REPORT TO COUNCIL
SUBJECT
Title
Award of Contract for an Automated Materials Handling System for the Sunnyvale Public Library (F15-53)
Report
REPORT IN BRIEF
Approval is requested to award a contract to Bibliotheca ITG of Norcross, Georgia in the amount of $280,000, excluding sales tax, for a SmartSort 400 Automated Materials Handling (AMH) system for the Sunnyvale Public Library. This system will replace the existing AMH system, which was installed in March 2010.
ENVIRONMENTAL REVIEW
N/A
BACKGROUND AND DISCUSSION
Bibliotheca, which was selected as the result of a competitive Request for Proposals (RFP) process conducted in 2009 (RTC No. 09-186), installed the existing AMH system at the Sunnyvale Public Library in March 2010. The system is a 21-bin sort system with five patron return units. The AMH system checks in and sorts up to 10,000 items returned daily to the Library. Patron feedback regarding the AMH has largely been positive; however increased speed of processing has been a frequently requested enhancement. The current system has required an increasing number of repairs in the past year, which were often delayed due to limited availability of parts to effect the repairs. Wanting to be proactive in preventing an AMH system failure, Bibliotheca approached Library staff and proposed a subsidized replacement of the Library's existing system. After evaluation of the options available, Library staff proposed the purchase of a more technologically advanced system to leverage the subsidy and effect improvements in the Library customer experience.
The SmartSort 400 AMH system is 33%-50% faster than the existing system, processing 900 items per hour (instead of 600) at the returns and 2,400 items per hour (instead of 1,800) at the sorter. Technological enhancements achieved in the past four years mean that the system will require reduced maintenance, and will offer better reliability than the existing system due to its advanced single-belt design and ready availability of replacement parts. The SmartSort 400 is also quieter than the existing system because operation does not require an air compressor. In addition to providing a better experience for patrons through increased speed, reduced maintenance, and improved performance, the replacement system will have lower annual maintenance costs. The new system is transferable to a new location should that become necessary.
Bibliotheca offered to subsidize the replacement AMH system, allowing the City to benefit from a technologically improved product at a significantly reduced cost. The list price of the advanced system is $505,000, but Bibliotheca has offered to replace Sunnyvale's existing system with it for $280,000. For this reason, an exemption from competitive bidding is proposed for this purchase. Section 2.08.070 of the Sunnyvale Municipal Code allows for such a bid exemption.
FISCAL IMPACT
Budgeted funds for the system replacement are available in the Information Technology Equipment Replacement Account. Ongoing maintenance costs will be approximately $50,000 annually which is less than currently budgeted. Over the anticipated ten year life of this equipment, total maintenance cost savings are projected to be approximately $280,000 less than currently budgeted. The maintenance agreement will be renewed each year under the City Manager's contract award authority.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City's official-notice bulletin board outside City Hall, at the Sunnyvale Senior Center, Community Center and Department of Public Safety; and by making the agenda and report available at the Sunnyvale Public Library, the Office of the City Clerk and on the City's website.
RECOMMENDATION
Recommendation
Award a contract in substantially the same form as the draft purchase order attached to the report and in the amount of $280,000 to Bibliotheca ITG for an Automated Materials Handling system.
Staff
Prepared by: Pete Gonda, Purchasing Officer
Reviewed by: Grace K. Leung, Director, Finance
Reviewed by: David Jensen, Director, Information Technology
Reviewed by: Lisa Rosenblum, Director, Library and Community Services
Reviewed by: Robert A. Walker, Assistant City Manager
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. Draft Purchase Order