Title
MOTION TO APPROVE THE PURCHASE OF TWO (2) CHILLERS FOR THE A/C SYSTEMS AT THE ACADEMIC VILLAGE HIGH SCHOOL CAMPUS FROM TRANE U.S. INC., IN THE AMOUNT NOT TO EXCEED $1,685,574.50, WHICH INCLUDES A CONTINGENCY IN AN AMOUNT EQUAL TO $151,199.50 AND THE COST OF THE PAYMENT BOND AND PERFORMANCE BOND IN THE AMOUNT OF $22,680, UTILIZING PRICING ESTABLISHED BY OMNIA CONTRACT # 3341 "HVAC PRODUCTS, INSTALLATION, LABOR BASED SOLUTIONS AND RELATED PRODUCT AND SERVICES", PURSUANT TO SECTION 35.18(C)(6) 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 Public Services department is seeking to purchase two chillers for the A/C systems at the Academic Village High School campus. The proposed replacement is necessary due to the age and rising maintenance costs of the existing chillers, which are now 26 years old, well beyond their expected service life.
Maintenance expenses have increased significantly compared to previous years; with a 104% spike this year. Compounding the issue, replacement parts are increasingly difficult and costly to source, as the original manufacturer no longer produces them.
An engineering assessment of the existing units concluded that full replacement is the most prudent option.
The report recommended installing new, high-efficiency chillers to prevent future system failures and to reduce ongoing operational and energy costs. These chillers are the core of the campus-wide cooling system, providing chilled water that circulates through a network of pipes to multiple buildings. This system is essential for delivering air conditioning by absorbing heat from interior spaces.
Upgrading to modern chillers will significantly improve energy efficiency, resulting in long-term cost savings on utility bills for the City. Moreover, the system supports critical community facilities, including Academic Village High School, the Broward County Library, and the Susan B. Katz Theatre of the Performing Arts. Ensuring the reliability of the chillers is vital to maintaining comfort, safety, and functionality in these high-use public spaces.
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 August 20th, 2025, the Public Services Department received a proposal 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-MSHAA4-24-001, in the amount of $1,534,675, covers the purchase of two (2) chillers for the AC systems at the Academic Village High School campus.
Replace existing Chiller-2 with new Trane Centrifugal Chiller... $778,975.00
Add to Replace Chiller-1 including Trane Controls Integration…$646,150.00
Add for 10-Year Parts, Labor & Refrigerant Warranty-Whole Unit, (Per Chiller) ...$43,435.00
Add for Performance & Payment Bond if Required...$ 22,680.00
Total Price for all Options listed above...$1,534,675.00
7. Under OMNIA Contract #3341, Trane is providing key equipment for the project at confirmed contract multipliers. The Tracer SC & Controls is priced using a 0.6229 multiplier, the CenTraVac Chiller uses a 0.382 multiplier, and networking components (Nets) are applied at a 1.0 multiplier. The “NETS” under the equipment column are for the equipment warranties. There is a base warranty as part of the equipment that’s always included as a standard item and the “NETS” are the cost of the standard coverage plus the increased coverage, which in this case is 10 years. The total Nets is the warranty for both chillers. These contract-based discounts result in substantial savings on equipment.
In addition to the standard OMNIA contract discounts, Trane has extended an additional discount to the Centrifugal part code T-347, resulting in a savings of $80,107.37 from the minimum discount Trane is required to provide per contract.
For miscellaneous materials, including mechanical, electrical, insulation, and crane services, OMNIA Contract #3341 permits a 28.5% margin, the quote shows they have calculated 10.81% margin. This ensures necessary work to complete the project is covered within contract pricing guidelines.
Labor costs are based on OMNIA/Racine contract labor classifications, and all hourly rates have been confirmed as follows:
Pipefitter (Mechanical Subcontractor) - $218.43
HVAC Controls Technician (Trane) - $216.31
Pipefitter (Trane) - $218.43
Electrical Subcontractor - $294.04
Insulators - $193.23
Operating Engineer (Crane) - $151.22
Engineering Design (Design & Drawings) - $294.04
Trane Project Manager - $218.43
Trane Project Administrator - $159.61
8. Request Commission to approve the purchase of two (2) chillers for the A/C systems at the Academic Village High School campus from Trane U.S. Inc., in the amount not to exceed $1,685,574.50, which includes a contingency in an amount equal to $151,199.50 and the cost of the payment bond and performance bond in the amount of $22,680, utilizing pricing established by Omnia contract # 3341 "HVAC Products, Installation, Labor Based Solutions and Related Product and Services", pursuant to section 35.18(C)(6) of the city’s code of ordinances.
Financial Impact
FINANCIAL IMPACT DETAIL:
a) Initial Cost: Amount not to exceed $1,685,574.50
b) Amount budgeted for this item is in Account No: 001-519-6001-546155-0000-000-0000 - R&M Land Bldg. - SCH Major Proj.
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.