MOTION TO AWARD open-end contract to Schindler Elevator Corporation under the National Joint Powers Alliance (NJPA) (now known as Sourcewell as of June 6, 2018) Agreement No. 100516-SCH, Elevators, Escalators, and Moving Walks with Related Equipment, Services, Accessories, and Supplies; Broward County Procurement Contract No. BLD2117408B1, for maintenance and repair services to airport equipment for the Aviation Department, in the estimated amount of $9,607,217, including allowances in the estimated amount of $119,167, for the remainder of the term effective through November 2, 2020, and authorize the Director of Purchasing to renew the contract, as renewed by the NJPA for a one-year period, for a three-year, two-month potential total amount of $14,041,317. The initial contract shall begin on the date of award and terminate on November 2, 2020, contingent upon receipt and approval of performance and payment guaranty.
ACTION: (T-1:46 PM) Approved.
VOTE: 9-0.
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THE PURCHASING DIVISION AND THE AVIATION DEPARTMENT RECOMMEND APPROVAL OF THE ABOVE MOTION.
The Office of Economic and Small Business Development did not establish County Business Enterprise (CBE) goals for this contract, because there are no subcontracting opportunities for CBE contractors (Exhibit 2).
The purpose of this contract is to provide maintenance and repair services for elevators and escalators at the Rental Car Center, Parking Garages and Terminals 1, 2, 3 and 4 at Broward County's Fort Lauderdale-Hollywood International Airport.
On January 23, 2018, the Broward County (County) competitive solicitation No. BLD2115482B1 advertised to the unrestricted market and opened on February 9, 2018, with two responses received. During the review of the low bidder’s (Schindler Elevator Corporation) response, the using agency determined all bids received were far above the available budget. On March 28, 2018, the Director of Purchasing rejected all bids to allow for revisions to the specifications with the intent of future bid responses staying within budget. Further research by the using agency and the Purchasing Division identified a competitively procured contract for similar services, awarded by the National Joint Powers Alliance (NJPA), a cooperative purchasing program, to Schindler Elevator Corporation (Schindler), the low bidder for the Broward County’s Solicitation No. BLD2115482B1.
The NJPA is a cooperative purchasing program, which expanded its focuses from education and school procurement to provide government procurement resources and solutions to local and state government agencies and nonprofits looking for the best overall supplier pricing by providing cooperative purchasing, in which quantities for the same item are combined in order to achieve economies of scale through volume discount pricing.
On November 2, 2016, the NJPA, located in Staples, Minnesota, awarded NJPA Contract No. 100516-SCH, Elevators, Escalators, and Moving Walks with Related Equipment, Services, Accessories, and Supplies to Schindler, which was awarded through a competitively bid process. The basis of the Request for Proposals (RFP) award was to the responsible, responsive proposer meeting the criteria outlined in the RFP, in addition to offering the overall best value. The initial four-year contract term began on November 2, 2016 and expires on November 2, 2020, with the option to renew for one additional one-year renewal.
Within Form P of the Proposer Questionnaire of the NJPA Contract No. 100516-SCH, Section 6 provides that Schindler will allow customized service contract options to meet the needs of participating entities for their facilities. In addition, Section 8 establishes equipment-type base prices used within the vendor’s “Pricing Configurator”, which takes into account various additional factors that may affect the final prices, such as equipment age, environment, vintage, and other factors.
On August 3, 2018, in order to include Broward County’s Aviation facility requirements and to obtain pricing in accordance with the NJPA contract and the Schindler Price Configurator, Broward County solicited Solicitation No. BLD2117408B1 to Schindler. A bid response was received on August 7, 2018. The Purchasing Division reviewed the bid response and determined the prices to be fair and reasonable (Exhibit 3).
All prices, terms and conditions will remain fixed for the initial 12-month contract period. Upon completion of the initial 12-month contract period, the contractor may make a timely request for a price adjustment to the contract for year two and the optional renewal period if exercised by the NJPA and Broward County. Any requested increase shall not exceed 3% for the individual price components of labor or material, in accordance with the price escalation clause of the contract.
This procurement carries a 50% performance and payment guaranty. The Purchasing Division has confirmed with the surety company that Schindler Elevator Corporation has the capacity to obtain the required guaranty.
The pass-thru allowance item in this contract, in the total amount of $119,167, includes $5,000 for non-County agency permits and fees; and $50,000 for parts, materials and miscellaneous items that may be required during the course of the contract and are not covered by existing bid items. Expenditures under these allowance items must be approved by the contract administrator and will be reimbursed at the contractor's actual incurred cost, without mark-up. (Exhibit 1).
In accordance with the Living Wage Ordinance, No. 2008-45, as amended, Section 26-101 (f), these services are subject to the Living Wage. Schindler has committed to pay its workers at least the minimum requirements of the Living Wage Ordinance for the duration of this contract.
In accordance with the Broward County Workforce Investment Program, Broward County Administrative Code, Section 19.21, these services are subject to the Workforce Investment Program. Schindler Elevator Corporation agrees to be bound to the contractual obligations of the Workforce Investment Program.
Three vendor performance evaluations have been completed for Schindler; the firm has an overall rating of 3.41 out of a possible rating of 5.0. Copies of the vendor performance evaluations are available upon request.
The piggyback under the NJPA contract No. 100516-SCH provides for an estimated annual cost savings of $1,153,905, which is an initial 26-month term estimated cost savings of $2,500,127 (Exhibit 3).
The amount referenced in this agenda item is 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.
Incumbent: Schindler Elevator Corporation; Contract Numbers and Titles: Z0936014B2, Elevator-Escalator Maintenance and Repair for Terminal One, Contract Term: June 15, 2012 through September 13, 2016, Expenditures to date: $328,712; Z1237002B1, Maintenance and Repair of Elevators and Escalators, Contract Term: November 1, 2014 through December 22, 2017, Expenditures to date: $2,685,715; Z1237002X1 (Interim), Maintenance and Repair of Elevators and Escalators, Contract Term: December 23, 2017 through September 22, 2018, Expenditures to date: $768,744.
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