Explanation
BACKGROUND: To modify the existing city-wide contract for the option to purchase Geologic Borings & Monitoring Wells for the Division of Water. Formal bids were opened by the Purchasing Office on September 8, 2005. The Purchasing Office advertised and solicited competitive bids in accordance with Section 329.06. (Proposal No. SA001720). FL002866, with Moody's of Dayton, Inc., dba G.M. Baker & Son was established in accordance with bids received. Their contract compliance number is 31-0641203, which expires 10/18/2008. This contract includes the requirement for Prevailing Wage rates. When the contract was bid, a job class of Well Driller was included in the State of Ohio's Prevailing Wage determination. However, shortly after the contract was complete, the classification of Well Driller was eliminated, and merged into a classification which resulted in a 55% increase in direct labor costs. That increase resulted in a 33% price increase for Items 2-30 only of the resulting bid, and is retroactive to December 1, 2005, until the contract expiration date of December 31, 2008.
1. Amount of additional funds: The estimated annual expenditure for the contract is $177,500.00. The Division of Water must obtain approval to expend from their own budgeted funds for their estimated expenditures.
2. Reason additional needs were not foreseen: The State of Ohio does not send out notification when a job classification is eliminated. The reclassification was not realized until a review by the City's Prevailing Wage Coordinator.
3. Reason other procurement processes not used: The Division of Water is currently in the midst of the geologic investigation and well installation projects. This increase is a direct result of the Prevailing Wage rates, and is beyond the control of the contractor.
4. How cost was determined: The price increase is directly attributable to the increase in prevailing wage rates.
FISCAL IMPACT: No funding is required to modify this option contract. The Division of Water must set aside their own funding for their estimated expenditures.
To maintain an uninterrupted supply of service to the City Agency using the Universal Term Contract, this ordinance is be submitted as an emergency.
Title
To authorize and direct the Finance and Management Director to modify the citywide contract for the option to obtain Geologic Borings & Monitoring Wells, with Moody's of Dayton, Inc., dba G.M. Baker & Son, and to declare an emergency.
Body
WHEREAS, the Purchasing Office advertised and solicited formal bids, and selected the lowest bid; and
WHEREAS, the vendor has incurred an increase of 55% for direct labor costs due to reclassification in accordance with Prevailing Wage Rates, which translates to a 33% increase for Items 2 through 30 only since the inception of the contract, FL002866; and
WHEREAS, in order to avoid a lapse in our ability to provide Geologic Borings & Monitoring Wells, this is being submitted for approval as an emergency measure; and
WHEREAS, an emergency exists in the usual daily operation of the Purchasing Office in that it is immediately necessary to modify FL002866 for an option to purchase Geologic Borings & Monitoring Wells, 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 FL002866 to increase the cost of Items 2 - 30 only.
SECTION 2. That this modification is in accordance with Section 329.16 of the Columbus City Codes.
SECTION 3. 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.