Title
Resolution Authorizing Award of Contract 2014-10137 to Otis Elevator Company for City-wide Elevator Maintenance and Repair Services
Body
Department: Engineering and Inspections
Council District: All Districts
Public Hearing: N/A
Advertising Date/By: N/A
Contact 1 and Phone: Butch Simmons, Engineering and Inspections Department Director, (336) 373-2329
Contact 2 and Phone: Ute Munro, Business Center Manager, (336) 373-2726
PURPOSE:
The Engineering and Inspections Department is responsible for City-wide facility maintenance including City elevators. The current city-wide elevator maintenance and repair contract expires on June 30, 2014. Under the City Service Contract Policy, the proposed new three year contract, with two one-year renewal options, is expected to exceed $300,000 in total value, requiring City Council approval.
BACKGROUND:
Elevator maintenance and repair is a highly technical, state regulated service. This service can only be provided by firms that have been recognized by the State of North Carolina's Department of Labor - Elevator Division as qualified to perform elevator maintenance and repair services. In a search of the North Carolina Department of Administration's Historically Underutilized Business database, no HUB certified firms were found to provide this service in the 10-County Greensboro Metropolitan Statistical Area (MSA). The Centralized Contracting Division recommended contracting these services by joining a competitively bid "Cooperative Purchasing Agreement" through the National Intergovernmental Purchasing Alliance Company (IPA). IPA is a non-profit organization recognized in the field of procurement as a resource for governments to purchase goods and services through cooperative contracts that have been competitively bid and negotiated. The National IPA also monitors contracts for pricing on a regular basis to ensure that rates remain competitive across the jurisdictions served.
This organization currently carries a cooperative elevator/escalator maintenance & repair contract with Otis Elevator Company, which has offices located in Kernersville, NC. The contract was competitively awarded in 2011 by the Metropolitan Government of Nashville and Davidson Counties (Tennessee) after conducting a nationally advertised Request for Proposals (RFP) that considered technical requirements, qualifications and pricing. This procurement event and contract met IPA's standards and remains available as a resource to other municipalities.
The three year contract value is based on fixed costs for regular elevator maintenance and repair and on call services as needed. All maintenance and repair service required under normal elevator usage will be provided for a flat monthly fee of $5,406.14. Additional repairs that may be needed for reasons outside of normal use are covered under the contract on an as needed basis.
The City Attorney has reviewed the proposed Contract #2014-10137 for legal form and compliance with City M/WBE policy and North Carolina State procurement regulations and supports this recommendation. The Centralized Contracting Division and Engineering and Inspections Department concur with this selection.
BUDGET IMPACT:
The cost of the three year contract is estimated at $199,655. The contract may be renewed for a total period of five years with a total potential value of $332,758. The funding source is the General Fund which is subject to future annual budget appropriations by City Council.
RECOMMENDATION / ACTION REQUESTED:
The Centralized Contracting Division and Engineering and Inspections Department recommend the award of this service contract to Otis Elevator Company. City Council authorization is requested.