Broward County Commission Regular Meeting


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AI-26092 29.       
Meeting Date: 02/27/2018  
Director's Name: George Tablack
Department: Finance & Administrative Services Division: Purchasing

Information
Requested Action
A. MOTION TO APPROVE sole source designation for Otis Elevator Company, for Otis Elevator and Escalator Maintenance and Repair Services for the Facilities Management Division.

ACTION:  (T-10:50 AM)  Approved.
 
VOTE: 7-0.  Commissioner Holness appeared telephonically and voted in the affirmative.  Commissioners Geller and LaMarca appeared telephonically but were inaudible during the vote.
 
B. MOTION TO AWARD open-end contract to sole source bidder, Otis Elevator Company, for Otis Elevator and Escalator Preventive Maintenance and Repair Services, Solicitation No. BLD2114940Q1, for the Facilities Management Division, in the five-year estimated amount of $2,761,720, which includes allowances in the potential not-to-exceed amount of $500,000. The initial contract period begins on the date of award and terminates five years from that date, contingent upon receipt and approval of insurance.

ACTION:  (T-10:50 AM)  Approved.
 
VOTE: 7-0.  Commissioner Holness appeared telephonically and voted in the affirmative.  Commissioners Geller and LaMarca appeared telephonically but were inaudible during the vote.
Why Action is Necessary
A. In accordance with the Broward County Procurement Code, Section 21.34, a sole source/brand procurement above the award authority of the Director of Purchasing must be approved and awarded by the Board.

B. In accordance with the Broward County Procurement Code, Section 21.31.a.4, the Board is required to approve all purchases exceeding $250,000 per annum or $400,000 in a multi-year period.
What Action Accomplishes
A. Approves the sole source designation with the authorized manufacturer representative.

B. Provides for a contract for the repair and maintenance of Otis brand elevators and escalators.
Is this Action Goal Related
Previous Action Taken
None.
Summary Explanation/Background
THE PURCHASING DIVISION AND THE PUBLIC WORKS DEPARTMENT/FACILITIES MANAGEMENT DIVISION RECOMMEND APPROVAL OF THE ABOVE MOTIONS.

The Office of Economic and Small Business Development did not review this project for assignment of CBE Reserve Program or County Business Enterprise participation goals to this solicitation, based upon the results of the Request for Information (RFI) No. BLD2114940F1 and the sole source determination by the Director of Purchasing (Exhibit 2).

The purpose of this contract is to provide monthly preventive maintenance and repair services for Otis Elevator Company Original Equipment Manufacturer (OEM) SkyRise Elevator and NCE Escalator systems at the Broward County Judicial Complex - West Building. These systems require proprietary Otis parts, materials, software, diagnostic equipment (i.e. embedded equipment sensors, hand-held diagnostic tool, etc.) and qualified service technicians.

In accordance with the Living Wage Ordinance, No. 2008-45, as amended, Section 26-101(i), these are covered services. Otis Elevator Company has agreed to be bound to the contractual obligations of the Living Wage Ordinance.

The allowances incorporated in this contract in the total amount of $500,000 include: parts and materials, software upgrades, equipment rental and non-County agency permits and fees. Expenditures under these allowance items must be approved by the contract administrator and will be reimbursed at the contractor's actual cost without mark-up.

On December 6, 2017, the Purchasing Division issued a Request for Information (RFI) to ascertain whether there were any other entities that were able to provide maintenance and repair services for Otis Elevator Company SkyRise Elevator and NCE Escalator systems. One response was received to the RFI. The Facilities Management Division reviewed the submittal by the single respondent, Eastern Elevator Service, Inc. (EESI), and determined that EESI does not have the experience, engineering support or parts availability to work on the specific systems identified for the scope of work. Additionally, pursuant to the letter dated June 9, 2017, Otis Elevator Company states that its repair facility is the only authorized and qualified source for servicing the Otis SkyRise systems and NCE Escalator systems. Based on this information, the Director of Purchasing recommends the approval of this sole source designation (Exhibit 2).

The initial bid submitted by Otis Elevator Company was $2,875,720; the vendor offered a voluntary price reduction for  Bid Items 01-24 through 01-31, for labor repair services, resulting in a price reduction of $114,000 and a revised total amount of $2,761,720. The Broward County Procurement Code, Section 21.30.f.2(c), allows for a voluntary price reduction of the bid price, if the reduction does not result in the modification or deletion of any condition of the bid (Exhibit 1). Otis Elevator Company, also, provided in its bid a listing of exceptions to the County's terms and conditions. The Assistant County Attorney supporting the Facilities Management Division reviewed the exceptions; and decisions to these exceptions were made by the Facilities Management Division in consult with its Assistant County Attorney (Exhibit 5). 

The Facilities Management Division has reviewed the response submitted by Otis Elevator Company and concurs with the recommendation for award (Exhibit 3). One vendor performance evaluation is completed for Otis Elevator Company; the firm has an overall rating of 3.82 out of a possible rating of 5.0. Copies of the vendor performance evaluation are available upon request.

The recommended bidder, Otis Elevator Company, prices are considered fair and reasonable in comparison to other contracts and aligned with market analysis for the industry (Exhibit 4).

These services are for the new Courthouse and there is no previous open-end contract for these services.

The amounts referenced in this agenda were rounded to the nearest whole dollar. Vendor payments will be based on the actual total bid amount. The bid tabulation reflects the actual amount of the award.

There is no protest or appeal filed regarding the procurement.

A sole source solicitation, No. BLD2114940Q1, was posted in BidSync in order for Otis Elevator Company to agree to the County's terms and conditions.

The solicitation posted on January 10, 2018 and opened on January 11, 2018 (Exhibit 1).
Source of Additional Information
Brenda J. Billingsley, Director, Purchasing Division (954) 357-6070

Fiscal Impact
Fiscal Impact/Cost Summary:
Each requirement processed against this open-end contract will be funded by the appropriate source at the time of release.

Requisition No. FMD0003109
Attachments
Exhibit 1 - Bid Tabulation
Exhibit 2 - Sole Source Memo Signed January 17, 2018
Exhibit 3 - User Concurrence Memorandum signed February 8, 2018
Exhibit 4 - Price Analysis
Exhibit 5 - Otis Elevator Company Exceptions Matrix


    

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