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CC - Award a Contract to Clean Energy, as the Lowest Responsive and Responsible Bidder, for the Replacement and Installation of the Compressed Natural Gas (CNG) Fueling Station Equipment in an Amount Not-to-Exceed $1,040,627 ($991,074 Base Bid Plus $49,553 in Contingency Authority)
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Contact Person/Dept: Paul Condran
Phone Number: (310) 253-6520
Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X]
Public Hearing: [] Action Item: [] Attachments: Yes [] No [X]
Commission Action Required: Yes [] No [X] Date:
Commission Name:
Public Notification: (E-Mail) Meetings and Agendas - City Council (05/17/16);
Department Approval: Art Ida (5/12/16)
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RECOMMENDATION
Staff recommends the City Council award a contract to Clean Energy, as the lowest responsive and responsible bidder, for the replacement and installation of new Compressed Natural Gas (CNG) compressor equipment to enhance existing fueling facilities, in an amount not-to-exceed $1,040,074 ($991,074 Base Bid Plus $49,553 in Contingency Authority).
BACKGROUND
Culver City owns and operates its own Compressed Natural Gas (CNG) Refueling Station. The Station serves more than 105 vehicles operated by City staff and the Culver City Unified School District. Today, CNG accounts for more than 80% of the City’s total dispensed fuel.
The station is comprised of three compressors. Two of these compressors, referred to as “twin” compressors, were originally commissioned during the construction of the station in 1997 and have been through several major overhauls and repairs. The third compressor, electronic controls, and other fuel station components were upgraded in 2007/08 at which time Clean Energy was awarded the contract. Clean Energy completed the project on-time and within budget. Because of the age and changes in technology of the original “twin” natural gas compressors, the parts needed for continued service and operation are now out of production and no longer available for repairs.
In the Fiscal Year 2013-14 Adopted Budget, the Council approved the Transportation Department Work Plan item to replace the “twin” CNG refueling station compressors which have reached the end of their useful life.
Natural gas compressors are highly advanced and technical in nature. The selection of the correct type of compressor technology will ensure the long-term safety and viability of the City’s natural gas fleet. After taking the necessary time to evaluate compressor technology requirements that would not compromise operational prerequisites and would ensure maximum, long-term application of new and expanded natural gas operations/fuel usage requirements, Equipment Maintenance & Fleet Services Division staff released a Request for Bids (RFB) for the replacement and installation of CNG equipment to enhance existing fueling facilities.
DISCUSSION
The RFB was released as Bid Number 1560 on March 14, 2016 and closed on April 5, 2016. Two contractors responded with the following bid amounts:
Contractor Total Base Proposal
Diversified Project Services International (DPSI) $972,244.00
Clean Energy $991,074.00
Staff thoroughly reviewed both of the bid proposals. The technical analysis performed by City staff exhibited a score of 30.8 for DPSI and 38.7 Clean Energy from a possible 43 weighted points.
As noted in the original bid released by the City, “[l]ow price will not guarantee award of contract” (pages #B-10 and #C-1). While Diversified Project Services International (DPSI) proposed a lower price, staff found its bid proposal was incomplete and not responsive to the RFB. DPSI was found deficient in the following areas:
• The project duration indicated by DPSI is 200 days. Clean Energy proposed a project duration of 160 days.
• The bid clearly stipulates that proposers must have eight years of relevant experience. DPSI has four years.
• DPSI did not satisfactorily address the City’s fueling needs during construction and offered no alternatives. It is imperative that the City has reliable and available compressed natural gas fueling resources available throughout the duration of the project. Clean Energy offered two alternate solutions, one of which is to allow the City priority fueling at one of their natural gas fueling sites with a $0.10/gallon discount.
• DPSI does not meet the federal Buy America requirement. The City is in possession of a letter from Clean Energy whereby indicting they are fully compliant.
• DPSI did not satisfactorily meet the technical requirements necessary for the new software integration, and indicated there would be possible cost increases to ensure software compliance. Clean Energy is fully compliant in this area.
Staff reviewed the bid proposal from Clean Energy and found the bid documents to be responsive and complete. While only two bids were received, staff’s confidence in the ability of Clean Energy to provide this service to the City is considerable. Clean Energy has substantial experience in this specific area. Therefore, Transportation Department staff recommends awarding the contract to Clean Energy as the lowest responsive and responsible bidder, for the replacement and installation of new CNG compressor equipment to enhance existing fueling facilities.
FISCAL ANALYSIS
Funds for these services are included in the Transportation Department’s current fiscal year budget. Funding was secured through a variety of sources including a Federal Transportation Authority grant (CA-90Z069-01), California Assembly Bill 2766 subvention funds, Measure R Clean Fuel & Facilities funding, STA Capital Reserve funds, and Prop C40 funds. Transportation account number 20370306.732120.
Summary total of anticipated expenses under these terms:
Base Bid: $ 991,074
5% Contingency: $ 49,553
Total Contract Expense: $1,040,627
ATTACHMENTS
None
RECOMMENDED MOTIONS
That the City Council:
1) Award a Contract to Clean Energy, as the lowest responsive and responsible bidder, in an Amount Not-to-Exceed $1,040,627 for the Replacement and Installation of Compressed Natural Gas (CNG) Refueling Station Equipment; and,
2) Authorize the City Attorney to review/prepare the necessary documents; and,
3) Authorize the City Manager to execute such documents on behalf of the City.