Meeting Date:           November 13, 2007


From:                          Mike Thornton, Purchasing Manager


Subject:                      Reject responses to Bid No. 70381 for the conversion of a stationary generator to portable



Staff Recommendation:

Staff recommends rejecting the sole response received to invitation to bid 70381.



The purpose of this project was to convert an existing 500 kW stationary generator that has been removed from service and convert the generator to portable.  The successful vendor would be responsible for providing a trailer, enclosure, fuel tank, connection box, and all labor and materials necessary to fabricate the finished product.


Fleet Services identified this project as a means to use a piece of equipment already owned by the City to meet a deficiency in the City’s back-up power systems.  Converting this piece of equipment would provide a readily available back-up generator that could support any size facility owned by the City.


Initially the Fleet Services Division researched companies that provide this type of service as their normal course of business.  The goal was to locate a vendor that could provide all services necessary for the conversion, ultimately delivering a finished portable generator to the City.  This type of service consists of a turnkey operation:  a single vendor that could complete all the fabrication as well as the electrical work required to deliver a finished portable generator.


Staff found a vendor in Ocala capable of providing a finished product whose normal business is portable power systems.   Fleet Services negotiated a price of $ 29,995.00 for the project.  This amount was within the budgeted amount of $30,000.


This project, as a sole source, was presented to the City Commission for approval August 27, 2007.  Fleet Services identified this vendor as the only vendor within the local region that could provide the services necessary at the budgeted amount.  The location of the vendor would not require special preparation of the unit for ‘dry’ shipping or shipping costs to have the generator unit delivered.  The City would be able to deliver the unit using City equipment.


The Commission did not approve the purchase as requested.  The Commission stated that local vendors should have been given an opportunity to submit pricing on this project.  The Commission directed the Purchasing Division to put this item out for bid, which  would allow local vendors an opportunity to bid on this project.


On September 24, 2007, the Purchasing Division issued Invitation to Bid 70381 to convert the stationary generator to a portable unit.  Bid documents were provided to the following vendors delivered in the method listed.


Company Name                                                           Location                      Delivery Method        

Tuckers Machine & Steel Service                                Leesburg, FL               Hand Deliver

Power Technology                                                       Leesburg, FL               Mail

Advanced Manufacturing & Power Systems               Deland, FL                  Mail

J.R.S.                                                                           Ocala, FL                    Mail

Ring Power Corporation                                              Ocala, FL                    Mail

Phoenix Products                                                        Jacksonville, FL           Mail


On October 1, 2007, staff held a non-mandatory pre-bid meeting to allow vendors an opportunity to view the generator unit.  Two companies, Ring Power Corporation and Florida Detroit Diesel were represented at the pre-bid meeting.  On October 16, 2007, the Purchasing Division received one sealed bid response.  Florida Detroit Diesel was the sole respondent on this project.  They submitted a bid price of $64,835.00.  This price significantly exceeds the budgeted amount of $30,000.


The vendor that Fleet Services originally negotiated the price of $29,995.00 did not submit a bid.  The manager of J.R.S. Custom Fabrication contacted me when they received the Invitation to Bid.  The manager wanted to know why the formal bid was issued.  I explained the direction given by the City Commission.  J.R.S. then informed me they would not be submitting a bid because their regular customers are asking them to provide pricing for their services as a sub-contractor on the project.  J.R.S. acting as a sub-contractor to firms submitting a bid prevents the City from going back to J.R.S. to inquire  if their original price quote is still available.



1.  Reject the sole response to invitation to bid 70381; or

2.  Such alternative action as the Commission may deem appropriate


Fiscal Impact

By rejecting the bid, this project will not be completed.  The $30,000 budgeted in fiscal year 2007 will revert back to fund balance in the general fund.  If the Commission approves the bid award, $34,835 will need to be appropriated from Fund Balance.


Submission Date and Time:    11/8/2007 11:46 AM____


Department: _Public Works / Fleet ____

Prepared by:  _Mike Thornton_________                     

Attachments:         Yes__X_   No ______

Advertised:   _X__Not Required ______                     

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 _____________________