Explanation
BACKGROUND: This ordinance is for the option to establish two (2) Universal Term Contracts to purchase Small Electric Motors for various City of Columbus agencies. These small electric motors are less than fifty (50) horsepower and are used for maintenance work and various other projects within City agencies. The term of the proposed option contracts would be two (2) years, expiring May 31, 2014, with the option to renew for one (1) additional year. The Purchasing Office opened formal bids on January 26, 2012.
The Purchasing Office advertised and solicited competitive bids in accordance with Section 329.06, Solicitation SA004230. Thirty-nine (39) bids were solicited (M1A-1, MBR-1, F1-0). Four (4) bids were received. The solicitation requested catalog bids for various small electric motor manufacturers.
On line item 5 for Dayton Manufacturer, only one (1) bid was received and the discount this bidder extended off the manufacturer catalog's list price was minimal. It has been determined that an award will not be made for this line item 5 as it would be more cost effective to purchase these products off the STS contract with W.W. Grainger.
On line item 10 for Lincoln Manufacturer, the low bidder was responsive; however, the bidder was low bid only on this one line item. Administrative costs of a contract and subsequent purchase orders by multiple city agencies each year through the term of the contract would exceed any cost savings. For this reason, it has been determined that it would be in the best interests of the City to award this line item to the next low, responsive and responsible bidder GD Supply.
The Purchasing Office is recommending awarding to the lowest, responsive, responsible and best bidders, as follows:
Applied Industrial Technologies, Inc.: CC#34-0117420 (Expires 07/26/13)
GD Supply Inc., dba Johnstone Supply: CC#31-1114455 (Expires 06/24/13)
Total Estimated Annual Expenditure: $50,000.00.
These companies are not debarred according to the Excluded Party Listing or the State Auditor's Finding for Recovery Database.
FISCAL IMPACT: Funding to establish these option contracts is budgeted in the Mail, Print Services and UTC Fund. All City Agencies will be required to obtain approval to expend from their own appropriations for the estimated annual expenditures.
Title
To authorize the Finance Management Director to enter into two (2) contracts for the option to purchase small electric motors with Applied Industrial Technologies and GD Supply Inc., dba Johnstone Supply; and to authorize the expenditure of two (2) dollars to establish the contracts from the Mail, Print Services and UTC Fund. ($2.00)
Body
WHEREAS, it is necessary for the City to purchase small electric motors; and
WHEREAS, the Purchasing Office advertised and solicited formal bids on January 26, 2012 and selected the lowest responsive, responsible and best bidders; 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 effectively maintain their supply chain and service to the public; and
WHEREAS, because there is a need to maintain a supply of small electric motors for maintenance work and various other projects within City agencies; 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 the following contracts for the option to purchase small electric motors for the term ending May 31, 2014, with the option to review for one (1) additional year subject to the mutual agreement in accordance with Solicitation No. SA004230 as follows:
Applied Industrial Technologies, Inc.: Line Items #2, 6, 13, 16, 17 and 18: $1.00
GD Supply Inc., dba Johnstone Supply: Line Items # 1, 3, 4,7, 8, 9, 10, 11, 12, 14, 15 and 19: $1.00
SECTION 2: That the expenditure of $2.00 is hereby authorized from the Main, Print Services & UTC Account, Organizational Level 1: 45-01, Fund: 05-517, Object Level 3: 2270, OCA: 451130, to pay the cost thereof.
SECTION 3: That this Ordinance shall take effect and be in force from and after the earliest period allowed by law.