These air blowers are critical infrastructure which require reliable service and redundancy.
3. There are two newer and two older blowers operating the east side of the WWTP; and one older and two newer blowers operating the west side of the WWTP.
4. The City has experienced several failures of the older existing blowers in recent years, which have reached their useful life and required associated repair costs.
5. It is imperative that the City replace existing blowers which have reached their useful life as well as installing some redundancy in blowers as a contingency plan if additional failures occur.
6. On April 3, 2019, the City Commission approved Gardner Denver Multistage Centrifugal Air Blower Product Line as the City's Standard Air Blower for the Wastewater Treatment Plant.
7. On February 19, 2020, the City Commission approved the installation of two new Hoffman brand blowers to be installed in the east blower building, which replaced two very old blowers.
8. Two new 200 Horsepower Hoffman Model 75107 Multistage Centrifugal Air Blowers are needed to replace the two older HSI brand blowers in the East Blower Building.
9. One 150 Horsepower Hoffman Model 75107 Multistage Centrifugal Air Blower is needed to replace the older HSI Blower in the West Blower Building.
10. Gardner Denver, Inc. has provided a sole source letter stating that TSC-Jacobs has a 100% exclusive sales representation contract, since July 3, 2003, with the Gardner Denver Blower CF Division, for the complete state of Florida, for all markets including all of the municipal and industrial wastewater and/or water treatment blower applications. This exclusivity is for the complete Gardner Denver centrifugal multistage blower product line including the former Hoffman Air & Filtration Blower line, the former Lamson Corporation blower line, the former Invincible blower line, for all wastewater and water treatment applications in municipal or industrial sewage and water treatment plants.
This 100% exclusivity not only applies to all new equipment sales, but it also encompasses all installations, start-up and maintenance service contracts for new and existing Gardner Denver, Hoffman, Lamson and Invincible blowers and exhausters in the state of Florida. This 100% exclusivity is also applicable for all Gardner Denver factory authorized service work, all replacement blowers, along with all spare and replacement blower and exhauster parts including motors and coupling replacement parts for the Gardner Denver Multistage Blowers.
11. TSC Jacobs, Inc., is an independent corporation and is in no way affiliated with Jacobs or OMI, the City's Utility function sourcing contractor.
12. TSC Jacobs, Inc., the Sole Source representative for Gardner Denver, Inc., has provided a quote for the purchase and installation of three (3) Hoffman Model 75107 Multistage Centrifugal Air Blowers:
|
Description |
Total |
|
1 Blowers, Control Panel & Access. For East Plant |
$175,550.00 |
|
2 Blowers, Control Panel & Access. For West Plant |
$571,350.00 |
|
Installation |
$396,240.00 |
|
Base Total |
$1,143,140.00 |
|
Payment & Performance Bonds |
$50,000.00 |
|
Base Total with Payment & Performance Bonds |
$1,193,140.00 |
13. The City Manager would like to add an Owner's Contingency to the project of 10% in the amount of $114,314. The owner’s contingency will cover any additional services needed but not included in the proposal, such as builders risk insurance, permitting and permitting fees, surveying, engineering, material testing or bacteriological clearances, bypass pumping or dewatering to name a few common possibilities. This addition increases the cost to $1,307,454.
14. Request City Commission to approve the purchase and installation of three (3) City- Standard Hoffman (Gardiner-Denver) Model 75107 Multistage Centrifugal Air Blowers from the sole source representative, TSC Jacobs, Inc., in an amount not to exceed $1,307,454, which includes a 10% owner’s contingency in the amount of $114,314, and an amount towards the cost of the Payment Bond and Performance Bond equal to $50,000, pursuant to Section 35.18(C)(3) of the City’s Code of Ordinances.
Financial Impact
FINANCIAL IMPACT DETAIL:
a) Initial Cost: $1,307,454, which includes a 10% owner’s contingency in the amount of $114,314, and an amount towards the cost of the Payment Bond and Performance Bond equal to $50,000.
b) Amount budgeted for this item in Account No: Funds are available in account # 471-535-6022-663183-0000-000-0000-00834 (Sewer Treatment Rehabilitation) for this project.
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.