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Recommendation to adopt Specifications No. PA-00709 and award a contract to ARAMARK Uniform Services, a division of ARAMARK Uniform & Career Apparel, LLC to furnish and deliver rental uniforms, in an annual amount of $280,000 for a period of one year, with the option to renew for three additional one-year periods, at the discretion of the City Manager, with the option to add expenditures up to 10 percent
(or $28,000) above the annual contract amount, if necessary and if funds are available; and to extend the existing contract with Prudential Overall Supply to no later than April 30, 2009 and increase the contract amount by $70,000 for service transition. (Citywide)
DISCUSSION
City Council approval is being requested to enter into a Citywide contract for uniform rental services. The City enters into an annual contract for uniform rental service in order to provide various City employees with work uniforms.
The proposed specifications were thoroughly reviewed and revised by the Department of Financial Management, Purchasing Division, to better define contractor responsibility and vendor performance, develop an effective scope of services and streamline operations. Upon contract award and before the start of the contract, the contractor is required to submit a bidder's bond, insurance certificates for commercial general liability, workers' compensation, and auto and all-risk property insurance. In addition, the contract has numerous clauses for contractor non-compliance.
Upon award of the proposed contract, a 3~-day transition period will be required in order to allow the new contractor time to size, order and receive new uniforms. The closeout of the Prudential Overall Supply contract cannot occur until all applicable City employees: are issued new uniforms. It is the City's intention to minimize any disruption to the various departments, such as Water, Harbor, Gas & Oil, and Public Works, which utilize this service. Upon inception of the contract, new uniforms will be issued by ARAMARK Uniform Services, and thereafter, for the duration of the contract, all City uniforms will be replaced within 12 months for 100 percent cotton uniforms and 18 months for cotton/polyester uniforms, at no cost to the City. The proposed contract is for a period of one year, with the option to renew for three additional one-year periods. The recommendation for the three additional one-year renewal options is based on the following factors: the transition of uniform providers requires a significant amount of City resources to implement a new contract (Le.-individual fittings, account set-up, garment issuance, etc.) and the closeout process with the previous contractor is time consuming (i.e., collection of old uniforms, negotiation with vendor for missing garments, etc.). In addition, the contract renewal options equate to a lower cost passed onto the City. The weekly cost is based on a prorated amount that correlates to the contract's potential term.
The bid was advertised on October 31, 2008, and ten potential bidders specializing in uniform rental services were notified; two are Woman-owned Business Enterprises (WBEs), none are Minority-owned Business Enterprises (MBEs), one is a Long Beach business and none are certified Small Business Enterprises (SBEs). 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 on Open Bid Opportunities, which is sent to 30 local, minority and women's business groups. Bids were opened on December 11, 2008. ARAMARK Uniform Services, a division of ARAMARK Uniform & Career Apparel, LLC, (not a MBE, WBE, local, or SBE) of Burbank, CA was the lowest responsible bidder.
This item was reviewed by Deputy City Attorney Amy R. Burton on January 13, 2009 and by Budget Management Officer Victoria Bell on January 14, 2009.
TIMING CONSIDERATIONS
City Council action to adopt Specifications No. PA-00709 and award the contract to ARAMARK Uniform Services to begin on April 1, 2009, which would run concurrently with our current contractor, Prudential Overall Supply, for a period of no longer than one month (April 30, 2009).
FISCAL IMPACT
The cost of this contract, in the estimated amount of $280,000 annually, and the $70,000 increase for service transition, is budgeted in the various participating departments. This is an increase of approximately $70,000; however, this estimate is based on a specific number of employees using the service. Depending on the actual usage, the amount could be less. The City will have the option of adding expenditures up to 10 percent (or $28,000) above the annual contract amount, if necessary and if funds are available.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
LORI ANN FARRELL
DIRECTOR OF FINANCIAL MANAGEMENT/CFO
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PATRICK H. WEST |
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CITY MANAGER |