Explanation
BACKGROUND: In 2003 the Division of Water hired Systems by Rich Consulting to assist us in developing standards to formally bid a contract for janitorial services at the Public Utilities Complex. The initial terms of the bid included the option to extend the original contract for two one-year periods. The Division entered into contract number EL003747 with K & M Kleening Service, as they received the highest evaluation. The original contract was modified in 2004 and we would like to modify and increase the original contract for the third and final year, for a grand total of $210,904.62. The Contract Compliance Number for K&M Kleening Service, Inc. is 02-0553299. They have certified M1A status.
1. The amount of additional funds needed for this contract is $210,904.62. The original contract was established for $168,328.00. The total cost of the original contract, the first modification, and this modification is $569,651.26.
2. The need for additional funds was known at the time of the initial contract, as this is an annual expenditure. This legislation is to encumber the funds budgeted for 2005.
3. As mentioned above, the initial agreement allowed us to contract with the vendor for a total of three years. Since the Division has been pleased with their performance over the last two years we would like to continue our contract with the vendor.
4. The cost of this service is based on a quote from the vendor. Their quote also includes a living wage.
FISCAL IMPACT: The Division of Water has allocated $200,000.00 for janitorial services at the Public Utilities Complex in the 2005 Budget. Since the amount of the contract is for $210,904.62, the Division will reprioritize Object Level One "03" expenditures in order to cover the deficit.
$190,419.02 was encumbered for these janitorial services in 2004.
$168,328.00 was encumbered for these janitorial services in 2003.
FISCAL IMPACT: The Division of Water has allocated $200,0...
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