Broward County Commission Regular Meeting


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AI-24256 34.       
Meeting Date: 06/06/2017  
Director's Name: George Tablack
Department: Finance & Administrative Services Division: Purchasing

Information
Requested Action
MOTION TO APPROVE Agreement between Broward County and Shanghai Zhenhua Heavy Industries Co., Ltd., Inc. DBA ZPMC, for Low Profile Super Post Panamax Container Handling Gantry Cranes, Request for Proposals (RFP) No. X2111385P1, for the Broward County Port Everglades Department, in the initial amount of $41,400,000 for three cranes, with an option to purchase up to three additional cranes in the potential maximum amount of $55,103,400, for a total contract amount not-to-exceed $96,503,400, contingent upon the receipt and approval of insurance/performance and payment guaranty; and authorize the Mayor and Clerk to execute same.

ACTION:  (T-10:28 AM)  Approved.
 
VOTE: 8-0.  Commissioner LaMarca was not present.
Why Action is Necessary
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 multiple-year period.
What Action Accomplishes
Provides for the design, construction, transportation, delivery to the Broward County Port Everglades Department and commissioning of three (3) Low Profile Super Post Panamax Container Handling Gantry Cranes, with an option to purchase up to three (3) additional cranes.
Is this Action Goal Related
Previous Action Taken
None.
Summary Explanation/Background
THE PURCHASING DIVISION AND THE BROWARD COUNTY PORT EVERGLADES DEPARTMENT RECOMMEND APPROVAL OF THE ABOVE MOTION.

This action supports the Broward County Board of County Commissioners’ Value of “Ensuring economic opportunities for all people and businesses in Broward” and Goal to “Increase the economic strength and impact of revenue-generating County enterprises balancing economic, environmental, and community needs.”

The Office of Economic and Small Business Development (OESBD) established a Disadvantaged Business Enterprise participation race neutral goal of 9.91% for this project. ZPMC’s submission was reviewed and approved by the OESBD (Exhibit 3).

This Agreement provides for the design, construction, transportation, delivery and commissioning of three Low Profile Super Post Panamax Rail Mounted Container Handling Gantry Cranes, with an option to purchase up to three additional cranes over the course of five years, for Port Everglades.

The initial purchase of the three cranes and the option to order up to three additional cranes provides Port Everglades the ability to meet its container shipping customers’ current and anticipated future service requirements. The world's fleet of container ships continues to grow in size and capacity. Port Everglades’ seven existing container cranes, located  in Southport, are limited to handling containers stacked five units high and can reach out across sixteen containers on the decks of ships. The new cranes will have the ability to handle containers stacked eight units high and reach out across twenty-two containers on the decks of ships. Additionally, the new cranes will have a maximum lift capacity of 65 tons (the current cranes maximum lift capacity is 46 tons). The new cranes will permit the assignment of more cranes to individual ships, increasing the container handling efficiencies and reducing the time in port for container ships. This will not only save time and cost for the customers but will increase ship berth and crane availability for use by other customers.

The unit price for the initial three cranes is $13,800,000 per crane. The unit price of the optional cranes is dependent on ordered date from the First Notice to Proceed: $13,800,000 per crane if ordered within twenty-four months; $15,180,000 per crane if ordered between twenty-four and thirty-six months; $16,698,000 per crane if ordered between thirty-six and forty-eight months; and $18,367,800 per crane if ordered between forty-eight and sixty months.

On June 14, 2016 (Item No. 57), the Board approved the Request for Proposals (RFP) No. X2111385P1, Low Profile Super Post Panamax Container Handling Gantry Cranes. Two firms submitted proposals in response to the RFP.

On January 4, 2017, a Combination Initial and Final Evaluation Committee meeting was held. The Evaluation Committee named Shanghai Zhenhua Heavy Industries Co., Ltd. DBA ZPMC  (ZPMC) the first ranked firm.

On February 14, 2017 (Item No. 34), the Board approved the Evaluation Committee’s final ranking of the qualified firms and authorized staff to proceed with negotiations.

Two sunshine negotiation meetings were held with ZPMC to negotiate an agreement on March 23 and March 24, 2017. These meetings were attended by representatives of ZPMC, the Broward County Port Everglades Department, the County Auditor's Office, Liftech Consultants Inc., and the Broward County Purchasing Division.  Through negotiations, ZPMC agreed to the attached negotiated agreement (Exhibit 2).

The Evaluation Committee consisted of:
 
Martha Perez-Garviso, Purchasing Manager, Purchasing Division, Finance and Administrative Services Department
(Chair and Non-Voting Member)
Monica Cepero, Assistant County Administrator
Steven Cernak, Chief Executive/Port Director, Port Everglades Department
Robert Flint, Enterprise Director of Operations, Port Everglades Department
Michael Nonnemacher, Enterprise Director of Operations, Aviation Department
Richard Tornese, Director, Highway Construction and Engineering Division, Public Works Department
 
Source of Additional Information
Brenda J. Billingsley, Director, Purchasing Division, (954) 357-6070

Fiscal Impact
Fiscal Impact/Cost Summary:
The source of funding for the initial three Low Profile Super Post Panamax Container Handling Gantry Cranes, in the amount of $41,400,000, has been previously appropriated in the Port Everglades Department's Capital Fund.  Additional funding for the optional cranes, in the potential maximum amount of $55,103,400, will be requested through the Capital Improvement Program budget process.  The project is also expected to receive funding from the Federal Transportation Infrastructure Finance and Innovation Act (TIFIA) direct loan program, and an application for a Federal FASTLANE grant that includes partial funding for the project was submitted by the Broward County Metropolitan Planning Organization in December 2016; the U.S. Department of Transportation has not announced which grant applications will be funded.
Attachments
Exhibit 1 - Agreement Summary
Exhibit 2 - Agreement
Exhibit 3 - Goal Compliance Memorandum dated November 10, 2016


    

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