Explanation
1. BACKGROUND
This ordinance authorizes the Director of Public Service to enter into an HVAC maintenance contract for the Division of Design & Construction, 1800 E. 17th Avenue, with Speer Mechanical in accordance with the City's sole source provisions.
Facilities Management does not provide HVAC service to the above location, leaving the Division of Design & Construction to contract for this service. For the first fifteen years the building was occupied the service was provided by Speer Mechanical, the company that installed and set-up the HVAC automated control system. The maintenance service has been bid out the last five years.
During the five year period since bidding began the winning contractor on many occasions has had to subcontract repair work to Speer Mechanical, causing the City to pay Speer's regular rate plus a mark-up to the contract holder. The building HVAC system has a building automation system that was designed and installed by Speer when the building opened. The software is now obsolete but still works very well at controlling the building HVAC system. Other companies cannot use this software and it would be costly to replace. Because Speer installed and can still utilize the software, it allows Speer to diagnose and repair problems that others cannot, and it allows them to fix other problems faster, resulting in less labor hours used which reduces the overall repair cost.
Contracted rates have been negotiated with Speer. The pricing is 10% off Speer standard rates. Speer Mechanical is not debarred according to the Excluded Party Listing System of the Federal Government or prohibited from being awarded a contract according to the Auditor of State Unresolved Findings for Recovery Certified Search.
A City of Columbus Sole Source Information Form has been completed and attached to this ordinance.
2. CONTRACT COMPLIANCE
The contract compliance number for Speer Mechanical is 314418873 and expires 11/20/14.
3. FISCAL IMPACT
Funding of $20,000.00 for this service is included in the Division of Design & Construction 2013 annual operating budget, Fund 518. Expenditures in 2011 were approximately $10,000.00 with expenditures in 2012 approximately $11,000.00.
4. EMERGENCY DESIGNATION
The most recent contract put in place through last year's bid process expired February 28, 2013. Emergency action is necessary to put a new contract in place to ensure continuous coverage of the HVAC system.
Title
To authorize the Director of Public Service to enter into an HVAC maintenance contract for the Division of Design & Construction with Speer Mechanical in accordance with the City's sole source provisions; to authorize the expenditure of up to $20,000.00 from Division of Design & Construction operating funds for system repair and preventative maintenance; and to declare an emergency. ($20,000.00)
Body
Whereas, the Division of Design & Construction is in need of an HVAC maintenance contract for 1800 E. 17th Avenue; and
Whereas, a software program installed by Speer Mechanical twenty years ago controls the building HVAC system; and
Whereas, over the past five years other companies have been contracted through the bid process to provide HVAC maintenance service for the building but cannot operate the software and must subcontract Speer Mechanical; and
Whereas, Speer Mechanical is willing to perform the HVAC maintenance and rates and terms have been negotiated with them; and
Whereas, this expense is budgeted within the Division of Design and Construction's annual operating budget (Fund 518); and
Whereas, an emergency exists in the usual daily operations of the Division of Design & Construction with the expiration of their HVAC maintenance contract and the need to put in place a new contract to ensure continuous coverage; now therefore:
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS
SECTION 1. That the Director of Public Service be and is hereby authorized to enter into a contract for the purchase of HVAC maintenance services from:
Julian Speer Company dba Speer Mechanical
600 Oakland Park Avenue
Columbus, Ohio 43214
SECTION 2. That the expenditure of up to $20,000.00 is authorized from the Division of Design & Construction, Organization Level 1: 59-12; Fund 518; Object Level 3: 3370; OCA 591450; to pay the cost thereof.
SECTION 3. That the funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated, and the City Auditor shall establish such accounting codes as necessary.
SECTION 4. That the City Auditor is authorized to make any accounting changes to revise the funding source for all contracts or contract modifications associated with this ordinance.
SECTION 5. That this purchase is in accordance with the provisions of the Columbus City Code, Section 329.07(e), "Sole Source Procurement".
SECTION 6. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor or ten days after passage if the Mayor neither approves nor vetoes the same.