TITLE
Recommendation to adopt Specifications No. ITB LB15-020 and award contracts to Ganahl Lumber Company, of Anaheim, CA, and Penn Forest Products, LLC, of Long Beach, CA, to furnish and deliver as-needed building material, lumber and related products, in an annual aggregate amount not to exceed $300,000, for a period of two years, with the option to renew for two additional one-year periods, at the discretion of the City Manager. (Citywide)
DISCUSSION
City Council approval is requested to enter into annual contracts with Ganahl Lumber Company and Penn Forest Products, LLC, for furnishing and delivering building material, lumber and related products, including, but not limited to, lumber, plywood, sheet rock, doors, and related products necessary for the repair, replacement and maintenance of various City facilities. The award represents the combined annual requirements as estimated by various City department users.
The bid was advertised in the Press-Telegram on December 13, 2014, and 3,219 potential bidders specializing in building material were notified of the bid opportunity. Of those bidders, 32 downloaded the bid via our electronic bid system. The bid document was made available from the Purchasing Division, located on the seventh floor of City Hall, and the Division's website at www.longbeach.gov/purchasing <http://www.longbeach.gov/purchasing>. A bid announcement was also included in the Purchasing Division's weekly update of Open Bid Opportunities, which is sent to 30 local, minority and women-owned business groups. Three bids were received on January 7, 2015. Of those three bidders, none were Minority-owned Business Enterprises (MBEs), one was a Women-owned Business Enterprise (WBE), two were certified Small Business Enterprises (SBEs), and one was a Long Beach business (Local). Ganahl Lumber Company, of Anaheim, CA (not an MBE, WBE, SBE or Local), and Penn Forest Products, LLC, of Long Beach, CA (WBE, SBE and Local; not an MBE), were the lowest responsible bidders.
Local Business Outreach
In effort to align with our outreach goal, Long Beach businesses are encouraged to submit bids for City contracts. The Purchasing Division also assists businesses with registering on the Bids Online database to download the bid specifications. Through outreach, 295 Long Beach vendors were contacted to submit bids, of which six downloaded and one submitted a bid. The Purchasing Division is committed to continuing to perform outreach to local vendors to expand the bidder pool.
This matter was reviewed Deputy City Attorney Amy Webber on January 27, 2015 and by Budget Management Officer Victoria Bell on January 29, 2015.
TIMING CONSIDERATIONS
City Council action to adopt Specifications No. ITB LB15-020 and award contracts concurrently is requested on February 17, 2015 to ensure the contracts are in place expeditiously.
FISCAL IMPACT
The proposed contracts provide pricing for additional building materials not included in previous contracts. Combined expenditures for lumber and non-contracted building materials totaled approximately $250,000 in FY 14. Estimated annual aggregate costs will not exceed $300,000 and are budgeted in various funds and departments. The award of these contracts will provide continued support to our local economy by assisting in the preservation of employment for 26 full-time employees residing in Long Beach.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
JOHN GROSS
DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER