Report on Request for Quotation (RFQ) and an approval of a one-year agreement with Schindler Elevator Corporation (San Jose, CA) for elevator and escalator preventative maintenance in municipal buildings for an annual cost of $139,764 plus $20,000 for supplemental repairs, for a total compensation not to exceed $159,764 including taxes.
BACKGROUND
The City contracts for preventative maintenance and repairs on City owned building’s elevators and escalators. This service provides for the continuous and efficient operation of these systems and follows a set schedule required by the Department of General Services.
On May 15, 2002, a RFQ was mailed to five vendors. On June 7, 2002 four quotations were received and are listed:
Vendor |
Quote (annual) |
|
ThyssenKrupp Elevator, San Jose, CA |
$128,400 |
|
Schindler Elevator, San Leandro, CA |
$139,764 |
|
Kone/Montgomery Elevator, Santa Clara, CA |
$174,600 |
|
Elevator Service Company, Soquel, CA |
$269,376 |
These costs, reflected above, are for scheduled preventative maintenance only. Supplemental costs for unforeseen repair work are not included in the prices quoted above.
A service order was issued to low bidder ThyssenKrupp in the amount of $45,000 for the period beginning July 1, 2002 through September 30, 2002. After the award of the Service Order, ThyssenKrupp’s service performance was deemed unsatisfactory and the Service Order was terminated. The termination of the Service Order necessitated the issuance of a service order to Schindler Elevator in the amount of $97,764.50 for the period of September 16, 2002 through December of 2002. This was extended to March 31, 2003. Schindler Elevator was the second lowest responsive bidder.
ANALYSIS
Staff has determined that it would not be advantageous nor cost effective to solicit a procurement at this time. We recommend that Schindler, as the next lowest responsive contractor from last year's RFQ process, be awarded a one-year agreement in the amount of $159,764. Schindler Elevator has been providing satisfactory service and has agreed to honor the price quote offered last year. This project will be re-quoted in early 2004.
This contract is subject to Prevailing Wage Policy.
This Request for Quotation was posted on the City of San Jose Website.
This item has been coordinated with the City Attorney’s Office; the City Manager’s Budget Office and the Office of Equality Assurance.
This action is consistent with the
Council approved Budget Strategy Memo, General Priciple #2, “We must focus on
protecting our vital core city services”.
BUDGET REFFERENCE:
Fund: General Fund – 001
Appn. 0592 – Non Personal/Equipment
Amount: $13,392,928
Document: 2002-2003 Adopted Operating Budget, Page 290, as amended on February 11, 2003, Ordinance 26833
Fund: General Purpose Parking Fund –
533
Appn. 0512 – Non Personal/Equipment
Amount: $6,576,156
Document: 2002-2003 Adopted Operating Budget, Page 846, as amended on February 11, 2003, Ordinance 26833
CEQA
Not a project
Director of General Services