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HomeMy WebLinkAbout07/01/2014 Public Works Uniform Rental & Cleaning ContractMount 1 li Mount Prospect Public Works Department INTEROFFICE MEMORANDUM TO: VILLAGE MANAGER MICHAEL E. JANONIS FROM: DEPUTY DIRECTOR OF PUBLIC WORKS DATE: JUNE 26, 2014 SUBJECT: PUBLIC WORKS UNIFORM RENTAL AND CLEANING CONTRACT ($9,778.08) Background For many years, the labor agreement for the Public Works Department bargaining unit employees has stipulated that the Village must supply 100% cotton work uniforms. In an effort to comply with this requirement, staff has routinely let bids for a contract to supply and launder industrial work uniforms. The current contract was initiated in 2010 and is due to expire in July 2014. Bid Results At 1:00 PM on Monday, June 23, 2014 sealed bids were opened for the weekly rental and cleaning of uniforms worn by Public Works Department maintenance personnel. The term of the proposed contract is 36 months. A legal notice was placed in the Daily Herald and five (5) invitational bids were distributed to local vendors. Two (2) bids were received. The results are listed below: • W-11 z. F-11 hi # of Employees Cost/ Week Cost / Year Full rental 100% cotton -11 sets 25 $ 4.40 $ 5,720.00 Full rental F.R -11 sets 6 $ 7.92 $ 2,471.04 Full rental 100% cotton -7 sets 1 $ 2.80 $ 145.60 Self launder -10 sets 7 $ 3.60 $ 1,310.40 Self launder -7 sets 1 $ 2.52 $ 131.04 Total Annual Cost 40 G&K SERVICES # of Employees Cost / Week $ 9,778.08 Cost / Year Full rental 100% cotton -11 sets 25 $ 5.17 $ 6,721.00 Full rental F.R -11 sets 6 $ 9.24 $ 2,882.88 Full rental 100% cotton -7 sets 1 $ 3.29 $ 171.08 Self launder -10 sets 7 $ 3.60 $ 1,310.40 Self launder -7 sets 1 $ 2.52 $ 131.04 Total Annual Cost 40 $ 11,216.40 Page 2 of 2 PUBLIC WORKS UNIFORM RENTAL AND CLEANING CONTRACT ($9,778.08) June 26, 2014 Discussion Based on the tabulation, the lowest annual cost for this proposed contract is $9,778.08 as submitted by Aramark. The price submitted by Aramark represents an approximate 18% reduction in cost over the current contract. Furthermore the price submitted by Aramark represents a 30% reduction in cost over the contract awarded in 2008. Staff reviewed the submitted bids and both vendors submitted addendum to the bid specifications /contract. Specifically Aramark submitted an addendum changing the insurance requirements, hold harmless language and the contract termination language. The second low bidder G &K Services, of Bensenville, IL, also submitted an addendum to the bid requesting changes to the indemnification and hold harmless language. It should be noted that the indemnification, hold harmless and contract termination language is identical to the language in the current contract. The addendums submitted by Aramark and G &K Services were reviewed by the Village attorney with the attorney determining that the changes to the contract language do not place the Village at a higher level of risk. The Village attorney finds the changes acceptable; however, the changes represent a substantive deviation from the bid. Because of the significant changes to the bid the Village attorney's opinion is that all bids submitted must be rejected. Staff recommends rejecting the bids submitted by Aramark and G &K Services. The prices as submitted by Aramark were obtained through a valid public bidding process and represent a significant savings over the current contract. In addition, Aramark is the current uniform vendor and has proven themselves to be a reliable and competent supplier of laundered public works uniforms. Staff discussed, with the Village attorney, the potential of awarding the contract directly to Aramark. The Village attorney agreed that waiving the bid process after rejecting the current bids and awarding a contract directly to Aramark for the prices in their bid submittal was a legal and viable solution. Staff is recommending waiving the required public bid process and entering into a three (3) year agreement with Aramark of Burbank, CA for $9,788.08 per year. Sufficient funds are in the budget for this award. Recommendations The following two recommendations are being made: 1. Reject all bids submitted (Aramark and G &K Services) for the Public Works Uniform cleaning and rental contract as non - responsive to the bid documents. 2. Waive the bid process and enter into a three (3) year agreement with Aramark of Burbank, CA for Cleaning and rental of Public Works uniforms for $9,788.08 in contract year 2014. Sufficient funds exist in the current budget for these expenditures. Expenditures in 2015 and 2016 will be limited to amounts authorized by th dget. �� � Leib I concur with th dations. Sean P. D Public Works Director