DATE: August 9, 2022
TO: Board of Supervisors
SUBMITTED BY: Robert W. Bash, Director, Internal Services/Chief Information Officer
SUBJECT: Agreement with R.F. MacDonald Co. for Boiler Services
RECOMMENDED ACTION(S):
TITLE
Approve and authorize the Chairman to execute an Agreement with R.F. MacDonald Co. to provide inspection, maintenance, monitoring, testing, and repair for boiler systems, effective upon execution, not to exceed five consecutive years with no optional extensions, total not to exceed $2,000,000.
REPORT
Approval of the recommended action will authorize the Internal Services Department - Facility Services Division (ISD - Facilities) to obtain inspection, maintenance, monitoring, testing, and repair services for boiler systems, in compliance with San Joaquin Valley Air Pollution Control District (SJVAPCD) requirements. The recommended agreement utilizes rates negotiated by City of Fresno, Request For Proposal (RFP) #9548: Boiler Services and Testing Requirements Contract, pursuant to the Purchasing Manager’s authority, in compliance with the County Purchasing Manual. This item is countywide.
ALTERNATIVE ACTION(S):
Should your Board not approve the recommended actions, repairs would be addressed on an as needed basis, which could result in unscheduled downtime and impacts to county services operated in county-owned buildings. Non-approval may also result in ISD - Facilities needing to find another provider to perform and certify monthly and annual testing to satisfy state requirements, to remain in compliance with various rules and regulations.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended action. The maximum compensation in FY 2022-23 is estimated at $385,000; $2,000,000 for the term. All costs associated with these services are recovered through chargebacks to user departments. Sufficient appropriations and estimated revenues are included in the ISD - Facilities Org 8935 FY2022-23 Recommended Budget and will be included in future budget requests.
DISCUSSION:
The County’s Purchasing Manual allows the Purchasing Manager to join with other public entities for collectively preparing specifications; requesting and receiving quotations or proposals; and making an award to the lowest responsive, responsible bidder if the source selection method used is in compliance with the requirements of Chapter 4 - Vendor Selection Through Competitive Solicitation. Further, the Internal Services Department - Purchasing Division (ISD - Purchasing) may also use California Cooperative Purchasing Contracts if the items under a state contract meet the County’s needs and if it is unlikely that a separate bid would result in prices, terms, and/or conditions that are more favorable. Contract buying groups are considered to take the place of competition if, in ISD - Purchasing’s opinion, it is in the best interest of the County.
The City of Fresno released RFP #9548: Boiler Services and Testing Requirements Contract, on the Planet Bids platform on May 29, 2020, which closed on June 19, 2020. There were 1,600 vendors notified, and only one response was received, from R.F. MacDonald Co. (MacDonald) The bid was evaluated by a committee of City staff, based on the vendor’s ability to meet the service requirements, past performance and experience based on references, conformance to the terms and conditions of the RFP, and cost. The City awarded MacDonald an agreement that began August 25, 2020, through August 24, 2023, with the option to renew for two additional one-year terms.
The County currently owns and operates a total of 44 pieces of boiler equipment at various locations throughout the County. MacDonald is the County’s current contractor for boiler services and has satisfactorily provided services under County Agreement No. 17-178, approved by the Board on May 2, 2017.
Approval of the recommended action will authorize MacDonald for a five-year contract with no optional extensions, to take advantage of a three-year fixed labor rate (the rate increases for years four and five of the recommended agreement) and a fifteen percent discount on parts, for a total amount not to exceed $2,000,000.
REFERENCE MATERIAL:
BAI # 32, May 2, 2017
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - Agreement with R.F. MacDonald Co.
CAO ANALYST:
Sonia M. De La Rosa