City Council
Report
City Council Meeting: September 26, 2017
Agenda Item: 3.D
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To: Mayor and City Council
From: Susan Cline, Director, Public Works, Facilities Maintenance Subject: Contract Award for General Contracting Services Recommended Action
Staff recommends that the City Council:
1. Award Bid #4285 to RAMCO General Engineering Contractor, a California-based company, for general contracting services as required by the Facilities Maintenance Division;
2. Authorize the City Manager to negotiate and execute an agreement with RAMCO General Engineering Contractor, in an amount not to exceed $380,000 for one year, with two additional two-year renewal options with a 2% increase per year for years three through five, for a total amount not to exceed $1,946,211 over a five-year period, with future year funding contingent on Council budget approval.
Executive Summary
The City utilizes general contracting services to perform work that requires specialized equipment, contractor licensing and technical expertise that cannot be provided by inhouse staff. Such services include roof repairs, drywall replacements, wall framing, concrete repairs, office remodels, and demolition and installation of various fixtures throughout the City. In May 2017, the City solicited bids for such services. After reviewing the two bids received, staff recommends RAMCO as the best bidder for a one year agreement in an amount not to exceed $380,000, with two additional two-year renewal options with a 2% increase per year for years three through five, for a total agreement amount not to exceed $1,946,211 over a five-year period.
Background
On January 13, 2015 (Attachment A), staff presented to Council a Contract and AsNeeded Staffing Review: Policy, Practice, Recommendations report. Council approved contracted staff for general contracting services as part of the comprehensive report.
General contracting services are used approximately 60 times per year and often entail 2 of 4
work that calls for immediate attention due to safety concerns as well as large-scale projects that require specialized equipment, licensing and technical expertise that cannot be provided by in-house staff. On July 23, 2013, Council awarded Bid #4093 to RAMCO, Omega Construction and Crescent Pacific to provide general contracting services for FY 2013-14 in a combined amount not to exceed $350,000, with two additional one-year renewal options for a cumulative total agreement amount not to exceed $1,050,000 over a three-year period, per Attachments B and C. Facilities Services elected to exercise both one-year renewal options with RAMCO and Omega Construction through June 2016. The three-year actual expenditures totaled approximately $448,000.
In July 2016, staff awarded informal bid 51500-OG (Attachment D) to RAMCO, Omega Construction and Lee Capital to provide general contracting services. Based on the historical spending from Bid #4093, staff's intent was to establish a contractual service agreement with the three recommended bidders, with each agreement’s total amount not to exceed $175,000 over a three-year period, for a cumulative total amount not to exceed $525,000. However, it quickly became apparent that the financial impact of prevailing wage rates as well as the City's increase in demand of general contracting services exceeded the original estimate. As a short-term remedy, until the services could be formally bid, staff decided to pursue a contractual services agreement, CT4266, only with the lowest bidder, RAMCO, for a total amount not to exceed $175,000 over a five-year period. Staff exercised the maximum allowable City Manager authority and contractual term length with RAMCO.
Discussion
The City employs four in-house staff to provide carpentry services at City facilities. Such services include furniture modifications, locksmith repairs, stucco patching, weather stripping, partition installations and the repair of various fixtures throughout the City.
Staff solicits the services of a general contractor approximately 60 times per year to respond to citywide general contracting requests and to assist with the maintenance of City-owned facilities. These services range from jobs that require immediate attention due to safety concerns such as window repairs, trip hazards and roof leaks to large- 3 of 4
scale projects such as wall framing, concrete repairs and office renovations and remodeling.
Vendor/Consultant Selection
On May 31, 2017, the City published Notices Inviting Bids to provide general contracting services in accordance with City specifications. The bid was posted on the City's on-line bidding site, and notices were advertised in the Santa Monica Daily Press in accordance with City Charter and Municipal Code Section 2.24.100(a). A total of 34 vendors downloaded the bid. Two bids were received and publicly opened on June 19, 2017, per Attachment E. Bid results are as follows:
Sample Job Proposal Graph Company RAMCO General Engineering Company Materials (tax included) $ 3,362.63 $ 3,528.00
Labor $ 11,900.00 $ 5,450.00
Other Costs $ 4,579.00 $ 1,345.00
Total $ 19,841.63 $ 10,323.00
Bids were evaluated based on the criteria in SMMC 2.24.072, including price, previous experience, ability to deliver, quality of product and compliance with City specifications.
RAMCO offered the lowest bid and quickest response time, which is necessary for urgent repairs. Moreover, RAMCO has continued to provide the City with quality service while maintaining timely completion of projects and cost-efficiency. Based on these criteria, RAMCO, the lowest bidder, is recommended as the best bidder.
Financial Impacts and Budget Actions
The contract to be awarded to RAMCO is for an amount not to exceed $1,946,211.
Funds of $380,000 are available in the FY 2017-18 budget in the Public Works Department. The contract will be charged to account 01274.570060, and expenditures will be transferred to departments incurring the contracting services. Future year funding is contingent on Council budget approval.
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Prepared By: Kyla Johnson, Administrative Analyst
Approved Forwarded to Council
Attachments:
A. January 13, 2015 Staff Report
B. July 23, 2013 Staff Report
C. July 23, 2013 Staff Report - Best Bidders
D. 51500-OG General Contractor Bid Results
E. Bid #4285 General Contracting Services Bid Results
F. Oaks Initiative Form