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HomeMy WebLinkAbout04/17/2007, C2 - REQUEST FOR PROPOSALS TO FURNISH JANITORIAL MAINTENANCE SERVICES, SPECIFICATION NO. 90693 U councit April 17,2007 j agenda Repont ,�Kba CITY OF SAN LUIS O B I S P Ol FROM: Jay D. Walter, Public Works Direct '" Prepared By: David Smith, Public WAdministrative Services ManagerQ� v SUBJECT: REQUEST FOR PROPOSALS TO FURNISH JANITORIAL MAINTENANCE SERVICES, SPECIFICATION NO. 90693 CAO RECOMMENDATION 1. Approve the specifications for Janitorial Maintenance Services, Spec.No. 90693 2. Authorize staff to distribute the Request for Proposals (RFP) and authorize the City Administrative Officer to execute an agreement if contract prices are within the total annual amounts budgeted for this work($304,100) DISCUSSION Background As part of doing business, the City contracts with private vendors and businesses for a variety of services, such as Tree Trimming and Landscape Maintenance. During previous Financial Plan periods, the Public Works Department has increased the scope of contract services to meet the demand for level of service as well as to help reduce the budget deficit faced by the City. The existing contract for janitorial maintenance services expires on June 30, 2007. This RFP covers contract janitorial maintenance services from July 1, 2007 to June 30, 2011 at the following locations: Public Safety Offices: Recreation Facilities: Police Station Jack House Service Building and Restrooms Police Station Annex Meadow Park Multi-Purpose Building Police Downtown Office Ludwick Community Center Fire Station One Offices Senior Center City County Library Community Rooms General Offices: City Hall Offices Corporation Yard Offices Old Library Offices Parking Offices Parks and Recreation Offices Public Works and Community Development Offices Utilities Offices Ca - i o� RFP to Furnish Janitorial Maintenance Services, Specification No. 90693 Page 2 Alternative Award Criteria With construction contracts, awarding a contract to the firm with the lowest price usually works well. But using this approach for janitorial maintenance service contracts in the past has created problems with low bidders cutting comers and continually requesting price adjustments to make ends meet. The consequences were, marginal, often unacceptable work; and strained relations between Public Works representatives and the contractor. Also,because of the low bids typically submitted and accepted, many large reputable companies, which could deliver acceptable work, refrained from bidding because they suspected their legitimate prices would probably be undercut by less experienced firms. To remedy this situation, the City used a specification for the current contract that called for proposing firms to submit two sealed envelopes, the first with a qualifications proposal (including general information, references, and insurance information) and the second with a price proposal. The specification then laid out the following three-phase selection process: 1. A review committee opened the qualifications proposal and selected three to five firms for follow-up interviews. 2. The review committee interviewed the selected firms and ranked them. 3. The review committee opened the submitted price proposals and used price information to further evaluate the proposals and recommend the best firm. This process has been used successfully over the last six years for other operations and maintenance contracts, such as park restroom cleaning, landscape maintenance, parking lot cleaning, parking meter coin collection, parking garage security services, sidewalk steam cleaning, uniform and linen services, and transit service, just to name a few. This approach has attracted proposals from well-established companies and resulted in excellent quality service at reasonable prices. Longer Contract Term Most Public Works operations and maintenance contracts have an initial term of four years with an option to extend for another two years if service is satisfactory. Extending the contract term to the full 6 years has the following advantages: 1. It allows contractors to recover startup and capital costs over a longer period. Consequently, contract prices can be lower. 2. It makes budgeting for contract costs more predictable because contract prices remain stable. 3. It eliminates frequent and time-consuming contract solicitations. 4. It reduces the inevitable disruption that occurs whenever there is a change in contractor. The transition period for such a change usually requires temporary but intensive supervision from Public Works employees while the new contractor becomes comfortable with the work. The current janitorial maintenance contract expires on June 30, 2007, which coincides with at the end of the two-year Financial Plan period. This timing creates two problems. First, a major RFP to Furnish Janitorial Maintenance Services, Specification No.90693 Page 3 request for proposals must be administered at the same time budgets are being prepared and revised. And second, the budget amounts needed for these services over the succeeding two years cannot be precisely estimated. To correct these problems, the initial term for this contract is set at four years with an option to extend for three years if service is satisfactory. In this way, the contract term will expire in the"off' year of the two-year Financial Plan. With the next RFP (presumably in 2014), the contract term could then revert to a four year term with two-year extension format. Regularly Scheduled vs. Periodic Tasks The specification describes two types of work: 1) regularly scheduled tasks that make up the ongoing day-to-day housekeeping workload and 2) periodic tasks that should be performed occasionally or as needed. These periodic tasks include window washing, high dusting, carpet extraction, carpet bonnet-cleaning, hard floor scrubbing and recoating, and spot cleaning folding tables and stacking chairs. The price proposal in the specification includes a monthly price for the regularly scheduled tasks at each location and then unit prices for the periodic tasks at each location. In this way, the City has the flexibility to request a periodic task such as carpet extraction only when it appears necessary. In budgeting for these periodic tasks, Public Works assumed a certain frequency at each location. CONCURRENCES A stakeholders meeting on April 29, 2007 resulted in concurrences from Parks and Recreation, Police, Fire, and Utilities Departments. The City Attorney and The Director of Finance & Information Technology have previously reviewed and concurred with the alternative award criteria being used. FISCAL IMPACT Annual Estimated Annual . Cost of Estimated Annual Regularly Cost of Estimated Annual Scheduled Periodic Cost of All Amount Tasks Tasks Tasks Budgeted Public Safety Offices $431900 $5,500 $49,400 $49,400 General Offices 174,500 11,700 186,200 186,200 Recreation Facilities 56,500 8,200 68,500 68,500 $274,900 $25,400 $304,100 $304,100 AVAILABLE FOR REVIEW IN THE COUNCIL OFFICE - Request for Proposals G:\Staff-Reports-Agendas-Minutes\-CAR\2007\Buildings\JanitoiiaI Services spec 90693\CAR 90693 RFP to Furnish Janitorial Maintenance Services.doc Ca - 3