S19-T23910-A4 – Approve an amending ordinance authorizing a first amendment to Contract No. 4600011649 to extend the contract term from December 10, 2017 to March 31, 2018 and increase the maximum contract amount from $9,635,096.00 to $10,255,405.00 for the contract between the City of Houston and Koetter Fire Protection of Houston, LLC for fire and security alarm system maintenance, inspections, testing and monitoring services for various departments.
Specific Explanation:
The Chief Procurement Officer recommends that City Council approve an amending ordinance authorizing a first amendment to extend the contract term from December 10, 2017 to March 31, 2018 and increase the maximum contract amount from $9,635,096.00 to $10,255,405.00 for the contract between the City of Houston and Koetter Fire Protection of Houston, LLC for fire and security alarm system maintenance, inspections, testing and monitoring services for various departments.
This contract was awarded on August 8, 2012, by ordinance No. 2012-0691, for a three-year term with two one-year options in an amount of $6,175,400.00 and was subsequently amended on October 14, 2015, by ordinance No. 2015-0974, to increase the maximum contract amount from $6,175,400.00 to $8,645,560.00. A second amending ordinance was approved on January 4, 2017, by ordinance 2017-0015 to authorize a change order; and a third amending ordinance was approved on March 22, 2017, by Ordinance 2017-0202 to increase the maximum contract amount from $8,645,560.00 to $9,635,096.00. The first amendment will extend the contract term through March 31, 2018 and increase the contract amount from $9,635,096.00 to $10,255,405.00. In consideration for this contract term, the contractor has agreed to honor its five-year pricing and all other contract terms and conditions through March 31, 2018. The Strategic Procurement Division has started the procurement for a new contract with a Request for Proposal (RFP) and is estimating that the new contract will be in effect by the end of March 2018.
The contract incurred expenditures at a rate higher than anticipated due to an increase in requests for fire and security alarm system maintenance, inspections, testing and monitoring services for various departments due to a large number of system deficiencies, maintenance work and code violations. As a result of additional services, the maximum contract amount will be exhausted prior to the end of the contract term. Therefore, an increase to the maximum contract amount is needed to ensure that these services continue through the end of the contract term.
The scope of work requires the contractor to provide all labor, supervision, parts, materials, equipment, supervision and transportation necessary to monitor, maintain and respond to activated security and fire alarms at facilities throughout the City. Additionally, the Contractor will be required to provide 24/7 monitoring of elevator telephones, as well as monitor low temperature alarms of walk-in coolers. The Contractor is also required to perform periodic testing, repair and certification of fire alarm systems.
This recommendation is made pursuant to Chapter 252, Section 252.022 (a) (2) “a procurement necessary to preserve or protect the public health or safety of the municipality’s residents” of the Texas Local Government Code for exempted procurements.
M/WBE Subcontracting:
The contract was awarded with a 7% participation goal and Kotter Fire Protection of Houston, LLC is currently achieving 7.36% of the required M/WBE goal.
Fiscal Note:
Funding for this item is included in the FY2018 Adopted Budget. Therefore, no Fiscal Note is required as stated in the Financial Policy Ord. 2014-1078.
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Jerry Adams, Chief Procurement Officer Department Approval Authority Signature
Finance/Strategic Procurement Division
ESTIMATED SPENDING AUTHORITY
|
Department
|
FY18
|
Out-Years
|
Total Amount
|
|
General Services Department
|
$353,314.00
|
$0.00
|
$353,314.00
|
|
Houston Airport System
|
$182,250.00
|
$0.00
|
$182,250.00
|
|
Public Works and Engineering
|
$54,000.00
|
$0.00
|
$54,000.00
|
|
Parks and Recreation
|
$26,200.00
|
$0.00
|
$26,200.00
|
|
Solid Waste Management Department
|
$4,545.00
|
$0.00
|
$4,545.00
|
|
Total Amount
|
$620,309.00
|
$0.00
|
$620,309.00
|