HomeMy WebLinkAboutApproved sole source agreement for the purchase and refurbis y
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City of Huntington Beach
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File #: 18-652 MEETING DATE: 1/22/2019
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Fred A. Wilson, City Manager
PREPARED BY: David A. Segura, Fire Chief
Subiect:
Approve a sole source agreement for the purchase and refurbishment of a lifeguard rescue
boat with Willard Marine, Inc.
Statement of Issue:
Approval of a sole source agreement with Willard Marine, Inc. is requested for the purchase and
refurbishment of City of Huntington Beach lifeguard rescue boats. Willard Marine, Inc. is the only
provider of Crystaliner boats, which are utilized by-the Marine Safety Division. The FY 2018/19
budget includes funding for the refurbishment of one boat.
Financial Impact:
In the FY 2018/19 Budget, $174,800 is appropriated in account 32440207.85300 for the
refurbishment of one lifeguard rescue boat. The total cost for Willard Marine, Inc. to complete this
work will be $173,485 and therefore, no additional appropriation is needed.
Although approving the sole source agreement with Willard Marine would not have a fiscal impact, it
would allow for the expenditure for the refurbishment of the rescue boat.
Recommended Action:
Approve the sole source agreement with Willard Marine, Inc.
Alternative Action(s):
Do not approve the sole source agreement or refurbishment and instruct staff on how to proceed.
Analysis:
The proposed vendor, Willard Marine, Inc., was chosen because it is the only manufacturer of
Crystaliner boats in the United States. They are also the only company with the required expertise to
refurbish surf line rescue vessels, including in-house engineering, original molds, tooling, and other
specialized equipment to perform this kind of boat overhaul. This type of lifeguard rescue boat has
been used for over 40 years in Huntington Beach with a proven track record for successful surf line
rescue operations.
City of Huntington Beach Page 1 of 2 Printed on 1/16/2019
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File #: 18-652 MEETING DATE: 1/22/2019
Willard Marine, Inc. is an international manufacturer of rescue and military vessels, located in Orange
County. In addition to the City of Huntington Beach, Crystaliner Rescue Boats are used by a number
of southern California marine safety agencies, including Redondo Beach Harbor Patrol, Long Beach,
Seal Beach, California State Parks, Newport Beach, Orange County Harbor Patrol, San Clemente,
and Oceanside. The price of the proposed refurbishment is consistent with what is charged to other
agencies for the same work and is similar to pricing quoted to the City in FY 2017/18. The
refurbishment cost of$173,485 includes repair or replacement of the hull, deck, engines,
transmissions, drive shafts, through hull fittings, struts, propellers, sensors, electrical systems, wiring,
breaker panel, navigation systems, control systems and stringer inspections.
The replacement or refurbishment of old, deteriorating boats is critical to providing marine safety
services on City beaches. This rescue boat was originally warrantied for 15 years of surf line
operations, but has been in operation for twice that time. It is frequently in need of repairs, and parts
are often difficult to obtain in a timely manner, compromising Marine Safety rescue operations.
Operating in a corrosive marine environment for this long period of time has resulted in the need to
replace a majority of the components of this watercraft.
The life expectancy of the refurbished boat is 15 years and the purchase is in line with Marine
Safety's long-term planning for replacing lifeguard rescue boats.
The approved sole source justification is shown as Attachment 1 and includes the estimate from
Willard Marine, Inc. and a letter documenting that they are the only provider of this type of boat.
Environmental Status:
None.
Strategic Plan Goal:
Enhance and maintain public safety.
Attachment(s):
1. Sole Source Justification
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RECEIVED
CITY OF HUNTINGTON BEACH DEC 0 5 2018
Sole-Source Justification
(For use on all goods and services acquisitions.) =s =y,,.,3'g Department
This justification document consists of two(2)pages. All information must be provided and all questions must be answered. The"Required
Approvals"section must include a date for each signature,as appropriate for the transaction.
Requesting Department Information
Date: November 29, 2018
Requestor Name: Mike Baumgartner Division Manager: Mike Baumgartner
(Type names. Do not sign.)
Department: Fire Department Head: David A. Segura
(Type names. Do not sign. Must be same as signature below.
Department Contact Information
Contact Name: Mike Baumgartner Street Address: 103 Pacific Coast Highway
Telephone: 714 536-5489
Fax: 714 374-1500 Shipping Address: 103 Pacific Coast Highway
Cellular hone: 714 328-0432 Huntington Beach, CA 92648
Required Contact Information
Contractor/Supplier Name: Willard Marine, Inc.
Contractor/Supplier Address: 1250 N. Grove Street,Anaheim, CA 92806
Contractor/Supplier City/State/Zip:
Original Contract Amount:" Amendment Amount:* (if applicable) New Contract Amount:"
$0 $0 $0
("Includes original contract and previously ("Includes original contract and all amendments,
approved amendments) ('Current amendment onl including current amendment
Provide a brief description of the acquisition, including all goods and/or services the contractor willprovide:
This sole source justification will allow for the use of Willard Marine, Inc. for purchase or refurbishment of the City's
lifeguard rescue craft. At this time, the Marine Safety Division has three boats, which were all manufactured by Crystaliner
Boats. After Crystaliner went out of business, Willard Marine entered into a formal agreement to acquire all of the molds,
drawings and intellectual property rights from Crystaliner boats and now is the only vendor who sells and refurbishes
them. The FY 2018/19 budget includes the refurbishment one (1) lifeguard rescue boat, including hull, deck, and stringer
inspections, repair/replacement of the engines, transmissions, drive shafts, through hull fittings, struts, propellers, sensors,
electrical systems, wiring, breaker panel, navigation systems, and control systems. The amount approved in the budget is
$174,800 and the quotation from Willard Marine (attached) is$173,485. The attached letter from Willard Marine certifies
that they are the only authorized vendor of Crystaliner boats.
Contract Type and Term
Contract Type: Contract Term: What account number will be used to purchase?
Select One: ® Goods Begin: 1/7/19 Business Unit: 32440217
❑ Service
❑ Goods& Services End: 116/24 Object Code: 85300
Require Approvals
epartment Head Fis Sery ager C ief Financial Officer � sistant City Manager
p roved ed Approved Denied Ap ove ❑ Denied ApS roved ❑ Denied
ign r Signature Signature Signature
'Jfate —� Date Date —� Date
(Transactions exceeding$50,000
must be approved by City Council)
1
EM
CITY OF HUNTINGTON BEACH
Sole Source Justification
(For use on all goods and services acquisitions.)
Complete responses must be provided for all of the following items.
A. THE GOOD/SERVICE REQUESTED IS RESTRICTED TO ONE SUPPLIER FOR THE REASONS STATED BELOW:
1. Why is the acquisition restricted to this goods/services/supplier?
(Explain why the acquisition cannot be competitively bid.)
Willard Marine, Inc. is an international manufacturer of rescue and military vessels located in Orange
County. In addition to the City of Huntington Beach, Chrystaliner Rescue Boats are used by a number of
southern California marine safety agencies, including Redondo Beach Harbor Patrol, Long Beach, Seal
Beach, California State Parks, Newport Beach, Orange County Harbor Patrol, San Clemente, and
Oceanside. This company is the only provider of this type of lifeguard boat.
2. Provide the background of events leading to this acquisition.
The Marine Safety Division has a long-term equipment replacement plan that identifies the life expectancy
of major capital items, including lifeguard rescue boats. This ongoing replacement plan was first adopted
in FY 07/08 and the subject boat is scheduled for refurbishment this fiscal year. The replacement or
refurbishment of old, deteriorating boats is critical to providing marine safety services on City beaches.
This rescue boat was originally warrantied for 15 years of surf line operations, but has been in operation
for twice that time. It is frequently in need of repairs and parts are often difficult to obtain in a timely
manner, compromising Marine Safety rescue operations. Operating in a corrosive marine environment for
this long period of time has resulted in the need to replace a majority of components of this watercraft.
3. Describe the uniqueness of the acquisition (why was the good/service/supplier chosen?).
The supplier was chosen because it is the only manufacturer of Crystaliner rescue boats. All three
existing lifeguard rescue boats are from this manufacturer. This company builds to a military level
standard, which is the highest level of rescue watercraft produced.
4. What are the consequences of not purchasing the goods/services or contracting with the proposed
supplier?
Willard Marine is the manufacturer of Chrystaliner Resuce Boats, which have a proven track record for
surf line rescue operations. They are the only company with all the required expertise in surf line rescue
vessels, in-house engineering, original molds, tooling, and other equipment to perform this type of
refurbishment. Using another unproven vendor may result in unsatisfactory operational characteristics
and less than optimal performance in the surf line resuce operations.
5. What market research was conducted to substantiate no competition, including evaluation of other items
considered?
(Provide a narrative of your efforts to identify other similar or appropriate goods/services, including a summary of how the department
concluded that such alternatives are either inappropriate or unavailable. The names and addresses of suppliers contacted and the reasons
for not considering them must be included OR an explanation of why the survey or effort to identify other goods/services was not
performed.)
As documented in the attached letter, Willard Marine, Inc. is the only firm authorized to manufacturer and
refurbish Crystaliner boats, such as are used exclusively by the City of Huntington Beach. As referenced,
they entered into a formal agreement to acquire all molds, drawings, and intellectual property rights from
the original manufacturer of this type of boat. They are the exclusive owner and manufacturer of
Crystalliner and the only company that possesses the required expertise to repair and overhaul these
watercraft.
2
B. PRICE ANALYSIS
1. How was the price offered determined to be fair and reasonable?
(Explain what the basis was for comparison and include cost analyses as applicable.)
The price is consistent with what is charged other agencies for the same work and is similar to the pricing
quoted to the City in FY 2017/18.
2. Describe any cost savings realized or costs avoided by acquiring the goods/services from this supplier.
This boat is an essential part of the City's marine safety service delivery system. Refurbishment of it
provides a long lasting product and a cost savings in the long term.
Remit completed form to: City of Huntington Beach—Purchasing Division
2000 Main Street, Huntington Beach, CA 92648-2702
3
WILLARD MARINE'
Mission Proven Boats
11/29/2018
To whom it may concern:
This letter is to inform prospective customers that Willard Marine, Inc. (WMI)is the exclusive owner and
manufacturer of a boat company formerly known as"Crystaliner". In 2014, WMI drafted a formal
agreement to acquire all of the molds, drawings, and intellectual property rights from the original owner.
Since the acquisition, WMI has manufactured two new boats and has completed several repair jobs on the
original boats. Our services are most beneficial for customers who are seeking to repair and overhaul their
boats with the Original Equipment Manufactured parts, systems, and designs.
Since 1957, WMI has served as a global leader in the manufacturing of composite and aluminum boats
ranging from 15 -65 feet in length. WMI is recognized as an industry pioneer in the design and construction
of high-performance watercraft. With more than six decades of design,engineering and manufacturing
experience, WMI has developed more than 20 types of world-class boats for such discerning customers such
as the US Navy, US Coast Guard, Department of Homeland Security,NOAA, Law Enforcement Agencies
and foreign governments alike.
If you have any other questions about the Crystaliner line of boats please contact us at
Sales WillardMarine.com or call(714)666-2150.
Sincerely,
Ulrich Go c . g
C.E.O
Willard Marine, Inc.
1250 N. Grove Street
Anaheim,CA 92806
Phone(Direct) 714-948-7327
Email: ugottschling@willardmarine.com
Quote # Quote Date Cust ID # Page
10262018 10/26/2018 20-HBLG I1 of 1
- Cust RFQ# Quote • - -rms Prices FOB
WILLARD MARINE` NA 1/26/2019 SPECIAL I DESTINATION
REPAIR QUOTATION
• . Chief Michael Baumgartner • . e Cole Christensen
mbaumf;artner@surfcitV-hb.oLZ _ cchristensen willardmarine.co
• - 714-536-5489 - 714-948-7337
Huntington Beach Lifeguards 714-632-8136
Line Description Qty Extended -
100 Engine&Engine Equipment nn
emeve
EHFFent
eng
ne5
102 Inspect Stringers and Engine Foundations-Provide Report to Customer 1.00 $ 89,903
103 Install New Mercruiser 8.2 HO DTS ECT w/ZF Transmission 2.00 Included
104 Remove and Replace Exhaust System w/Centek Mufflers 2.00 Included
105 Remove and Replace Raw Water Cooling System 1.00 Included
106 Remove and Replace Drive Shaft 2.00 Included
107 Remove and Replace New Dripless Shaft Seals and Shaft Logs 2.00 Included
108 Install Buck Algonquin Motor Coupler 2.00 Included
109 Remove and Replace New Custom Shaft Struts and Bearings 2.00 Included
110 Remove and Replace Propellers 2.00 Included
ill Install Dual SeaStar(Twin S)Throttle Model CH5200P 2.00 Included
112 Replace Tachometer with MerCruiser Analog/Digital Tachometer 2.00 Included
113 Install MerCruiser SmartCraft Display 1.00 Included
114 Install Cole Hersee M-485 Push Button Start/Stop Button 2.00 Included
115 Hnstall Blower System 2.00 Included
200 Electrical Equipment
202 Install IEEE Low-Smoke Military-Grade Wiring Labeled at both ends 1.00 $ 31,343
203 Install New Custom Blue Seas Breaker Panel, DC Distribution 1.00 Included
204 Install AGM Dual Purpose Batteries(SL131AGMDPM) 4.00 Included
205 Remove and Replace Battery Charger-2 banks ProMariner 20A 1.00 Included
206 Install Blue Sea Systems e-Series Battery Switches(5511E) 1.00 Included
207 Install Blue Sea Systems e-Series Dual Cirucit Battery Switch (5510) 1.00 Included
208 Install AC power Distribution System 1.00 Included
209 Install Shore Power System 1.00 Included
210 Install RULE 3700 Bilge Pumps 2.00 Included
300 Went
301 Complete Cosmetic Work on Hull and Deck 1.00 $ 2,158
Strip Current Bottom Paint and Apply Fresh Bottom Paint-2 Coats of
302 1.00 $ 7,100
Epoxy and 2 Coats of Anti-Fouling Paint
-303S#ainles5on c,.ealkeF 2.,LED 0.00 2T,6 5
11/27/2018 1 Company Proprietary
Line Description Qty Extended
Remove and replace Fuel Tank with Aluminum 100 Gallon Tank with new
305 1.00 $ 8,706
fuel lines,vents, and filters
306 Install Zincs on Hull and Shafts, Cathodic Protection 6.00 $ 850
400 Command&Control Equipment
401 Install Electronic Equipment 1.00 $ 5,800
Provide New Electronic Equipment Listed Below:
Furuno TZTL-12F Multifunction Display 12" Display
Furuno DRS4DNXT 24 Mile Dome Radar w/5" Radar Mount Top Plate
Furuno Radar Power Supply PSU017
Furuno GP330B NMEA 2000 GPS Antenna
Furuno HUB101 Network Hub
Furuno 556TID-LTD20 Bronze 1KW Flush Mount Stainless Transducer
402 Furuno DST-800 Smart Transducer 1.00 $ 15,147
Furuno FA50 Class B AIS*Send/Receive
Icom IC-M506 VHF Radio*NMEA 2000
Comrod av60-8b 8'VHF Antenna with SS Ratchet Mount
NMEA 2000 Cables,tees,terminators
Coax Cable for VHF and AIS
Misc Installation Materials:tie wraps, lugs, connectors,wire,fasteners,
etc.
500 Miscellaneous
501 Sea Trials 1.00 $ 790
0.00 $ 800
Subtotal $ 161,007
Tax 7.75% $ 12,478
Total $ 173,485
Notes:
1. Mechanical equipment removed prior to boat being delivered to WMI
2. Electrical equipment removed prior to boat being delivered to WMI
3.Customer responsible for delivery and pick-up of vessel
4. Payment terms: 30% Upon receipt of Order,30% Upon receipt of Engines,
30% Upon Completion of Repair Work, 10% Upon Customer Acceptance
S. Sea Trials will be conducted free of charge-WMI will require support from customer
to haul boat to launch
11/27/2018 2 Company Proprietary