HomeMy WebLinkAbout3/24/2004 - STAFF REPORTS (3) DATE: March 24, 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.
114 � s?1a v 0
ALLEN F. SMOOT, AAE HAROLD E. GOOD, CPPO
Convention Center Project Administrator Director Procurement &
Contracting
APPROVED
City City Manager
ATTACHMENTS:
1. Resolutions (2)
2. Turner Logistics Recommendation Letter
REVIEWED BY
DEPT, OF FINANCE
'" 1
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:
E ui ment Manufacturer Turner Locilstics 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)
Total $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.
3iu
"Your Construction Supply Chain Management Solution"
A wholly owned subsidiary of Turner ConslNCClnn Company
1
Turner Logistics
4. Alternates 1 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
3fif
"Your Construction Supply Chain Management Solution"
A wholly owned subsidiary of Turner Construcbon 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.
,3 /r
"Your Construction Supply Chain Management Solution"
A wholly owned subsidiary of Turner ConsWchon 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 3fd 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 3rd 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)t
"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
$1,617,262, 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
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
$1,617,262, 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
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 FORTHE CONVENTION CENTER
EXPANSION PROJECT FROM TURNER LOGISTICS, IN THE
AMOUNT OF$1,598,120,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 $1,598,120, 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
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 -g--�.-