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HomeMy WebLinkAbout07/19/2016 MPI Joint Bid for Generator MaintenanceItem VIII. L.: MOTION TO ACCEPT MPI JOINT BID FOR GENERATOR MAINTENANCE IN AN AMOUNT NOT TO EXCCED $20,207 Department: Public Works Department Information: The proposed contract provides for generator maintenance services on Village owned emergency backup generators. The Village owns and maintains eighteen (18) back-up generators that provide emergency power to critical infrastructure such as water pumping stations and sanitary sewer lift stations. Back-up power is also provided to critical operating facilities including the Village Hall, Police/Fire stations and the Public Works facility. Protecting these critical elements allows for the uninterrupted capability of providing core services to the community. Staff has determined that the Municipal Partnering Initiative (MPI) joint bid for generator maintenance services provides the most competitive and cost effective means to procure these services. MPI is a regional collective of municipalities that jointly procures a range of commodities, services, and projects to better leverage economies of scale. The MPI joint bid includes nearly $415,000 of generator maintenance work over the three year contract. The Village of Glenview is administering the bid and the Villages of Lincolnshire, Mount Prospect, Northbrook, Algonquin and the City of Lake Forest are participants. This is the first time the Village of Mount Prospect has participated in this joint bid. Participation in the MPI joint bid satisfies the Village's bidding requirements. The village attorney advises competitive bidding is not required when the village, pursuant to its home rule powers, enters into a joint purchasing contract for materials, supplies, equipment or services with another entity which has conducted competitive bidding for those materials, supplies, equipment or services (Village code section 4.103G(2)). The contract is for a three (3) year agreement in 2016, 2017, and 2018. The following six (6) bids were publicly opened on May 26, 2016 at 1:00 P.M., by the lead MPI community in Village of Glenview, 2500 East Lake Avenue, Glenview, IL. The bid prices in the below table represent the quantities in this bid that are applicable to the Village of Mount Prospect for generator maintenance services program. Bidder Name Year 1 Year 2 Year 3 Total Contract Price Steiner Electric $20,207 $26,208 $26,574 $72,989 Company Cummins N $26,235 $34,673 $35,733 $96,641 Power, LLC Patten Power $36,182 $35,630 $36,489 $108,301 Systems Interstate Power 1 $32,165 1 $37,985 1 $41,461 1 $111,611 Lionheart Critical $54,866 $58,460 $58,360 $171,686 Power Specialist Gateway Industrial Non Responsive The lowest cost bidder is Steiner Electric of Elk Grove Village, IL. The Village of Glenview awarded the contract to Qfninnr nn h inn 01 001 A There is a significant increase in Year 1 pricing to Year 2 pricing which is explained by the fact that the first year of the contract includes generator maintenance services for only 16 of the Village's 18 generators. The generators located at Booster Pumping Stations 11 (Golf Course) and 17 (1480 N Elmhurst Rd) are covered by the original manufacturer's warranty, which includes annual maintenance. The two generators original manufacturer's warranty will expire at the end of 2016. All 18 generators will be serviced in Years 2 and 3 of this contract. Steiner Electric has successfully performed the generator services contract for the Village in the past. Steiner Electric's work was acceptable. In addition, reference checks indicate that Steiner Electric has successfully completed work of this scale and scope in an acceptable manner. Prices for generator maintenance received as part of this joint bid are substantially lower than costs incurred for similar work last year. The cost to maintain the generators in 2015 was $29,267 compared to $20,207 in Year 1. Interestingly, Steiner Electric bid on the most recent Village generator maintenance contract in 2013 and was the high bidder with an annual cost of $33,200. It is the opinion of staff that most of the cost savings can be attributed to the very large scale of the jointly bid project. The specifications are similar to previous, independently bid generator maintenance projects that had higher costs. Alternatives: 1. Accept Municipal Partnering Initiative join bid results for generator maintenance services. 2. Discretion of the Village Board. Budget Impact: This proposed project requires the expenditure of $20,207 in 2016. Expenditures in the subsequent contract years, 2017 and 2018, will be limited to the amounts authorized in approved budgets. Recommendation: Staff recommends accepting the Municipal Partnering Initiative joint bid results for generator maintenance services and awarding a three (3) - year contract to Steiner Electric of Elk Grove Village, Illinois in an amount not to exceed $20,207 in 2016. Expenditures in subsequent contract years will be limited to amounts authorized in approved budgets. SUPPORTS THE FOLLOWING STRATEGIC PLAN GOALS: INFRASTRUCTURE: Well designed, well maintained public spaces and facilities, GOVERNANCE: Financially sound, providing exceptional service. ATTACHMENTS: Description Type Upload Date File Name to AUach me nLs kailables