HomeMy WebLinkAboutApprove Sole Source Procurement Request with Murcal Incorpor (2) //Pii✓EP 7-0
NTINGr� 2000 Main Street,
oF�, 4) Huntington Beach,CA
City of Huntington Beach 92648
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File #: 23-149 MEETING DATE: 5/2/2023
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Al Zelinka, City Manager
VIA: Chau Vu, Acting Director of Public Works
PREPARED BY: Rafael Suarez, Contract Administrator
Subject:
Approve Sole Source Procurement Request with Murcal Incorporated (Murcal) for Flood
Control Station Controllers and Related Equipment
Statement of Issue:
Submitted for City Council approval is a sole source procurement request of up to $300,000 annually
over a 3-year term to purchase flood control pump station equipment from Murcal.
Financial Impact:
Sufficient funds are available in the approved FY 2022/23 Equipment Replacement Budget in
Business Unit 32240214.83700. Expenditures for this fiscal year will not exceed the budgeted
amount. Funding for future years will be requested in those budget cycles.
Recommended Action:
Approve the sole source procurement request with Murcal for programmable logic controllers (PLCs)
and other flood control station equipment.
Alternative Action(s):
Do not approve the sole source procurement request, and direct staff to procure equipment through a
competitive bid process. However, utilizing flood control station equipment from a different vendor will
require redesign of the flood control station as well as staff re-training. Additional costs range from
$30,000 to $250,000 per PLC. Furthermore, while there are other PLC panel builders in the market,
incorporating them into our current system would require further analysis to determine if they are
compatible. The time needed to substantiate another PLC's compatibility could put the City's flood
control system at risk, including the health, safety, and property of residents and businesses in the
affected areas.
Analysis:
The City's 15 flood control stations each require PLCs to monitor and manage water levels to prevent
flooding during rain events. Proper maintenance and equipment are necessary for the stations to
City of Huntington Beach Page 1 of 2 Printed on 4/27/2023
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File #: 23-149 MEETING DATE: 5/2/2023
function reliably.
For over 30 years, Murcal has provided PLCs to our stations without any major failures. However,
recent inspections noted that due to age, the panels are obsolete and no longer supported. As a
result, replacements are now needed. Six of the City's 15 stations have already been upgraded with
new Murcal equipment. Murcal's equipment and software are proprietary and cannot be combined
with other vendors. Murcal's 30-year involvement with the City's flood control systems gave Murcal
the institutional knowledge needed to design our PLCs to resolve our unique coastal flooding issues.
By replacing with Murcal's like-for-like panels, there is virtually no risk of failure and downtime. Staff
is trained on this equipment, and it has been proven to be consistently reliable.
To ensure the proper and continued maintenance of the stations and to minimize the risk of flooding,
staff recommends utilizing a sole source procurement of Murcal's equipment at a cost of up to
$300,000 annually over a 3-year term.
Environmental Status:
Pursuant to CEQA Guidelines Section 15378(b)(5), administrative activities of governments that will
not result in direct or indirect physical changes in the environment do not constitute a project.
Strategic Plan Goal:
Infrastructure & Parks
Attachment(s):
1. Sole Source Justification
2. PowerPoint Presentation
City of Huntington Beach Page 2 of 2 Printed on 4/27/2023
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RECEIVED
r ;;7Q MAR 14 2023
CITY OF HUNTINGTON BEACH
q=- Sole-Source Justification Finance Department
=.our;w (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
Date: February 9, 2023
Requestor Name: Rafael Suarez Division Manager: Alvin Papa
(Type 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: Rafael Suarez Street Address: 19001 Huntington Street
Telephone: 714-374-1794
Fax: N/A Shipping Address: 19001 Huntington Street
Cellular phone: 714-833-3681
Required Contact Information
Contractor/Supplier Name: MurCal Inc
Contractor/Supplier Address: 41343 12th Street West
Contractor/Supplier City/State/Zip: Palmdale, CA 93551-1442
Original Contract Amount:* Amendment Amount:*(if applicable) New Contract Amount:*
$ $ $300,000 Anually
(*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 will provide:
Replace obsolete Flood Control Station pump driver control systems
Contract Type and Term
Contract Type: Contract Term: What account number will be used to purchase?
Select One: ® Goods Begin: 04/15/2023 Business Unit: 32440214
0 Service
❑ Goods&Services End: 04/15/2026 Object Code: 83700
Required Approvals
Department Head Finvite Manager-Budget Cf Financial Officer Assistant City Manager
ri •p;oved El D e-d L✓J Ap r v�ed/� ❑Denied [ Approved ❑Denied : Approved ❑ Denied
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Si nature Signature ature Signature
Date Date Date Date
(Transactions exceeding$50,000
must be approved by City Council)
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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.)
For over 35 years, Murcal Inc. has been the City's trusted vendor of all its programmable logic control
(PLC) panels and controllers. In that span, Murcal continuously collected pump data and designed their
PLC panels and controllers to meet our flood control and water pump needs.Of the 15 flood control
stations,the City has already purchased the updated PLC controllers for six stations and is expecting to
purchase more identical controllers for the remaining 9 stations.
2. Provide the background of events leading to this acquisition.
The City's existing control panels have successfully serviced the City's flood control and water pumps for
over 25 years, but are showing signs of failure. Recently when repair services were requested, Murcal
noted the panels are no longer supported and recommended replacement.Taking proactive measures to
replace the panels now,will avoid potentially costly failures at the City's flood control stations.
3. Describe the uniqueness of the acquisition (why was the good/service/supplier chosen?).
Murcal's 30-year involvement with the City's flood control systems gave Murcal the institutional
knowledge needed to design our control panels to resolve our unique coastal flooding issues. By
replacing with Murcal's like-for-like panels,there is virtually no risk of failure and downtime.Additional
design, installation,and staff training would cost the City more time and money if we opted for another
vendor.
4. What are the consequences of not purchasing the goods/services or contracting with the proposed
supplier?
If the City chooses another system, it will cost the City additional time and money needed for design and
system integration. Downtime of the pumps during installation will also put the City at risk of flooding.
Failure of any flood station during storm events threatens the health,safety,and property of our
residents.
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.)
Murcal's proprietary software and hardware did not allow for direct cost comparison. However,
procurement for materials are consistent with other PLC panels for other applications. In March 2021,The
City of Fresno completed a bid process to replace existing PLC panels for their wastewater division.
Costs for programmed panels ranged from$9,000 to$30,000;which are comparable with Murcal's ranges
of$16,00 to$22,000.Additionally, in February 2019,the Coachella Valley Water District awarded a project
for multiple PLC upgrades,which ranged from$160,000 to$250,000 per unit.
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.)
Research from other agencies' public bids gave insight for costs to design and program new panels.
Costs for programmed panels and upgrades ranged from$30,000 to$250,000 per unit; significantly more
than Murcal's$22,000 panels.
2. Describe any cost savings realized or costs avoided by acquiring the goods/services from this supplier.
Purchasing Murcal's panels and controllers avoids unnecessary costs for redesign and testing of the PLC
panels,which research shows,can range from$30,000 to$250,000 per unit.
Murcal gathered 25-years of invaluable data of our flood control systems.This data allows Murcal to
provide a tested and proven system. If we opted for another vendor, it could take years of trial and error
as well as more staff training to produce a system that works for us. Murcal also provides the same
equipment to other agencies such as Orange County Public Works, Los Angeles County,Texas DOT,City
of El Segundo,and Sacramento Area Flood Control Agency.
Remit completed form to: City of Huntington Beach—Purchasing Division
2000 Main Street,Huntington Beach,CA 92648-2702
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Controllers for City Flood
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Murcal Inc .
• Programmable logic controllers (PLC) are used to remotely
manage 15 City flood control facilities.
• 6 of 15 stations have already been replaced with new
equipment.
• Proprietary software is custom built for Huntington Beach
and is only compatible with Murcal equipment.
•
First selected in 1980's, when there were . limited
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vendors at the time.
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Sole Source Request
• Existing PLC's are over 25 years old and are beginning to show signs
of failure.
• Selecting Murcal Inc. will ensure compatibility with the City's existing
system the City.
• Utilizing another vendor would require further analysis to determine
compatibility. Should the City utilize this vendor, it may require
significant costs to re-design, setup, program, and re-training staff to
utilize the new equipment.
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• Failed equipment will significantly increase risk of flooding and may o�:w.NflAPaAgrFo•,T �F;
adverselyimpact the health, safetyand property of local residents :c-3,11)1),I p p p Y ,
and businesses. � • �- �
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