DATE: January 21, 2020
TO: Board of Supervisors
SUBMITTED BY: Robert Bash, Director of Internal Services/Chief Information Officer
SUBJECT: Agreement with ThyssenKrupp Elevator Corporation
RECOMMENDED ACTION:
TITLE
Approve and authorize the Chairman to execute an Agreement with ThyssenKrupp Elevator Corporation for elevator maintenance and repair services, effective upon execution, not to exceed five consecutive years, which includes a three-year base contract and two optional one-year extensions, total not to exceed $5,500,000.
REPORT
Approval of the recommended action will ensure the Internal Services Department, Facility Services Division, (ISD-Facility Services) maintains an effective level of maintenance and support for elevators within County buildings and provide for modernization efforts for the County’s elevators. This item is countywide.
ALTERNATIVE ACTION(S):
Should your Board not approve the recommended actions, ISD-Facility Services will not have services available for elevator maintenance and repair. The County will have to operate outside of an agreement for emergency elevator repair, resulting in slower response time and higher costs for service calls for repair services, and would result in not having ongoing maintenance of the County’s elevators.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended action. Costs for maintenance for County elevators will total $1,833,300, and the safety and reliability upgrades are estimated not to exceed $1,583,900 for the term of the recommended agreement. An additional $2,082,800 has been included in the agreement for controller modernization efforts and new buildings coming online during the course of the recommended agreement. The previous agreement totaled $3,688,120, and did not include a budget for neither the requested safety upgrades nor modernization efforts. These modernization efforts will be budgeted in future budget years a part of user departments’ Facility Services budgets. Sufficient appropriations and estimated revenues to cover FY 2019-20 costs associated with the recommended agreement are included in the Department’s Facility Services Org 8935 FY 2019-20 Adopted Budget and will be included in future budget requests.
DISCUSSION:
The County’s Purchasing Manual provides that the County may use cooperative purchasing contracts if it is unlikely that a separate County bid would result in prices, terms, and/or conditions that are more favorable. National Cooperative Purchasing Alliance (NCPA) issued a Request for Proposal (RFP) in mid-2016 for elevator maintenance and repair services, with awards in August of 2016. The evaluation team awarded the contract to ThyssenKrupp Elevator Corporation. ThyssenKrupp Elevator Corporation is recommended from the NCPA Contract 02-43, available to all local governments through the California Participating Addendum.
Following ISD-Purchasing’s review of the NCPA RFP process, a determination was made that the policies and procedures were consistent with the County’s RFP process. The Department is requesting to procure elevator maintenance and repair services, which were competitively bid and awarded by NCPA, enabling the County to leverage the pricing, terms, and conditions from the contract to the County’s advantage. The recommended agreement provides for elevator maintenance and repair services and incorporates the terms of the response to the NCPA RFP.
The services proposed by ThyssenKrupp include ongoing servicing, maintenance, and inspections, along with significant reliability and safety upgrades for County elevators totaling the approximate cost of the County’s previous agreement. This will result in a significantly more reliable fleet of elevators within County buildings and lower the incidence of service calls, which result in no real service, at effectively the same cost as provided in the previous agreement. The additional amount budgeted in the recommended agreement is to primarily account for elevator controller modernization efforts. These controller modernization efforts are to replace the aging controller infrastructure on County elevators. These modernization efforts will facilitate ongoing maintenance efforts by replacing outdated and obsolete elevator control systems.
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - Agreement with ThyssenKrupp Elevator Corp.
CAO ANALYST:
Yussel Zalapa