Board of Directors Regular Meeting Agenda


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Meeting Date: 06/20/2019  

SUBJECT MATTER:
Receive, consider and act upon an award of bid for 2019-2022 electrical services (C-2019-0185);
FISCAL IMPACT:
The Woodlands Township allocates funding for the contracted services for the repair and maintenance of electrical systems and equipment for Township facilities throughout several departmental budgets: Park Operations, Recreation, Town Center Operations, Fire Department, Development/Special Events, Aquatics, Town Hall, and Information Technology. In addition, contracted electrical services are utilized for capital projects such as sport court light renovations, office remodeling, and new electrical service installations. Annual combined departmental expenditures (operational and capital) average approximately $1,000,000.
 
BACKGROUND:
The Woodlands Township has an extensive number of facilities that require routine electrical repairs and maintenance, and capital improvements.  These facilities include but are not limited to park pavilions, park restrooms, sports fields lighting systems, offices, fire stations, park and ride terminals, swimming pools, tennis and basketball courts, recreation centers, parking lots, and pond fountains.  The Township contracts for electrical services to perform the repairs and maintenance by a licensed professional electrician.  In addition, the Township utilizes this contract to support the electrical needs for special events (Red, Hot and Blue and Lighting of the Doves) and for capital projects (sport court light renovations, electrical service installation).
 
Operation of these facilities requires a licensed professional electrician to provide repairs, renovations and new installations consistent with the National Electrical Code as adopted by the State of Texas. The scope of the contract provides electrical services on an on-call and as-needed basis and are required to respond to emergencies within two hours.  Miam Electric was awarded the contract in June 2010 and the agreement was renewed in 2013 and 2016 without any changes to the unit prices. The 2016 renewal expired May 31, 2019, and is not subject to renewal. 
 
An Invitation for Bids was advertised in The Villager on May 15, 2019, and on The Woodlands Township website (Attachment A). A Mandatory Pre Bid Meeting was held on May 22, 2019, with four (4) vendors in attendance.  Bids were received from four (4) contractors. 

The Bid Tabulation has been prepared (Attachment B), a summary of which is provided below:
 
 
Item Per Hour Miam Electric Daniels Electric Lakey Electric   Brothers  
Staff Straight time (M-F)            
Apprentice $29.00 $25.00 $45.00   $36.00  
Journeyman $59.00 $55.00 $70.00   $72.00  
Staff Overtime (M-F)            
Apprentice $29.00 $37.50 $67.50   $54.00  
Journeyman $59.00 $82.50 $105.00   $108.00  
Saturdays and Sundays            
Apprentice $29.00 $37.50 $67.50   $54.00  
Journeyman $59.00 $82.50 $105.00   $108.00  
Holiday Township observed            
Apprentice $29.00 $37.50 $67.50   $72.00  
Journeyman $59.00 $82.50 $105.00   $144.00  
Emergency Response Rate            
Apprentice $29.00 $37.50 $67.50   $72.00  
Journeyman $59.00 $82.50 $105.00   $144.00  
Master Electrician Rate $0.00 $65.00 $108.00   $75.00  
Supplies, Materials, Parts Less than $250 20% 25% 18%   32%  
Supplies, Materials, Parts More than $250 18% 15% 10%   28%  
Sub-contractor 10% 15% 10%   25%  
Capital Project  and Special Project Quotes 18% 15% 10%   25%  
Equipment Rental 10% 15% 4.50%   25%  
 
An analysis of the bids has been conducted based on the actual contracted electrical work performed in 2018 and that work's related cost information contained in approximately 1,500 invoices. Projecting future potential costs to the Township based on the 2018 actual number of hours worked, using the submitted bids' unit hourly pricing, cost of materials and rental equipment, the resulting projected cost to the Township is provided below:
 
  Staff Supplies/Rental Total Master (hours) Rate Master Total Total W/Master
Daniels $421,413.50 $543,334.89 $   964,748.39 260 $ 65.00 $16,900.00 $   981,648.39
Miam $458,948.00 $550,410.86 $1,009,358.86 260 $  0.00 $         0.00 $1,009,358.86
Lakey $605,813.50 $517,829.37 $1,123,642.87 260 $108.00 $28,080.00 $1,151,722.87
Brothers $573,861.60 $592,129.87 $1,165,991.47 260 $ 75.00 $19,500.00 $1,185,491.47

Note:  Miam Electric submitted a price of $0 per hour for the Master Electrician hourly rate. Therefore, the analysis above includes a projected number of Master Electrician hours (260 hours is based on 5 hours per week) that might be incurred for services required to be performed by a  Master Electrician.  This number of hours is speculative.  The actual number of hours that may be incurred for Master Electrician services is dependent on the types of electrical problems, repairs, and projects that will occur in the future.    With this an unknown, it is not possible to quantify the cost associated with the Master Electrician.   The difference in the total projected cost to the Township between Daniels and Miam is $27,710.47  or 2.7%.  If the Master Electrician provides more than an additional 426 annual hours (8 hours per week) for a total of 686 annual hours per year, Miam's pricing will result in the least cost to the Township; if the Master Electrician provides less than 686 hours per year, Daniel's pricing will result in the least cost to the Township.  

The lowest apparent bid was submitted from Daniels Electric; however, Daniels failed to submit and acknowledge Addendum 1 to the Invitation to Bid and Specifications.  Addendum 1 addresses a revised contract date and the procedures related to the work order system that would be used to manage the service requests and contract administration.  Therefore, Daniels' bid is considered unqualified.

The other bidders and Miam Electric submitted the Addendum and all required information and Miam Electric is considered the lowest most responsive bidder. Therefore, it is recommended to award the bid for 2019-2022 Electrical Services to Miam Electric. The Board of Directors has the authority to waive any irregularities in the bidding process  if it so chooses and may determine to award the bid to Daniels Electric.  Absent the Addendum Acknowledgement form, it is not clear if Daniels Electric has the understanding of, willingness and/or ability to comply with the Township's work order system procedures.

Daniels Electric has worked in the community for a number of years and has successfully completed work for The Woodlands Development Company.  Miam Electric has held the Electrical Services contract for the Township for the past nine years, successfully completing work for the Township.  Miam has a vast understanding of the Township’s electrical infrastructure and all facility locations, as well as the Township's needs and expectations related to the contract.

If the Board of Directors determines to waive the bid irregularities in the bid submitted by Daniels Electric and award the bid to Daniels, it is recommended to extend the current Electrical Services Agreement with Miam Electric in order for Miam to complete the electrical work already in progress.  There are a number of electrical repairs and work orders currently in progress as well as some capital improvement projects underway such as the sport court lighting.  Therefore, Miam should be allowed to complete all work currently assigned and a transition plan between the contractors be developed.  It would be recommended to extend the current contract with Miam Electric on a month-to-month basis until the work assigned to Miam as of this date is completed. If awarded the bid, Daniels Electric would be assigned all new work effective July 1, 2019.
RECOMMENDATION:
Award the bid for 2019 - 2022 Electrical Services to Miam Electric as presented herein and authorize the President/General Manager to execute a service agreement as approved to final form by the Township Attorney.
 
Attachments
Attachment A - Electrical Services Invitation to Bid
Attachment B - Bid Tabulation Form_Electrical Services


    

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