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AWARD A PROFESSIONAL SERVICES AGREEMENT TO THE HACH COMPANY FOR WATER UTILITY INSTRUMENTATION SERVICES
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution to award a three-year Professional Services Agreement to the Hach Company of Loveland, CO, in the not-to-exceed amount of $82,145.61 for Water Utility instrumentation services.
It is also recommended that the City Manager be authorized to take appropriate actions to carry out the purpose and intent of this resolution.
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Summary
Adoption of the proposed resolution will retain the Hach Company for the Municipal Utilities Department (MUD) Water Utility’s instrumentation services. Instrument services include a wide variety of analytical checks, repairs, and instrument calibration of water quality analyzers at the Delta Water Treatment Plant laboratory. These instruments are necessary to meet State Water Board permit compliance testing for drinking water quality assurance.
On June 18, 2020, the City advertised a Request for Bids (RFB) for instrumentation services. Additionally, staff sent courtesy emails to vendors likely to bid for this type of service. One bid was received and evaluated. Staff recommends that the City Council adopt a resolution awarding a three-year Professional Services Agreement (PSA) to the Hach Company of Loveland, CO, in the not-to-exceed amount of $82,145.61 for instrumentation services.
DISCUSSION
Background
The Municipal Utilities Department (MUD) operates the Delta Water Treatment Plant (DWTP). The DWTP site requires an instrument services firm to maintain the calibration of equipment that contributes to providing safe and reliable drinking water to the City of Stockton water customers. The calibrations must be done to meet regulatory permit requirements established by the State Water Board. Field services include all parts, labor, and travel for on-site repairs, on-site calibrations per year, factory recommended maintenance (including required parts), unlimited technical support calls, and free firmware updates.
Present Situation
The existing instrumentation services contract expires on October 10, 2020. To secure a new contract, the MUD solicited bids on June 18, 2020, from interested vendors on Bid Flash.
On July 9, 2020, one competitive bid was received. The vendor Hach Company of Loveland, CO, provided the following bid (Attachment A):
|
Company Name |
Average Cost over 1 Year |
Total Cost over 3 Years |
|
Hach Company |
$ 27,381.87 |
$ 82,145.61 |
The average annual cost for instrumentation services is $27,381.87, with a not-to-exceed amount of $82,145.61 over a three-year term. The proposed contract (Exhibit 1 to the Resolution) governs the extent of the instrumentation services. The annual cost of the existing contract is $24,742.60, totaling $74,227.80 for three years. When comparing the current bid provided by Hach Company to the cost of the existing contract, the new bid is comparable to the existing contract’s fee schedule. The bid reflects current costs to the vendor and is a fixed cost for all three years. This contract does not allow for price increases due to fuel, labor, or other costs.
The bid received by the Hach Company is regular in all aspects and meets all project bid requirements. Hach Company has the proper license to perform the work. In addition, Hach Company is familiar with drinking water processes, procedures and regulations and has extensive experience with instrumentation services. Staff recommends Council approve a resolution approving a three-year PSA with Hach Company.
FINANCIAL SUMMARY
The annual average cost of the contract is $27,381.87. The Fiscal Year 2020-21 Annual Budget includes sufficient appropriation to cover the instrumentation services in the Delta Water Treatment Plant, Professional and Special Services (account 421-4234-571) to cover the first year of the contract. Costs for the subsequent years will be budgeted in the same account and subject to Council approval during the annual budget development process. The cost of the service agreement over three years is $82,145.61.
There is no impact to the General Fund, or any other unrestricted funds, from this action.
Attachment A - Bid - PUR 20-016 - Instrumentation Services