City Council Report 915 I Street, 1 st Floor
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1 Meeting Date: 10/21/2014 Report Type: Review Report ID: City Council Report 915 I Street, 1 st Floor Title: (Agreement/Contract for Review and Information) Uniformed Unarmed Security Guard Services Location: Citywide Recommendation: Review a report 1) awarding a one-year contract with four one-year renewal options to National Security Industries & Services ( National ), the lowest responsible and responsive bidder, in a total amount not-to-exceed $12,681,458 for the potential maximum five year term; 2) authorizing the City Manager or the City Manager s designee to execute the contract and renewal options specified above provided that sufficient funds are available in the adopted budget of the applicable fiscal years; and 3) continue to October 28, 2014, for approval. Contact: Katherine Robbins, Program Analyst (916) ; Craig Lymus, Procurement Services Manager, (916) , Department of Finance Presenter: Katherine Robbins, Program Analyst (916) ; Craig Lymus, Procurement Services Manager, (916) , Department of Finance Department: Finance Division: Procurement Services Dept ID: Attachments: 1-Description/Analysis 2-Attachment 1 3-Contract City Attorney Review Approved as to Form Lan Wang 10/2/2014 3:54:56 PM Approvals/Acknowledgements Department Director or Designee: Leyne Milstein - 9/26/ :21:37 PM James Sanchez, City Attorney Shirley Concolino, City Clerk Russell Fehr, City Treasurer 1 of 88 John F. Shirey, City Manager
2 Description/Analysis Issue Detail: The City has an ongoing requirement for uniformed unarmed security guard services for 22 City-owned facilities. The existing City contract (Contract No ) with National will expire on November 1, The City completed an Invitation for Bid (IFB) No. B process as specified in City Administrative Policy and Code. A total of nine contractors responded to the IFB and six were determined to be non-responsive. National was determined to be the lowest responsive bidder. Policy Considerations: The recommendations in this report are in accordance with 1) Resolution No , which requires additional posting time for labor agreements and agreements greater than $1 million; 2) City Code Chapter 3.56 regarding determination of lowest responsible bidder ; 3) City Code Chapter 3.60 requiring consideration of bid protest by the City Council; 4) City Code Chapter 3.58 requiring the payment of a living wage for certain non-professional services contracts; and 5) Administrative Policy 4101 for the procurement of non-professional services. Economic Impacts: None. Environmental Considerations: California Environmental Quality Act (CEQA): No environmental review is necessary because the recommendations in this report involve the administrative activity of contracting for the purchase of uniformed unarmed security guard services, and are not considered to be a project in accordance with Section 15378(b)(2) of the CEQA Guidelines. Sustainability: Not applicable. Commission/Committee Action: None. Rationale for Recommendation: The existing City contract (Contract No ) will expire November 1, On July 7, 2014, Procurement Services issued IFB No. B to solicit qualified contractors to provide uniformed unarmed security guard services on a citywide basis. Nine bids were received and opened by the City Clerk on August 6, National was determined to be the lowest responsive bidder. 2 of 88
3 The final bid results are shown in the table below: ABC Security US Security Securitas First Alarm American Discount Business Location Sacramento Stockton Sacramento Sacramento Prompt Payment 15 Discount days 3.0% YR INCREASE Comprehensive National Security Cypress Private Universal Protection Hayward/ Fremont Elk Grove Sacramento Elk Grove Sacramento Not offered 22 days Not offered Not attached 10 days days 3.0% YR INCREASE YR RATE VARIES 1.5% YR INCREASE 2.25% YR INCREASE YR RATE VARIES YR RATE VARIES 2.75% YR INCREASE 10 days 3.0% YR INCREASE Base Annual $2,770, $3,264, $2,777, $2,805, $2,887, $2,548, $2,496, $3,622, $3,408, Annual Cost Increase- Yr.2 $83, $97, $52, $42, $64, $50, $- $99, $102, Base Annual Cost-Yr. 2 $2,853, $3,362, $2,829, $2,847, $2,951, $2,599, $2,496, $3,722, $3,510, Annual Cost Increase-Yr. 3 $85, $100, $53, $42, $66, $51, $37, $102, $105, Base Annual Cost Yr. 3 $2,938, $3,463, $2,883, $2,889, $3,018, $2,651, $2,533, $3,824, $3,615, Annual Cost Increase- Yr.4 $88, $103, $60, $43, $67, $66, $38, $105, $108, Base Annual Cost Yr.4 $3,026, $3,567, $2,944, $2,933, $3,086, $2,717, $2,571, $3,929, $3,724, Annual Cost Increase-Yr. 5 $90, $107, $67, $43, $69, $67, $12, $108, $111, Base Annual Cost Yr.5 $3,117, $3,674, $3,011, $2,977, $3,155, $2,785, $2,584, $4,037, $3,836, Sub-Total - Cost 5 Yrs $14,706, $17,330, $14,446, $14,452, $15,099, $13,303, $12,681, $19,136, $18,095, LBE Requirement Yes No Yes No No No Yes No Yes Met Prompt Payment Discount $- $- $144, $- $- $- $253, $- $- TOTAL $14,706, $17,330, $14,301, $14,452, $15,099, $13,303, $12,427, $19,136, $18,095, Non-responsive Nonresponsive Nonresponsive Nonresponsive Non-responsive Non-responsive Financial Considerations: In determining the recommended spending authority, staff reviewed the expenditure history for this service and considered future needs. The recommended not-to-exceed amount of $12,681,458 with National includes all known price increases and contingencies. The estimated annual expenditures are provided in the table shown above. Funding for uniformed unarmed security guard services will be provided by the operating budgets of the departments utilizing this service. Sufficient funding is available in the FY2014/15 budget for security services through June 30, Purchases made after June 30, 2015, are subject to funding availability in the adopted department budgets for the applicable fiscal year. Local Business Enterprise (LBE): National Security is headquartered in San Jose, CA and has a local office in the City limits. 3 of 88
4 ATTACHMENT 1 Background: The City has an ongoing requirement for uniformed unarmed security guard services citywide. The current contract with National (No ) expires on November 1, On February 26, 2013, City Council extended a five-year contract for one additional year to National for uniform unarmed security guard services in a total amount not to exceed $13,907,311 for a sixyear period. On November 13, 2013, with the end of the contract extension term approaching, Procurement Services issued IFB No. B Seven contractors responded to the IFB. The lowest bidder, First Alarm, withdrew their bid; Securitas Security Services USA, Inc. ( Securitas ) was found nonresponsive; and National was determined to be the lowest responsive and responsible bidder. On February 21, 2014, a bid protest was filed by Securitas pursuant to City Code The matter was taken before McGeorge Law School as an administrative hearing. A decision was rendered on April 11, 2014, supporting staff s recommendation to award to the contract to National. On May 20, 2014, Procurement Services presented a recommendation to Council to adopt the findings of fact issued by the Hearing Examiner on the bid protest filed by Securitas, and to award the contract to National. After hearing from all interested parties, the City Council rejected all bids, and directed Procurement Services to extend the existing contract to November 1, 2014, to allow additional time to rebid the project. On July 7, 2014, Procurement Services issued an Invitation for Bid (IFB) No. B A total of nine contractors responded to the IFB. The bids were received and opened by the City Clerk on August 6, National was determined to be the lowest responsive bidder. Of the nine contractors who submitted bids, six were determined to be non-responsive. 4 of 88
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