THE BOARD OF SUPERVISORS OF THE COUNTY OF STANISLAUS BOARD ACTION SUMMARY DEPT: General Services Agency BOARD AGENDA:6.B.9 AGENDA DATE: December 18,2018 SUBJECT: Approval of Master Agreements with Elevator Industries, Inc. and ThyssenKrupp Elevator for Countywide Elevator Maintenance and Repair Services BOARD ACTION AS FOLLOWS: RESOLUTION NO. 2018-0654 On motion of Supervisor __ Qbl~:ts_(! ________________ ... seconded by Supervisor Qlseo _______________ _ and approved by the following vote, Ayes: Supervisors: _Qlsen+ Ch.iesa+ Witbr:a~t~+ Maot.e.ith...a.nd Ch.airman D..e.MartinL ______________________ _ Noes: Supervisors: ______________ ~.9Jl_e________________________________________________________ _ Excused or Absent: Supervisors: _-~QIJ!ll _______________________________________________________ _ Abstaining: Supervisor: __________ .Nooe _______________________________________________________ _ 1) X Approved as recommended 2) Denied 3) Approved as amended 4) Other: MOTION: ATIEST: File No. THE BOARD OF SUPERVISORS OF THE COUNTY OF STANISLAUS AGENDA ITEM DEPT: General Services Agency BOARD AGENDA:6.B.9 AGENDA DATE: December 18, 2018 CONSENT: CEO CONCURRENCE: YES 4/5 Vote Required: No SUBJECT: Approval of Master Agreements with Elevator Industries, Inc. and ThyssenKrupp Elevator for Countywide Elevator Maintenance and Repair Services STAFF RECOMMENDATION: 1. Approval of a Master Agreement for Independent Contractor Services with Elevator Industries, Inc. for countywide elevator maintenance and as-needed repair services in the amount of $750,000, for the term beginning January 1, 2019 and ending December 31, 2023. 2. Approval of a secondary Master Agreement for Independent Contractor Services with ThyssenKrupp Elevator for countywide elevator maintenance and as-needed repair services in the amount of $750,000, for the term beginning January 1, 2019 and ending December 31, 2023. 3. Authorize the Purchasing Agent to sign the Master Agreements identified above, and any subsequent amendment to the Agreements on behalf of the County. DISCUSSION: The County operates 32 elevators of various capacities, located across many departmental sites throughout the County, which must be serviced regularly to keep them in proper working order. During planned maintenance, technicians test and certify critical components work as required, and make minor repairs if needed. Such work is an integral part of the overall elevator maintenance program for the County, ensuring reliability of the equipment and compliance with state-mandated testing, inspections, and licensing requirements. Historically, the County has obtained such elevator maintenance services by using competitively-bid agreements acquired by the City of Modesto. The most recent of these was approved by the Board of Supervisors on August 24, 2010. This agreement provided services at rates established by the Request for Proposals (RFP) process under RFP No. 0910-08 issued by the City of Modesto, and the resultant agreement approved by the City Council on August 4, 2010. Use of such agreements are commonly referred to as “piggybacking” and is permissible under Government Code § 6502 and § 6508.2, which allow public agencies to jointly exercise any power common to the contracting parties (Tucker Land Co. v. State of California (2001) 94 Cal. App. 4th 1191). In 2015 the City of Modesto conducted RFP 1415-38 for a replacement agreement, resulting in award to the incumbent provider, ThyssenKrupp Elevator on September 22, 2015. The General Services Agency, Purchasing Division (GSA) declined to join the City’s newly-awarded agreement, instead negotiating with the contractor to continue service under the pricing terms of the 2010 agreement on a month-to-month basis while the County sought a more permanent solution. During this time GSA explored several other cooperative agreements that were bid out by other governmental agencies and offered favorable rates, but the County and the contracted elevator firms were unable to come to consensus over the agreement terms. This turn of events ultimately led GSA to take the County’s elevator maintenance business back out to bid on its own, using the County’s terms and conditions for the resultant agreements. GSA competitively procures and maintains countywide Master Agreements for a variety of goods and services, and by combining the needs of multiple County departments, GSA can procure these items at lower rates than would otherwise be possible. In reviewing the County’s elevator maintenance needs, GSA determined that by having multiple consultant teams available to provide elevator maintenance services, it would provide more competitive pricing and a larger pool of technical resources to respond to the County’s various elevator needs. Historically, County departments have relied on one-sole vendor to respond to elevator service calls. In this model, customer service and response times have not been consistent with the County’s expectations. GSA anticipates that by awarding two separate Master Agreements for elevator services, County departments will be able to select the most qualified and experienced firm that best meets the needs for their elevator maintenance. GSA worked with internal County departments to determine their needs and consulted with outside agencies for recommendations on best practices to include in the scope of services. GSA also contacted the Tenth Street Place Joint-Powers Agency (JPA), who asked to be included in the County’s solicitation as alternate bid item, with agreement participation subject to the review and approval of the JPA Board. GSA posted Invitation for Bids (Bid) No. 18-02-BD for Elevator Maintenance and Repair on August 3, 2018, which set forth the scope of work. The Bid notice was sent to 184 companies, and 23 downloaded the Bid documents. Five contractors attended the non- mandatory pre-bid meeting held August 14, 2018. When bidding closed on August 28, 2018, GSA had received responses from three contractors: Company Name Total Bid EnPro Elevator, Inc. (Rancho Cordova, CA) $247,892 Elevator Industries, Inc. (Sacramento, CA) $325,264 ThyssenKrupp Elevator (West Sacramento, CA) $449,900 Upon review of the submittals, GSA disqualified EnPro’s bid as non-responsive for failing to meet the minimum qualification standards set forth in the bid documents, including mandatory licensing and registration requirements, confirmation that the Bidder employ at least one journeyman mechanic with 5 years of experience residing within a 20-mile radius of Modesto, and confirmation of the Bidder’s ability to respond to multiple locations simultaneously. EnPro was given until 5:00 p.m. September 14, 2018 Page 2 of 3 to address the above deficiencies, but did not provide a response until 12:30 p.m. September 20, 2018, and in that late response did not fully address all items noted. GSA determined the remaining two bidders to be both responsive and responsible in all respects. On September 26, 2018, GSA issued a Notice of Intent to Award to both Elevator Industries, Inc., and ThyssenKrupp, and posted such notice online at PublicPurchase.com. No letters of protest were received during the five-day protest period of the bid process. POLICY ISSUE: The County’s purchasing policy requires Board of Supervisors approval for contracts exceeding $100,000, based upon California Government Codes § 25212, et seq, and §25502.5, et seq, which establish the powers of the Board of Supervisors and the Purchasing Agent. FISCAL IMPACT: Based on current usage trends and department budgets, GSA-Purchasing anticipates a combined total of approximately $1,000,000 will be spent during the entire five-year term from January 1, 2019 through December 31, 2023. This estimate is based on historic spending analysis, and includes contingency amounts for as-needed repairs, and for optional participation by the Tenth Street Place JPA. Because it is unknown how many departments will choose to do business with each of the two contractors, GSA has limited both agreements at $750,000 to account for disparities in the rate of selection of one contractor over another. GSA does not expect both agreements to use their full $750,000 amount, but there exists the possibility that one contractor may prove more popular with the departments than the other. Appropriations for department use of the Agreements are requested at the department level and will be addressed during a budget cycle, if needed. BOARD OF SUPERVISORS’ PRIORITY: The recommended actions are consistent with the Boards’ priority of Delivering Efficient Public Services by providing cost-efficient contracted elevator maintenance and repair services to County departments. STAFFING IMPACT: Existing GSA staff will manage the contract for the elevator maintenance and repair services. CONTACT PERSON: Keith D. Boggs, GSA Agency Director/Purchasing Agent (209) 652-1514 Brad Diemer, Purchasing Manager (209) 525-6319 ATTACHMENT(S): 1. Elevator Industries Master Agreement 2. Thyssen-Krupp Master Agreement Page 3 of 3 IN WITNESS WHEREOF, the parties or their duly authorized representatives have executed this Agreement in duplicate on the day and year first hereinabo written. "County" "Contractor" APPROVED AS TO CONTENT: Department of General Services, Facilities Maintenance Division By:~ ,:::cp__ Matt Innes GSA Facilities Maintenance Manager APPROVED AS TO FORM: ring, County Counsel • .1:7-+--- By:~~~z-~Thomas E. Boze Assistant County Counsel Master Agreement For Independent Contractor Services Page 8 of 8 STANISLAUS COUNTY