TITLE
Recommendation to authorize City Manager, or designee, to execute all documents necessary to amend Contract No. 32100796 with CW Industries, Inc., of Long Beach, CA, for providing welding services, to increase amount by $375,000, for a revised annual contract amount of $475,000, with a 15 percent contingency of $71,250, for a total annual amount not to exceed $546,250, for a period of two years ending
on June 30, 2023, with the option to renew for three additional one-year periods, at the discretion of the City Manager; and
Increase appropriation in the Fleet Fund Group in the Financial Management Department by $216,250, offset by charges to user departments through the Fleet Memorandum of Understanding (MOU) monthly billing. (Citywide)
DISCUSSION
City Council approval is requested to amend Contract No. 32100796 with CW Industries, Inc., for providing welding services for the Public Works and Financial Management Departments.
An Invitation to Bid (ITB) FS 21-065 was issued on May 14, 2021, and 29 potential bidders specializing in welding services were notified of the bid opportunity. Of those bidders, five downloaded the ITB via the City of Long Beach’s (City) electronic bid system. The ITB document was made available from the Purchasing Division, located on the 6th 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 38 local, minority-owned, and women-owned business groups. There were two responses received on June 8, 2021. Of those two proposers, none were Minority-owned Business Enterprises (MBEs), none were Women-owned Business Enterprises (WBEs), one was certified Small Business Enterprises (SBEs), and one was a Long Beach vendor (Local).
It was anticipated at the time of the bid that annual costs for welding services would be less than $100,000. Therefore, under City Manager’s authority per City procurement policy, Contract No. 32100796 was executed. However, since execution of the contract, City staff have determined that additional welding services are critically needed to keep the fleet safe and operational.
The Fleet Services Bureau of the Financial Management Department utilizes welding services for large repair jobs or overflow work that cannot be reasonably accommodated by the City’s trained staff welder. Lengthy welding jobs are commonly needed on large, high-duty service equipment such as refuse trucks and beach maintenance equipment. Repair work is often unscheduled and timely turn-around is required to maintain service department operations.
The Environmental Services Bureau (ESB) of the Department of Public Works also utilizes welding services for repairing 20-yard metal bins to transport street sweeping debris from various locations throughout Long Beach to disposal sites and 2 and 3-yard refuse bins used for collection of residential refuse. These bins are repaired on an as-needed basis due to the nature of operations; the material collected is often wet and with time damages the integrity of the bin, causing leaks between the bin frame and inner walls.
As a local Long Beach vendor, CW Industries can respond quickly to requests to complete emergency repairs. Their staff can also become familiar with the variety of vehicles and equipment that may need welding for occasional repairs, and for larger jobs such as replacing metal siding or floors. The Fleet Services Bureau and ESB share the same service yard and will allow CW Industries to become familiar and coordinate the operational needs for both bureaus.
This matter was reviewed by Deputy City Attorney Taylor M. Anderson on March 29, 2022, Purchasing Agent Michelle Wilson on March 17, 2022, and by Revenue Management Officer Geraldine Alejo on March 24, 2022.
TIMING CONSIDERATIONS
City Council action to amend Contract No. 32100796 with CW Industries, Inc., is requested on April 19, 2022, to ensure that a contract amendment is in place expeditiously and City services continue uninterrupted.
FISCAL IMPACT
The total annual amount of the contract will not exceed $546,250, inclusive of a 15 percent contingency. Of the total contract amount, $330,000 is currently appropriated in the following fund groups and departments: $100,000 in the Fleet Fund Group in the Financial Management Department, $100,000 in the General Fund Group in the Public Works Department, and $130,000 in the Refuse Fund Group in the Public Works Department. An appropriation increase for the balance of $216,250 is requested in the Fleet Fund Group in the Financial Management Department, offset by charges to user departments collected through the Fleet Memorandum of Understanding (MOU). Actual charges to user departments will be based on actual services rendered. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with City Council priorities. The recommendation will provide continued support to our local economy by assisting in the preservation of employment for eight full-time employees residing in Long Beach.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
KEVIN RIPER
DIRECTOR OF FINANCIAL MANAGEMENT
ERIC LOPEZ
DIRECTOR OF PUBLIC WORKS
APPROVED:
THOMAS B. MODICA
CITY MANAGER