Explanation
BACKGROUND: This ordinance would enable the City to establish Universal Term Contracts (UTC) for the option to purchase Water Meters and Appurtenances for the Division of Water. A UTC is an agreement authorized by ordinance of city council and established by the director of finance or designee, for the option to purchase or sell an estimated amount of goods or services at a specified rate or price schedule for a specified time period. The term of the proposed UTC would be for one year, with an option to extend the agreement for one additional year. The original UTC period is proposed through December 31, 2005. The extension would be through December 31, 2006.
The Finance/Purchasing Office advertised and solicited competitive bids in accordance with Section 329.06 (Solicitation No. SA0001120. In addition to posting an advertisement for bids on the City Bulletin/City Website, forty-two (MAJ: 42) bidders were solicited. The bidders are solicited in response to completing a vendor registration process conducted by the Finance/Purchasing Office. Vendor registration is the City's method of maintaining a database regarding who may be interested in doing business with the City for a particular commodity or service. Once that commodity or service is being bid, any City agency can access the bid mailing information for every company that expressed an interest in doing business with the City. While it is still the potential bidder's responsibility to seek opportunities, this vendor registration method and retrieval enables the City to be more inclusive in its solicitation processes. The Finance/Purchasing Office opened formal bids on June 10, 2004 and received six (MAJ: 6) bids.
While there were lower bids originally submitted, the evaluation did not get completed until after the 120 days of required bid validity had passed. Not all bidders, when invited, offered to extend their bid validity beyond the 120 days and therefore their bids expired. For the bids that remained valid, the Finance/Purchasing Office endorses the Public Utilities Director's contract award recommendation to the lowest, responsive, responsible and best bidders:
Hersey Meters Co., MAJ, CC#371388051, estimated annual expenditure is $400,844.
Badger Meter, Inc., MAJ, CC#390143280, estimated annual expenditure is $1,075,929.
AMCO Water Metering Systems Inc., MAJ, CC#591212543; estimated annual expenditure is $140,000.
Ohio Water & Waste Supply Co. Inc., MAJ, CC#311353267, estimated annual expenditure is $152,180.
Hughes Supply Inc., MAJ CC#590559446, estimated annual expenditure is $35,000.
Total Estimated Annual Expenditure: $1,803,953.
No awards will be made on items 35 to 42 as the pricing could not be extended and re-bidding is recommended.
These companies are not debarred according to the Federal Excluded Parties Listing or the State Auditor's Findings For Recovery Database.
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. In addition, we have already asked bidders to extend the validity of their pricing beyond 120 days and we need to enter into contracts as soon as possible.
FISCAL IMPACT: Funding to establish this option contract is budgeted in the Purchasing Contract Account. The Water Division will be required to obtain approval to expend from their own appropriations for their estimated annual expenditures.
Title
To authorize and direct the Finance Director to enter into five contracts for the option to purchase Water Meters and Appurtenances with Hersey Meters Co., Badger Meter Inc., AMCO Water Metering Systems Inc., Ohio Water & Waste Supply Co. Inc., and Hughes Supply Inc., to authorize the expenditure of five dollars to establish the contract from the Purchasing/Contract Operation Fund, and to declare an emergency. ($5.00).
Body
WHEREAS, the Finance/Purchasing Office advertised and solicited formal bids on June 10, 2004 and endorsed the contract award recommendations to the lowest, responsive, responsible and best bids; and
WHEREAS, this ordinance addresses Finance/Purchasing objective 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, supplies are low and the old contract has expired; in order to establish a supply matrix as soon as possible for Water Meters and Appurtenances, this ordinance is being submitted for consideration as an emergency measure; and
WHEREAS, an emergency exists in the usual daily operation of the Water Division in that it is immediately necessary to enter into a contract(s) for an option to purchase Water Meters and Appurtenances, 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 Director be and is hereby authorized and directed to enter into the following contract(s) for an option to purchase Water Meters and Appurtenances in accordance with Solicitation No. SA001120 as follows:
Hersey Meters Co., Items 5, 8 - 13, 45 - 60, and 62, in the amount of $1.00
Badger Meter, Inc., Items 1, 1a, 2 - 4, 4a, 6, 7, 14 - 21, 43 and 61, in the amount of $1.00
AMCO Water Metering Systems Inc., Items 44 and 63 in the amount of $1.00
Ohio Water & Waste Supply Co. Inc., Items 28 - 30, and 32 - 34, in the amount of $1.00
Hughes Supply Inc., Item 31 in the amount of $1.00
SECTION 2. That the expenditure of $5.00 is hereby authorized from Purchasing Contract Account, Organization Level 1: 45-01, Fund: 05-517, Object Level 3: 2270, OCA: 451130, to pay the cost thereof.
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.