Formal Sole Bid Received November 18, 2021 for S10-L29712 - Approve an ordinance awarding a contract to SC Hydraulics, Inc./South Coast Hydraulics in the maximum contract amount of $3,322,065.75 for service and repair maintenance of aerial bucket, boom, crane and digger trucks for the Fleet Management Department.
Specific Explanation:
The Director of the Fleet Management Department and City Chief Procurement Officer recommend that City Council approve an ordinance awarding a three-year contract with two one-year options to SC Hydraulics, Inc./South Coast Hydraulics on its sole bid meeting specifications for service and repair maintenance of aerial bucket, boom, crane and digger trucks in the maximum contract amount of $3,322,065.75 for the Fleet Management Department.
This project was advertised in accordance with the requirements of the State of Texas bid laws. Five prospective bidders downloaded the solicitation document from Strategic Procurement Division’s (SPD) 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 response to this solicitation. Responses from potential bidders varied as reasons for not bidding. They respectively expressed that inspection and preventative maintenance was their primary core of business as opposed to the solicitation’s service and repair maintenance requirements. They also expressed that they did not have the necessary resources and facilities to meet the scope of work requirements, or that they are holding a perception that a large volume of units on the City’s equipment list were obsolete, making the availability of parts difficult to acquire and thus inheriting an increased risk for not meeting the City’s service deadlines.
The scope of work requires the Contractor to provide all equipment, labor, materials, parts, supervision, tools and transportation necessary to perform service and repair maintenance on various types of aerial devices and bucket trucks. The service and repair maintenance includes, but not limited to, the turret, pedestal, rotation bearing and system, boom(s), boom pins and bushings, hydraulic cylinders, pumps, valves, baskets, power take off, outriggers, stabilizer bar, stabilizing, boom related components, placards and any and all other components and/or attachments which may affect the operation and/or safety of aerial devices/bucket trucks, and are to be performed in compliance within all federal and state regulations and manufactures specifications. Repairs are also required on the trucks’ body systems, components or parts to ensure the body systems perform structurally, mechanically, and functionally, as intended.
M/WBE Subcontracting:
This invitation to bid was issued as a goal-oriented contract with a 6% goal for M/WBE participation level. SC Hydraulics, Inc./South Coast Hydraulics has designated the below-named companies as its certified M/WBE subcontractors:
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Name
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Type of Work
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Amount
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%
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Atlantic Petroleum & Mineral Resources
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Oil/Lubricant Supplier
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$199,323.95
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6%
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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, the SC Hydraulics, Inc./South Coast Hydraulics 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, SC Hydraulics, Inc./South Coast Hydraulics is a designated HHF company, but they were the successful awardee without application of the HHF preference.
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.
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____________________________________________
Jerry Adams, City Chief Procurement Officer
Finance/Strategic Procurement Division
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_________________________________________
Department Approval Authority
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Estimated Spending Authority
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DEPARTMENT
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FY2022
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OUT YEARS
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TOTAL
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Fleet Management Department
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$597,256.07
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$2,724,809.68
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$3,322,065.75
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