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HomeMy WebLinkAbout8 Generator Procurement AGENDA ITEM# 8 Page 1 of 2 MEETING DATE: July 21, 2021 To: Board of Directors FROM: Earl Smith, Water Operations Manager SUBJECT: Authorization to Procure an Emergency Backup Generator for Martis Valley Well APPROVED BY______________________________ Brian C. Wright, General Manager RECOMMENDATION: A. Reject the bids received at the June 23, 2021 bid opening. B. Authorize the General Manager to execute the procurement of an Emergency Backup Generator for Martis Valley Well through Cummins Generators in the amount of $109,509, plus a 10% change order allowance for a total not to exceed $120,460.00 + incidentals and sales tax. BACKGROUND: In March of 2021 the District was awarded grant funds through Cal OES, in the amount of $300,000 to procure an Emergency Backup Generator for the Martis Valley Well. To qualify for funding the District must use the awarded funds no later than March 31, 2021. On June 1, 2021 the District announced its intention to procure the Emergency Backup Generator with a closing date of June 23, 2021. At the bid closing the District received the following two bids: Company Cost Delivery ETA Vizocom ICT, LLC. $234, 020.00 84-98 Calendar Days Bay City Electric $115,446.46 217 Calendar Days Given the lowest bid puts the District in jeopardy of missing the grant funding deadline and the second bid is over twice the price, staff began to research the possibility of procuring a generator through other competitively bid processes. In doing research, staff was able to obtain a quote with Cummins Generator through a competitively bid program with Page 2 of 2 Sourcewell. Pricing through Sourcewell is $109,509 + incidentals and sales tax with a 24 week delivery time for the generator and associated testing. Allowing for a 10% contingency the total anticipated not to exceed budget is $120,460.00 + incidentals and sales tax. Sourcewell, formerly National Joint Purchasing Alliance, competitively bids to meet of exceed local and state requirements. The process Sourcewell implements continually meets the needs for agencies and allows for a joint model procurement to ensure local agencies may take advantage of a larger procurement pool. Section 3.08.060 of the District Code (Joint Purchasing with the State of California and other public agencies) permits the District to take advantage of other agencies competitive procurement processes. It is staff’s recommendation that the Board reject the bids received at the June 23, 2021 bid opening and proceed with procurement of the Martis Valley Well Backup Generator through Sourcewell. This recommendation is made in an effort to ensure that grant funds are utilized in the most economical, and beneficial, way possible for the District. FISCAL IMPACT: This procurement will have no direct fiscal impact on the District. Funding has already been received from Cal OES and will cover the entire cost of this procurement. ATTACHMENTS: Attachment 1: Generator Quote