REPORT TO COUNCIL
SUBJECT
Title
Reject All Proposals Received for the Smart Station Municipal Solid Waste and Source Separated Recyclables Integrated Processing System (NextGen) (F23-133)
Report
REPORT IN BRIEF
Approval is requested to reject all proposals received in response to a Request for Proposal for F23-133 Smart Station Municipal Solid Waste and Source Separated Recyclables Integrated Processing System (NextGen) Project.
The City received two proposals, one of which was deemed non-responsive because it was late. After extensive evaluation of the project specifications and budgetary constraints, staff has determined that the single proposal did not sufficiently represent the best value for the city.
EXISTING POLICY
Pursuant to SMC Section 2.08.110(c), formal competitive bids or proposals received after the deadline for receipt of bids shall not be accepted and shall be returned to the bidder unopened unless necessary for identification purposes.
Pursuant to SMC Section 2.08.140(b) of the Sunnyvale Municipal Code, the City Council may reject bids or proposals received in response to formal competitive bid solicitations. This Code section also provides that if all bids are rejected, the City has the discretion to re-advertise.
ENVIRONMENTAL REVIEW
The rejection of all bids is not subject to the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15061(b)(4) as CEQA does not apply where the project is rejected or disapproved.
BACKGROUND AND DISCUSSION
The Next Gen project upgrades the city-owned Sunnyvale Materials Recovery and Transfer Station (SMaRT Station®) with new sorting and recycling equipment. This facility has been in operation for 30 years with periodic updates to specific equipment occurring throughout that period. At the present time, the facility serves Sunnyvale and Mountain View under a Memorandum of Understanding (MOU) that expires in 2036. The retrofit project will replace aging equipment, embrace improved recycling technologies, become a power-efficient facility, prepare for a more sustainable future and optimize efficiencies using automation. The project will entail installing optical sorters, separators and screens, metering bins, compactor, and other equipment. The project is expected to be complete by Summer 2025. This specific bid includes replacement and installation of equipment only. Other portions of the project that involve infrastructure work are being done separately.
The project was advertised on DemandStar on October 4, 2023. Thirty-eight (38) contractors requested bid documents, and two (2) sealed bids were received on the due date of January 19, 2024. One proposal was rejected unopened as it arrived after the proposal cut-off time. The sole remaining proposal was over budget by at least $9 million, not inclusive of proposed options.
After reviewing the project, staff has identified opportunities to revise specifications to attract additional proposers and plans to re-advertise as soon as possible.
FISCAL IMPACT
There is no fiscal impact resulting from rejecting the proposals.
PUBLIC CONTACT
Public contact was made by posting the Council meeting agenda on the City's official notice bulletin board at City Hall, at the Sunnyvale Public Library, and in the Department of Public Safety Lobby. In addition, the agenda and this report are available at the NOVA Workforce Services reception desk located on the first floor of City Hall at 456 W. Olive Avenue (during normal business hours), and on the City's website.
RECOMMENDATION
Recommendation
Reject all bid Proposals in response to Request for Proposals F23-133 Smart Station Municipal Solid Waste and Source Separated Recyclables Integrated Processing System (NextGen).
Staff
Prepared by: David Battaglia, Purchasing Officer
Reviewed by: Ramana Chinnakotla, Director of Environmental Services
Reviewed by: Tim Kirby, Director of Finance
Reviewed by: Jaqui Guzmán, Deputy City Manager
Approved by: Kent Steffens, City Manager