TITLE
Recommendation to adopt Specifications No. ITB FS21-041 and award a contract to South Coast Shipyard, Inc., of Newport Beach, CA, for repairs to two marine vessels currently used by the Fire Department, in the amount of $957,540, with a 15 percent contingency of $143,631, for a total amount of $1,101,171; authorize City Manager, or designee, to execute all documents necessary to enter into the contract, including any necessary amendments; and
Increase appropriations in the Fleet Services Fund Group in the Financial Management Department by $1,101,171, offset by previously collected capital collections. (Citywide)
DISCUSSION
City Council approval is requested to enter into a contract with South Coast Shipyard, Inc., to replace the engines, transmissions, and pumps in marine vessels 133 and 134, used by the Fire Department for lifeguard and rescue operations. The City Council previously authorized similar repairs for four other rescue boats on October 23, 2018 and August 4, 2020. These are the last of the remaining marine vessels due for this service.
These units are 13 years old and require extensive repairs, including equipment replacement, approximately every eight to ten years. Overhaul of these vessels will extend their useful life for eight years or more. The Fleet Services Bureau regularly maintains marine vessels for operations by the Police and Fire Departments. Manufacturer recommendations for engine and pump replacement, including upgrades to comply with California standards for emission reduction from petroleum fuels, were included in the bid specifications. Scheduled repairs are critical to preserving the boats' overall condition and service life due to the saltwater environment.
The bid was advertised in the Long Beach Press-Telegram on April 22, 2021, and 26 potential bidders specializing in the repair and maintenance of marine vessels were notified of the bid opportunity. Of those bidders, nine downloaded the bid via the City's electronic bid system. In addition, the bid document was made available from the Purchasing Division in the Financial Management Department, located on the sixth 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 of Open Bid Opportunities, which is sent to 35 local, minority-owned, and women-owned business groups. One bid was received on May 19, 2021, and the bidder was not a Minority-owned Business Enterprise (MBE), Women-owned Business Enterprise (WBE), Small Business Enterprise (SBE), or a Long Beach business (Local). South Coast Shipyard (not a MBE, WBE, SBE, or Local) was the sole responsive bidder.
Local Business Outreach
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, four Long Beach vendors were notified to submit bids, of which none downloaded or 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 Taylor M. Anderson on June 10, 2021, Business Services Bureau Manager Tara Mortensen on May 7, 2021, and by Revenue Management Officer Geraldine Alejo on June 14, 2021.
SUSTAINABILITY
The new engines and pumps are compliant with the State of California and local district air quality regulations and use ultra-low sulfur diesel fuel.
TIMING CONSIDERATIONS
The total contract amount will not exceed $1,101,171, inclusive of fees, taxes, and a 15 percent contingency in the amount of $143,631. An appropriation increase of $1,101,171 is requested in the Fleet Services Fund Group in the Financial Management Department, offset by accumulated capital collections in the Fleet Services Fund Group for rescue boat replacement. These funds will now be utilized for the rescue boat repair. 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 this recommendation.
FISCAL IMPACT
City Council action is requested on July 6, 2021, to ensure the contract is in place expeditiously.
SUGGESTED ACTION
Approve recommendation.
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Respectfully Submitted,
JOHN GROSS
INTERIM DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:
THOMAS B. MODICA
CITY MANAGER