MOTION TO APPROVE Second Amendment to the Agreement between Broward County and Universal Protection Services, LLC, d/b/a Allied Universal Security Services, for Security Officer Services for Port Everglades, Fort Lauderdale-Hollywood International Airport, and North Perry Airport (RFP No. R131116P1), increasing the potential maximum not-to-exceed amount by $12,333,000, from $12,180,000 to $24,513,000, for the current term, which is the first one-year renewal period, and for the second one-year renewal period through September 30, 2020; and authorize the Mayor and Clerk to execute same.
(Vice-Mayor Holness pulled this item.)
ACTION: (T-11:16 AM) Approved. The Board requested that staff look at increasing CBE participation, as well as asked Allied Universal Security Services to look at increasing CBE participation. (Refer to minutes for full discussion.)
VOTE: 8-0. Commissioner Sharief was not present.
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THE PORT EVERGLADES DEPARTMENT AND BROWARD COUNTY AVIATION DEPARTMENT RECOMMEND APPROVAL.
This item supports the Broward County Board of County Commissioners' ("Board") Value of "Ensuring economic opportunities for all people and businesses in Broward" and the Goal to "Increase the economic strength and impact of revenue-generating County enterprises balancing economic, environmental, and community needs.”
On September 7, 2015 (Item No. 20), the Board approved the Agreement between Broward County and AlliedBarton Security Services LLC ("AlliedBarton") to provide non-sworn security officer services at Port Everglades, Fort Lauderdale-Hollywood International Airport, and North Perry Airport for a term commencing on October 1, 2015, and ending September 30, 2018, with the ability of the Director of Purchasing to renew the agreement for up to two additional one-year periods. The Agreement required AlliedBarton to comply with the Living Wage Ordinance and pay all its employees providing "covered services" a living wage as defined in the Living Wage Ordinance.
On October 27, 2016, AlliedBarton assigned its interest in the Agreement to Universal Protection Services, LLC, d/b/a Allied Universal Security Services ("AUSS"), and the County, through the Director of Purchasing, accepted the assignment on January 10, 2017.
On November 28, 2017 (Item No. 2), the Board approved a First Amendment to the Agreement to increase the maximum not-to-exceed amount by $5,676,020, from $17,700,000 to $23,376,020, for the initial three-year term to provide for increases in the level of security officer services. As was noted in that agenda item, since the optional renewal periods had not been exercised, the First Amendment did not address additional funding for the optional renewal periods. The Director of Purchasing has exercised the first one-year renewal option, extending the Agreement through September 30, 2019.
On December 11, 2018 (Item No. 26), the Board amended the Living Wage Ordinance to increase the living wage rate to at least $13.27 per hour with qualifying health care benefits amount of at least $1.63 per hour, or at least $14.90 per hour without health care benefits, adjusted annually as provided for in the Living Wage Ordinance. The amendment to the Living Wage Ordinance provided that, for covered contracts entered into prior to January 1, 2019, the vendor and County may enter into a written amendment applying the higher amended living wage rate or the vendor may provide written consent and express waiver to any objection or defense to the application of the higher amended living wage rate.
AUSS voluntarily began paying the higher living wage rate to covered employees on January 1, 2019, and requested negotiation of an amendment to the Agreement to address the additional costs resulting from the amended living wage rates that were not contemplated when the hourly rates for the existing Agreement were negotiated in 2015. The Port Everglades Contract Administrator reviewed the request and completed the Contract Administrator's Living Wage Certification (see Exhibit 3).
In addition to increases associated with the amended living wage rate, both the Port Everglades Department and Aviation Department have experienced increases in requirements for AUSS security officer services for operations and capital projects that require additional funding for security officer services for the current term, which is the first one-year renewal period, and for the second one-year renewal period through September 30, 2020.
Negotiations were held on February 15, 2019, and March 1, 2019, with representatives from AUSS, Port Everglades Department, Aviation Department, Purchasing Division, and the Office of the County Attorney. The negotiations resulted in the proposed Second Amendment with the following terms:
- Increases the regular hourly rate for a Level I Officer from $19.09 to $19.84, and the holiday and overtime rate from $26.25 to $27.28, for the current one-year renewal period ending September 30, 2019. The increased rates would be applied for the current one-year renewal period retroactive to January 1, 2019, the date AUSS voluntarily started paying the amended living wage rates to eligible employees.
- Increases the regular hourly rate for a Level I Officer from $19.28 to $20.20, and the holiday and overtime rate from $26.51 to $27.77, for the second one-year renewal period beginning October 1, 2019, to September 30, 2020.
- Increases the not-to-exceed contract amount from $12,180,000 to $24,513,000 for the two one-year renewal periods of this Agreement. Of this increase, approximately $750,000 is attributable to the increase in the living wage rate, and the remaining $11,583,000 is due to current or projected increases in security officer services at Port Everglades, Fort Lauderdale-Hollywood International Airport, and North Perry Airport.
- Increased insurance minimum liability limits to reflect current County requirements.
The Agreement with AUSS established a County Business Enterprise ("CBE") goal of 15%. AUSS's CBE participation was 26.2% as of February 21, 2019, as verified by the Office of Economic and Small Business Development (see Exhibit 4).
The Second Amendment has been reviewed by the Port Everglades Risk Manager and approved as to form by the Office of the County Attorney. |