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HomeMy WebLinkAbout3/31/2004 - STAFF REPORTS (4) 31 DATE: March/2004 TO: City Council FROM: Convention Center Project Administrator CONVENTION CENTER EXPANSION PROJECT - DIRECT PURCHASE EQUIPMENT RECOMMENDATION: It is recommended that City Council award Direct Purchase of Equipment for the Convention Center Phase II Expansion Project, City Project 02-27,Trade Package #38, subject to City Council approval of Bond Documents at a later date, to Turner Logistics in the amount of$1,667,818. SUMMARY: This action would result in the awarding of a contract for the purchase of all the large equipment for the Convention Center Phase II Project contingent upon the future approval of Bond Documents. BACKGROUND: On June 4, 2003 the City Council took action to authorize Turner Logistics to procure large pieces of equipment for the Convention Center Expansion directly from manufacturers. Direct Purchasing of equipment can save between 11% and 29%. Turner Logistics has gone into the market and completed the bidding (Note: They received at least three bids for each piece of equipment.) with the following results: EQUIP. TYPE LOW BIDDER BID ESTIMATE VARIANCE Air Handlers York $194,413 $351,000 ( $156,587) Chillers York 516,788 419,100 97,688 Cooling Towers Evapco 53,226 52,000 1,226 Elect. Switch Gear Siemens 125,857 136,500 (10,643) Generator Kohler 37,652 38,900 (1,248) Lighting Package Wiedenbach-Brown 739,883 698,494 41,389 TOTALS $1,667,818 $1,695,994 $(28,175) From the comparison above, the prices from Turner Logistics were $28,175 under budget. It should be noted that the budget amount was set at 11% below the expected price that normal competitive bidding would have provided. The actual bid submittals received by Turner Logistics and tabulations for the Direct Purchase Equipment are on file in the office of Procurement and Contracting. There are two Resolutions attached for City Council consideration. The first would award the purchase to Turner Logistics in the amount of$1,667,818. The second would award the purchase to Turner Logistics in the reduced amount of$1,648,676, for a savings of$19,142. This additional savings is the premium that the bidders placed on the Cities contract document requirements for retention that differs from the industry standard. The industry standard is for payment of equipment purchases 90% upon receipt and 10% upon completion and startup. The city contract with Turner %3A Logistics calls for 80% upon delivery, 10% upon completion and startup and 10% after 30 days of operation. City Council Policy Direction is sought: does the City Council desire to stick with the current contract requirement or go with the industry standard and save $19,142?The city requirement provides additional protection forthirty days after startup, however any equipment problems during that thirty day period is also covered by the warranty. The construction management team recommends that City Council accept the additional savings. ALLEN F. SMOOT, AAE HAROLD E. GOOD, CPPO Convention Center Project Administrator Director Procurement & Contracting APPROVED City Manager ATTACHMENTS: 1. Resolutions (2) 2. Turner Logistics Recommendation Letter REVIEWED BY DEPT. OF FINANCE Ol Turner Logistics Approval Letter To: City of Palm Springs Attn: Al Smoot From: Kyle Grix Date: March 11,2004 Recommendations: Palm Springs Convention Center Expansion—Phase II Pre-Purchased Equipment Bid Packages We recommend formal Owner approval of the Turner Logistics Purchasing Program with authorization to award the following purchase orders: Equipment Manufacturer Turner Logistics Budget Pricing Savings HU 21, 22,23,24&25 YORK $194,413 $351,000 $156,587 Rotary Water Chillers Direct Fired Absorption Water Chiller/Heating YORK $516,788 $419,100 ($97,688) Hot Water Heater Cooling Tower-CT-3 Evapco $53,226 $52,000 ($1,226) Electrical Package(Switchboards, Panelboards,Transformers and Siemens $125,857 $136,500 $10,643 TVSS Generator&ATS Kohler $37,652 $38,900 $1,248 Lighting Package As Specified $739,883 $698,494 $(41,389) otal $1,667,818 $1,695,994 $28,175 Total Authorization including equipment, procurement cost and sales tax of$1,667,818. Recommendation: This is the final negotiated cost of the Turner Logistics Purchasing Program for the above referenced equipment. Turner recommends these awards for the following reasons: 1. Price: A competitive bid process was conducted to pre-purchase this equipment. Sufficient bids were received to insure competitive pricing. The total authorization including procurement cost and sales tax is $28,175 under the budget for this equipment. The Logistics Procurement Program saved the city supply chain distribution costs, subcontractor mark up, bonds and insurance costs by obtaining quotes direct from manufacturers. 2. Plans and Specifications: The Manufacturer proposals are based on the Plans and Project Manual dated 02/06/04; titled "Construction Documents'. Turner Logistics issued one addendum to the bidding Manufactures to clarify the scope of work. Base bids received have been adjusted for scope of work and technical review. A clarification of the Manufactures scopes of work has been issued, via Turner Addendum #3, to the bidding Trade Subcontractors for pricing of coordination and equipment specific installation requirements. 3. Technical Review: Products have passed preliminary technical review by the Turner Logistics team in conference with ME Engineers and Fentress Bradburn. Final technical review is subject to ME Engineers and Fentress Bradburn's approval of Manufacturer submittals. 3A3 "Your Construction Supply Chain Management Solution" A wholly owned subsidiary of Turner Construction Company 1 Turner Logistics 4. Alternates I Value Engineering: a. The Lighting Fixture Package referenced above includes fixtures as originally specified by Fentress Bradburn. See clarifications in Attachment 1 for additional savings potential with the Value Engineering package. b. ME Engineers as an alternate to the specified Centrifugal Chiller approved a Screw Chiller. The Screw Chiller meets the specified performance requirements; any deviations have been discussed with ME Engineers and have been found to be generally acceptable. Approval of the Screw Chiller made it possible for the Owner to purchase a complete York package of Air Handling Units and Chillers. c. York price includes a package discount of $18,500 for combining the purchase order of Air Handling Units and Chillers. d. Alternate pricing for extended warranties, spare parts, inspections and comprehensive service agreements have been listed on the attached bid tabulations. These alternates can be accepted at the time of initial purchase order issuance to Logistics or at a later date. Logistics will assist the Owner with the evaluation and acceptance of the proposed alternates based on the overall project budget. Bid Summary: 1. Refer to the attached Bid Tabulation Sheets for a list of all bids received and amounts. Clarifications: 1. Details of each specific award recommendation are attached. Turner Logistics Cost of Services: 1. Turner Logistics cost of services is 11.5% per the terms of the"Service Agreement'with the City of Palm Springs. Turner Logistics cost of services includes staff costs,overhead and profit to run the Logistics Program for pre-purchasing equipment.The cost of services shall be calculated based on the final approved equipment submittals, Owner accepted alternates and actual purchase prices. 2. The 11.5%cost of services and 7.75%sales tax have been added to the total of the bids received to determine the total amount. Attachments: 1. Clarifications 2. Bid Summary Sheet 3. Bid Tabulation Sheets 4. Manufacturer Proposals(separate package) Cordially TURNER CONSTRUCTION Kyle Grix Southwest Logistics Manager 3R "Your Construction Supply Chain Management Solution" A wholly owned subsidiary of Turner ConstruclJon Company 2 Turner Logistics Palm Springs Convention Center Expansion—Phase II Equipment Bid Packages Attachment 1 Clarifications Air handling Units, Rotary Screw Water Chiller&Direct Fired Absorption Water Chiller Four manufacturers were solicited and all responded. The base bids from the manufacturers were adjusted and leveled as noted on the attached bid tabulation spread sheets for a complete scope and best value. Added to the manufacturers costs is the Turner Logistics cost of services and tax. The total adjusted bids are Trane$799,371,York$711,201, Carrier$1,017,930 and McQuay$935,168. York is the low bid at$711,201 and includes a package discount of$18,500 for both the air handling unit and chiller scopes of work. York's bid meets the technical specification; any deviations have been discussed with ME Engineers and have been found to be generally acceptable. Alternates available for Owner acceptance include For Air Handling Units: • $8,049(Extended 2 year Parts and Labor Warranty) • $601 (To Inspect Equipment Delivery and Off Loading) • $13,576(2&5 year Comprehensive Service Agreement) For Chillers: $26,731 (Extended 5 year Parts and Labor Warranty) $601 (To Inspect Equipment Delivery and Off Loading) $3,604(Voluntary Alternate for Optional Full Load Factory Performance Test) Cooling Tower Three manufacturers were solicited and all responded. The base bids from the manufacturers were adjusted and leveled as noted on the attached bid tabulation spread sheets for a complete scope and best value. Added to the manufacturers costs is the Turner Logistics cost of services and tax. The total adjusted bids are Baltimore Air Coil $61,302, Marley $53,360, and Evapco $53,226. Adjustments were required for Marley and Evapco to meet the technical specifications and scope of work. The result of these adjustments is a low bid of$53,226 from Evapco. Evapco meets all technical specifications and the scope of work. Alternates available for Owner acceptance include • $1,694(Extended 2 year Parts and Labor Warranty) $4,353 (Extended 5 year Parts and Labor Warranty) • $8,530(Two&Five year Comprehensive Service Agreement) • $2,422(Spare parts for 5 years with no labor) Electrical Equipment Four manufacturers were solicited and all responded. The base bids from the manufacturers were adjusted and leveled as noted on the attached bid tabulation spread sheets for a complete scope and best value. Added to the manufacturers costs is the Turner Logistics cost of services and tax. The total adjusted bids are GE $132,599, Cutler-Hammer $147,982, Square D $181,362 and Siemens $125,857. Siemens low bid of$125,857 meets all technical specifications and the scope of work. "Your Construction Supply Chain Management Solution" A wholly owned subsidiary of Turner Construction Company 3 Turner Logistics Emergency Generator&Automatic Transfer Switch Four companies were solicited and all responded. The base bids from the manufacturers were adjusted and leveled as noted on the attached bid tabulation spread sheets for a complete scope and best value. Added to the manufacturers costs is the Turner Logistics cost of services and tax. The total adjusted bids are Cummins $46,080, Atlantic $45,661, Pacific-Kohler $37,652 and Caterpillar $40,811 were received. Pacific-Kohler bid of$37,652 meets the technical specification and scope of work. Alternates available for Owner acceptance include • $714(Extended 5 year Parts and Labor Warranty) $901 (To Inspect Equipment Delivery and Off Loading) • $1,447 (One year Comprehensive Service Agreement) • $1,622 (Spare parts for 5 years with no labor) Lighting Fixtures&Architectural Lighting Controls Typical construction projects include light fixtures from at least a dozen manufacturers. On Turner Logistics behalf, Wiedenbach-Brown consolidates a bid for every light fixture from at least three competing manufacturers. A unit price is given for each fixture specified on the fixture schedule along with a competitive price from an equal manufacturer (one named in the specifications if possible) insuring competition. The base bids from the manufacturers were adjusted and leveled as noted on the attached bid tabulation spread sheets for a complete scope and best value. Added to the manufacturers costs is the Turner Logistics cost of services and tax. Wiedenbach-Brown's unit prices for the exact light fixtures as listed on the project Lighting Fixture Schedule totaled $739,883 (Basis of Design). The Value Engineering (VE) proposal totaled $647,037 and the 3rd Alternate proposal totaled $728,344; both the VE and 3rd proposals include fixtures that the manufacturer considers to be equivalent to the specified fixtures. Turner Logistics has recommended the award of the Basis of Design bid in the amount of$739,883 for the following reason: The basis of Design Fixture package represents a complete scope of work that is acceptable to the Owner. Review of the Value Engineering and 3m Proposal package proposed by Wiedenbach-Brown is currently in progress with Turner Logistics, ME Engineers and Fentress Bradburn. Turner Logistics, ME Engineers and Fentress Bradburn anticipate the acceptance of a Value Engineered Fixture package, however, this evaluation is not complete at this time. Design team approval of a Value Engineered Fixture package will capture additional savings. Note that the project budget price of $698,494 is representative of a preliminary VE Lighting Fixture estimate that was accepted for budgeting purposes. The cost overrun of$41,389 is the result of comparing the Basis of Design cost to a Value Engineered estimate. 3& "Your Construction Supply Chain Management Solution" A wholly owned subsidiary of Turner Construction Company 4 RESOLUTION NO. OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA APPROVING THE DIRECT PURCHASE OF EQUIPMENT FOR THE CONVENTION CENTER EXPANSION PROJECT FROM TURNER LOGISTICS, IN THE AMOUNT OF $1,667,818, SUBJECT TO THE APPROVAL BY CITY COUNCIL OF BOND DOCUMENTS. WHEREAS, on June 4, 2003 the City Council approved an agreement with Turner Logistics for that firm to acquire large pieces of equipment for the Convention Center Expansion; and WHEREAS, Turner Logistics has gone into the market place and received bids from at least three firms for each of the categories of equipment; and WHEREAS, Turner Logistics, the project Architect and the project management team have met and reviewed the bid results and have presented their recommendations to the City Council; NOW THEREFORE BE IT RESOLVED by the City Council of the City of Palm Springs that the direct purchase of equipment for the Convention Center Expansion Project, City Project No. 02-27, Trade Bid Package#38, is hereby awarded to Turner Logistics in the amount of $1,667,818, subject to the approval by City Council of Bond Documents. ADOPTED this Day of March , 2004. AYES: NOES: ABSENT: ATTEST: CITY OF PALM SPRINGS, CALIFORNIA By City Clerk City Manager REVIEWED & APPROVED AS TO FORM 313 RESOLUTION NO. OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA APPROVING THE DIRECT PURCHASE OF EQUIPMENT AND WAIVING OF CITY STANDARD PAYMENT RETENTION REQUIREMENTS FOR THE CONVENTION CENTER EXPANSION PROJECT FROM TURNER LOGISTICS, IN THE AMOUNT OF$1,648,676,SUBJECT TO THE APPROVAL BY CITY COUNCIL OF BOND DOCUMENTS. WHEREAS, on June 4, 2003 the City Council approved an agreement with Turner Logistics for that firm to acquire large pieces of equipment for the Convention Center Expansion; and WHEREAS, Turner Logistics has gone into the market place and received bids from at least three firms for each of the categories of equipment; and WHEREAS, Turner Logistics, the project Architect and the project management team have met and reviewed the bid results and have presented their recommendations to the City Council; and WHEREAS, the City agreement with Turner Logistics requires the retention of payments based upon 80% at delivery,10% upon project completion, and 10% after 30 days operation, and Turner Logistics has offered a credit of$19,142 if the retention is changed to 90% upon delivery and 10% upon completion and startup; NOW THEREFORE BE IT RESOLVED by the City Council of the City of Palm Springs as follows: Section 1. That the payment retention requirements found in the Turner Logistics contract, Agreement No. 4709, is hereby modified to 90% upon equipment delivery and 10% upon startup. Section 2. That the direct purchase of equipment for the Convention Center Expansion Project, City Project No. 02-27, Trade Bid Package #38, is hereby awarded to Turner Logistics in the amount of $1,648,676, subject to the approval by City Council of Bond Documents. ADOPTED this Day of March , 2004. AYES: NOES: ABSENT: ATTEST: CITY OF PALM SPRINGS, CALIFORNIA By City Clerk City Manager REVIEWED &APPROVED AS TO FORM 3 ��Z.