TITLE
Recommendation to adopt Specifications No. PA-00409 and award contracts to McCain, Inc., and J & J, Inc., for the purchase of traffic signal parts and equipment in the amount of $170,000 for a period of one year, with the option of renewing for two additional one-year periods, at the discretion of the City Manager, with the option of adding expenditures up to 10 percent (or $17,000) above the annual contract amount, if necessary and if funds are available. (Citywide)
DISCUSSION
City Council approval is requested to enter into annual contracts with McCain, Inc., and J & J, Inc., to furnish and deliver traffic signal parts and equipment for the Department of Public Works, Traffic Operations Division. This contract will assist the Traffic Operations Division in continuing the support of ongoing traffic signal maintenance and upgrades throughout the City.
In an effort to obtain the most cost effective pricing, the Traffic Operations Division developed a comprehensive bid specification that incorporated annual usages. These bid specifications allowed the City of Long Beach to achieve economies of scale and ensure the City is receiving the most competitive prices. Prior to this proposed contract, the Traffic Operations Division was bidding these purchases informally, on an as needed basis.
The bid was advertised on December 15, 2008, and 27 potential bidders specializing in traffic signal equipment were notified; two are Woman-owned Business Enterprises (WBEs), three are Minority-owned Business Enterprises (MBEs), none are Long Beach businesses and four 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 23, 2008. McCain, Inc., of Vista, CA (not an MBE, WBE, local or SBE) and J & J, Inc., of Chino, CA (not an MBE, WBE, local or SBE) were the lowest responsible bidders.
This matter was reviewed by Deputy City Attorney Amy R. Burton on March 3, 2009 and by Budget Management Officer Victoria Bell on March 4, 2009.
TIMING CONSIDERATIONS
City Council action to adopt Specifications No. PA-00409 and award the contract concurrently is requested on March 24, 2009 to ensure that a contract is in place expeditiously.
FISCAL IMPACT
The cost of these contracts is $170,000 annually, and is budgeted in the General Fund (GP) in the Department of Public Works (PW). The City will have the option of adding expenditures up to 10 percent (or $17,000) 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
MICHAEL P. CONWAY
DIRECTOR OF PUBLIC WORKS
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APPROVED: |
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PATRICK H. WEST |
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CITY MANAGER |