TITLE
Recommendation to authorize City Manager to increase Blanket Purchase Order Agreement No. BPLB14000039 with Southwest Wear Parts Company, Inc., of South El Monte, CA, for as-needed welding services, by $100,000, for a total annual 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 increase the existing agreement with Southwest Wear Parts Company, Inc., by $100,000, for as-needed welding services. This Citywide Blanket Purchase Order (BPO) is utilized by various departments, including Airport, Financial Management, Harbor, Parks, Recreation and Marine, Public Works, and Water on an as-needed basis when the workload temporarily exceeds the capacity of staff welders. Of these, the Fleet Services Bureau of Financial Management (Fleet) uses the majority of the contract authority for the repair of City vehicles. The Harbor and Water Departments use these services for a variety of welding requirements, both in the shop and in the field. The remaining departments use the contract for miscellaneous welding repair work required at City facilities.
Historically, spending for welding services has averaged $70,000 per year, but did not include the Airport and Water Departments, which are now included in the current contract. Due to the aging fleet of refuse trucks, which include front, side, and rear loaders, and the temporary loss of a staff welder, Fleet anticipates total BPO expenditures to exceed anticipated needs by $100,000 per year. Current purchasing guidelines authorize the City Manager to approve purchases up to $200,000 when a competitive procurement has been done resulting in three or more price proposals. For the initial $200,000 in this instance, a competitive process was done in April 2014. The action requested of the City Council today is required with the additional new amount of...
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