TITLE
Recommendation to adopt Specifications No. PA-00411 and award contracts to B & B Supply, a Long Beach-based business (not an MBE, WBE, or SBE) and Phillips Steel Co., a Long Beach-based business (WBE), for furnishing and delivering miscellaneous hand and power tools in a combined estimated amount not to exceed $200,000, 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 being requested to enter into Citywide contracts for miscellaneous hand and power tools to ensure that the City's facilities are maintained and adequate tools and materials are available for ongoing maintenance for various City departments. The contracts combine the estimated requirement for all facilities with similar needs to secure pricing at the highest volume discount. Multiple awards are recommended to ensure adequate stock is available at the lowest cost.
The bid was advertised in the Press-Telegram on October 14, 2010, and 583 potential bidders specializing in providing hand and power tools were notified of the bid opportunity. Of those bidders, 85 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's business groups. Six bids were received on November 9, 2010. Of those six bidders, none were Minority-Owned Business Enterprises (MBEs); one was a Women-Owned Business Enterprise (WBE); two were certified Small Business Enterprises (SBEs); and two were Long Beach Businesses (Local). B & B Supply, of Long Beach, CA (not an MBE, WBE, or SBE), and Phillips Steel Co., of Long Beach, CA (WBE), were the lowest responsible bidders.
Local Business Outreach
Our outreach goal during the bid process is to encourage Long Beach businesses to take advantage of local preferences offered by the City and submit bids for City contracts. Purchasing Division staff assists businesses with registering on the City's Bids Online database and with downloading bid specifications. Twenty-four Long Beach vendors were contacted to offer local outreach, of which two downloaded the bid, and two 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 Amy R. Burton on December 20, 2010 and Budget Management Officer Victoria Bell on December 22, 2010.
TIMING CONSIDERATIONS
City Council action to adopt Specifications No. PA-00411 and award contracts concurrently is requested on January 18, 2011 to ensure that contracts are in place expeditiously.
FISCAL IMPACT
The cost of these contracts, in a combined estimated amount not to exceed $200,000, is budgeted in various funds of various City departments. This estimate is based on historical expenditures. The award of these contracts will provide continued support to our local economy by assisting in the preservation of seventeen full-time and one part-time employees residing in Long Beach with employment.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
ERIK SUND
ACTING DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER