DATE: Click here to enter a date.
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Russell Truell, Assistant City Administrator / CFO
Mark Hilty, Water Management Director
Rick McPeak, Assistant Director, Water Management Department
Brian Wilcox, Purchasing Manager
SUBJECT:
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Consideration of Bid Award To Rye Engineering PLC Of Erin, Tennessee For Water Distribution System Leak Detection Services, For The Water Management Department (Purchasing Office Procurement Solicitation No. 2015-022; $25,000 Budgeted In 421-82560-52109 For Fiscal Year 2015; Contract No. 2015-0056)(03-10-15 WS)
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Purpose
The purpose of this procurement is to purchase water distribution system leak detection services through June 30, 2016, with three (3) options to extend the term of service for one (1) City fiscal year at a time, for the Water Management Department. The purpose of the leak detection survey is to identify and locate leaks in the surveyed portion of the water distribution lines maintained by the City, the repair of which leaks would increase the ratio of revenue-generating to non-revenue-generating water distributed by the City. The City is striving to improve the accountability for water distributed and its ultimate use or loss, reduce water lost to leakage, theft and other unauthorized uses, and to enhance customer service at reasonable rates.
Background
The City published on February 5, 2015 a Notice to Bidders in the Williamson Herald for water distribution system leak detection services through June 30, 2016, with three (3) options to extend the term of service for one (1) City fiscal year at a time. In addition, bid documents were sent on or about the same date directly to ten (10) potential bidders known or thought to be interested in this solicitation. Bids from five (5) vendors were publicly opened at the bid opening held on February 19, 2015. A tabulation of the bids received for this solicitation is attached.
Financial Impact
For this bid solicitation, the services are being bid on the basis of which bidder commits to surveying the most mileage of water lines for the budgeted funds rather than to surveying a certain number of miles for the least cost to the City. The following excerpts from the City's specifications explain this:
The City intends to spend the entire amount it has budgeted for this project. Bidders are required to quote the number of line-miles they are willing to obligate themselves to survey for the amount budgeted. Bidders should expect that all of the services to be rendered for this project would be undertaken and completed in a single mobilization for each fiscal year. The City intends to award the work to the bidder that quotes the greatest number of line-miles that bidder is willing to obligate itself to survey per mobilization for the anticipated amount budgeted per City fiscal year. The anticipated amount budgeted for this project during the term of award is $25,000 per City fiscal year. Bidders shall quote the number of line-miles to be surveyed per mobilization for each year of the term of award.
The apparent best, most responsive and responsible bid, from Rye Engineering PLC of Erin, Tennessee, is in the amount of 192 line-miles per mobilization for the anticipated budget of $25,000 per City fiscal year for the specified services. This bid was identified because it is the bid for the highest line-mileage that meets or exceeds the City's intention as expressed and implied by the City's specifications as well as the instructions, terms and conditions pertaining to this procurement solicitation. The Water Management Department Water General Expenses Division budget for fiscal year 2015 allocates $25,000 out of the Water Fund for the purchase of these services.
Options
In accordance with the bid documents, the City reserves the right to reject any and all bids.
Recommendation
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Staff recommends that the City accept, contingent upon Law Department and City Administrator approval of City Contract No. 2015-0056, the apparent lowest best bid, from Rye Engineering PLC of Erin, Tennessee, in the amount of 192 line-miles per mobilization for the anticipated budget of $25,000 per City fiscal year for the specified services. The initial term of award would be FY2015 and FY2016, with three (3) options to extend the term of service for one (1) City fiscal year at a time, for the City fiscal years ending June 30, 2017, June 30, 2018 and June 30, 2019, respectively, for a maximum total of five (5) City fiscal years. Purchasing Manager Brian Wilcox is of the opinion that the prepared specifications as distributed allowed for competition among multiple vendors, and that the staff recommendation appears to be made in a fair and impartial manner based upon the bids received.