Explanation
BACKGROUND: The Department of Public Utilities entered into a contract with The Herald, Inc. for the purchase of printing services for the Department of Public Utilities. These services include, but are not limited to prepress, printing, variable data imaging, finishing, fulfillment, CD production, and delivery services. This contract was the result of a Director's bid received on November 21, 2013 (SA005172). The Herald, Inc. was the lowest, responsive and responsible, and best bidder and complied with all requirements of the specifications. The original contract was in effect from the date of execution to March 31, 2015 with an annual extension clause that provides for two additional one-year extensions. The first modification will end on March 31, 2016 and this, the second modification, would be in effect from the date of execution to March 31, 2017. The Department is pleased with their performance and would like to modify the original contract to extend the term for one additional year for a total of $163,652.00.
There is a need to enter into a modification of the original contract to ensure that there are no interruptions in the timely delivery of printing services.
The company is not debarred according to the Excluded Party Listing System of the Federal Government or prohibited from being awarded a contract according to the Auditor of State Unresolved Findings for Recovery Certified Search.
VENDOR: The Herald, Inc. (27-3190748), expires February 02, 2017
The Herald, Inc. does hold FBE status.
1. Amount of additional funds: Total amount of additional funds needed for this contract modification No. 2 is ADD $163,652.00. Total contract amount including this modification is $456,126.62. The modification represents funding added during the contract period for costs related to the services provided. The need for increased funding is to cover anticipated contract billings during fiscal year 2016.
2. Reason additional needs were not foreseen: The need for additional funds was foreseen, an extension is provided for in the original contract. This legislation is to encumber the funds budgeted for fiscal year 2016 for the Department of Public Utilities.
3. Reason other procurement processes not used: 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.
FISCAL IMPACT: $163,652.00 is budgeted and needed for this purchase. This ordinance is contingent on the passage of the 2016 operating budget, which is Ordinance 2888-2015.
Expenditures for printing service in the Department of Public Utilities in 2014 were $103,169.50.
Expenditures for printing service in the Department of Public Utilities in 2015 were $88,152.97.
Title
To authorize the Director of Public Utilities to enter into a contract modification with The Herald, Inc. for printing services; to authorize the expenditure of $98,202.00 from the Water Operating Fund, $7,334.00 from the Electricity Operating Fund, $12,241.00 from the Storm Sewer Operating Fund, and $45,875.00 from the Sewer Systems Operating Fund ($163,652.00).
Body
WHEREAS, the Department of Public Utilities has a contract with The Herald, Inc. for printing services; and
WHEREAS, per the terms of the contract, the vendor has agreed to extend EL015401 at the same pricing and the same escalator clause to and including March 31, 2017, and it is in the best interest of the City to exercise this option; and
WHEREAS, it has become necessary in the usual daily operation of the Department of Public Utilities to authorize the Director to modify and increase Contract No. EL015401 with The Herald, Inc. for printing services; now, therefore,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of Public Utilities be, and is hereby authorized to modify and increase EL015401 with The Herald, Inc., to extend the term to and including March 31, 2017. Total amount of modification No. 2 is ADD $163,652.00. Total contract amount including this modification is $456,126.62.
SECTION 2. That this modification is in accordance with the relevant provision of City Code Chapter 329 relating to the procurement of printing services.
SECTION 3. That the expenditure of $163,652.00 or so much thereof as may be needed, is hereby authorized from Object Class 03, Main Account 63959 per the accounting codes in the attachment to this ordinance.
Dept/Div Fund Name Fund Number Amount
60-09 Water Systems Operating 6000 98,202.00
60-07 Electricity Operating 6300 7,334.00
60-15 Storm Sewer Operating 6200 12,241.00
60-05 Sewer Systems Operating 6100 45,875.00_
$163,652.00
SECTION 4. That the funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated, and the City Auditor shall establish such accounting codes as necessary.
SECTION 5. That this Ordinance shall take effect and be in force from and after the earliest period allowed by law.