Explanation
BACKGROUND: To modify and extend the existing city-wide contracts for the option to obtain Specialty, Industrial and Medical Gases to and including November 30, 2006. Formal bids were opened by the Purchasing Office on June 13, 2002. The Purchasing Office advertised and solicited competitive bids in accordance with Section 329.06. (Proposal No. SA000273DRM). The following two (2) contracts were established in accordance with bids received:
FL001283 Airgas Great Lakes Contract Compliance #38-2518089
FL001278 Valley National Gases, Inc. Contract Compliance #55-0460738
Both contracts were modified to extend the term in accordance with the specifications until May 31, 2006. It is now necessary to extend the contracts for an additional period of six (6) months to allow for a bid process to establish of a new contract. Neither company is debarred according to the Federal Excluded Parties Listing or prohibited from being awarded a contract according to the Auditor of State Unresolved Findings for Recovery database.
1. Amount of additional funds: The estimated annual expenditure for these contracts is $70,000.00. Various city agencies must obtain approval to expend from their own budgeted funds for their estimated expenditures.
2. Reason additional needs were not foreseen: The need was foreseen and a formal bid is in the process of being advertised. However, due to staffing levels, this bid process was not initiated in time for a completed contract to be available when the extended contract expires. Due to usage demands of this commodity, a lapse in supply would be an undue hardship on city agencies.
3. Reason other procurement processes not used: The same exact product is required as originally bid. No lower pricing/more attractive terms and conditions are anticipated at this time.
4. How cost was determined: The cost, terms and conditions are in accordance with the original agreement.
This ordinance is being submitted as an emergency because, without emergency action, no less than 37 days will be added to this procurement cycle and the efficient delivery of valuable public services will be slowed.
Title
To authorize and direct the Finance and Management Director to modify and extend the two (2) existing citywide contracts for the option to obtain Specialty, Industrial and Medical Gases with Airgas Great Lakes and Valley National Gases, to waive formal competitive bidding requirements, and to declare an emergency.
Body
WHEREAS, the Purchasing Office advertised and solicited formal bids, and selected the lowest bids; and
WHEREAS, the vendors have agreed to extend FL001283 and FL001278 at current prices and conditions to and including November 30, 2006, and it is in the best interest of the City to exercise this option; and
WHEREAS, this ordinance addresses Purchasing objectives of 1) maximizing the use of City resources by obtaining optimal products/services at low prices and 2) encouraging economic development by improving access to City bid opportunities and 3) providing effective option contracts for City agencies to efficiently maintain their supply chain and service to the public; and
WHEREAS, an emergency exists in the usual daily operation of the Purchasing Office in that it is immediately necessary to extend FL001283 and FL001278 for the option to obtain Specialty, Industrial and Medical Gases, thereby preserving the public health, peace, property, safety, and welfare, now, therefore,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Finance and Management Director be and is hereby authorized and directed to modify and extend FL001283 with Airgas Great Lakes and FL001278 with Valley National Gases to and including November 30, 2006.
SECTION 2. That in accordance with Section 329.27 of the Columbus City Code, this Council finds the best interest of the City is served by waiving, and does hereby waive Sections 329.06 (Formal Competitive Bidding) of the Columbus City Code
SECTION 3. That for the reason stated in the preamble here to, 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.