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Staff Report to the Mayor and City Council <br />Subject: Award of Bid for Annual Purchase of Switchgear <br />Date: May 18, 2010 <br />Page 2 <br />The bid specifications listed minimum and maximum quantities of each size switchgear to be <br />purchased during a twelve month period, based on projected need. The City guarantees that it <br />will purchase the minimum quantities during a twelve month period. Maximum quantities were <br />also specified for each size in the event that additional equipment is needed during the same <br />period. The City does not guarantee purchase of any quantities above the minimum number <br />stated for each size. <br />ISSUES/ANALYSIS <br />All four bids were evaluated as to compliance with the specifications and by price. The bid <br />submitted by ABB, through Pacific Utilities, did not meet the technical specifications. The <br />remaining three bids meet, or exceeded, all technical specifications. A Bid Analysis is attached <br />showing the unit prices and the total amount for minimum (guaranteed) and maximum (non - <br />guaranteed) quantities by each vendor. The totals for each recommended bidder are underlined, <br />with a single underline for the minimum cost, and a double underline for the maximum cost for <br />one twelve month period. In previous years bid award for switchgear had been awarded on an <br />"all or none" basis to the one vendor with the lowest overall minimum and maximum price. In an <br />effort to realize cost savings, recommendation is being made to award the bid to multiple <br />vendors, based on the price per line item. In awarding the bid by line item, the City will save <br />$3,434.35 if only the minimum quantities are purchased, and up to $36,083.29 if the maximum <br />quantities are purchased. <br />FISCAL IMPACTS <br />Switchgear is purchased into Electric Stores Inventory account number 520-1500-154 and is <br />charged to the appropriate budget account when put into service. The Electric Department <br />includes money in its fiscal year's budget for the purchase of switchgear. <br />ALTERNATIVES <br />1. City Council may award the bid to HD Supply on an "all or none" basis, based on the <br />lowest total minimum and maximum amounts. This option will cost up to $36,083 more <br />than if award by line item. <br />2. City Council may reject all bids and direct staff to reissue the Notice Inviting Bids. <br />3. City Council may provide alternate direction to staff. <br />ATTACHMENTS <br />Bid Analysis <br />