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APPROVE MOTION TO AUTHORIZE A COOPERATIVE PURCHASE AGREEMENT FOR CITYWIDE SIEMENS HVAC CONTROLS SOFTWARE SERVICES, AND DELTA WATER TREATMENT PLANT BUILDING AUTOMATION SYSTEM UPGRADE PROJECT
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RECOMMENDATION
It is recommended that the City Council approve a motion to:
1. Approve findings pursuant to Stockton Municipal Code section 3.68.070 in support of an exception to the competitive bidding process.
2. Approve the use of a Cooperative Purchase Agreement through Omnia Partners, Contract No. 2023003490, with Siemens Industry, Inc., in the not to exceed amount of $115,767.77, for Citywide Siemens HVAC Controls Software Services, Project No. OM-26-010.
3. Approve the use of a Cooperative Purchase Agreement through Omnia Partners, Contract No. 2023003490, with Siemens Industry, Inc., in the not to exceed amount of $491,498.28, for Delta Water Treatment Plant Building Automation System Upgrade, Project No. OM-26-009.
4. Authorize the City Manager to execute a three-year Cooperative Purchase Agreement with Siemens Industry, Inc., in the not to exceed amount of $607,266.05, for Citywide Siemens HVAC Controls Software Services, Project No. OM-26-010, and Delta Water Treatment Plant Building Automation System Upgrade, Project No. OM-26-009.
It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this motion.
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Summary
Public Works is responsible for the maintenance of approximately 500 Heating, Ventilation, and Air Conditioning (HVAC) units in City-owned facilities. The majority of these HVAC units utilize software from Siemens Industry, Inc. This software is used to remotely monitor, tune, and troubleshoot HVAC unit controls. An ongoing software service agreement with Siemens Industry, Inc. will minimize potential service disruptions and maintain a comfortable environment for City staff and patrons utilizing City buildings.
The Municipal Utilities Department’s (MUD) Delta Water Treatment Plant (DWTP) is operating with an outdated Building Automation System (BAS), which remotely controls and monitors HVAC, lighting, security, and other essential building systems software. Upgrading the BAS is necessary to sustain long-term system resilience and performance.
Omnia Partners is a national cooperative procurement organization that offers publicly solicited contracts to government entities nationwide. Use of a Cooperative Purchase Agreement (COOP) streamlines administrative costs and procedures and takes advantage of volume purchasing while maintaining the integrity of the competitive bidding process.
It is recommended that Council approve a motion authorizing the City Manager to execute a COOP through Omnia Partners, with Siemens Industry, Inc., in the not to exceed amount of $115,767.77, for Citywide Siemens HVAC Controls Software Services, Project No. OM-26-010, and to execute a COOP, in the not to exceed amount of $491,498.28, for DWTP BAS Upgrade, Project No. OM-26-009, for a combined COOP total of $607,266.05 (Attachment A).
DISCUSSION
Background
Public Works is responsible for the maintenance of approximately 500 HVAC units in City-owned facilities. The majority of these HVAC units utilize software from Siemens Industry, Inc. This software is used to remotely monitor, tune, and troubleshoot HVAC unit controls. An ongoing software service agreement with Siemens Industry, Inc. will minimize potential service disruptions and maintain a comfortable environment for City staff and patrons utilizing City buildings. The City previously issued annual Purchase Orders to Siemens Industry, Inc. for software support.
Since 2012, MUD’s DWTP supplies 30 million gallons of treated surface water a day to Stockton residences and commercial businesses. The DWTP’s BAS, which remotely controls and monitors HVAC, lighting, security, and other essential building systems software, is deteriorating. This deterioration has caused disruptions in site operations, affecting the working environment for DWTP staff and straining City resources allocated to manage these issues reactively.
Omnia Partners is a national cooperative procurement organization that offers publicly solicited contracts to government entities nationwide. Use of a COOP streamlines administrative costs and procedures and takes advantage of volume purchasing while maintaining the integrity of the competitive bidding process. Omnia Partners has a contract, No. 2023003490, with Siemens Industry, Inc. for software support services.
The initial term of Omnia Partners Contract No. 2023003490 with Siemens Industry, Inc. expires in May 2028, with an option to renew for five additional successive one-year periods through May 2033. Should the lead agency and Siemens Industry, Inc. opt to renew the COOP, the City may also opt to extend the agreement beyond the initial three-year term.
Present Situation
An ongoing software service agreement with Siemens Industry, Inc. will provide for routine evaluations of system programming and on-call software troubleshooting to avoid any potential service disruptions. The service agreement will also assist with maintaining required temperature levels for critical operational equipment and a comfortable environment for City staff and patrons utilizing City buildings.
Upgrading MUD’s DWTP BAS will resolve persistent automation control issues that are hindering site operations. The project will modernize field panels, integrate HVAC control systems across key DWTP buildings, and establish a resilient system to support the DWTP’s mission.
It is recommended that Council approve a motion authorizing the City Manager to execute a COOP through Omnia Partners with Siemens Industry, Inc., in the not to exceed amount of $115,767.77, for Citywide Siemens HVAC Controls Software Services, Project No. OM-26-010, and, in the not to exceed amount of $491,498.28, for DWTP BAS Upgrade, Project No. OM-26-009, for a combined COOP total of $607,266.05 (Attachment A).
Findings
Pursuant to Stockton Municipal Code section 3.68.070, Council may approve findings which support an exception to the competitive bidding process. These findings include:
1. Omnia Partners, through the University of California Procurement Services, the lead public agency, established a COOP for Building Management Services with Siemens Industry, Inc., Contract No. 2023003490.
2. The Request for Proposals (RFP) specifications used by Omnia Partners were assessed against the City’s standard RFP process and industry standards of quality and efficiency. The Procurement Division of the Administrative Services Department has determined that the contract meets the obligations of City procurement requirements.
3. Taking advantage of the leveraged procurement agreement negotiated by Omnia Partners will save the administrative expense of City staff conducting a separate procurement.
FINANCIAL SUMMARY
Funding for the COOP will be encumbered on a fiscal year basis. There is sufficient budget in the Public Works Facilities HVAC Maintenance Software Operating Account to cover year one of the Citywide Siemens HVAC Controls Software Services.
Additionally, there is sufficient funding in MUD’s Water Utility Operating Budget for the DWTP BAS Upgrade. Funding for future years will be appropriated as part of the annual operating budget development cycle.
Attachment A - Cooperative Purchase Agreement with Siemens Industry, Inc.