October 12, 2004
SUBJECT: Authorization to Increase Expenditures Under an Existing Contract for Miscellaneous Piping Supplies (#F0409-14)
REPORT IN BRIEF
Approval is requested to increase authorized expenditures under an existing contract with Roberts & Brune Company of San Jose for the purchase of piping supplies as required by the Departments of Public Works and Parks and Recreation.
BACKGROUND
City staff regularly use piping supplies, such as valve parts, fittings and couplings. The majority of these supplies are used by the Department of Public Works Environmental and Field Services Divisions, although Parks and Recreation staff also require piping supplies from time to time. Although items used on a regular basis are stocked at Central Stores, the majority of items are purchased on an “as needed” basis.
In November 2003, Council awarded a one-year contract, with an option to extend for two additional years to National Waterworks of Santa Clara in an amount not to exceed $150,000 per year (RTC 03-395). National Waterworks was selected because it was one of the largest stocking distributors in the South Bay, allowing City crews to quickly obtain parts and supplies for irrigation projects. The contract was determined to be exempt from bidding because the tremendous range of parts required made the development of bid specifications impossible. At that time, it was intended that National Waterworks would be the City's primary source for piping supplies and that smaller contracts would be initiated with other suppliers, including Roberts & Brune, as backup suppliers.
Subsequently, changes at National Waterworks occurred that reduced its viability as the City's primary piping supplier. National Waterworks has been unable to deliver parts and supplies in the timely and accurate way that Field Services’ crews require in order to perform their work efficiently.
Roberts and Brune, on the other hand, has consistently filled all orders accurately and speedily. Increasing the purchase order with this company will shorten City crews’ work response times and, thus, improve their efficiency.
To date, less than $6,000 has been expended under the November 2003 contract with National Waterworks. When the time comes for renewal of this purchase order, staff will review the total amount expended for the year and will reduce its total accordingly.
DISCUSSION
The City currently has a Blanket Purchase Order with Roberts & Brune which was issued under the City Manager's $50,000 contract award authority. Several time-critical projects are scheduled to begin shortly; and large purchases of piping supplies will be required. Staff, therefore, requests that Council authorize expenditures with Roberts & Brune Company in an amount not to exceed $150,000 per year.
Section 2.08.070 (b) of the Sunnyvale Municipal Code exempts from competitive bidding situations where the solicitation of bids would for any reason be impractical, unavailing or impossible. As mentioned previously in this report, the wide range of piping supplies used by City staff on an “as needed” basis make the development of a comprehensive and meaningful list of items for bidding purposes impossible.
FISCAL IMPACT
Expenditures are not expected to exceed $150,000 per year. Funds have been budgeted in various City Accounts.
RECOMMENDATION
It is recommended that Council authorize a $100,000 per year increase in expenditures under an existing contract with Roberts & Brune Company, making a total contract not-to-exceed amount of $150,000 for miscellaneous piping supplies.
Prepared by:
Elaine Wesely
Purchasing Officer
Reviewed by:
Mary J. Bradley
Director, Finance
Reviewed by:
Marvin Rose
Director, Public Works
Approved by:
Amy Chan
City Manager
Attachments
A. Blanket Purchase Order No. 27263-B (pdf format)
B. Change Order No.1. (pdf format)