HomeMy WebLinkAbout8 LED Holiday Lights Agenda Item # 8
Public Utility District
CONSENT
To: Board of Directors
From: Steven Poncelet
Date: September 01, 2010
Subject: Consideration of Awarding a Contract for the Purchase 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 4-5 week period), but every customer
comes into the Conservation Department and the LED Holiday Light Exchange
Program is used to promote other District programs and strengthen our relationship
with our customers.
3. NEW INFORMATION
For the 2010 program, Staff is targeting -740 customers (5.5% of our customer base)
and the District issued a Request for Bids for the 2010 LED Holiday Light Exchange
Program. This bid was broken into two schedules:
Schedule 1 was for a total of 742, 20+ foot and 90, 60+ foot '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 1,206, 20+ foot 'mini' LED holiday light strands. This was
further broken down into soft-white and multi-color strands.
The bid was advertised in the Sierra Sun and a bid opening was held on August 25th.
The District received 2 bids for the 2010 LED Holiday Light Exchange Program and
both bids were found to be responsive. The bid results follow:
2010 LED Holiday Light Bid Results
Bid Price*
Vendor Name Schedule 1 Schedule 2
Western Nevada Supply $ 13,259.10 $ 15,678.00
Mountain Hardware &Sports $ 10,284.20 $ 4,462.20
*FOB Truckee,tax not included
There was a very large difference in the prices for Bid Schedule 2 where Mountain
Hardware and Sports bid $4,462.20 and Western Nevada Supply bid $15,678.00.
Staff contacted Mountain Hardware and Sports to confirm their bid and, the day after
the bid opening, received an e-mail (Included as Attachment 1) from them requesting
to be relieved of the bid in Schedule 2 citing a mistake due to a clerical error.
Staff conferred with the District's legal counsel who stated that, if the Board chooses,
they can relieve Mountain Hardware and Sports of their bid on Schedule 2 and
proceed with an award to the next lowest bidder. The other options are to award Bid
Schedule 2 to Mountain Hardware and Sports at the bid price and force them to
comply or decide to not award an order and direct staff to re-do the bid process.
Staffs recommendation is that the Board relieve Mountain Hardware and Sports of the
bid for Schedule 2.
4. FISCAL IMPACT
The total price for the LED holiday lights is $25,962.20 plus tax. Sufficient funds exist
within the FY10 budget for this item.
5. RECOMMENDATION
a) Relieve Mountain Hardware and Sports of their bid for Schedule 2 based on their
their stated clerical error.
b) Approve the purchase of $10,284.20 plus tax in LED C6 holiday lights from
Mountain Hardware and Sports for Bid Schedule 1 and $15,678.00 plus tax in
LED mini holiday lights from Western Nevada Supply for Bid Schedule 2.
Ste n&Poncelet Michael D. Holley
Public Information & Conservation Manager General Manager
Attachment 1
Steven Poncelet
From: Doug Wright[dougwright@usamedia.ty]
Sent: Thursday, August 26, 2010 11:53 AM
To: Steven Poncelet
Subject: L.E.D. Light Bid
Steven,
We have discovered that we made a mistake in our bid for the Truckee Donner P.U.D. L.E.D.
lights. Schedule 1 is correct but I respectfully ask to be relieved of our bid on Schedule 2
as we made a clerical error on that bid.
Thank you for your consideration in this matter.
Doug Wright
General Manager
Mountain Hardware and Sports