Mayor and Council



   For the meeting on:

  December 10, 2012
   Department:   Finance
   Division:  Purchasing
   Responsible staff:  Jonathan Pierson, Contract Specialist
  phone: (240) 314 - 8433
  JPierson@rockvillemd.gov


Subject
Award of RFP #20-12 for Public Works Equipment, Supplies and Support Services for a Contract Period up to Five (5) years in the Aggregate Amount not to Exceed $2,500,000.00 to be Used on an As-Needed Basis for Routine Supplies, Replenishment of Warehouse Stock and Emergency Infrastructure Needs Related to the City's Water, Sewer and Street Systems

Recommendation
Staff recommends that the Mayor and Council approve award of RFP #20-12 for public works equipment, supplies and support services on an as-needed basis to Ferguson Enterprises, Inc. of Newport News, Virginia and HD Supply Waterworks, Ltd. of Thomasville, Georgia in an aggregate amount not to exceed $2,500,000.00, for a contract period up to five (5) years.


Discussion
Currently, the City is acquiring its public works equipment, supplies and support services on the spot market using competitive processes and instruments, which vary in complexity and the amount of time to complete based upon the dollar value of individual needs as they arise. Orders are placed via e-mail, fax or phone.

These awards will establish a cost-effective system for purchasing equipment, supplies and support services for water, sewage and street infrastructure for the Public Works Department, as well as other departments as needs arise. The City estimates that it purchases approximately $500,000.00 annually for routine day-to-day supplies, replenishment of warehouse stock, emergency infrastructure needs related to the City's water, sewer and street systems.

Commodities include, but are not be limited to, pipe, valves, hydrants, metering systems, backflow devices, irrigation, manholes, castings, wire, cable, transformers, switches, poles, metering systems, lamps, lighting, and other related industrial pipes, valves and fittings, pressure reducing valves, frames and covers, water resistant frames and covers, frames and grates, trench drains, extension rings, tree grates, traps and hoods, scuppers, risers, and detectable warning plates. Additionally, services such as hot-tapping, control valve testing and repair, plasma burning of plate and sheet, valve actuation, custom cutting and machining, logo and messaging customization, product design, proof load testing and service load designation are occasionally required.

This contract award will also improve upon automation of the ordering and tracking process for the purchase of equipment, supplies and support services via the Internet wherein City departments can place orders via web pages. This is in alignment with the Mayor and Council goal of increasing productivity.

Mayor and Council History
This is the first time this item has been brought before the Mayor and Council.

Procurement Information
Staff prepared and publicly advertised RFP #20-12 in accordance with the Rockville City Code, Section 17-62. Bid information was posted on the City's website and provided to over 350 suppliers via the State's e-Maryland Marketplace. The two comprehensive regional suppliers (Ferguson Enterprises, Inc. of Newport News, Virginia and HD Supply Waterworks, Ltd. of Thomasville, Georgia) responded.

Both responses were found to be qualified for award and comparable in discount structure to what the City currently receives on the spot market. Discount rates range from 2% to 50%.

Multiple awards are recommended to help ensure availability of goods, as well as stability in price and service levels.


Fiscal Impact
Sufficient funds are available in FY 2013 budget through various object codes in the City's operating budget for the purchase of public works equipment, supplies and support services covered by this contract. Continuation of the contract beyond June 30th of each year is subject to appropriation by the Mayor and Council.


Next Steps
Upon Mayor and Council approval, the Purchasing Division will proceed with issuing contracts to Ferguson Enterprises, Inc. of Newport News, Virginia and HD Supply Waterworks, Ltd. of Thomasville, Georgia.


Department Head:



Gavin Cohen, Chief Financial Officer
Approved on: 12/05/2012

City Manager:

Barbara B. Matthews, City Manager
Approved on: 12/05/2012