TITLE
Recommendation to adopt Specifications No. ITB ER20-006 and award a contract to Independent Electric Supply, Inc., dba Independent Utility Supply, of Tracy, CA, for furnishing and delivering Mueller products, in an annual amount not to exceed $250,000, for a period of two years, with the option to renew for three additional one-year periods, at the discretion of the City Manager; and authorize City Manager, or designee, to execute all documents necessary to enter into the contract, including any necessary amendments. (Citywide)
DISCUSSION
City Council approval is requested to enter into a contract with Independent Utility Supply for furnishing and delivering Mueller products used by the Energy Resources Department (ER). These products are predominantly gas control fittings and equipment, which are specialized pipeline components used by ER to safely control the flow of natural gas to maintain the City’s natural gas distribution system. Mueller fittings are proprietary and are designed for use with other Mueller equipment currently utilized by ER. In addition, ER personnel have been exclusively trained to operate Mueller brand fittings and equipment. Purchasing products other than those manufactured by Mueller is not a cost-effective option for the City.
The bid was advertised in the Long Beach Press-Telegram on November 18, 2019, and 397 potential bidders specializing in Mueller products were notified of the bid opportunity. Of those bidders, 18 downloaded the bid via the City’s electronic bid system. The bid document was made available from the Purchasing Division, located on the sixth 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 28 local, minority-owned, and women-owned business groups. One bid was received on December 11, 2019. The one bidder was not a minority-owned Business Enterprise (MBE), a Women-owned Business Enterprise (WBE), a certified Small Business Enterprise (SBE), or a Long Beach business (Local). Independent Electric Supply, Inc., dba Independent Utility Supply, of Tracy, CA, was the lowest responsible bidder.
Local Business Outreach
In an effort to align with the City’s outreach goal, Long Beach businesses are encouraged to submit bids for City contracts. The Purchasing Division also assists businesses with registering on the PlanetBids database to download the bid specifications. Through outreach, two Long Beach vendors were notified to submit bids, of which both downloaded and neither 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 by Deputy City Attorney Richard F. Anthony on December 24, 2019, Purchasing Agent Tara Yeats on December 24, 2019, and by Revenue Management Officer Geraldine Alejo on December 31, 2019.
TIMING CONSIDERATIONS
City Council action to adopt Specifications No. ITB ER20-006 and award a contract concurrently is requested on January 21, 2020, to ensure the contract is in place expeditiously.
FISCAL IMPACT
The total annual contract amount will not exceed $250,000, for a period of two years with the option to renew for three additional one-year periods. Sufficient funds are budgeted in the Gas Fund Group in the Energy Resources Department. 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 the recommendation.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
ROBERT DOWELL
DIRECTOR OF ENERGY RESOURCES
APPROVED:
THOMAS B. MODICA
ACTING CITY MANAGER