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HomeMy WebLinkAbout7-Consideration of the Award of a Contract for the Purchase of LED Holiday LightsTRUC EE D 11 NE Public Utility District CONSENT To: Board of Directors From: Trisha Ruby Date: April 03, 2013 Subject: Consideration of the Award of a Contract for the Purchase of LED Holiday Lights 1. WHY THIS MATTER IS BEFORE THE BOARD This matter is before the Board as the total purchase of LED Holiday Lights for the annual LED Holiday Light Exchange program exceeds the $15,000 limit and requires Board approval. 2. HISTORY This District began the LED Holiday Light Exchange Program in 2007 and this program has been very successful in the past as measured by customer participation, cost-effectiveness, and customer education. Not only are over 5% of our customers participating in this program each year (over a 3-4 week period), but every customer who comes into the Conservation Department is educated about the other District programs. In 2011, the District encountered supply constraints when attempting to purchase the LED holiday lights. The District had planned on a 13-week lead time but none of the bidders were able to commit to this in the bid process. The District was ultimately able to negotiate directly with the vendors to secure the needed LED holiday lights. Staff realized that a longer lead time for future procurements was needed. 3. NEW INFORMATION For the 2013 program, staff is again targeting —750 customers (5% of our customer base). To address the lead time constraints, the District is procuring early this year and issued a Request for Bids (RFB) on February 14th to purchase lights for the 2013 LED Holiday Light Exchange Program. This RFB was divided into two bid schedules: Schedule 1 was for a total quantity of 744 (20+ foot) and 72 (60+ foot) of the C6 or 'pine cone' LED holiday light strands. This was further broken down into soft -white and multi -color strands. Schedule 2 was for a total of 1,008 (20+ foot) 'mini' LED holiday light strands. This was further broken down into soft -white and multi -color strands. The RFB was advertised in the Sierra Sun and a bid opening was held on March 11th. The District received four bids from Sierra Valley Home Center, Western Nevada Supply, Mountain Hardware and Winterland, Inc. Winterland, Inc. was the lowest responsive bidder for Schedule 1 and Schedule 2. The results of the bids are listed below. Vendor Schedule 1 Schedule 2 Western Nevada Supply $13,500 $13,260 Sierra Valley Home Center $12,168 $13,740 Mountain Hardware $10,692 $11,484 Winterland, Inc. $ 8,941 $ 9,689 4. FISCAL IMPACT The total contract amount for the 2013 LED holiday light purchase is for an amount not to exceed $18,630 with a 10% change order authorization for a total amount not to exceed $20,493 plus tax. 5. RECOMMENDATION Award a contract to Winterland, Inc. for LED Holiday Lights for an amount not to exceed $18,630 with a 10% change order authorization for a total amount not to exceed $20,493 plus tax. Steven Poncelet Michael D. Holley Public Information & Conservation Manager General Manager