TITLE
Recommendation to adopt Specifications No. PA-01913 and award a contract to Ferguson Enterprises, Inc., a Long Beach-based business (not an MBE, WBE or SBE), for furnishing and delivering polyethylene pipe and fittings, in an annual amount not to exceed $394,000 for a period of one-year, 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 an annual contract with Ferguson Enterprises, Inc., for furnishing and delivering polyethylene (PE) pipe and fittings used by the Long Beach Gas and Oil Department (LBGO) and its contractors for the repair, maintenance, and construction of the City's natural gas pipeline system. The work is part of LBGO's ongoing Capital Improvement Program (CIP) to ensure the safe and efficient delivery of natural gas to customers in Long Beach and Signal Hill. The CIP scope includes work planned in the Port of Long Beach in connection with the Gerald Desmond Bridge and Middle Harbor Projects. All materials purchased under this contract for the Port will be reimbursed by the Harbor Department.
The bid was advertised in the Press-Telegram on December 12, 2012, and 1,029 potential bidders specializing in PE pipe and fittings were notified. Of those bidders, 19 downloaded the bid via the City's 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. 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. Two bids were received on December 18, 2012. Of those bidders, none were Minority-owned Business Enterprises (MBEs), none were Women-owned Business Enterprises (WBEs), none were certified Small Business Enterprises (SBEs), and one was a Long Beach business (Local). Ferguson Enterprises, Inc., a Long Beach-based business (not an MBE, WBE, or SBE), is the lowest responsible bidder.
This matter was reviewed by Deputy City Attorney Richard Anthony and Budget Management Officer Victoria Bell on December 20, 2012.
TIMING CONSIDERATIONS
City Council action to adopt Specifications No. PA-01913 and award a contract concurrently is requested on January 8, 2013 to ensure that a new contract is in place expeditiously.
FISCAL IMPACT
The cost of the contract, in an annual amount not to exceed $394,000 is budgeted in the Gas Fund (EF 301) in the Long Beach Gas and Oil Department (GO). The award of this contract will provide continued support to our local economy by assisting in the preservation of seven full-time employees residing in Long Beach.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
CHRISTOPHER GARNER
DIRECTOR OF LONG BEACH GAS AND OIL
JOHN GROSS
DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER