Broward County Commission Regular Meeting
Director's Name: George Tablack
Department: Finance and Administrative Services Division: Purchasing
Information
Requested Action
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MOTION TO AWARD open-end contract to low responsive, responsible bidder, Stericycle, Inc., for Regulated Garbage Disposal, Bid No. OPN2121106B1, for the Aviation Maintenance Division, in the initial one-year estimated amount of $203,600, and authorize the Director of Purchasing to renew the contract for two one-year periods, for a total three-year potential amount of $610,800. The initial contract period shall begin on the date of award and will terminate one year from that date.
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Why Action is Necessary
In accordance with the Broward County Procurement Code, Section 21.31.a.4, Award Authority, Board approval is required for awards exceeding $500,000 that includes a single bidder, rejection of apparent low bidder, or protested award.
What Action Accomplishes
Provides an open-end contract for regulated garbage disposal services at Broward County’s Fort Lauderdale-Hollywood International Airport.
Is this Action Goal Related
No
Previous Action Taken
None.
Summary Explanation/Background
THE PURCHASING DIVISION AND THE AVIATION DEPARTMENT/MAINTENANCE DIVISION RECOMMEND APPROVAL OF THE ABOVE MOTION.
The Office of Economic and Small Business Development did not establish County Business Enterprise (CBE) goals for this procurement because there are no certified CBE firms that have the required regulatory compliance agreement (Exhibit 2).
The purpose of this contract is to provide regulated garbage disposal services at Broward County’s Fort Lauderdale-Hollywood International Airport for the Aviation Department.
The purpose of regulated garbage regulations, imposed by the United States Department of Agriculture (USDA) Animal and Plant Health Inspection Service (APHIS), is to protect American agriculture and natural resources by preventing the introduction and spread of foreign plant and animal pests and diseases. All APHIS-regulated garbage must be handled and disposed of in accordance with the USDA APHIS policies as outlined in the Code of Federal Regulations (CFR), 7 C.F.R. Sections 330.400 through 330.403 and 9 C.F.R. Section 94.5. Garbage becomes regulated by the USDA APHIS when generated onboard the conveyance (ocean vessels and aircraft). The importation of regulated garbage is not allowed, except from Canada. Regulated garbage is allowed entry under certain conditions such as arriving on means of conveyances from foreign regions, other than Canada. Garbage is also allowed entry under certain conditions from Hawaii, the United States (U.S.) territories and/or U.S. possessions.
A compliance agreement is a signed, written, legal agreement issued by U.S. Customs and Border Protection (CBP) or USDA APHIS personnel to facilities that have been approved by USDA APHIS to handle regulated garbage. Compliance agreements are used to formalize agreements with caterers, garbage haulers, garbage processors, and other entities responsible for handling or processing regulated garbage. The compliance agreement indicates that the facility understands the methods, conditions, and procedures necessary for compliance with USDA APHIS regulations.
The Director of Purchasing has determined the apparent low bidder, Great Waste and Recycling Services LLC, to be non-responsive. Great Waste Recycling Services LLC did not provide evidence of approval from the USDA and authorization in the form of a USDA-issued compliance agreement as required in the Specifications and Requirements. There is a $23,300 difference between the bid amount of the apparent low bidder, Great Waste and Recycling Services LLC, versus the bid amount of the recommended bidder, Stericycle, Inc.
The Director of Purchasing has determined the apparent second bidder, Waste Pro of Florida, Inc., to be non-responsible owing to a lack of client references or the experience to perform the service of regulated garbage disposal. There is a $15,000 difference between the bid amount of the apparent second low bidder, Waste Pro of Florida, Inc., versus the bid amount of the recommended bidder, Stericycle, Inc.
This contract includes covered services, in accordance with Broward County Living Wage Ordinance, Section 26-101(k). Stericycle, Inc. has agreed to be bound to the contractual obligations. The initial one-year term estimated amount includes the health care benefit increase effective January 1, 2021.
The Aviation Maintenance Division has reviewed the bid submitted by the recommended bidder, Stericycle, Inc., and concurs with the recommendation for award (Exhibit 3). Three vendor performance evaluations were completed for Stericycle Inc.; they have an overall rating of 4 out of a possible 5. Copies of the vendor performance evaluations are available upon request.
The Purchasing Division has reviewed the prices submitted by the recommended bidder, Stericycle, Inc., and determined that the prices submitted are fair and reasonable based upon a comparison to prices of the competing firms, current contract prices, and increase in the relevant Consumer Price Index (Exhibit 4).
The initial bid submitted by Stericycle, Inc. was in the total annual amount of $213,600; the vendor offered a voluntary price reduction for Line Item 1, from $240 to $220 per ton for removal and disposal of regulated garbage, resulting in a potential $10,000 in savings and a revised total estimated annual amount of $203,600. The Procurement Code, Section 21.30.f.2(c), allows for acceptance of a voluntary price reduction after bid opening, if such reduction is not conditioned on, nor results in, the modification or deletion of any condition of the bid (Exhibit 4).
Incumbent: Stericycle, Inc., Contract Number and Title: Z2114660B2, Regulated Garbage Disposal, Contract Term: August 22, 2017 through November 21, 2020, Expenditures to date: $426,252.
The amounts referenced in this agenda item have been rounded to the nearest whole dollar.
There was no protest or appeal filed regarding this procurement.
The bid validity for this project expired on November 22, 2020. The recommended bidder, Stericycle, Inc., agreed to extend its bid validity through December 31, 2020 for Bid No. OPN2121106B1.
The bid posted on July 1, 2020 and opened on July 22, 2020; four bids were received with no declinations (Exhibit 1).
Source of Additional Information
Brenda J. Billingsley, Director, Purchasing Division, (954) 357-6070
Fiscal Impact
Fiscal Impact/Cost Summary
Each requirement processed against this open-end contract will be funded by the appropriate source at the time of release.
Requisition No. AVM0004801