From
Donna Brennan
Title
Change Order #2 in the amount of $4,500 for a price agreement with McMillan James Equipment Company for Dectron dehumidifier preventative maintenance and repair and approve the maximum potential value of this contract estimated at $66,882.50 ($8,882.50 yr 1, $14,500.00 yrs 2-5) if all extensions are exercised and authorize the City Manager to execute the renewal options with aggregate price fluctuations of the lesser of up to $50,000 or 25% of the original maximum price so long as sufficient funding is appropriated by the City Council to satisfy the City's obligation during the renewal terms
Presenter
Robert Myers, Purchasing Manager
Recommended Action
Approve
Analysis
On December 1, 2013 the City Manager's Office awarded a price agreement for Dectron Dehumidifier preventative maintenance and repair to sole source vendor McMillan James Equipment Company for an annual amount of $8,500.00 for a total of $42,500.00 if all four (4) one (1) year extensions were exercised. Since this time 1 renewal and #1 change order have been executed increasing the estimated annual amount to $10,000 totaling $48,882.50 if all extensions are exercised.
Change order #2 for $4,500.00 is to increase the funding amount for repairs that were not anticipated at change order #1 and to combine repair funds from each location into a single amount for use as needed. This will increase the estimated annual amount to $14,500 for a total of $66,882.50 if all extensions are exercised. This change order will cause the potential life value of the contract to exceed $50,000 and, therefore, requires City Council approval.
Staff requests City Council approval of change order #2 and the potential maximum value of the contract ($66,882.50); and authorization for City Manager to approve and execute any additional renewal options with aggregate price fluctuations of the lesser of up to $50,000 or 25% of the original maximum price so long as sufficient funding is appropriated by the City Council to satisfy the City's obligation during the renewal term(s).
Financial Consideration
Funds are available in FY 2014/2015 budget and will be charged accordingly through the end of the current fiscal year. Funding for future fiscal years will be paid from that year's approved budgets.