TO: Honorable Mayor & Members of the North Port Commission
FROM: A. Jerome Fletcher II, ICMA-CM, MPA, City Manager
TITLE: Approve Change Order #1 to the City Hall Backup Generator Installation Contract No. 2021-28 with OAC Action Construction Corp. for an Additional $107,647.35, Resulting in a New Contract Total of $952,474.30.
Recommended Action
Approve Change Order #1 to the City Hall Backup Generator Installation Contract No. 2021-28 with OAC Action Construction Corp. for an additional $107,647.35, resulting in a new Contract total of $952,474.30.
Background Information
City Hall serves as the center of governmental daily operations for the City of North Port and as the central coordination of decision making and emergency operations during natural and man-made disasters. Reliable emergency backup electrical power for City Hall is required for safe and effective management of these disasters.
In April 2019 the City of North Port was awarded a Sub-Grant Agreement from the State of Florida Department of Emergency Management (FDEM) for a Hazard Mitigation Grant approved by the Federal Emergency Management Agency (FEMA). This Grant permits the reimbursement of 75% of the associated costs of the purchase and installation of the emergency backup generator.
A 900 KW diesel generator with all accessories was designed and specified to serve City Hall and includes the following:
Ø Electrical installation
Ø Fuel Piping
Ø Some demolition
Ø Regrading and preparation of the generator site
Ø Installation of a new concrete slab
Ø Furnishing and installation of the generator with an enclosure
Ø A 1600A automatic transfer switch
Ø A 500A automatic transfer switch
Ø A free-standing 4,000-gallon diesel tank
The following provides the competitive bidding process utilized to procure the services for the City Hall Backup Generator Installation:
Ø March 26, 2021: Request for Bid 2021-28 was advertised.
Ø April 5, 2021: A Pre bid meeting was conducted.
Ø April 19, 2021: Two submittals were received from OAC Action Construction Corp and Expert Construction Managers, Inc. Expert Managers, Inc. were deemed non-responsive for failure to submit a proper bid form. The lowest bidder, OAC Action Construction Corp was over budget per the Grant Agreement. The City’s Consultant, Pegasus Engineering, recommended for the City to negotiate with the lowest, responsive and responsible vendor to secure the best price for the City within the grant guidelines. After negotiations, OAC Action Construction Corp was able to lower the price of the bid to $844,826.95 with potential contingency.
Due to market increases and supply chain issues, the generator manufacturer chose to cancel all previously quoted orders and re-quote to current pricing levels. This increased cost was passed down the supply chain to the City. After several months of pushback from the distributor and contractor toward the manufacturer, the remaining decision was left to the City funding the increased cost or the generator would be released to the open market. Staff consulted with Pegasus Engineering as well as a representative of the FDEM to ensure the project was still deemed cost effective in accordance with the Sub-Recipient Grant Agreement the City holds with FEMA. Pursuant to the FDEM, this project is still considered to be cost effective.
Ø June 2021: The City executed Contract No. 2021-28, City Hall Backup Generator Installation with OAC Action Construction Corp. in the amount of $844,826.95. (Agenda Item No. 21-0890). Per the Agreement, Sec. 14 Amendment (B), only the City Commission can approve increases in compensation under this Contract.
Contract No. 2021-28 with OAC Action Construction Corp. was previously reviewed by the City Attorney and found to be legally correct as to form. The purpose of Change Order #1 to Contract No. 2021-28 is to allocate additional funding in the amount of $107,647.35 to the City Hall Backup Generator Installation, resulting in a new Contract total of $952,474.30. Since there are no changes to the terms and conditions of Contract No. 2021-28, legal review of Change Order #1 by the City Attorney is not necessary.
Strategic Plan
Health and Public Safety
Good Governance
Financial Impact
|
Account Number |
Project |
Amount |
|
306-2222-522.62-00 |
CF19EO |
$1,031,732.35 |
Procurement
The City Hall Backup Generator Installation was procured pursuant to Chapter 2 Administration, Article VIII - Procurement, Sec. 2-406 Competitive Sealed Bid Process of the Code of the City of North Port, Florida, and Sec. 2-411(f).
Attachments:
1. Contract No. 2021-28
2. Change Order #1 OAC Action Construction Corp
3. RFB 2021-28 Notice of Intent to Award
4. RFB 2021-28 Award Recommendation Memo
5. RFB 2021-28 Bid Form
6. Submittal by OAC Action Construction, Corp.
7. RFB No. 2021-28, Attachments and Addendums
8. Florida Division of Corporations Document
Prepared by: Nick Herlihy, Deputy Fire Chief
Department Director: Scott Titus, Fire Chief