TO: Honorable Mayor & Members of the North Port Commission
FROM: A. Jerome Fletcher II, ICMA-CM, MPA, City Manager
TITLE: Approve Utilization of Contract No. R240901 between Region 4 Education Service Center and Daikin Applied Americas, Inc., for Heating, Ventilation, and Air Conditioning (HVAC) Services and Related Products in an Amount Not to Exceed $400,000 Annually Through the Term Ending December 31, 2027, and Authorize the City Manager to Approve any Modifications, Renewals, or Terminations in Concurrence With Region 4 Education Service Center.
Recommended Action
Option 1: Approve Utilization of Contract No. R240901 between Region 4 Education Service Center and Daikin Applied Americas, Inc., for heating, ventilation, and air conditioning (HVAC) services and related products in an amount not to exceed $400,000 annually through the term ending December 31, 2027, and authorize the City Manager to approve and modifications, renewals, or terminations in concurrence with Region 4 Education Service Center.
City Commission Options
Option 1: Approve the use of Contract No. R240901 between Region 4 Education Service Center and Daikin Applied Americas, Inc., for heating, ventilation, and air conditioning (HVAC) services and related products in an amount not to exceed $400,000 annually through the term ending December 31, 2027, and authorize the City Manager to approve and modifications, renewals, or terminations in concurrence with Region 4 Education Service Center.
• Pros: Allows the City to utilize an existing competitively procured Cooperative Contract, reducing procurement time and administrative effort while providing access to HVAC equipment, replacement components, installation, maintenance, repair, and related services as operational needs arise.
• Cons: The Contract terms, pricing and scope were originally negotiated for Region 4 Education Service Center needs and not the City’s, which could potentially limit flexibility or result in higher costs terms that aren’t the best fit for the City compared to issuing its own competitive solicitation.
Option 2: Deny the use of Contract R240901 between Region 4 Education Service Center and Daikin Applied Americas Inc.
• Pros: Allows the City to develop and issue its own competitive solicitation tailored specifically to its operational needs, service expectations, and budget priorities, potentially resulting in more favorable pricing and Contract terms.
• Cons: Requires additional staff time and administrative effort to complete the procurement process, which may delay necessary products for operational use and could increase the risk of service interruptions.
Background Information
The Department of Public Works seeks approval to utilize an existing Contract between Region 4 Education Service Center and Daikin Applied Americas Inc., for HVAC services and related products. This arrangement, commonly referred to as a piggyback or Cooperative Contract, allows the City to procure products under the same terms and conditions competitively established by another governmental entity.
The requested annual not-to-exceed authority of $400,000 establishes the maximum aggregate amount that may be expended under the Contract each year. It does not obligate the City to expend the full amount. Individual purchases will be based on operational needs, available budget, and compliance with the City’s applicable procurement procedures.
Region 4 Education Service Center awarded the Cooperative Contract following a competitive procurement process. Public Works staff reviewed the Contract’s scope, pricing and services provided and determined that utilization of the Contract is in the City’s best interest because it provides access to competitively established products and services without requiring the City to conduct a separate solicitation.
Contract No. R240901 between Region 4 Education Service Center and Daikin Applied Americas, Inc., for Heating, Ventilation, and Air Conditioning (HVAC) Services has been reviewed by the City Attorney and is legally correct as to form.
Strategic Plan Pillar
Infrastructure & Facilities Integrity
Financial Impact
Expenditures under this Contract shall be limited to funds that have been or will be duly appropriated through the City’s budget process and are specifically allocated for the scope of services outlined in the Agreement. Any purchase made on or after October 1, 2026, or each year after, against this Contract is contingent on future appropriated funds. The Facilities Maintenance Division currently has $150,040.81 appropriated and available in account 001-0760-519.46-04 for HVAC services.
Procurement
The utilization of this Cooperative Contract is consistent with Chapter 2, Administration, Article VIII, Procurement, Section 2-403 (a) (4) (a) (Exemptions) of the Code of the City of North Port, Florida, which permits the use of competitively awarded Contracts from other governmental entities.
The Public Works Department will utilize the established internal procurement process for all purchases under these Contracts to ensure continued administrative oversight and compliance with the City procurement policies and procedures.
Attachments:
1. Contract
2. Award Letter
3. Bid Tabulation
4. Notice to Offeror
5. Executive Summary
6. Request for Vendor Contract Update
Prepared by: Garrett Woods, CPWP-M, Senior Business Manager
Department Director: Chuck Speake, Public Works Director