ORDINANCE approving and authorizing contract between City of Houston and L.J. POWER, INC for Maintenance, Repair, and Testing of Emergency Power Units for Various Departments; providing a maximum contract amount - 3 Years with two one-year options - $6,292,327.96 - General, Enterprise and Other Funds

Formal Bids Received September 3, 2020 for S19-L29309 – Approve an ordinance awarding a contract to L.J. Power, Inc. in the maximum contract amount of $6,292,327.96 for maintenance, repair, and testing of emergency power units for various departments.

Specific Explanation:

The Chief Procurement Officer recommends that City Council approve an ordinance awarding a three-year contract with two one-year options to L.J. Power, Inc. in the maximum contract amount of $6,292,327.96 for maintenance, repair, and testing of emergency power units for various departments.

The scope of work requires the contractor to furnish all labor, supervision, management, materials, supplies, parts, equipment, tools, and transportation necessary to perform tri-annual, annual, monthly, and bi-monthly preventative maintenance services; annual load tests; inspection of parts (when mutually agreed); and repairs for emergency standby generator sets and auxiliary engine drive units.

This project was advertised in accordance with the requirements of the State of Texas bid laws.  Twenty-eight bidders downloaded the solicitation document from SPD’s e-bidding website and as a result, BVB’s were received from Clifford Power Systems, Inc., L.J. Power, Inc., Loftin Equipment Company, Inc., and Kentech, Inc.  The evaluation committee (EC) was comprised of four evaluators from Houston Public Works, Fleet Management, Houston Information Technology Services, and Parks and Recreation departments.  The bids were evaluated based upon the following criteria.

·         Experience/Expertise/Qualifications

·         Past Performance

·         Service and Support

·         Quality and Workmanship

·         Methodology

·         Price

L.J. Power, Inc. was deemed the best respondent.

M/WBE Participation:

This best value bid was issued as a goal-oriented contract with a 11% participation level.  L.J. Power, Inc. has designated the below-named company as its certified M/WBE contractor.

Name                          Type of Work             Dollar Amount           Percentage

US Lube, Inc.              Oil, Lubricants,              $692,156.08                  11%

                                    and Filters

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, L.J. Power, Inc. provides health benefits to eligible employees in compliance with City policy.

Hire Houston First:

The proposed contract requires compliance with the City’s ‘Hire Houston First’ ordinance that promotes economic opportunity for Houston businesses, while supporting job creation.  In this case, L.J. Power, Inc, does not meet the requirements of HHF designation; no HHF firms were within three percent.

 Fiscal Note:

Funding for this item is included in the FY2022 Adopted Budget.  Therefore, no Fiscal Note is required as stated in the Financial Policies.

                                           ESTIMATED SPENDING AUTHORITY

$1,930,438.46 – Maintenance Renewal and Replacement Fund (2105)

$1,044,942.00 – Fleet Management Fund (1005)

$   355,000.00 – Central Service Fund (1002)

$2,465,475.00 – Water and Sewer System Operating Fund (8300)

$   135,310.00 – Dedicated Drainage and Street Renewal Fund – Metro El Al (2312)

$     42,750.00 – Stormwater Fund (2302)

$   318,412.50 - General Fund (1000)

$6,292,327.96 - TOTAL