O2019-1033 ORDINANCE awarding contract to ADVANCED OVERHEAD CRANE SERVICES, INC. for Inspection, Maintenance and Repairs on Overhead Cranes & Hoist for Various Departments; providing a maximum contract amount - 3 Years with two one-year options - $2,077,154.95 - General and Enterprise Funds

Formal Sole Bid Received September 26, 2019 for S10-L28960 – Approve an ordinance awarding a contract to Advanced Overhead Crane Services, Inc. in the maximum contract amount not to exceed $2,077,154.95 for inspection, maintenance and repairs on overhead cranes and hoists for various departments.

Specific Explanation:

The Director of the Houston Public Works and the Chief Procurement Officer recommend that City Council approve an ordinance awarding a three-year contract with two one-year options to Advanced Overhead Crane Services, Inc. on its sole bid meeting specifications for inspection, maintenance and repairs on overhead cranes and hoists in the maximum contract amount not to exceed $2,077,154.95 for Houston Public Works, Houston Airport System and Solid Waste Management Department.

This project was advertised in accordance with the requirements of the State of Texas bid laws. Thirteen bidders downloaded the solicitation document from SPD’s e-bidding website, and one bid was received. Subsequent to the receipt of the bid, prospective bidders were contacted to determine the reason for the limited interest to this solicitation. The responses ranged from the scope not being their core business to lacking the capacity to provide this volume of service required over a maximum five-year contract term.

The scope of work requires the contractor to provide all supervision, labor, parts, tools materials, equipment, supplies, facilities and transportation necessary to perform precision repair services, scheduled inspections, performance tests, and issue certifications for cranes and hoists of Houston Public Works’ Wastewater & Drinking Water Operations, Solid Waste Department, and at Houston Airport System.  The cranes and hoists are grouped as CRN1, CRN2, CRN3, CRN4 and CRN5 to indicate the manufacturer and the size of the units located at City facilities. 

M/WBE Participation:

This invitation to bid was issued as a goal-oriented contract with a 3% goal for M/WBE participation level. Advanced Overhead Crane Services, Inc. has designated the below-named company as its certified M/WBE subcontractor:

Pay or Play Program:

The proposed contract requires compliance with the City’s ‘Pay or Play’ ordinance regarding health benefits for employees of City contractors.  In this case, Advanced Overhead Crane Services, Inc. provides health benefits to eligible employees in compliance with City policy.

Hire Houston First:

This contract requires compliance with the City’s Hire Houston First ordinance which promotes economic opportunity for Houston businesses and supports job creation.  While Advanced Overhead Crane Services, Inc. is HHF designated, it was the lowest bidder.  Therefore, the HHF preference was not applied to the award of the contract.

Fiscal Note:

Funding for this item is included in the FY20 Adopted Budget.  Therefore, no Fiscal Note is required as stated in the Financial Policies.

$1,587,766.95 – Water & Sewer System Operating Fund (8300)

$  181,500.00 – Dedicated Drainage & Street Renewal Fund (2310) [Metro]

$  93,500.00– Dedicated Drainage & Street Renewal Fund (2310) [Ad Valorem]

$   175,732.00 – HAS-Revenue Fund (8001)

$     38,656.00 – General Fund (1000)

$2,077,154.95 – Total