Memorandum 14-097 Contract Award for City Buildings Natural Gas Conversions

Memorandum  14-097

TO:                      Walt Wrede, City Manager

FROM:                Carey Meyer, Public Works Director

DATE:                 June 4, 2014

SUBJECT:         Award Contract by Change Order to Intelligent Design

                              2014 City Building Gas Conversion

In 2013, Public Works engaged a mechanical engineer to design and estimated the cost of converting all City buildings in the “core area” to natural gas. The City competitively bid this work and selected Intelligent Design of Anchorage, Alaska as the low responsive bidder.

This year Public Works is preparing to convert the remaining City buildings. The Council has passed Ordinance 14-22(A) allocating funds to complete the 2014 work.

Public Works proposes to award the 2014 work to Intelligent Design, rather than competitively bid the work for the following reasons:

No local Contractors bid the 2013 work (local contractors are very busy); no expectation that bidding 2014 work would attract local bidders.
Intelligent Design was low bidder on 2013 gas conversion contract.
Intelligent Design provided quality work, on time and within budget.
Issuing a change order to our existing contract will save money (no design or bidding costs).  Estimated savings = $11,500.
The cost of the proposed work is consistent with the estimates prepared by our mechanical engineer, and is consistent with previously bid work.
The City of Homer’s Procurement Policy provides for non-competitive, negotiated procurement of construction completion services if approved by the City Council.

Recommendation: The City Council pass a resolution awarding a sole source contract for the Conversion of the remaining City Buildings to Natural Gas to Intelligent Design, LLC of Anchorage, Alaska in the amount of $65,835; authorize the award through a change order under the existing contract; and authorize the City Manager to execute all appropriate documents.