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HomeMy WebLinkAboutStewart & Stevenson Sole Source Procurement to Purchase Wauk r Council/Agency Meeting Held: __a(�2 Deferred/Continued to: )(Approved 0 Conditionally Approved © Denied City r 's 8i ature Council Meeting Date: 1/20/04 Department ID umber: PW 04-007 CITY OF HUNTINGTON BEACH ,y REQUEST FOR ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL SUBMITTED BY: RAY SILVER, City Administrator GXtf-) M > [+ / r PREPARED BY: ROBERT F. BEARDSLEY, Director of Public Works /Engiiines SUBJECT: Approve Sole Source Procurement For Large Natural Ga Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s) Statement of Issue: Administrative Regulation 229 requires City Council approval for all sole source procurements over $50,000. The Public Works Utilities Division is requesting approval of sole source procurement for purchase of Waukesha natural gas engines. Funding Source: Funds are budgeted in Water Fund Account 50685803.83800 .($350,000) and in General Fund Account 10040214.83700, sub ledger 10085502, ($135,000) for replacement of natural gas engines. Recommended Action: Approve Sole Source Procurement from Stewart & Stevenson Power, Inc., of Corona, California, for the purchase of Waukesha natural gas engines. Alternative Action(s): Do not approve the sole source procurement and instruct staff on how to proceed. This action may reduce the flexibility of staff in dealing with engine malfunctions, and result in a more costly maintenance program. Analysis: The City has nearly 60 Waukesha brand engines at groundwater wells, booster stations and flood control stations. It is a durable and dependable product that the City has used exclusively for over 40 years. By standardizing to one brand of engine, the Utilities Division can interchange parts and, if necessary, entire engines in emergency situations. This allows for continuity in operation, service and parts. In addition, all Water Systems Technicians are trained in the operation and service of Waukesha engines and only need to train on this one brand of engine. 1 REQUEST FOR ACTION • MEETING DATE: 1/20/04 DEPARTMENT ID NUMBER: PW 04-007 Stewart & Stevenson is the regional supplier of Waukesha engines and has exclusive rights in California to the Waukesha product line. Because of the volume of business the City does with Waukesha, the City Purchasing Division has negotiated a 6% discount on the base price of engines for the City of Huntington Beach. Public Works Commission Action: Not Required Environmental Status: NIA Attachme t s : City Clerk's Page Number No. Description 17 Sole Source Justification RCA Author: Ken Dills, extension 5055 D:1Documents and SettingsldailyllLocal Settings\Temporary Internet Files\OLKA1104-007 Jan 20 Dills (Sole Source for Stewart Stevenson).doc -2- 1/5/2004 3:05 PM ATTACHMENT # 1 ------------------ AdinmistrE`ive Services Central Services Division OR OP/OG SOLE-SOURCE JUSTIFICATION For use on all goods and services acquisitions. 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 Requestor Name: Division Manager: Howard Johnson Howard Johnson (Type names. Do not sign.) Department: Department Head: Public Works Robert F. Beardsley (Type names. Do not sign. Must be same as signature below. Department Contact Information Contact Name: Street Address: Howard Johnson 19001 Huntington Street Telephone: 714 536-6921 FAX: Shipping Address: 714 847-1067 7512 Garfield Cellular phone: Huntington Beach, CA 92648 . r�irad.? anact Ir>lffl Contractor/Supplier Name: Stewart&Stevenson Contractor/Supplier Address: 215 Jason Court, Corona, CA Original Contract Amount:* Amendment Amount:* (if applicable) New Contract Amount: " $ N/A $ N/A $ N/A ("`Includes original contract and previously (Includes original contract and all amendments, approved amendments) ("Current amendment only) including current amendment Ppuide a,;brlef ciscri "ton pf the ac,`uis>Itio �n.Gludfn a[Fp "s ndlor senrles the contratrtarwfF) rov�de,; Purchase of Waukesha natural gas engines for groundwater wells and flood control stations for fiscal year 03-04. Contract `;. .e. 14 Term' Contract Type: Contract Term: What account number Select One: Goods will be used to ❑ Service Begin: N/A purchase ❑ Goods& End: Bus Unit 50685803 Services Obj. Code_83800 And 10040214.83700 (subledger 10085502)and others as necessary R U�red 1........ ..Y.. ., ..may.... ....K,..... ,.<< .,. ,i D artment Head Cral Services Manager Administrative Services Assistant City Administrator ppfov d , ElDenied Approved ❑ D ied Director. ppr)ved El Denied - Ap ved p Dntd r Executive Dir for afe Central ervices Manager/Date j � � Assi s CityAdm./Date "dm.Services Dir./Date , (Transacti'ns exceeding$50,000 L ?` - must be council approved) Remit comple ed form to: Central Services Division c 2000 Main St, Huntington Beach,CA 92648 t�iar�nos t Administratwe Services Central SeAces Division . . • 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.) Stewart&Stevenson is the regional supplier of Waukesha engines and the City utilizes this brand at its groundwater well and flood control station facilities. 2. Provide the background of events leading to this acquisition. The natural gas engines used for groundwater wells, booster stations and flood control stations are all Waukesha brand. This allows for continuity in operation, service and parts. In addition, all Water Systems Technicians are trained in the operation and service of Waukesha engines. 3. Describe the uniqueness of the acquisition (why was the good/service/supplier chosen?) The City utilizes nearly 60 Waukesha brand engines at groundwater wells and flood stations. It is a durable,well-performing product that the City has utilized for over 40 years. 4. What are the consequences of not purchasing the goods/services or contracting with the proposed supplier? Please see the attached letter from Waukesha Engine. Stewart& Stevenson Power has exclusive rights in California to the Waukesha product line. 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 goodslservices,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 goodslservices was not performed.) Please see the attached letter from Waukesha Engine. Stewart& Stevenson has exclusive rights in California to the Waukesha Engine product line. 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.) Waukesha provides a 6% discount on the base price of engines for the City of Huntington Beach. 2. Describe any cost savings realized or costs avoided by acquiring the goods/services from this supplier. By utilizing one standard brand of engine,the Utilities Division can interchange parts and swap out engines in emergency situations. In addition, staff only needs to train on one brand of engine. •I1ecNO2 03 11 : 47a Kfn Orchard 720,2'1454 n. 2 Nraukesda Deoember 2, 2003 Stewart& Stevenson Power, Inc, 2I5 1ason Court Corona, CA 92879 Attention: James Myers Prime Powcr Sales Subject: Howard Johnson, City of Huntington Beach Waukesha Engine Territory Rules Dear Mr, Myers, Stewart& Stevenson Power, Inc, has the exclusive rights in California to the Waukesha Engine product line for pump applications, . Waukesha Engine has agreed to provide a 6% discount on the base engines to Stewart& Stevenson Power, Tric, for the City of Huntington Beach based on the volume of engines purchasad. Sincerely, . c, -�j Kevin Orchard Western Regional Managcr Waukesha Engine Dresser, Tnc. Witt ila inginr.Mau.Ifre. 1W.Wr.-J& hard A„mli, • W7114M..A+ W WI;p;4,.r.) . I'I:rrr;Ii",ll'Gj. . rrol'Nj7f41.77% w.11111L"�;!Rn�SO!IV[.^.rr r�91p I.I 1 AN II IN 1 Al IIIIAI Gk-1%INi:I II[IIU IVA!Ir:M jj W. DEC-02-2003 11:05 99% a.02 RCA ROUTING SHEET INITIATING DEPARTMENT: Public Works SUBJECT: Approve Sole Source Procurement from Stewart & Stevenson Power, Inc. for Purchase of Natural Gas Engines COUNCIL MEETING DATE: January 20, 2004 RCA ATTACHMENTS STATUS Ordinance (w/exhibits & legislative draft if applicable) Not Applicable Resolution (wlexhibits & legislative draft if applicable) Not Applicable Tract Map, Location Map and/or other Exhibits Not Applicable Contract/Agreement (w/exhibits if applicable) Signed in full by the City Attome Not Applicable Subleases, Third Party Agreements, etc. (Approved as to form by C#y Attome Not Applicable Certificates of Insurance (Approved by the City Attome Not Applicable Financial Impact Statement Unbudget, over $5,000 Not Applicable Bonds If applicable Not Applicable Staff Report if applicable) Not Applicable Commission, Board or Committee Report (If applicable) Not Applicable Findings/Conditions for Approval and/or Denial Not Applicable EXPLANATION FOR MISSING ATTACHMENTS REVIEWED RETURNED FOR DED Administrative Staff Assistant C ity Administrator Initial City Administrator Initial City Clerk EXPLANATION FOR RETURN OF ITEM: Only)(Below Space For City Clerk's Use RCA Author: K Dills 5055