Explanation
BACKGROUND: This legislation authorizes the Director of Finance and Management to purchase Pole, Pad, and Subway Transformers for The Division of Power to replenish stock for maintenance of the existing infrastructure and new customer service. The various types of transformers on this contract are used in the distribution network to convert electrical energy from one voltage into another voltage.
The Purchasing Office advertised and solicited competitive bids for the purchase of Pole, Pad, and Subway Transformers for Power Distribution for the Division of Power in accordance with Section 329.06 (SA004630). Sixty-six (66) vendors were solicited: Sixty-four (64) MAJ; one (1) MBR; and one (1) M1A. Four (4) MAJ bids were received and opened on November 8, 2012.
Bidders were required to provide core losses, copper losses, and a bid price. A formula was used with these factors to determine the evaluated price. Walker-Miller Energy Services provided a bid for all 11 items. The company's standard terms and conditions were attached and warranty exceptions were taken. In addition the company submitted a cover letter that stated that the prices provided are firm for delivery quoted and are valid for 30 days from the bid opening date. The City requires that bids submitted must be valid for 180 days from the bid opening date; therefore the bidder is non-responsive to the bid specifications.
VanTran Industries, Inc. provided a bid for all 11 items. A bid proposal page was provided within the solicitation; however the vendor submitted their own pricing pages which did not conform to the City's standard terms and conditions. In addition, the pricing submitted by the vendor made reference to a catalog which was not provided and stated quoted pricing was firm for 30 days. The City requires that bids submitted must be valid for 180 days from the bid opening date; therefore the bidder is non-responsive to the bid specifications.
ERMCO bid on items 1 and 2 only. The company's standard terms and conditions were attached and stated that the prices provided are firm for receipt of an order within 30 days from November 5, 2012. The City requires that bids submitted must be valid for 180 days from the bid opening date; therefore the bidder is non-responsive to the bid specifications.
Power Line Supply Company provided a bid for all 11 items. However the company submitted additional clarifications and exceptions with their bid. Specifically the company bid an anodized aluminum nameplate in lieu of a stainless steel nameplate (3.3.1.1.10) and did not provide a bolted tamper-resistant hand-hole as required (3.3.2.1.11), both of which are material to the bid; therefore the bidder is deemed non-responsive. Power Line Supply Company was the only company that provided pricing for all 11 items and did not limit their pricing to 30 days. The Division of Power engineering staff has reviewed the specific material exceptions and other minor deviations and finds the bid acceptable and is requesting a waiver of competitive bids in accordance with Section 329.27 and award of all 11 items in the amount of $198,352.00.
The Department of Public Utilities is requesting this City Council to waive the applicable competitive bidding requirement of the city code in order to facilitate this procurement of transformers. Upon discussion with engineering staff it was determined that a re-bid of the contract would not produce different results therefore the Department of Public Utilities feels it is the best interest of the City to waive the provisions of competitive bids and to establish a contract with Power Line Supply Company for all items.
Contract Compliance: Power Line Supply Company, (MAJ) 38-1783949, expires 3/20/2014.
FISCAL IMPACT: There is sufficient budget authority for the purchase of Pole, Pad, and Subway Transformers for Power Distribution in the 2012 Electricity Operating Fund budget. The Division of Power spent $601,768.13 in 2010 within Object Level Three Codes 6621 and 6625. In 2011 there was $325,230.50 spent within Object Level Three Codes 6621 and 6625 by the Division of Power.
Title
To authorize the Finance and Management Director to enter into a contract with Power Line Supply Company in the amount of $198,352.00 for the purchase of Pole, Pad, and Subway Transformers for the Division of Power and to authorize the expenditure of $198,352.00 from the Electricity Operating Fund; to waive competitive bidding provisions of the Columbus City Code. ($198,352.00)
Body
WHEREAS, the Department of Public Utilities, Division of Power, has a need to purchase Pole, Pad, and Subway Transformers for Power Distribution to replenish stock for maintenance and new customer installations; and
WHEREAS, the Purchasing Office received and opened formal bids on November 8, 2012 and four (4) bids were received; and
WHEREAS, three (3) companies Walker-Miller Energy Services, VanTran Industries, and ERMOCO submitted bid pricing firm for 30 days and City terms require 180 days, thus the companies were deemed non-responsive, and
WHEREAS, Power Line Supply Company did not limit their pricing to 30 days however the company submitted alternative items, and
WHEREAS, the Division of Power engineering staff have reviewed the alternatives and have deemed those items to be acceptable, and
WHEREAS, it is necessary to waive the competitive bidding provisions of the Columbus City Code; and
WHEREAS, it has become necessary in the usual daily operation of the Department of Public Utilities, Division of Power to authorize the Director of Finance and Management to establish a contract in accordance with Power Line Supply Company for the preservation of public health, peace, property, safety; 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 to enter into a contract with Power Line Supply Company to purchase Pole, Pad, and Subway Transformers for Power Distribution for items #1-11 in the amount of $198,352.00 based upon the bids received November 8, 2012.
SECTION 2. That City Council has determined that it is in the best interest of the City of Columbus that the formal competitive bidding requirements of the City Code be and are hereby waived for procurement of transformers for this contract.
SECTION 3. That to pay the cost of the aforesaid purchase, the expenditure of $198,352.00 is hereby authorized from the Electricity Operating Fund 550, Division Number 60-07:
OCA 606764
Object Level Three Code 6625
$7,888.00
OCA 606723
Object Level Three Code 6621
$190,464.00
SECTION 4. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.