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APPROVE MOTION TO AWARD A SERVICE CONTRACT FOR ON-CALL PLUMBING MAINTENANCE AND REPAIR SERVICES
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RECOMMENDATION
It is recommended that the City Council approve a motion to:
1. Award a five-year Service Contract not to exceed a total of $1,250,000 ($250,000 per year estimated) to Champion Industrial Contractors, Inc. of Modesto, CA, for On-Call Plumbing Maintenance and Repair Services, Project No. OM-20-007.
2. Approve findings pursuant to Stockton Municipal Code section 3.68.070 in support of an exception to the competitive bidding process.
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
The City requires routine preventative maintenance and on-call emergency plumbing services for all City facilities. The previous contract for these services with Comfort Air Inc. will expire on June 30, 2020. On January 29, 2020, the City advertised a Request for Proposals (RFP) for City of Stockton Facilities On-Call Plumbing Maintenance and Repair Services, Project No. OM-20-007. This contract will retain one contractor to provide plumbing services as needed with set response times and competitive pricing.
Two firms submitted proposals for this project. The Selection Committee evaluated the proposals, interviewed each proposer, and found Champion Industrial Contractors, Inc. of Modesto, CA, to be the most qualified and highest ranked firm.
It is recommended that Council approve a motion authorizing the City Manager to execute a five-year Service Contract not to exceed a total of $1,250,000 ($250,000 per year estimated), with Champion Industrial Contractors, Inc. (Attachment A). Contracted services will expire June 30, 2025, without any options for extension. The Service Contract allows the City to only pay for services performed on a time and materials basis. The contract will be funded from Public Works, Community Services, Community Development, and Municipal Utilities Department’s Operating Budgets.
DISCUSSION
Background
The City is responsible for maintaining plumbing systems at every City facility and park. Routine preventative and as-needed emergency services are required to keep City facilities and assets functional, and to prevent property damage. The City does not have enough qualified staff nor the specialized equipment needed for all unscheduled repairs or unique repairs that arise throughout the City-wide plumbing system. Past practice has been to solicit local plumbing companies for individual services on a case-by-case basis.
To be more cost-effective and efficient, a contract was developed to retain an on-call service provider at set rates to provide plumbing services. On April 13, 2017, the City advertised an RFP for City of Stockton Facilities On-Call Plumbing Maintenance and Repair Services, Project No. OM-17-112. On October 17, 2017, the City entered a contract with Comfort Air, Inc. of Stockton, CA, for City of Stockton On-Call Plumbing Maintenance and Repair Services, which was mutually extended for both optional years. On June 30, 2020, the contract with Comfort Air, Inc. will expire.
Present Situation
On January 29, 2020, the City advertised an RFP for City of Stockton Facilities On-Call Plumbing Maintenance and Repair Services, Project No. OM-20-007. On February 20, 2020, two proposals meeting the minimum proposal requirements were received as follows:
• Champion Industrial Contractors, Inc. (Modesto, CA)
• Comfort Air Inc. (Stockton, CA)
A Selection Committee comprised of Fire, Municipal Utilities, and Public Works Department staff evaluated and ranked all proposals based on each firm’s experience, quality of work, qualifications of staff, ability to meet the City’s required response times, ability to maintain readily available replacement parts, and cost. The Selection Committee then conducted interviews with both firms to complete the evaluation process. Champion Industrial Contractors, Inc. received the highest ranking based on the noted criteria and was determined to be the most qualified firm for this project.
Staff recommends Council approve a motion to award a five-year Service Contract not to exceed a total of $1,250,000 ($250,000 per year estimated) to Champion Industrial Contractors, Inc. for City of Stockton Facilities On-Call Plumbing Maintenance and Repair Services, Project No. OM-20-007 (Attachment A). The proposed contract provides comprehensive on-call plumbing services from July 1, 2020, until June 30, 2025, without the option of any extensions. The Service Contract is a Unit Price Contract, and the City will only pay for services performed. The annual amount is an estimate based on historical expenditures for labor and materials for these services.
Findings
Pursuant to Stockton Municipal Code (SMC) section 3.68.070, Council may approve findings which support an exception to the competitive bidding process. These findings include:
The City-wide on-call plumbing services contract involves specialized, variable plumbing service requests requiring an experienced, qualified contractor who has successfully provided services of similar frequency and scope.
1. The City does not have the specialized equipment or sufficient number of qualified staff available to perform the work required of this project.
2. Use of the RFP process is appropriate for this Service Contract because, in addition to cost, it relies on the evaluation of professional qualifications and performance as the basis for selection of a vendor. Use of the criteria helps ensure selection of a vendor that will provide professional, responsive, and timely service, which is in the public interest.
The recommended motion will approve a five-year Service Contract with Champion Industrial Contractors, Inc. not to exceed a total of $1,250,000 ($250,00 per year estimated) for City of Stockton Facilities On-Call Plumbing Maintenance and Repair Services, Project No. OM-20-007.
FINANCIAL SUMMARY
The Service Contract is proposed to be funded at the set fees listed below and in accordance with the Scope of Work in the Service Contract.
Five-Year Term Annual Cost
July 1, 2020 - June 30, 2021 $250,000
July 1, 2021 - June 30, 2022 $250,000
July 1, 2022 - June 30, 2023 $250,000
July 1, 2023 - June 30, 2024 $250,000
July 1, 2024 - June 30, 2025 $250,000
TOTAL $1,250,000
The Service Contract will be funded from Public Works, Community Services, Community Development and Municipal Utilities Department’s Operating Budgets. Sufficient funding available in the FY 2020-21 departments budget appropriations. Funding for remaining years of the Service Contract will be contingent on future annual budget appropriations. The funding split will remain the same over the life of the Service Contract as outlined in Attachment B.
There is no additional impact to the City’s General Fund or any other unrestricted fund as a result of taking the recommended action.
Attachment A - Service Contract with Champion Industrial Contractors, Inc.
Attachment B - Funding Accounts