REPORT TO COUNCIL
SUBJECT
Title
Reject Bid Received for Uninterrupted Power Supply (UPS) and Emergency Backup Battery Systems at Two Locations (F17-078)
Report
REPORT IN BRIEF
Approval is requested to reject a bid in the amount of $147,975 received in response to Invitation for Bid (IFB) No. F17-078 for UPS/Emergency Backup Battery Systems.
EXISTING POLICY
Pursuant to Sunnyvale Municipal Code Section 2.08.140, the City Council may reject, in whole or in part, bids or proposals in excess of one hundred thousand dollars.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
BACKGROUND AND DISCUSSION
The City has Uninterrupted Power Supply (UPS) systems with emergency backup batteries at various facilities. The systems at Public Safety Headquarters (emergency backup batteries only) and City Hall Annex require replacement this fiscal year.
An Invitation for Bids (F17-078) was issued in February, 2017 for these systems. Two bids were received as follows:
|
Mission Critical Specialists, Diamond Springs |
$77,263 |
|
JW Construction, Oakland |
$147,975 |
The lowest bid submitted by Mission Critical Specialists is non-responsive because it does not meet the City’s specifications. The highest bid submitted by J.W. Construction is responsive, but it significantly exceeds the available budget of $80,000. Staff recommends that the bid be rejected.
While it is important to update this critical component of our emergency power system, the current UPS unit, which is due for replacement, is functioning adequately. The UPS system is separate from the emergency generator, and is intended to provide immediate power to the facility in cases of very short power outage (a few minutes). It also provides the power “bridge” when the generator is required, but is not instantly online. The UPS turns off when the generator is at full speed and ready to carry the full load, a matter of minutes. Replacement of emergency generators, as recently discussed in the March 23rd City Manager Bi-Weekly Report, is still in process and is not a part of or impacted by this action. The specifications for the UPS are being reviewed to make them less restrictive with the goal of receiving better pricing through rebidding. Since the existing equipment is still functional, staff recommends rebidding to achieve potential savings.
Council approval is required to reject bids exceeding $100,000. The determination of non-responsiveness for the low bid was made under the City Manager’s authority because the bid was below the Council approval threshold.
FISCAL IMPACT
No fiscal impact results from rejecting the bid.
Funding Source
The funding source is the General Fund.
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
Reject the bid in the amount of $147,975 received from J.W. Construction in response to IFB F17-078.
Staff
Prepared by: Pete Gonda, Purchasing Officer
Reviewed by: Timothy J. Kirby, Director of Finance
Reviewed by: Manuel Pineda, Director of Public Works
Reviewed by: Walter C. Rossmann, Assistant City Manager
Approved by: Deanna J. Santana, City Manager