HomeMy WebLinkAboutApprove Sole Source Procurement Request with Hadronex Inc., 6x4eA %4Ja-V.s
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City of Huntington Beach
File #: 21-663 MEETING DATE: 9/21/2021
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Oliver Chi, City Manager
PREPARED BY: Sean Crumby, Director of Public Works
Subject:
Approve Sole Source Procurement Request with Hadronex Inc., dba SmartCover Systems, for
Sanitary Sewer System Manhole SmartCovers
Statement of Issue:
Submitted for City Council approval is a Sole Source Procurement Request for Hadronex Inc., dba
SmartCover Systems. for Sanitary Sewer System Manhole SmartCovers (SmartCovers).
Financial Impact:
Funds for this request are budgeted in Sewer Service Fund Account 51185201 .64620.
Recommended Action:
Approve Sole Source Procurement Request with Hadronex Inc., dba Smartcover System, for the
purchase of SmartCovers.
Alternative Action(s):
Deny the Sole Source Procurement Request and direct staff accordingly.
Analysis:
SmartCovers are manhole covers that help the City better manage the sanitary sewer system.
These are devices that transmit real time data on the level of the water within the sewer system via
an antenna located on the manhole cover. The SmartCovers are located at strategic points in the
City's sanitary sewer system and can prevent or mitigate potential Sanitary Sewer Overflows (SSOs)
by providing warning before the system overflows.
Traditionally in the past City staff would respond to SSO's after they have already occurred with
extensive cleanups. SSOs pose a significant threat to public health and safety, can cost tens of
thousands of dollars in staff time and city resources. They also have extensive reporting with the
State, and have major economic impacts to neighboring businesses with the ultimate threat being
impacts to City beaches. Smartcovers allow for anticipation of potential issues before they occur and
not only remove threats, but allow the response to occur as a standard practice.
City of Huntington Beach Page 1 of 2 Punted cn 9 15 2021
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File #: 21-663 MEETING DATE: 9/21/2021
This is a sole-source procurement, in accordance with Chapter 3.02 of the City of Huntington Beach
Municipal Code, for which there is no comparable competitive product and where compatibility with
products already in use by the City is the overriding consideration. Hadronex holds 17 patents and is
the only supplier of SmartCovers. The City first purchased SmartCovers in 2016 and has installed 31
SmartCovers to date. At least 20 potential SSCis have been prevented through the use of
SmartCovers within the City's wastewater collection system.
Environmental Status:
Not applicable
Strategic Plan Goal:
Non Applicable - Administrative Item
Attachment(§):
1 . Sole Source Justification
City of Huntington Beach Page 2 of 2 Printed on 9/15/2021
oowerec47;Leg,staCl
CITY OF HUNTINGTON BEACH RECEIVED
Sole-Source Justification AUG 16 2021
(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. Tfie"Required
Approvals"section must include a date for each signature,as appropriate for the transaction.
Requesting Department Information
Date: August 11, 2021
Requestor Name: Chris Davis Division Manager: Alvin Papa
e names. Do not sign.)
Department: Public Works Department Head: Sean Crumby
(Type names. Do not sign. Must be same as signature below.
Department Contact Information
Contact Name: Mark Birchfield Street Address: 19001 Huntington Street 92648
Telephone: 714-375-5041
Fax: 714-847-1067 Shipping Address: 19001 Huntington Street 92648
Cellular hone: 714-329-2885
Required Contact Information
Contractor/Supplier Name: Hadronex Inc. (doing business as SmartCover@ S stemsTM"
Contractor/Supplier Address: 2067 Wineridge Place, Suite E• Escondido,
Contractor/Supplier City/State/Zip: CA 92029
Original Contract Amount:' Amendment Amount:' (if applicable) New Contract Amount:'
$50,000.00 $50,000 $100,000
('Includes original contract and previously ('Includes original contract and all amendments,
approved amendments) ('Current amendment only) including current amendment
Provide a brief description of the acquisition, including all goods and/or services the contractor willprovide:
Provides 2417 user access via a secure web browser and through a dedicated, secure user website.
SmartCovert9 uniquely rovides real-time continuous monitoring the sewage level in a sewer pipe line
Contract Type and Term
Contract Type: Contract Term: What account number will be used to purchase?
Select One: ❑ Goods Begin: 07/012021 Business Unit: 51185201
® Service
❑ Goods& Services End: 06/30/2022 Object Code: 64620
Require Approvals
DepartmqnfHea Fiscal Services Manager C fef Financial Officer ssistant City Manager
❑Appr d ❑ nied ❑Approved El
Denied Approved ❑ Denied �pproved ❑ Denied
Signal q" Signature ignature Signature
U - \1 -a\ q7191 &I
Dale Date Date r a,a
(Transactions exceeding"'0'000
must be approved by City Council
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xY 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 GOODISERVICE 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.)
Hadronex dba SmartCover systems is the only supplier of manhole covers that provide remote data
collection on the wastewater system via manhole cover or hatch antenna. The smartcovers can be
located at strategic points throughout the system and can mitigate potential Sanitary Sewer Overflows
(SSOs) by providing warnings before the system overflows.
2. Provide the background of events leading to this acquisition.
The City currently has (31) of smartcovers in the system. These have provided warnings of 20 potential
SSOs.
3. Describe the uniqueness of the acquisition (why was the good/service/supplier chosen?).
As noted above, this is a unique tool in the wastewater industry and no other company is providing this
product. Smartcovers provide warning of potential SSO to allow City staff to proactively correct the
problem before it can impact the public health and safety.
4. What are the consequences of not purchasing the goods/services or contracting with the proposed
supplier?
Hadronex is the only supplier of smartcovers. Without smartcovers, staff would be forced to respond to
an SSO after it has already occurred. SSOs pose a significant threat to public health and safety, can cost
tens of thousands of dollars in staff time and city resources for clean up and state reporting
requirements, and have major economic impacts to neighboring businesses and potential citywide
economic impacts if an SSO causes a beach closure, and could generate a negative story in the local
newspaper.
S. 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.)
Wastewater section staff keep abreast of industry standards and emerging technologies via networking
with peers, industry conferences and journals. There currently is no similar technology available that
performs this service.
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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.)
As noted, there is no comparable technology. Staff believes that the benefits of smartcovers are more
important that purchase cost, as the avoided costs can be significant.
2. Describe any cost savings realized or costs avoided by acquiring the goods/services from this supplier.
- Avoids costly clean up, mitigation & reputation damage by preventing SSO's, and CSO's
- Protects the public and the environment by avoiding SSO's and CSO's
Reduces employees' risk by avoiding sending personnel to sites when not necessary
- Protects collection system and cable vault asset life
Remit completed form to: City of Huntington Beach—Purchasing Division
2000 Main Street,Huntington Beach,CA 92648-2702
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