Broward County Commission Regular Meeting
Director's Name: George Tablack
Department: Finance and Administrative Services Division: Purchasing
Information
Requested Action
title
MOTION TO AWARD open-end contract to Schindler Elevator Corporation, Contract No. BLD2122449G1, Elevator, Escalator, and Moving Walk Maintenance and Repair-Aviation, under the Sourcewell Contract No. 080420-SCH, for maintenance and repair services to airport equipment, for the Aviation Department, in the estimated amount of $14,347,762, including allowances in the estimated amount of $141,667, for the remainder of the term effective through August 28, 2024, and authorize the Director of Purchasing to renew the contract, as renewed by Sourcewell for a one-year period, for a three-year ten-month potential total amount of $19,411,677. The initial contract shall begin on November 1, 2021 and shall terminate on August 28, 2024, contingent upon receipt and approval of performance and payment guaranty.
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Why Action is Necessary
Pursuant to Section 332.0075(3)(b), Florida Statutes, a governing body must approve, award, or ratify all contracts executed by or on behalf of a commercial service airport over the threshold amount provided in § 287.017 for CATEGORY FIVE [i.e., $325,000] as a separate line item on the agenda and must provide a reasonable opportunity for public comment. Such contracts may not be approved, awarded, or ratified as part of a consent agenda.
In accordance with the Broward County Procurement Code, Section 21.47(a), Award and Execution Authority, the Board shall make all awards, and authorize the execution of the associated contracts, with a value of more than $500,000, inclusive of the value of any renewals or extensions provided for in the Contract.
In accordance with the Broward County Procurement Code, Section 21.27, Purchases from Other Government Contracts, the Director of Purchasing may purchase goods or services (i.e., “piggyback”) under any procurement contract held by a governmental agency or nonprofit entity, or the County may enter into its own contract with the vendor under the originating contract if (a) the Director of Purchasing determines the originating contract was competitively procured in accordance with generally accepted standards of public procurement; (b) the originating contract expressly permits such purchasing, or the governmental agency or nonprofit entity that awarded the originating contract or the vendor who holds the originating contract (as applicable) allows the County to purchase therefrom; and (c) the terms and conditions offered to the County by the vendor do not materially deviate from the terms and conditions of the originating contract.
What Action Accomplishes
Provides for the maintenance and repair of the elevators, escalators, and moving walkways at the Rental Car Center, parking garages, and Terminals 1, 2, 3 and 4 at Broward County 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 RECOMMEND APPROVAL OF THE ABOVE MOTION.
The Office of Economic and Small Business Development did not establish County Business Enterprise (CBE) goals for this contract because there are no subcontracting opportunities for CBE contractors (Exhibit 2).
The purpose of this contract is to provide maintenance and repair services for elevators, escalators, and moving walkways at the Rental Car Center, parking garages and Terminals 1, 2, 3 and 4 at Broward County Fort Lauderdale-Hollywood International Airport.
Sourcewell is a cooperative purchasing program, which expanded its focuses from education and school procurement to provide government procurement resources and solutions to local and state government agencies and nonprofits looking for the best overall supplier pricing by providing cooperative purchasing, in which quantities for the same item are combined to achieve economies of scale through volume discount pricing.
On August 26, 2020, Sourcewell awarded a negotiated agreement as Contract No. 080420-SCH, Elevators, Escalators, and Moving Walks with Related Equipment, Services, and Supplies to Schindler Elevator Corporation, which resulted through a competitive Request for Proposals (RFP) process. The basis of the RFP award was to the responsive, responsible proposer meeting the criteria outlined in the RFP, in addition to offering the overall best value. The initial four-year contract term began on August 28, 2020 and expires on August 26, 2024, with the option to renew for one additional one-year renewal.
Pursuant to Sourcewell Contract No. 080420-SCH, Section 6.B, additional terms and conditions may be negotiated between a participating entity and vendor, such as job or industry-specific requirements, legal requirements, or specific local policy requirements. On July 13, 2021, Broward County solicited Solicitation No. BLD2122449G1 to Schindler Elevator Corporation to include Broward County’s Aviation facility requirements and pricing in accordance with the Sourcewell contract. A bid response was received on August 4, 2021. The Purchasing Division reviewed the bid response and determined the prices to be fair and reasonable (Exhibit 3).
In accordance with the Broward County Procurement Code, Section 21.27, the Director of Purchasing may purchase goods or services (i.e., “piggyback”) under any procurement contract held by a governmental agency or nonprofit entity, or the County may enter into its own contract with the vendor under the originating contract if (a) the Director of Purchasing determines the originating contract was competitively procured in accordance with generally accepted standards of public procurement; (b) the originating contract expressly permits such purchasing, or the governmental agency or nonprofit entity that awarded the originating contract or the vendor who holds the originating contract (as applicable) allows the County to purchase therefrom; and (c) the terms and conditions offered to the County by the vendor do not materially deviate from the terms and conditions of the originating contract.
All prices, terms and conditions will remain fixed for the initial 12-month contract period. Upon completion of the initial 12-month contract period, the contractor may make a timely request for a price adjustment to the contract for year two and the optional renewal period if exercised by Sourcewell and Broward County. Any requested increase shall not exceed 3% for the individual price components of labor or material, in accordance with the price escalation clause of the contract.
This procurement carries a 50% of the first-year contract value performance and payment guaranty. The Purchasing Division has confirmed with the surety company that Schindler Elevator Corporation has the capacity to obtain the required guaranty.
The pass-thru allowance item in this contract, in the total initial term amount of $141,667, is for non-Schindler brand parts, materials and miscellaneous items that may be required during the contract and are not covered by existing bid items. Expenditures under these allowance items must be approved by the contract administrator and will be reimbursed at the contractor's actual incurred cost, without mark-up (Exhibit 1).
In accordance with the Broward County Workforce Investment Program, Broward County Administrative Code, Section 19.211, these services are subject to the Workforce Investment Program. Schindler Elevator Corporation agrees to be bound to the contractual obligations of the Workforce Investment Program.
This contract includes covered services, in accordance with Broward County Living Wage Ordinance, Section 26-101(k). Schindler Elevator Corporation has agreed to be bound to the contractual obligations. The two-year 10-month initial term estimated amount includes the health care benefit increase effective January 1, 2021.
The Aviation Department reviewed the bid submitted by Schindler Elevator Corporation and concurs with this award recommendation (Exhibit 3). Three vendor performance evaluations have been completed for Schindler Elevator Corporation; the firm has an overall rating of 3.33 out of a possible rating of 5.0. Copies of the vendor performance evaluations are available upon request.
The Purchasing Division has analyzed the prices submitted by Schindler Elevator Corporation and has determined that the prices submitted are fair and reasonable. The unit prices and total contract value were analyzed against the unit prices of the prior contract, the estimated contract value, and the changes in the Producer Price Index (PPI) for the elevator and moving stairway manufacturing industry, the Consumer Price Index (CPI-U) for services in the Miami - Fort Lauderdale - West Palm Beach areas, and the Consumer Price Index (CPI-W) for labor (Exhibit 4).
The piggyback under the Sourcewell Contract No. 080420-SCH provides for a 6% volume discount off Schindler’s standard pricing for an estimated annual cost savings of $293,082, which calculates to a 34-month initial term estimated cost savings of $830,400.
The amount referenced in this agenda item is rounded to the nearest whole dollar. Vendor payments will be based on the actual total bid amount. The bid tabulation reflects the actual amount of the award.
Incumbent: Schindler Elevator Corporation; Contract Number and Title: BLD2117408B1, Elevator, Escalator, and Moving Walk Maintenance and Repair at FLL; Contract Term: September 26, 2018 through November 2, 2021; Expenditures to date: $12,510,354.
Source of Additional Information
Brenda J. Billingsley, Director, Purchasing Division, (954) 357-6070
Fiscal Impact
Fiscal Impact/Cost Summary
Each procurement processed against this open-end contract will be funded by the appropriate source at the time of release.
Requisition No. AVM0005832