TITLE
Recommendation to adopt resolution authorizing City Manager, or designee, to execute a contract, and any necessary documents, including any necessary amendments, with Crafco, Inc., of Chandler, AZ, for furnishing and delivering as-needed roadway maintenance equipment, materials, and supplies, on the same terms and conditions afforded to Sourcewell, in an annual amount of $1,000,000, with a 20 percent contingency in the amount of $200,000, for a total annual contract amount not to exceed $1,200,000, until the Sourcewell contract expires on October 11, 2025, with the option to renew for as long as the Sourcewell contract is in effect, at the discretion of the City Manager. (Citywide)
DISCUSSION
City Council approval is requested to enter into a contract with Crafco, Inc. (Crafco), for the furnishing and delivery of as-needed roadway maintenance equipment, materials, and supplies as part of the City of Long Beach’s (City) operating expenses for the repair and maintenance of City roads. Crafco is a materials and equipment supplier. All equipment furnished by Crafco will be operated by City staff.
The Public Works Department (Public Works) researched procurement options for as-needed roadway maintenance equipment, materials, and supplies, and discovered other agencies had completed an open, fair, transparent, and competitive procurement process. This research affirmed that the contract between Sourcewell and Crafco provided the best value to the City.
Crafco was selected based on their competitive pricing, service level, and breadth of product offerings. Crafco offers equipment, materials, and supplies as the manufacturer and has a supply center in Southern California. Crafco was selected through a nationwide competitive solicitation process with 30 bid submittals. Crafco can provide necessary resources for Public Works to order as-needed equipment, materials, and supplies for projects and job-related duties.
City Charter Section 1802 provides an alternative procurement method by permitting the City to purchase or otherwise obtain services, supplies, materials, equipment, and labor with other governmental agencies. This alternative procurement method can save time and reduce costs through economies of scale by purchasing under existing contracts from other government agencies on a voluntary and selective basis when authorized by a Resolution adopted by the City Council.
This matter was reviewed by Deputy City Attorney Erin Weesner-McKinley on March 2, 2022, Purchasing Agent Michelle Wilson on February 25, 2022, and by Budget Management Officer Nader Kaamoush on March 3, 2022.
TIMING CONSIDERATIONS
City Council action to adopt a Resolution and award a contract concurrently is requested on March 22, 2022, to ensure the contract is in place expeditiously.
FISCAL IMPACT
The total annual amount of the contract will not exceed $1,200,000, inclusive of a 20 percent contingency. Sufficient appropriation to support the annual contract amount is budgeted in the General Fund Group and the Capital Projects Fund Group in the Public Works Department. Any work not currently budgeted will only proceed at such time that appropriations have been approved by the City Council. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
BODY
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Respectfully Submitted,
ERIC LOPEZ
DIRECTOR OF PUBLIC WORKS
APPROVED:
THOMAS B. MODICA
CITY MANAGER