Title
Resolution Authorizing Sole Source Contract with Johnson Controls to Provide Necessary Equipment and Modifications to Meet Insurance Requirements to Insure GTA Maintenance, Operations and Administrative Offices Facility on 223 West Meadowview Road
Body
Department: Transportation
Council District: 1
Public Hearing: N/A
Advertising Date/By: N/A
Contact 1 and Phone: Libby James 373-2820
Contact 2 and Phone: James Dickens 373-2327
PURPOSE:
This Resolution authorizes the City to enter into a sole source contract with Johnson Controls pursuant to 49 C.F.R. 18.36 and FTA Circular 4220.1F to provide necessary equipment and modifications to address the issues raised by a Risk Evaluation Report in order to obtain/maintain property insurance on the GTA Maintenance, Operations, and Administrative Offices Facility located at 223 West Meadowview Road.
BACKGROUND:
The City completed construction of the federally and state funded 18.5 million dollar GTA Maintenance, Operations, and Administrative Offices Facility in January 2012. The City sought to obtain property insurance on the building, and as part of this process, the insurance company, FM Global, conducted a loss prevention site visit at the building. FM Global's field engineer visited the facility on October 15, 2012 and submitted an "All in One First Baseline Risk Evaluation Report" on November 20, 2012. As part of this report, FM Global identified two fire hazards that if not corrected would affect the City's liability coverage for the building in the event of a fire. These two fire hazards require the City to add automatic shut-off devices to the facility's ignitable liquid pumps. These existing pumps and systems are manufactured by Johnson Controls, Inc., and they are proprietary systems. Only Johnson Control, Inc. devices will work on these systems.
The City Attorney's Office has written a Memorandum dated June 13, 2014 stating that the Federal Transit Administration (FTA) has issued guidelines in FTA Circular 4220.1F that permits the City to enter into sole source contracts if the vendor has a unique or innovative concept or capability that is the product of original thinking, the details of which are kept confidential or are patented or copyrighted and not available from another source. FTA Circular 4220.1F also allows the City to enter into sole source contracts in the case of a follow-on or change order contract for the continued development or production of highly specialized equipment and major components thereof, when it is likely that award to another contractor would result in substantial duplication of costs that are not expected to be recovered through competition. Finally, FTA Circular 4220.1F allows the City to enter into sole source contracts when patent or data rights restrictions preclude competition. Johnson Controls, Inc. provided a quote of $37,820 to install these required automatic shut-off devices. The City obtained an Independent Cost Estimate from Moser, Mayer, & Associates for these types of devices, and they estimated the cost to be approximately $57,086.57. The quote provided by Johnson Controls, Inc. is substantially less than the Independent Cost Estimate.
BUDGET IMPACT:
The quote provided by Johnson Controls to make these repairs is $37,820. This will be funded from the same grant account that funded construction of the facility (565-4560-01.5621). A budget adjustment will be necessary to move funding into the correct account.
RECOMMENDATION / ACTION REQUESTED:
The Department of Transportation recommends and requests that City Council approve the attached Resolution allowing the City to enter into a sole source contract with Johnson Controls, Inc. to provide necessary equipment and modifications to meet insurance requirements to insure the GTA Maintenance, Operations, and Administrative Offices Facility located at 223 West Meadowview Road and approve the associated budget adjustment.