February 28, 2006

SUBJECT:      Award of Two Contracts for Analytical Laboratory Testing Services (F0510-24)

REPORT IN BRIEF

Approval is requested for the award of two four-year contracts for the Department of Public Works Environmental Services Division: one contract to MWH Laboratories of Monrovia for the analysis of drinking water samples, and the other to CalTest Analytical Laboratory of Napa for the analysis of wastewater samples.

BACKGROUND

The City is required to conduct water quality testing to ensure compliance with the City’s National Pollutant Discharge Elimination System (NPDES) discharge permit requirements, the Department of Health Services (DoHS) Safe Drinking Water Act requirements, for pre-treatment program monitoring and for a variety of other environmental studies and tests at the Water Pollution Control Plant (WPCP), Landfill site and SMaRT Station.  Water and wastewater analyses must be performed by a laboratory approved for specific tests by the DoHS and certified under the Environmental Laboratory Accreditation Program.  The City's Environmental Laboratory performs most of these tests, but has traditionally contracted with private laboratories to conduct the more specialized analyses.

The City’s existing contracts for laboratory testing services will expire on February 28, 2006.  Council awarded these contracts in 2002 to Caltest Analytical Laboratory and MWH Laboratories as the result of a competitive bid (RTC 02-375).

DISCUSSION

Comprehensive specifications were developed to address existing, new and anticipated testing requirements; and Request for Proposals No. F0510-24 was distributed to ten testing laboratories.  The Request for Proposals (RFP) was structured to allow laboratories to offer pricing on any or all of the following: Safe Drinking Water Act (SDWA) testing, National Pollutant Discharge Elimination System (NPDES) wastewater testing and NPDES Biosolid and Resource Conservation and Recovery Act (RCRA) testing.

Four laboratories submitted proposals: CalTest Analytical Laboratories of Napa; Curtis & Tompkins, Ltd., of Berkeley; MWH Laboratories of Monrovia; and Sequoia Analytical of Morgan Hill.  Environmental Services staff evaluated proposals, based upon a variety of criteria, the most important of which were the level of each proposer’s certification by the DoHS Environmental Laboratory Accreditation Program; the range of tests each proposer could perform in-house versus through a sub-contracting arrangement; and total cost to the City.

With regard to the testing of organic compounds in wastewater, CalTest was the only proposer who is fully State-certified and capable of performing all required tests in-house.  All other proposers indicated that they were not fully certified and planned to subcontract all or most of the testing.  For drinking water testing, MWH Laboratories was the only proposer certified to perform all required tests in-house.  All other proposers indicated that they would subcontract all or part of the testing.   

As a result, staff recommends award of contracts to CalTest for the analysis of wastewater samples and to MWH Laboratories for the analysis of drinking water samples.  Although traditionally Council has awarded one-year contracts for these services with an option to extend for three additional one-year periods, in light of the fact that only CalTest and MWH are fully State-certified and both have satisfactorily performed the required services for the City since 2002, staff recommends the award of both contracts for the full four years.  Contract terms and conditions grant the City the right to terminate either contract for any reason upon ten days’ written notice to the laboratory.

FISCAL IMPACT

The cost of laboratory testing services will not exceed $240,000 for the full four years ($160,000 for wastewater testing and $80,000 for drinking water testing).  Funds have been budgeted in various Public Works Department accounts.

RECOMMENDATION

It is recommended that Council award the following contracts in substantially the same format as the attached drafts:

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

Attachment A. Draft Service Agreement with MWH Laboratories

Attachment B. Draft Service Agreement with CalTest Analytical Laboratory