Explanation
BACKGROUND: This legislation authorizes the Finance and Management Director to enter into contracts for the purchase of Transformers for the Division of Power and Water. Transformers are necessary for system improvements for conversion from 7200 volts to 14400 volts, for new customers and replacement of stock previously used for new customers, and maintenance including replacement for storm damage and wear or failure.
The Purchasing Office advertised and solicited competitive bids in accordance with Section 329.06 (Solicitation Number SA002381). Nineteen bids were solicited (18 MAJ, 1 FBE). Three (MAJ) bids were received and opened on April 26, 2007. The bids have been evaluated and the lowest bids received for items #2, #3, #4, #5, #6, #7, #8, #10, #11 and #12 were deemed to be non-responsive due to non-firm pricing on some items along with adding terms and conditions contrary to the City's specifications. No award will be made for items #6 and #7 as no responsive bidder bid on these items. These items will be solicited informally, as needed. Awards are recommended to two vendors as the lowest, responsive, responsible and best bidders, as follows:
Reed City Power Line Supply, CC #382783949, expires 03/25/2008, in the amount of $67,944.00
Van Tran Industries, CC #742568917, expires 08/27/2007, in the amount of $424,478.00
This ordinance is being submitted as an emergency because, without emergency action, no less than 37 days will be added to this procurement cycle. Most transformers have a long lead time; therefore, it is necessary to order immediately to preserve the usual daily operation of the Division of Power and Water.
FISCAL IMPACT: There is sufficient budget authority in the Division of Electricity's Operating Fund and in the Voted Street Lighting and Electricity Distribution Improvements Fund, Distribution System Improvements Project, for this purchase. $112,352 was spent in 2005 and $396,992.00 was spent from...
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