HomeMy WebLinkAbout _ 4.5(c)--Authorize Modifications to Bid Sched No 5092 Three-Phase, Pad-Type Distribution Transformers
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Authorize the following modifications relative to previously awarded Bid Schedule No. 5092,
Three-Phase, Pad-Type Distribution Transformers to OneSource Distributors (OneSource):
(1) Accept a proposed change in contract pricing based on OneSource’s price request; and
(2) Approve the amendment of Purchase Order 113769, previously issued to OneSource,
totaling $64,855.41, to the increased amount of $90,051.39.
Fiscal Impact
Adequate funding for the pricing modification is available in Redding Electric Utility’s (REU)
adopted budget for Fiscal Year 2022-23. REU will account for the pricing modification in future
years as part of its biennial budget requests.
Alternative Action
The City Council (Council) could choose to not accept the pricing policy proposed by
OneSource and provide alternative direction to staff.
Background/Analysis
On January 21, 2020, the Council approved the award of Bid Schedule No. 5092 to OneSource
for $416,589, not including tax (annual evaluated cost of $634,829). Due to fluctuations in costs
of raw materials, labor shortages, supply chain issues, and unprecedented inflation, OneSource,
along with other vendors, is unable to sustain long-term agreements based on Producer Price
Index (PPI) increases identified at the time an order is placed (as originally awarded per the bid
specifications).
MEETING DATE: March 21, 2023
ITEM NO. 4.5(c)
FROM:
***APPROVED BY***
nzettel@cityofredding.org
btippin@cityofredding.org
SUBJECT: 4.5(c)--Authorize Modifications to Bid Schedule No 5092 Three-Phase, Pad-Type
Distribution Transformers
Nick Zettel, Director of
Redding Electric Utility
Report to Redding City Council March 16, 2023
Re: 4.5(c)--Authorize Modifications to Bid Sched No 5092 Three-Phase, Pad-Type Distribution
Transformers Page 2
On September 30, 2021, Purchase Order (PO) 113769 was issued totaling $64,855.41. In
November 2022, OneSource requested a price adjustment to Purchase Order (PO) 113769 upon
PO fulfillment. This justification was based on transformer price increases from the
manufacturer. Since OneSource did not give adequate notice to REU, it has agreed to reduce its
invoice amount to cover the cost, with no markup. The final requested price increase was
$25,195.98, thereby increasing the PO total amount to $90,051.39.
The City of Redding Purchasing department has evaluated the justification for the price increase
and both the Purchasing Department and REU agree there is adequate documentation to justify
this increase. OneSource has a long history with REU and has historically been an effective
distribution equipment supplier.
This is the only and last PO related to Bid Schedule No. 5092 receiving this price adjustment.
Environmental Review
This is not a project defined under the California Environmental Quality Act (CEQA), and no
further action is required.
Council Priority/City Manager Goals
• This agenda item is a routine operational item.
Attachments
^PO113769 One Source Distributors
^PO113769 One Source Distributors Modifications Invoice
CC Staff Report 2020-01-21
RECVD QTY
COMM-
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DESCRIPTION OF ARTICLES
UNIT
PRICE
UNIT
TRADE
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AMOUNT
COST CENTER
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ESTIMATE
Revised 12/10/2020
City of Redding, CA: Purchase Order Terms and Conditions
1. GENERAL: If the goods and/or services ordered herein are as a
result of either a formal Request for Quotation, Request for Proposal or
Notice Inviting Bids then the Terms and Conditions set forth in this
document are considered to be in addition to the requirements and
specifications stated in the RFQ, RFP or NIB. To the extent that one
set of Terms and Conditions may contradict the other, the requirements
of the RFQ, RFP or NIB shall supercede the Terms and Conditions
shown below. It is understood that all materials and/or services
provided by Supplier/Contractor/Consultant (Supplier) shall conform to
the applicable requirements of City Ordinances, and all applicable State
and Federal Laws
2. DELIVERY: Supplier shall deliver the items and/or services stated
herein free from any and all claims, debts, or demands whatsoever.
Deliveries shall be made as set forth in this order and any additional
Specifications incorporated. Delivery is defined as complete delivery
in good order, at place designated in the Specifications/Purchase Order.
3. MISCELLANEOUS CHARGES: No charges for transportation,
containers, packing, etc. will be allowed unless so specified in this
order.
4. FREIGHT CHARGES: All shipments are F.O.B. - Destination,
Supplier pays charges, unless specified otherwise in the body of this
order. If City has agreed to pay freight it shall be prepaid and added
to the invoice. In that case a copy of the paid express or freight bill
must be attached to the invoice.
5. INDEMNITY: Supplier hereby agrees to protect, defend,
indemnify and hold harmless, City, its officers, elected and appointed
officials, employees, agents and volunteers from and against any and
all claims, damages, losses, expenses, judgements, demands, penalties,
fines, defense costs, and consequential damage or liability of any kind
or nature, however caused, arising directly or indirectly out of the
obligations or operations herein undertaken by Supplier, caused in
whole or in part by any act or omission of the Supplier, any
subcontractors, any directly or indirectly employed by any of them or
anyone for whose acts any of them may be liable, including but not
limited to concurrent active or passive negligence, except where caused
by the active negligence, sole negligence or willful misconduct of the
City. Supplier will conduct all defense at its sole cost and expense and
the City shall have the right to approve or disapprove Supplier=s legal
counsel. City shall be reimbursed for all costs and attorneys= fees
incurred by the City in enforcing this obligation. This indemnity shall
apply to all claims and liability regardless of whether any insurance
policies are applicable. The policy limits do not act as a limitation
upon the amount of the indemnification to be provided by Contractor.
6. PATENT RIGHTS: Any equipment or service to be furnished
hereunder shall not, either in construction, manufacture, use, sale or
other particular, infringe any letters patent, copyright or registered
trademark heretofore granted, and the Supplier shall defend and pay the
entire cost of defending any claim or suit whenever or wherever made
or brought against the City based upon an infringement or alleged
infringement of such letters patent, copyright or registered trademark
and shall indemnify and save harmless the City from and against any
and all liability, damage, loss or injury adjudged or sustained in any
such claim or suit.
7. NONDISCRIMINATION CLAUSE: Except as provided in
Section 12940 et seq. of the Government Code, Supplier shall not
discriminate against any person because of his/her race, religious creed,
color, national origin, ancestry, physical disability, mental disability,
marital status, mental condition, or gender, nor refuse to hire or employ
a person or to refuse to select the person for a training program leading
to employment or to bar or discharge the person from employment, or
from a training program leading to employment, or to discriminate
against the person in compensation or in terms, conditions or privileges
of employment. The Supplier shall insert in all subcontracts for any
work covered by this P. O. this nondiscrimination provision.
8. EXCISE TAX: If federal excise tax is applicable to the transaction,
it must be clearly stated so and excluded from the price of the article.
The City of Redding, as a government agency, is exempt from the
payment of said tax and will issue an exemption certificate.
9. SALES AND USE TAXES: Sales and/or use tax must be shown on
the invoice as a separate item.
10. DEFAULT BY SUPPLIER: In case of default by Supplier, the
City reserves the right to procure the goods or services from other
sources and to hold the Supplier responsible for any excess costs
occasioned to the City thereby. Supplier must notify the City
immediately upon knowing that non-performance or delay will apply
to this order whether as a result of Force Majeure or not. Upon
agreement by the City that Force Majeure is applicable, Supplier shall
not be held accountable for the delays directly related to the Force
Majeure condition. When delay is ascertained Supplier is to submit in
writing a Recovery Plan for this order. If the Recovery Plan is not
acceptable to the City or not received within 10 calendar days of the
necessary notification of delay or Force Majeure default, the City may
cancel this order in its entirety at no cost to the City, owing only for
goods and services completed to that point. City shall not be liable for
lost profits, implied or express damages or consequential damages.
11. INSPECTION AND ACCEPTANCE: Inspection and acceptance
shall be at destination, unless otherwise provided. Until delivery and
acceptance, and after any rejections, risk of loss shall be on the
Supplier unless loss results from the negligence of the City of Redding.
Notwithstanding the requirement for any inspection and test contained
in specifications applicable to this contract, except where specialized
inspection or tests are specified solely for the City, the Supplier shall
perform or have performed the inspection and tests required to
substantiate that the supplies and services provided under the contract
conform to the drawings, specifications, and contract requirements
incorporated herein, including if applicable the technical specifications
for the manufacturers= part numbers or products specified herein.
12. PAYMENTS: Payment terms are Net 30 unless otherwise agreed
to by both parties. All Cash Discounts shall be taken and computed
from the date of delivery or completion and acceptance of the material,
or from the date of receipt of invoice, whichever is latest. Each
payment obligation of the City is conditioned upon the availability of
state or local government funds which are apportioned or allocated for
the payment of such an obligation. If the funds are not allocated and
available for the continuance of the function performed by the Supplier,
the product or service directly or indirectly involved in the performance
of that function may be terminated by the City at the end of the period
for which funds are available. No payment will be made until the
order has been delivered and accepted.
13. INVOICES: Invoices shall contain the following information:
Supplier=s Federal Tax I.D. number, purchase order number, invoice
number and date, item number, description of supplies/services,
quantities and units of measure, unit prices and extended totals. Bill of
Lading number and weight of shipment will be shown for shipments on
Government Bills of Lading.
14. WARRANTY: The Supplier agrees that the supplies/services
furnished under this contract shall be covered by the most favorable
commercial warranties the Supplier gives to any customer for such
supplies/services, and that the rights and remedies provided herein are
in addition to, and do not limit any rights afforded to the City by, any
other clause of a contract awarded hereunder.
15. ASSIGNMENT OF CLAIMS: Claims for monies due or to
become due under this contract shall be assigned only pursuant to prior
written consent of the City Purchasing Officer or designated
representative.
16. CONTRACT TERMINATION: The City may, by giving ten (10)
calendar days written notice to the Supplier, terminate this contract
prior to the designated completion date for due cause. Due cause for
termination shall be, but not limited to, the best interests of the City,
failure of the product to meet specifications, and/or for reasons of
unsatisfactory service. The City may, upon giving thirty (30) calendar
days written notice to Supplier, terminate the contract without cause.
17. GOVERNING LAW: Any action filed regarding the award of the
Quote/ Bid/Proposal or Purchase Order must be filed with the Superior
Court of the County of Shasta, California. Any subsequent agreement
shall be deemed to have been entered into in Redding, California; all
questions of the validity, interpretation or performance of any of its
terms or of any rights or obligations of the parties to the agreement
shall be governed by California law; and any action brought by either
party to enforce any of the terms of the agreement shall be filed with
the Superior Court of the County of Shasta, California.
18. ATTORNEYS= FEES AND COSTS: In any action by a party to
enforce its rights hereunder, the nonprevailing party shall pay the
prevailing party=s legal costs and expenses (including reasonable
attorneys= fees).
19. CHANGE ORDERS: The City reserves the right at any time to
make written changes within the general scope of the contract. If any
such changes cause an increase or decrease in the cost of, or in the time
required for the performance of the contract, an equitable adjustment
shall be made in the contract price, delivery schedule, or both. Any
claim by Supplier for adjustment in this cause must be approved by the
City=s authorized representative(s) in writing (formal change order,
amendment, or revision) before Supplier proceeds with such change.
Invoice is due by 02/22/2023
All claims for shortage or errors must be made at once. Returns require written authorization and
are subject to handling charges. Special orders are non-returnable. Additional terms apply to
payments made by credit or debit cards. Full terms available at 1sourcesupplysolutions.com.
Past Due invoices may be subject to 1.50% late charge.
** REPRINT ** REPRINT ** REPRINT
Printed By: DSWARTZ on 1/23/2023 11:16:05 AM
Subtotal 83964.00
S&H Charges 0.00
Tax 6087.39
Payments 0.00
Amount Due 90051.39
Invoice
BR20 ONESOURCE DISTRIBUTORS, LLC
2190 WILBUR LANE
ANTIOCH, CA 94509
510-441-2411
Fax 510-635-7843
CUSTOMER NUMBER CUSTOMER ORDER NUMBER RELEASE NUMBER ORDERED BY
WRITER SHIP VIA TERMS SHIP DATE ORDER DATE
SCOTT
BW - BEST WAY 01/23/2023EROSENET 30 DAYS
49198 113769
ORDER QTY DESCRIPTION UNIT PRICE EXT PRICE
BILL TO:
CITY OF REDDING
PURCHASING DEPT
PO BOX 496071
REDDING, CA 96049
SHIP TO:
CITY OF REDDING
ELEC UTILITY BLDG 2
20055 VIKING WAY
REDDING, CA 96003
10/06/2021
SHIP QTY
INVOICE DATE
PAGE NO.
INVOICE NUMBER
S6814641.00501/23/2023
1 of 1
REMIT TO:
ONESOURCE DISTRIBUTORS, LLC
PO BOX 740527
LOS ANGELES, CA 90074-0527
SHIPPING INSTRUCTIONS
No sales of MPS CW44-6 to City of
Redding. Item is not approved
GEUTIL QRZF463 XFMR 1500KVA 3PH2ea2ea 41982.000/ea 83964.00
480Y/277
Nonstock item may not be returnable
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Approve the following relative to Bid Schedule No. 5092, Three-Phase, Pad-Type Transformers:
(1) Reject the low bid by Howard Industries, Inc. as nonresponsive, and award to OneSource
Distributors in the amount of $416,589 (evaluated cost of $634,829); and
(2) Authorize the Purchasing Officer to extend the bid award annually with OneSource
Distributors through November 30, 2024, if mutually agreeable, with all terms and
conditions remaining the same and prices adjusted up or down according to a Producer
Price Index (PPI).
Fiscal Impact
Adequate funds are available in Redding Electric Utility’s (REU) current biennial budget for
General System Improvements ($500,000 annually was designated for the purchase of
transformers).
Alternative Action
The City Council could choose not to award the bid to OneSource Distributors and provide
further direction to staff. REU may be unable to provide timely electric utility support for
residential and commercial development.
Background/Analysis
This is a routine bid for the purchase of three-phase, pad-type transformers through
November 30, 2020, on an as-needed basis subject to the availability of budgeted funds. These
three-phase, pad-type distribution transformers are required to support residential and
commercial development and provide emergency replacement of the existing three-phase, pad-
type distribution transformers that are presently in service.
MEETING DATE: January 21, 2020
ITEM NO. 4.5(a)
FROM:
***APPROVED BY***
dbeans@cityofredding.org
btippin@cityofredding.org
SUBJECT: 4.5(a)--Award of Bid Schedule No. 5092, Three Phase, Pad-Type Transformer
Daniel Beans, Director of
Electric Utility
Report to Redding City Council January 13, 2020
Re: 4.5(a)--Award of Bid Schedule 5092 - Three-Phase, Pad-Type Transformer Page 2
On Wednesday, November 27, 2019, nine bids were opened for the subject three-phase, pad-type
distribution transformers. In the evaluation process, staff analyzed the bids based on bid price
and compliance with specifications. The apparent evaluated low bid was submitted by Howard
Industries, Inc., furnishing Howard Industries, Inc. transformers. However, this bid is not in
compliance with all of the specifications, general conditions, and proposal requirements.
Consequently, the Howard Industries, Inc. bid is considered non-responsive. The next lowest
evaluated bid was submitted by OneSource Distributors supplying GE Prolec Transformers.
This bid is in compliance with all of the specifications, general conditions, and proposal
requirements. OneSource Distributors has previously supplied distribution transformers to REU.
Transformers are purchased based on two criteria – purchase price and efficiency. The initial
savings from a less costly transformer can be lost if the transformer is inefficient. Inefficiency
results in a much higher cost for energy losses, thereby increasing the life cycle cost of the unit.
Bidders are made aware of the methodology used in bid evaluations.
Council Priority/City Manager Goals
This agenda item is a routine operational item.
Attachments
Bid Tabulation