REPORT TO COUNCIL
SUBJECT
Title
Authorize the Issuance of a Purchase Order to Western Systems, Inc. for Fiber Optic Ethernet Access Devices (F19-239)
Report
REPORT IN BRIEF
Approval is requested to authorize the issuance of a Purchase Order to Western Systems, Inc. of Everett, WA, in the amount of $166,785.60, excluding $15,010.70 in sales taxes, for forty-eight (48) Fiber Optic Ethernet Access Devices (EAD).
EXISTING POLICY
Pursuant to Section 2.08.040 of the Sunnyvale Municipal Code, Council approval is required for the procurement of goods and/or services exceeding $100,000 in any one transaction.
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 existing Ethernet Access Devices (EAD) are components of the City’s traffic signal’s system helping to provide communications back to the Transportation Management Center. There are a total of 48 devices located along the following corridors: Mathilda/Sunnyvale-Saratoga, Maude, Java/Tasman, and Evelyn. These devices are past their useful life and the manufacturer for these devices is no longer in business, which makes it impossible to purchase replacement parts or new devices to repair or replace faulty ones. Replacing these outdated EAD’s will improve overall communications performance and reliability without impacting other existing communications infrastructure. These devices have stronger security protocols, will increase communications bandwidth, are fiber optics ready, have faster throughput speed for big data transfer and access, and will allow for more reliable real-time monitoring of traffic signal operations, and support the Intelligent Transportation Systems devices from the City’s Transportation Management Center. The replacement of these devices will decrease ongoing maintenance expenses as they require minimal maintenance to remain in optimal condition.
An Invitation for Bids (IFB) was advertised for competitive bidding on the City’s DemandStar public procurement network on August 2, 2019, with twelve (12) companies requesting bid documents. Sealed bids were opened on August 28, 2019 with three (3) responsive bids received. The bid summary is contained in Attachment 1. The lowest responsive and responsible bid was submitted by Western Systems, Inc. with the base bid amount of $166,785.60. The IFB is for the procurement of the devices only, the installation will be via a Request for Proposals for a separate service agreement with a contractor qualified to work on communications equipment.
FISCAL IMPACT
The total cost of this purchase is $181,796.30, which includes sales taxes, and funding is available in Project 820180, Traffic Signal Controller Replacement.
Funding Source
This project is funded in the Infrastructure Renovation and Replacement Fund through Gas Tax funds.
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
Authorize the issuance of a Purchase Order in the amount of $166,785.60 excluding $15,010.70 in sales tax, in substantially the same form as Attachment 2 to the report to Western Systems, Inc.
Staff
Prepared by: Gregory S. Card, Purchasing Officer
Reviewed by: Timothy J. Kirby, Director of Finance
Reviewed by: Chip Taylor, Director of Public Works
Reviewed by: Teri Silva, Assistant City Manager
Approved by: Kent Steffens, City Manager
ATTACHMENTS
1. Bid Summary
2. Draft Purchase Order