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RTC#02-106

March 26, 2002

SUBJECT:

Award of Bid No. F0201-37 for City Hall Chiller and Cooling Tower Replacement (RTC#02-106)

REPORT IN BRIEF

Approval is requested for the award of a contract to Newcomb Mechanical, Inc., of Foster City for the replacement of the City Hall chiller and cooling tower for the Department of Public Works Project Administration Division (Project PR-95-13(C)).

BACKGROUND

The replacement of the existing City Hall chiller and cooling tower is part of the Civic Center heating, ventilating and air conditioning (HVAC) modification program. These units were scheduled for replacement in 1997, but replacement was put on hold pending the outcome of the City Hall expansion project and the Citywide Space Optimization Study.

For this project, both the chiller and cooling tower, which are past their useful life, are being replaced. New chilled water pumps, mechanical piping and electrical work are also required in connection with the upgrade.

DISCUSSION

Bid specifications were prepared by Public Works and Purchasing staff. The Notice Inviting Bids was published in The Sun on January 30, 2002. The bid package was distributed to Bay Area Builder Exchanges and broadcast to potential contractors through the DemandStar by Onvia procurement network. Twenty-one contractors requested bid documents.

Sealed bids were publicly opened on February 27, 2002. Six bids were received.

Bidder

Total Bid
   

Engineer's Estimate

$186,695

Newcomb Mechanical, Inc., of Foster City

$218,437

Environmental Systems, Inc., of Santa Clara

$237,181

Carter Pierce Mechanical Services of Auburn

$243,000

Kinetics Mechanical Services, Inc., of Union City

$279,995

Air Conditioning Company, Inc., of Concord

$298,690

Weigel Mechanical of Sunnyvale

$399,575

Staff received a bid protest, dated February 27, 2002, from Environmental Systems, Inc. (ESI), the second low bidder. The basis of ESI's protest is that Newcomb Mechanical is not properly licensed under the terms of the Invitation for Bids and the relevant laws pertaining to contractor licensing. The City has reviewed the bid protest, bid specifications, relevant sections of the Public Contract Code, and the Rules and Regulations of the Contractors State License Board and has concluded that Newcomb Mechanical should be considered a responsive bidder. Environmental Systems, Inc., has been so informed.

Staff recommends award of contract to Newcomb Mechanical, Inc., the lowest responsive and responsible bidder.

A determination was made that this project will have no significant effect on the environment in accordance with CEQA guidelines for categorically exempt projects.

FISCAL IMPACT

Project costs include:

Construction

$218,437

Contingency (15% of construction cost)

$32,766

Total cost

$251,203

Funds are available in Capital Project Account 817950, Civic Center Buildings -HVAC.

RECOMMENDATION

It is recommended that Council:

  1. Award a contract in the amount of $218,437 to Newcomb Mechanical, Inc., of Foster City for the replacement of the City Hall chiller and cooling tower; and
  2. Approve a project contingency in the amount of $32,766.

Prepared by:
Elaine Wesely
Purchasing Officer

Reviewed by:
Mary J. Bradley
Director, Finance

Marvin Rose
Director, Public Works

Approved by:
Robert S. LaSala
City Manager

Attachments:

A.

Environmental Systems, Inc., Bid Protest Letter Dated February 27, 2002

B.

City of Sunnyvale Response Letter Dated March 12, 2002

C.

Environmental Systems, Inc., 2nd Bid Protest Letter Dated March 14, 2002

D.

City of Sunnyvale 2nd Response Letter Dated March 18, 2002

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