CITY COUNCIL AGENDA REPORT
City of Anaheim
FINANCE DEPARTMENT
DATE: JULY 18, 2023
FROM: FINANCE DEPARTMENT
SUBJECT: ACCEPTANCE OF BID FOR CRANE AND HOIST
MAINTENANCE, REPAIR, AND CERTIFICATION
ATTACHMENT (Y/N): NO ITEM # 07
GOVERNMENT CODE § 84308 APPLIES: NO
RECOMMENDATION:
That the City Council, by Motion, accept the bid from American Equipment, in the amount of $56,250 plus a 20% contingency, to perform repairs for cranes and hoists on an as-needed basis, for a one-year period, with four one-year optional renewals; and authorize the Purchasing Agent to execute the renewal options, all in accordance with Bid #9670.
DISCUSSION:
Purchasing solicited bids from known suppliers and posted the bid on the City’s bid portal. Sealed bids were received by 2:00 p.m., March 8, 2023, from the following vendors and were publicly opened immediately thereafter.
Bidder Total Bid*
American Equipment $ 91,141.04** Anaheim, CA
Trademark Hoist & Crane $ 96,340.00*** Pomona, CA
*Not all line items awarded
** Receiving award for 8 bid lines
***Bid not responsive for lines being awarded
The bid was based on performing quarterly and annual preventative maintenance and certification for 32 cranes and hoists located at various locations throughout the City, as well as an estimated number of labor hours to address as-needed unforeseen repairs that may arise from inspection. The bid was viewed by eleven potential bidders, with two submitting a bid response. Purchasing staff reached out to other potential bidders to 200 S. Anaheim Blvd.
Suite #620
Anaheim, CA 92805
Tel: (714) 765-5110
Fax: (714) 765-5288
www.anaheim.net
Acceptance of Bid for Crane and Hoist Maintenance, Repair, and Certification July 18, 2023
promote participation. Konecranes indicated they would not be able to meet the bid deadline, and several other crane service providers did not respond.
After evaluating the bids, staff determined that the award should be made for only the labor items to perform as needed repairs. The portions of the bid relating to testing and certification are not being awarded at this time.
Per a recommendation from a State of California Occupational Safety and Health Administration (Cal OSHA) representative, an agreement for testing and certification should be made with a different vendor from the one contracted for repairs. Staff evaluation determined that it would be in the City’s best interest to issue a new solicitation for the testing and certifications. These lifting devices are used by Public Works and Public Utilities staff to assist with a variety of complex heavy lifting tasks.
To ensure the safety of operational crews and to meet Cal OSHA’s regulatory compliance, it is vital to maintain and repair these aging assets in a timely manner to promote optimal productivity.
The term of the agreement will be for a one-year base period with up to four one-year optional renewals. Pricing is fixed for the initial one-year base period and will be negotiated each year of the renewal periods but may not exceed the change in the Consumer Price Index (CPI) for the Los Angeles, Long Beach, and Anaheim, California areas for the most recent available month. If contractor employees are being paid less than any future enacted government-mandated changes in labor rates, the contractor’s labor charges may be adjusted to bring the employee wages up to the newly required minimum. Documentation must be provided to support the requested adjustment.
A 20% contingency is recommended to cover any unforeseen increase in the volume of repairs that may be needed during the administration of this agreement.
IMPACT ON BUDGET:
Sufficient funds are available in the Public Works Department’s Fiscal Year 2023/24 budget. Funding for subsequent years will be subject to Council’s approval of budget appropriations.
Respectfully submitted, Concurred by,
Barrick L. Bartlett Rudy Emami
Purchasing Agent Director of Public Works