Description: AGENDAHED.JPG
  

Item No:                    5F.

 

Meeting Date:           April 8, 2013

 

From:                          Mike Thornton, Purchasing Manager for

                                    Paul Kalv, Electric Utility Director and

                                    Stan Carter, Information Technology Director

 

Subject:                      Resolution awarding bid and approving resolution authorizing execution of an agreement with Heart Utilities of Jacksonville to provide Utility Installation Services.

 

 


Staff Recommendation:

Staff recommends award of Invitation to Bid 130271 Group 1 and Group 3 items to Heart Utilities of Jacksonville, Inc.   Staff recommends approval of the resolution authorizing execution of an  agreement with Heart Utilities of Jacksonville, Inc.

 

Analysis:

The purpose of issuing Invitation to Bid (ITB) 130271 is to contract with a qualified and interested company or companies that provides Utility Installation Services.  These services are required by the Leesburg Electric Utility and may be needed for the Communications Utility.

 

The Electric Utility (EU) requires contractor services for the installation of underground utility infrastructure.  The EU has used the services of a private contractor for these services for well over seven years.  The contractor has the necessary equipment to perform underground directional boring to install underground conduit (pipe) and associated underground structures for the underground utilities.  The EU has determined it is more cost effective to contract with private companies that possess all the necessary equipment, labor and expertise to install underground utilities.

 

The historical use by the EU for contractor services is:

 

Fiscal Year

Amount Paid

2010

$1,027,802

2011

814,764

2012

1,205,829

2013

(October 1 – January 31)

  422,260

TOTAL

            $3,470,655

 

The City’s Communications Utility (CU) services all of Lake County with a very small staff.  When necessary they will require the use of a private company for services related to fiber optic cable.  These services will include the installation of underground fiber in conduit, overhead fiber and splicing of fiber.  The CU currently has only one vehicle to use for fiber splicing and servicing the fiber network.  The services of a contractor will be used when the workload exceeds the capacity of the utility staff.

 

This ITB is to establish a Fixed Unit Price Agreement for the types of jobs or tasks performed for the utilities.  Contractors are required to provide a unit cost to complete each of the tasks listed.  The unit cost quoted does not include materials as the utilities provide the required materials such as conduit, pipe, cable, boxes, pull tape, etc . . .  The City provides the material in order to receive better pricing and eliminate paying sales tax on material.

 

The ITB items are separated into three groups.  Group 1 is generally those items used by the Electric Utility, Group 2 items are for the Natural Gas Utility and Group 3 items are for the Communications Utility.  The ITB allowed for the City to award individual Groups to a vendor or all groups to a single vendor.

 

Procurement Analysis:

On February 4, 2013 the Purchasing Division issued Invitation to Bid 130271.  The ITB was advertised in both The Daily Commercial and Orlando Sentinel, as well as being posted on-line to Public Purchase.  On February 21, 2013 the Purchasing Division received eight sealed responses.  Those responses were opened at a public meeting shortly after 10:00 AM.

 

During the initial evaluation, one response was deemed unacceptable due to not acknowledging Addendum 2 and not using the revised item bid schedule issued with the Addendum.  This response is non-responsive and not considered for award.  Responsive bids are summarized here.  A detailed bid tabulation is attached.

 

Vendor Name

LVP

Group 1

Group 2

Group 3

Total All Groups

Heart Utilities of Jacksonville, Inc.

Base Bid

No LVP

$528,822.95

$2098.00

$318,699.05

$849,620.00

Hewitt Power & Communications1

Base Bid

$571,077.66

$2,592.75

$354,139.80

$927,810.21

LVP Adjusted

$546,077.66

$2,463.11

$336,432.81

$902,810.21

J & L Utility Construction, Inc.

Base Bid

No LVP

$677,474.70

$2,098.00

$418,873.75

$1,096,812.45

Mas Tec North America, Inc.

Base Bid

No LVP

$724,636.97

$3,994.00

$430,678.58

$1,159,309.55

Precision Contracting Services

Base Bid

No LVP

No Bid

No Bid

$363,655.80

$363,655.80*

Ivy H. Smith, Co.2

Base Bid

$598,806.00

No Bid

$500,127.78

$1,098.633.78*

LVP Adjusted

$588,506.00

No Bid

$490,127.78

$1,088,633.78

The Fishel Company

Base Bid

No LVP

$761,096.23

$1,751.97

$258,062.51

$1,020,910.71

1Tier 1 Local Vendor – 5% or $25,000 preference or whichever is less.

2Tier 2 Local Vendor – 2% or $10,000 preference or whichever is less.

*Vendors did not bid all groups.

 

The Local Vendor Preference Policy adopted by City Commission on July 23, 2013 by Resolution 9053 was applied to those qualifying vendors.  A summary of that policy is included here with the full policy document attached for your reference.

 

a.         “Tier I Local Vendor” shall be defined as the primary Business Office or a Full Time Sales Office of the vendor being located within the City of Leesburg or the vendor receiving one or more Utility Services from the City of Leesburg.

                    i.                 Tier I Local Vendor - Under a Competitive Solicitation, the City may give a preference to a Tier I Local Vendor in the amount of five percent (5%) of the bid price or $25,000, whichever is less.

 

b.         “Tier II Local Vendor” shall be defined as the primary Business Office or a Full Time Sales Office of the vendor not meeting the definition of a Tier I Local Vendor but nonetheless being located within the 20-Mile Radius as defined in this policy.

                    i.                 Tier II Local Vendor - Under a Competitive Solicitation, the City may give a preference to a Tier II Local Vendor in the amount of two percent (2%) of the bid price or $10,000, whichever is less.

 

In no case shall the preference allowed exceed $25,000 for a Tier I Local Vendor and $10,000 for a Tier II Local Vendor.  The LVP preference (if applicable) will be applied to the total price (total of extended prices) for each group or groups of items.

 

When establishing a Fixed Unit Price Agreement such as this, the actual quantities of goods or services to be used are unknown.  In these instances public procurement standards dictate an estimated quantity be used for the purposes of bid evaluation.  The quantities provided in the Item Bid Schedule are estimated based on past years.  Without the quantities it would not be possible to determine a low bidder with a quantity of one for every item.

 

Based on the estimated quantities and the revised quantities for Group 3 provided by the Communications Utility staff recommends awarding the item Groups as follows.

 

Group 1

Heart Utilities of Jacksonville, Inc. is the lowest overall bidder for all items in Group 1.

 

Group 2

The Natural Gas Utility has decided to not award the items in this group.  They do not feel they will have sufficient future need for the items in this group.

 

Group 3

Heart Utilities of Jacksonville, Inc. is the lowest bidder for Group 3 services.   The Fishel Company was the lowest bidder for all items in Group 3 but refused to execute an agreement for only Group 3 items.  The company stated their pricing was based on award of all groups.  The Fishel Company is disqualified.

 

Hewitt Power & Communications has held the Agreement for the services included in Group 1, and at times more services than included in Group 1.  Commission approved the original Agreement in December 10, 2001 by approval of Resolution 6377.  Accounting records show Hewitt Power & Communications has been paid $5,032,670.59 since December 10, 2001.  The original agreement was extended each time by contract amendment upon expiration.  The last contract extension expired September 30, 2012.  The City currently does not have an active contract in place for these services.

 

Options:

1.      Award the Invitation to Bid for Group 1 and Group 3 services to Heart Utilities of Jacksonville, Inc. and approve the resolution authorizing execution of the Agreement; or

2.  Such alternative action as the Commission may deem appropriate

 

Fiscal Impact

The utilities budget funds for these services each fiscal year.  An exact expenditure amount cannot be determined for these services.

 

Submission Date and Time:    4/3/2013 4:11 PM____

 

Department: _Finance Department_____

Prepared by:  _Mike Thornton________                     

Attachments:         Yes__X_   No ______

Advertised:   ____Not Required __X___                     

Dates:   __________________________                      

Attorney Review :       Yes___  No ____

                                                

_________________________________           

Revised 6/10/04

 

Reviewed by: Dept. Head ________

 

Finance  Dept. __________________                                     

                              

Deputy C.M. ___________________                                                                         

Submitted by:

City Manager ___________________

 

Account No. _________________

 

Project No. ___________________

 

WF No. ______________________

 

Budget  ______________________

 

Available _____________________

 

 


RESOLUTION NO._____________

 

RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A FIXED UNIT PRICE AGREEMENT WITH HEART UTILITIES OF JACKSONVILLE, INC. TO PROVIDE UTILITY INSTALLATION SERVICES ON AN AS NEEDED BASIS; AND PROVIDING AN EFFECTIVE DATE.

 

BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA:

 

            THAT the Mayor and City Clerk are hereby authorized to execute a Fixed Unit Price Agreement with HEART UTILITIES OF JACKSONVILLE, INC. whose address is PO BOX 37246, JACKSONVILLE, FL 32236 for Group 1 and Group 3 Utility Installation Services pursuant to Invitation to Bid 130271.

 

             THAT this resolution shall become effective immediately.

 

PASSED AND ADOPTED by the City Commission of the City of Leesburg, Florida, at a regular meeting held the __8th___ day of ___April______ 2013.

 

 

 

                                                                            __________________________

                                                                             Mayor

 

ATTEST:

 

 

__________________________________

City Clerk