Title
MOTION TO AWARD IFB # PSUT-21-03 “WATER METER INSTALLATION PROJECT” TO THE MOST RESPONSIVE/ RESPONSIBLE BIDDER, RTS WATER SOLUTIONS, LLC. IN THE AMOUNT NOT TO EXCEED $4,105,730.99, WHICH INCLUDES AN 8.5% OWNER'S CONTINGENCY IN THE AMOUNT OF $257,928.05 AND AN OWNER'S ALLOWANCE IN THE AMOUNT OF $813,355.30.
Summary Explanation and Background
PROCUREMENT PROCESS TAKEN:
- Chapter 35 of the City’s Code of Ordinances is titled “PROCUREMENT PROCEDURES, PUBLIC FUNDS.”
- Section 35.15 defines an Invitation for Bid as “A written solicitation for competitive sealed bids with the title, date and hour of the public bid opening designated therein and specifically defining the commodities or services for which bids are sought. The invitation for bid shall be used when the city is capable of specifically defining the scope of work for which a service is required or when the city is capable of establishing 15 precise specifications defining the actual commodities required. The invitation for bid shall include instructions to bidders, plans, drawings and specifications, if any, bid form and other required forms and documents to be submitted with the bid.”
- Section 35.18 of the City's Code of Ordinances is titled "COMPETITIVE BIDDING OR COMPETITIVE PROPOSALS REQUIRED; EXCEPTIONS.
- Section 35.18(A) states, "A purchase of or contracts for commodities or services that is estimated by the Chief Procurement Officer to cost more than $25,000 shall be based on sealed competitive solicitations as determined by the Chief Procurement Officer, except as specifically provided herein."
- Section 35.19 of the City's Code of Ordinances is titled "SEALED COMPETITIVE BIDDING PROCEDURE."
- Section 35.19(A) states, "All sealed competitive solicitations as defined in §35.18 shall be presented to the City Commission for their consideration prior to advertisement."
- Section 35.19(G) states, “Contracts shall be awarded to the lowest responsive, responsible bidder, which provides the best value to the City.”
- 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. On April 7, 2021, the City Commission authorized the advertisement of IFB #PSUT-21-03 "Water Meter Installation Project," which was later advertised on April 15, 2021.
2. The purpose of this solicitation was to seek proposals from qualified firms to provide services for the replacement of aging residential water meters, 20-years old or older, throughout the City.
3. On June 1, 2021, the City opened six (6) proposals for PSUT-21-03 from the following vendors:
Vendor Name Total Cost
RTS Water Solutions, LLC. $2,884,842.97
National Metering Services, Inc. $3,134,890.36
UMSI $3,595,055.50
Vanugard Utility Services, Inc. $5,402,162.42
GPE Engineering & General Contractor Corp. $7,019,815.16
Southern Cross, LLC. $7,852,042.80
4. Due to the magnitude of detail for this project, the evaluation process of the submitted bids warranted further questions related to the specifications submitted.
5. The Procurement Department deemed National Metering Services, Inc. and Utility Metering Service & Install (UMSI) as non-responsive because they did not submit the required Bid Security; GPE Engineering & General Contractor Corp. was deemed non-responsive as they stated they would not comply with the requirement to Hire Local.
6. Because of current market conditions, RTS Water Solutions, LLC. stated on August 25, 2021, that they were no longer able to hold their original bid price.
7. Section 3.11 titled, "Pricing," of PSUT-21-03 "Water Meter Installation Project," states the following, "Bidder warrants by virtue of bidding that prices, terms, and conditions quoted in his bid will be firm for acceptance for a period of ninety (90) days from date of bid opening unless otherwise stated by the City or bidder."
8. It was determined that in order to create equal opportunity for all vendors who submitted an original bid, that the City should seek best and final offers from the original responsive bidders.
9. On October 18, 2021, the City reached out to the three (3) responsive vendors seeking their Best and Final Offers.
10. The City received and opened three (3) responses on October 25, 2021, related to Best and Final Offers from the following vendors:
Vendor Name Total Cost
RTS Water Solutions, LLC. $3,034,447.64
Vanugard Utility Services, Inc. $5,197,224.57
Southern Cross $7,852,042.80
10. The Utilities Division has reviewed the proposals and has deemed RTS Water Solutions, LLC. to be the most responsive/responsible vendor.
11. RTS Water Solutions, LLC. has completed the Certification to Hire Local stating, "Bidder will comply fully with 30% of the Contractor and any applicable Sub-contractor(s) combined labor force shall be hired from the Local Area."
12. In addition, RTS Water Solutions, LLC. has also completed the Equal Benefits Certification Form and has stated that the "Contractor currently complies with the requirements of this section."
13. The Utilities Division has determined that a $813,355.30 Owner's Allowance will be needed to acquire the necessary materials and labor for completion of work orders throughout the project.
14. Recommend City Commission to award PSUT-21-03 "Water Meter Installation Project" to the most responsive/ responsible bidder, RTS Water Solutions, LLC. in the amount not to exceed $4,105,730.99 which includes an 8.5% Owner's Contingency in the amount of $257,928.05 and an Owner's Allowance in the amount of $813,355.30.
Financial Impact
FINANCIAL IMPACT DETAIL:
a) Initial Cost: $4,105,730.99
b) Amount budgeted for this item in Account No: $4,105,730.99 available in Account No. 471-533-6032-664400-0000-000-0000 (Other Equipment)
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: A temporary staff member will be needed for this project for an approximate 9 month duration. The temporary staff member will be responsible for conducting a pre walkthrough of various routes that have been determined for meter change outs, field observations during construction and a final walkthrough of each route completed.