Explanation
BACKGROUND: To establish a contract for the option to purchase Wooden Utility Poles for the Electricity Division, the largest user. The term of the proposed option contract will be two years with an option to renew for one additional year if mutually agreed. Contract expiration date is March 31, 2006.
The Purchasing Office advertised and solicited competitive bids in accordance with Section 329.06 (Solicitation No. SA000593). Thirty-four (MAJ:32) bids solicited; two (MAJ:2) bids received.
While a lower numerical bid was submitted, (Brown Wood Preserving Co., Inc.) their bid was deemed non-responsive for failure to return required pages with their bid document.
Koppers Inc. submitted a lower numerical bid for items 3 and 6. However, the savings estimated is less than the cost incurred by administrating another contract. Therefore, it is not in the City's best economic interest to extend the award to Koppers, Inc. In addition, because of the low estimated yearly usage of these items, Koppers Inc. cannot economically service the City with so few items on award.
R.H. Whelan Co. submitted a lower price for item 8, however their bid is deemed non-responsive for failure to sign their bid document.
The Purchasing Office is recommending award of the contract to the next lowest, responsive, responsible and best bidder.
McFarland Cascade Holdings Incorporated, MAJ, CC#82-0142650
Total Estimated Annual Expenditure: $45,000.00
This company is not debarred according to the Federal Excluded Parties Listing.
This ordinance is being submitted as an emergency because, without emergency action, no less than thirty-seven days will be added to this procurement cycle and the efficient delivery of valuable public services will be slowed.
FISCAL IMPACT: Funding to establish this option contract is budgeted in the Purchasing Contract Account. The Electricity 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 a contract for an option to purchase Wooden Utility Poles, with McFarland Cascade Holdings Incorporated, to authorize the expenditure of one dollar to establish the contract from the Purchasing/Contract Operation Fund, and to declare an emergency. ($1.00)
Body
WHEREAS, the Purchasing Office advertised and solicited formal bids on January 29, 2004 and selected the lowest, responsive, responsible and best bid; 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, this ordinance is being submitted for consideration as an emergency measure to maintain a supply matrix as soon as possible for the purchase of Wooden Utility Poles for the Electricity Division because the current contract expires March 31, 2004; and
WHEREAS, an emergency exists in the usual daily operation of the Division of Electricity in that it is immediately necessary to enter into a contract for an option to purchase Wooden Utility Poles, 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 a contract for an option to purchase Wooden Utility Poles in accordance with Solicitation No. SA000593 as follows:
Wooden Utility Poles, All Items (1-10), Amount: $1.00
SECTION 2. That the expenditure of $1.00 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.