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HomeMy WebLinkAboutItem 3e - Reject Brass Valves BidDATE: October 7, 2014 TO: Honorable Mayor and City Council STAFF REPORT Public Works Services Department FROM: Tom Tait, Public Works Services Director By: Craig Clark, Utilities Superintendent SUBJECT: REJECT THE ONE BID RECEIVED FOR THE PURCHASE OF WATER PIPELINE FITTINGS, BRASS VALVES, AND OTHER RELATED ACCESSORIES FOR THE CITY'S WATER DISTRIBUTION SYSTEM AND DIRECT STAFF TO REBID Recommendation: Approve SUMMARY The Public Works Services Department conducted a formal bidding process for the purchase of water pipeline fittings, brass valves, and other related accessories for the City's water distribution system. In order to ensure that the City is getting competitive pricing for the purchase of these materials, it is recommended that the City Council reject the one bid received and direct staff to rebid. DISCUSSION The City provides and maintains water services to nearly 55,000 residents through approximately 14,000 metered service connections. The City's warehouse is responsible for the purchase and allocation of water pipeline fittings, brass valves, and other related accessories used on a daily basis by City maintenance crews to repair and maintain the City's water distribution system. It is critical that the warehouse retain the requisite on -hand inventory levels to prevent an interruption to the City's water system. In order to receive the most competitive price for water pipeline fittings, brass valves, and other related accessories, a formal bid was conducted. A Notice Inviting Bids was published in the City's adjudicated paper and bid packets were sent directly to industry providers. One bid was received with the following results: Reject Bid for Brass Valves October 7, 2014 Page 2 of 2 FIRM LOCATION COST HD Supply Waterworks Valencia, CA $56,899.05 Public Works Services staff contacted the vendors who picked up a bid package to inquire why they did not submit a bid. In most cases, the vendors said that they would not be competitive in pricing because they did not carry the manufacturer's brand the City currently uses for brass fittings. Prior to rebidding, Public Works Services will review the Department's Water Standard Specifications to see if it is in the City's best interest to accept a different brass fitting manufacturer. In addition, staff will reach out to additional vendors who carry the City's brass manufacturer as specified in the Water Standard Specifications. The City of Arcadia Purchasing Procedure Manual states that at least three bids shall be obtained whenever possible. It is anticipated that rebidding will enable the City to receive more bids. Staff will contact other local agencies to inquire of their vendors who may be able to meet the bid specifications and submit a bid. This will ensure that the City is getting the lowest and best price among several competing distributors for these supplies. FISCAL IMPACT Funds in the amount of $55,000 have been budgeted in the Fiscal Year 2014 -15 Water Fund Operating Budget for the purchase of the brass valves, fittings, and other related accessories for the City's water distribution system. RECOMMENDATION It is recommended that the City Council reject the one bid received for the purchase of water pipeline fittings, brass valves, and other related accessories for the City's water distribution system and direct staff to rebid. Approved. Dominic Lazzar t City Manager