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HomeMy WebLinkAbout04.b. Annual Contracts and Blanket Purchase Orders (BPOS) Older than Five Years with Annual Spend Greater Than $25,000Page 1 of 16 Item 4.b. F--1-448�411C-S0 May 23, 2023 TO: FINANCE COMMITTEE FROM: STEPHANI E KING, CONTRACTS AND PROCUREMENT PROGRAM ADMINISTRATOR REVIEWED BY: KEVIN MIZUNO, FINANCE MANAGER PHI LI P LEI BER, DEPUTY GENERAL MANAGER, ADMINISTRATION SUBJECT: REVIEW ANNUAL CONTRACTS AND BLANKET PURCHASE ORDERS (BPOS) OLDER THAN FIVE YEARS WITH AN ANNUAL SPEND GREATER THAN $25,000 Consistent with past practice, although not required by law or policy, on an annual basis staff provides the Finance Committee with a listing of contracts and blanket purchase orders (BPOs) that have not been competitively bid in over five years. This was initially requested by the Finance Committee several years ago as part of an effort to improve transparency over longstanding contracts and determine whether it was appropriate to bid them out. Accordingly, attached is a report that lists all contracts and BPOs that are older than five years and have an annual spend (calendar year 2022) greater than $25,000. This information is being provided to the Finance Committee for awareness (including review and discussion, as appropriate) purposes only and no action is required by the Board. GOAL FOUR: Governance and Fiscal Responsibility Strategy 1 - Promote and uphold ethical behavior, openness, and accessibility ATTACHMENTS: 1. Contracts and BPOs Report 2. PacWest Sole Source-1-2022 3. PacWest Sole Source-1-2023 May 23, 2023 Regular FINANCE Committee Meeting Agenda Packet - Page 149 of 166 Contracts and Blanket Purchase Orders Older than Five Years and > $25,000 Annual Spend ATTACHMENT 1 *Excludes Sole Source or Exempt BPO's and Contracts START Annual Spend Contract # Vendor Contract Description DATE in Calendar Comments Year 2022 043652 Pacwest Security Security Guard Services 01/11/16 $ 449,498.48 See attached temporary exemptions (Jan 2022 Services and Jan 2023). 045906 PFM Financial Bond Issuance and Financial 01/18/18 $ 29,300.00 This will need to be a non competitive Advisors, LLC Advisory procurement through 2029 as they maintain a proprietary model they used to calculate savings from the UAAL pay down. Department will document a justification for this exemption. *Exemptions to the competitive process are outlined in the Purchasing procedures. Exemptions require documentation and approval. Examples include, cooperative contracts where the District can "piggyback" on another agency's contracted pricing, sole source contracts and standardization of products that are only available from one company. May 23, 2023 Regular FINANCE Committee Meeting Agenda Packet - Page 150 of 166 re_CC77::5CS Central Contra Costa Sanitary District SOLE SOURCE REQUEST (Products & Services) REQUISITION #::R1794 ESTIMATE: $712,500.00 I VENDOR / SUPPLIER / BRAND NAME / CONTRACTOR: PacWest Security I TYPE OF PRODUCT /SERVICE & DESCRIPTION: Security Guard Services Page 3 of 16 ATTACHMENT 2 This form must accompany the requisition whenever a request is made for a non-competitive purchase. When the requesting department is requesting a particular vendor, brand, product, or service provider, this fact must be made clear on their requisition. Best practice procurement for a public agency, as is Central Contra Costa Sanitary District, provides that we engage in soliciting competitive pricing for the products and services we acquire unless a determination of non -competition is made. It is the policy of the District that competitive pricing is obtained for all purchases of products and non-professional services greater than $3,500 unless there is a validated exemption to the competitive process. When a requisition is made for a non-competitive acquisition of goods or services that contain specifications and/or other operational/technical requirements which limits the ability for the District to seek more than one bid or quotes in the marketplace, the requesting department representative must complete the information below with factual statements, attach any and all supporting documentation of their effort to review comparable products or services, and obtain approval to waive the competitive process. Please check ONE of the following that applies to your request. Provide the information requested for the category you checked. 1. ❑ SOLE SOURCE: Products or services are available from one source only (i.e. one manufacturer, service provider of proprietary service, etc). What are the unique features, design, qualifications, rights, licenses, etc. of the product/brand/service/service provider that are not available in any other brand/service/service provider? Have you contacted other suppliers/service providers to evaluate items/services with similar features and capabilities? If no, explain why not. If yes, list suppliers/service providers and explain why their products/services do not meet the department's requirements. 2. 0 SOLE BRAND OR SERVICE: Multiple sources may be able to supply the specified model and brand or service. In these cases, competitive bids or quotes will be solicited for the requested brand or service only. If only one source of supply of the brand exists (i.e. a dealer is the only one in a protected territory) the purchase will be made upon confirmation without further solicitation of bids or quotes. Why is the specified brand or service required (not just preferred) and how would your requirements for this specific brand or service be inhibited or burdened without purchase of the particular brand or service requested? Have you contacted other suppliers/service providers to evaluate items/services with similar features and capabilities? If no, explain why not. If yes, list suppliers/service providers and explain why their products/services do not meet the department's requirements. Central Contra Costa Sanitary District Sole Source Request (Products & Services) May 23, 2023 Regular FINANCE Committee Meeting Agenda Packet - Page 151 of 166 Page 1 of 3 Page 4 of 16 ,3. ❑ REPLACEMENT OEM (ORIGINAL EQUIPMENT MANUFACTURER) PARTS: The requested part is an integral repair part or accessory compatible with existing equipment. The District requires this replacement part from an original manufacturer. This replacement part is not interchangeable with other similar parts from other manufacturers. Please explain. Existing Equipment: Equipment Manufacturer Name / Model #: Part Name and #: Multiple sources may be able to supply the specified model and brand. In these cases, competitive bids or quotes will be solicited for the requested brand only. If only one source of supply of the brand exists (i.e. a dealer is the only one in a protected territory) the purchase will be made upon confirmation without further solicitation of bids or quotes. 4. ❑ STANDARDIZATION REQUEST: The District requires the item(s) or service(s) in order to standardize on parts, design, quality, adherence to form, fit and/or function, and/or to maintain warranty or a maintenance contract on an existing product or system. Please specify. If justification is based on the need to match the new item or service with existing equipment, parts, etc., list the quantity, manufacturer/brand and model of the existing equipment pertaining to this request and why the matching is required (i.e. compatibility, repair and maintenance, training, productivity, minimization of supplies or spare parts, eliminates need to modify existing equipment, volume price discounts or savings, safety, etc). Existing Equipment: Existing Equipment Manufacturer Name / Model #- Quantity: Part Name and # (if applicable): Why is matching required? Please explain. ❑ Compatibility: ❑ Repair and maintenance: ❑ Training: ❑ Productivity: ❑ Minimization of supplies or spare parts: ❑ Eliminates need to modify existing equipment: ❑ Volume price discounts or savings: Fj Safety: Other: 5. ;Z OTHER NON-COMPETITIVE RECOMMENDATION: Examples include time constraints (emergency situations), pre -qualified suppliers (suppliers awarded contracts from cooperative bidding, where price and other factors have already been assessed), or quality/reliability and performance history indicates an award of contract to a particular supplier/service provider would not be in the best interest of the District. See Purchasing Policy 4.8 Exemptions to Competitive Pricing for definitions and examples. Indicate which situation exists for this request along with applicable information to support this exemption. Best Interest of the District!1- Central Contra Costa Sanitary District Page 2 of 3 Sole Source Request (Products & Services) May 23, 2023 Regular FINANCE Committee Meeting Agenda Packet - Page 152 of 166 Page 5 of 16 Department / Division Name: Administration/Risk Managemenyt Department / Division Representative: Shari Deutsch, Risk Mgr Department Director: Phil Leiber *General Manager: Roger S. Bailey *Requests over $50,000 require General Mana require General Manager or Board approval. it and signature. Date: 1 /13/22 Date: 111317, Best Interest of the District and pilottestlexemptions FOR PURCHASING DIVISION USE ONLY Buyer: C�� Date: 1/20/2022 Purchasing & Materials Manager: -Qrr;- Date: 1/21/2022 Comments (if necessary): Central Contra Costa Sanitary District Page 3 of 3 Sole Source Request (Products & Services) May 23, 2023 Regular FINANCE Committee Meeting Agenda Packet - Page 153 of 166 Page 6 of 16 Discussion The District currently contracts with PacWest to provide on -site security guard services for the treatment plant and surrounding properties at the Martinez campus. This contract will expire on January 31, 2022. In spring 2021 the District went out to bid for this contract and received over 20 responses, many of which provided insufficient information to evaluate the proposals. We realized that the RFP required more detailed minimum qualifications and more specific performance metrics. Staff rejected all proposals and planned to reissue the RFP in Fall 2021, hoping that economic and public health conditions would be more favorable. Staff began that process in Fall 2021 and discovered that the current service - contracting environment is still unpredictable, and in some ways, presents greater challenges than those of early 2021. Therefore, staff believes the District should extend its relationship with PacWest. This would allow the District to maintain its current level of security provided by the experienced and diligent personnel of PacWest rather than assume the risks associated with changing service providers. Staff wishes to extend the current contract for 18 months (through June 30, 2023) and then reconsider conducting an RFP in a (hopefully) more stable operating environment. Considerations include: Increased uncertainty - The ongoing effects of COVID-19 and its variants has changed our definition of normal operations. The main campus has not yet returned to pre -pandemic occupation levels and many workplace restrictions are still in effect. Current guard personnel are familiar with both prior and interim practices we've implemented to ensure compliance with these requirements. They have already demonstrated their ability to modify their duties and adapt their practices as these requirements have changed often over the last two years. With a smaller contingent of on -site staff, the guards have expanded their access control and observational functions. Increased risk from the arealenvironment - Incidents of theft, vandalism and illegal dumping have increased notably over the last two years and the guards have been instrumental in reporting such events to staff. Their familiarity with the campus has provided us with early notice of new or expanding homeless encampments on District property and other incidents that may not be recognized by a newer workforce. Current guard personnel are sufficiently familiar with the treatment plant and its personnel to respond to operations staff requests for assistance that may extend beyond the limited role of a security guard (they do go above and beyond for us). Tight Labor Market - The current labor market is such that a new provider may not be able to properly staff the service. PacWest already pays its guards more than minimum wage and provides benefits and incentives to reduce turnover and to maintain a diligent May 23, 2023 Regular FINANCE Committee Meeting Agenda Packet - Page 154 of 166 Page 7 of 16 workforce. The PacWest team has negotiated rate increases with the District throughout the contract term to increase the guards' hourly wages over time. In a tight labor market, a new provider may not be able to hire competent, experienced, and diligent staff at even higher costs. Familiarity with current security systems, practices and tools — PacWest staff already has the skills and experience with the District's access control systems, its practices for controlling, monitoring and tracking the various types of visitors allowed through the main gate, and directing approved traffic into and out of the plant, reporting and responding to events, and integrating the company's proprietary software with the needs of District staff. Should the District contract with a different provider, a great deal of time will be required to integrate systems, train staff and test operations before reaching a comparable level of responsiveness and seamless communications. Invariably, there would be a learning curve during which time gate management may be less efficient and responses to unusual circumstances may be delayed or avoided until the new personnel receive further direction. As noted above, staff wishes to avoid the need to absorb these effects of novelty during a pandemic. A history of exceptional performance —PacWest has had very little turnover among guard personnel over the last few years. This is a result of considerable staff time spent with PacWest personnel to modify their own procedures to align with ours, to develop incentive programs, improve communications, expand guard training and to implement other methods to reduce turnover and to maintain a diligent and engaged group of guards. We have accomplished that goal and continue to work with PacWest and their guard staff to maintain this high level of stability and performance. This could not be immediately replicated with a new provider. May 23, 2023 Regular FINANCE Committee Meeting Agenda Packet - Page 155 of 166 Page 8 of 16 Suzette Crayton From: Philip Leiber Sent: Tuesday, January 18, 2022 1:54 PM To: Suzette Crayton Cc: Michele Barajas; Shari Deutsch Subject: RE: PacWest Sole Source Request and Discussion Hi Suzette, Here is what I understand: The current firm has been responsive and is presently performing well, in Risk's opinion. The current contracting environment with COVID, low -unemployment, inflation, is not viewed as conducive to obtaining a "better deal". This is not a good time to make a transition to a new firm given some heightened risks at the Central San campus, with increased homeless encampments, thefts, and few people on site. Phil Leiber From: Suzette Crayton Sent: 0118, 2022 01:02 PM To: Shari Deutsch <SDeutsch@centralsan.org> Cc: Michele Barajas <MBarajas@centralsan.org>; Philip Leiber <pleiber@centralsan.org> Subject: RE: PacWest Sole Source Request and Discussion Importance: High Shari, I put this on Roger's desk and the Best Interest of the District is indicated with no explanation of why the extension is in the best interest of the District or am Roger and I missing something. Please let me know. Thanks. From: Shari Deutsch <J e .r < air n.or > Sent: Friday, January 14, 2022 11:07 AM To: Suzette Crayton <:=: ;:._: ` `T'_.:,:.` '_,r_ :> Cc: Michele Barajas <`_._i�._('_> Subject: FW: PacWest Sole Source Request and Discussion Hi Suzette, When you get the sole source form back from Roger, would you scan and send it to Michele so she can set up Docusign as Chris requests below? You can send me back the hard copy via IOM. Thanks, Shari May 23, 2023 Regular FINANCE Committee Meeting Agenda Packet - Page 156 of 166 Page 9 of 16 ATTACHMENT 3 Pr,4@Ek___sD Central Contra Costa Sanitary District SOLE SOURCE REQUEST (Products & Services) REQUISITION #: R2035 I ESTIMATE: $632,000 1 VENDOR / SUPPLIER / BRAND NAME / CONTRACTOR: PacWest Security TYPE OF PRODUCT / SERVICE & DESCRIPTION: Security Guard Services This form must accompany the requisition whenever a request is made for a non-competitive purchase. When the requesting department is requesting a particular vendor, brand, product, or service provider, this fact must be made clear on their requisition. Best practice procurement for a public agency, as is Central Contra Costa Sanitary District, provides that we engage in soliciting competitive pricing for the products and services we acquire unless a determination of non -competition is made. It is the policy of the District that competitive pricing is obtained for all purchases of products and non-professional services greater than $3,500 unless there is a validated exemption to the competitive process. When a requisition is made for a non-competitive acquisition of goods or services that contain specifications and/or other operational/technical requirements which limits the ability for the District to seek more than one bid or quotes in the marketplace, the requesting department representative must complete the information below with factual statements, attach any and all supporting documentation of their effort to review comparable products or services, and obtain approval to waive the competitive process. Please check ONE of the following that applies to your request. Provide the information requested for the category you checked. 1. ❑ SOLE SOURCE: Products or services are available from one source only (i.e. one manufacturer, service provider of proprietary service, etc). What are the unique features, design, qualifications, rights, licenses, etc. of the product/brand/service/service provider that are not available in any other brand/service/service provider? Have you contacted other suppliers/service providers to evaluate items/services with similar features and capabilities? If no, explain why not. If yes, list suppliers/service providers and explain why their products/services do not meet the department's requirements. 2. ❑ SOLE BRAND OR SERVICE: Multiple sources may be able to supply the specified model and brand or service. In these cases, competitive bids or quotes will be solicited for the requested brand or service only. If only one source of supply of the brand exists (i.e. a dealer is the only one in a protected territory) the purchase will be made upon confirmation without further solicitation of bids or quotes. Why is the specified brand or service required (not just preferred) and how would your requirements for this specific brand or service be inhibited or burdened without purchase of the particular brand or service requested? Have you contacted other suppliers/service providers to evaluate items/services with similar features and capabilities? If no, explain why not. If yes, list suppliers/service providers and explain why their products/services do not meet the department's requirements. Central Contra Costa Sanitary District Page 1 of 3 Sole Source Re uest Products & Services May 2T, 2023 Regular FINANCE Committee Meeting Agenda Packet - Page 157 of 166 Page 10 of 16 3. ❑ REPLACEMENT OEM (ORIGINAL EQUIPMENT MANUFACTURER) PARTS: The requested part is an integral repair part or accessory compatible with existing equipment. The District requires this replacement part from an original manufacturer. This replacement part is not interchangeable with other similar parts from other manufacturers. Please explain. Existing Equipment: Equipment Manufacturer Name / Model #: Part Name and #: Multiple sources may be able to supply the specified model and brand. In these cases, competitive bids or quotes will be solicited for the requested brand only. If only one source of supply of the brand exists (i.e. a dealer is the only one in a protected territory) the purchase will be made upon confirmation without further solicitation of bids or quotes. 4. ❑ STANDARDIZATION REQUEST: The District requires the item(s) or service(s) in order to standardize on parts, design, quality, adherence to form, fit and/or function, and/or to maintain warranty or a maintenance contract on an existing product or system. Please specify. If justification is based on the need to match the new item or service with existing equipment, parts, etc., list the quantity, manufacturer/brand and model of the existing equipment pertaining to this request and why the matching is required (i.e. compatibility, repair and maintenance, training, productivity, minimization of supplies or spare parts, eliminates need to modify existing equipment, volume price discounts or savings, safety, etc). Existing Equipment: Existing Equipment Manufacturer Name / Model #: Quantity: Part Name and # (if applicable): Why is matching required? Please explain. ❑ Compatibility: ❑ Repair and maintenance: ❑ Training: ❑ Productivity: ❑ Minimization of supplies or spare parts: ❑ Eliminates need to modify existing equipment: ❑ Volume price discounts or savings: ❑ Safety: ❑ Other: 5. ® OTHER NON-COMPETITIVE RECOMMENDATION: Examples include time constraints (emergency situations), pre -qualified suppliers (suppliers awarded contracts from cooperative bidding, where price and other factors have already been assessed), or quality/reliability and performance history indicates an award of contract to a particular supplier/service provider would not be in the best interest of the District. See Purchasing Policy 4.8 Exemptions to Competitive Pricing for definitions and examples. Indicate which situation exists for this request along with applicable information to support this exemption. The District currently contracts with PacWest Security to provide on -site security Central Contra Costa Sanitary District Page 2 of 3 Sole Source Re uest Products & Services May 2T, 2023 Regular FINANCE Committee Meeting Agenda Packet - Page 158 of 166 Page 11 of 16 and access control services for the Treatment Plant and surrounding properties at the Martinez campus. Currently, there are two security guards present 24/7 including holidays. Staff is requesting to exend this agreemment for one year (through 1/30/2024) and to increase the dollar amount of the contract by $632,000. This extension will allow Risk to work with the new security consultant Guidepost to develop more specific the security guard requirements for the District and time to conduct the RFP process. Also, staff is requesting additional funding to increase the hourly wages paid to the security guards. We recently lost guards to better pay offered by other security firms. Low turn over is very important to Central San and without wage increases we will lose more of the well -trained effective personnel currently in these positions. This request also includes additional funds to cover the increased use and cost of gas. Since the last contract amendment gas prices have increased and we have increased the frequency of vehicle patrols. Department / Division Name: Administration/Risk Management Department /Division Representative: S Date: 1/4/2023 Department Director: Date: 1/4/2023 *General Manager: ° � Date. 1/4/2023 *Requests over $50,000 require General Manager's approval and signature. All Best Interest of the District and pilot test exemptions require General Manager or Board approval. FOR PURCHASING DIVISION USE ONLY Buyer: Qut1� �pa Date: 1/24/202 3 Purchasing & Materials Manager: Sr _ Kill Date: 1/24/202 3 Comments (if necessary): Central Contra Costa Sanitary District Page 3 of 3 Sole Source Re uest Products & Services May 2T, 2023 Regular FINANCE Committee Meeting Agenda Packet - Page 159 of 166 Page 12 of 16 DocuSign Certificate Of Completion Envelope Id: C41319431488F4180AA9D7573CFF1 FED4 Subject: DocuSign: PacWest sole —source —request 12.16.22.docx Source Envelope: Document Pages: 3 Signatures: 3 Certificate Pages: 5 Initials: 0 AutoNav: Enabled Envelopeld Stamping: Disabled Time Zone: (UTC-08:00) Pacific Time (US & Canada) Record Tracking Status: Original 1/4/2023 10:54:22 AM Security Appliance Status: Connected Storage Appliance Status: Connected Signer Events Shari Deutsch SDeutsch@centralsan.org Risk Mgr Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: Accepted: 1/4/2023 1:48:58 PM ID: b1187861-6a76-4571-ae5f-9bfdafb8cd74 Philip R. Leiber pleiber@centralsan.org Director of Finance & Adm Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: Accepted: 3/23/2020 3:23:09 PM ID: 436328ff-5f57-4637-b 1 d7-c337ecb59e08 Roger Bailey rbailey@centralsan.org General Manager Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: Accepted: 9/28/2018 3:04:44 PM ID:c9fb6117-1432-4032-9f2b-0360fb9ea323 In Person Signer Events Editor Delivery Events Agent Delivery Events Holder: Suzette Crayton scrayton@centralsan.org Pool: StateLocal Pool: Central Contra Costa Sanitary District Signature sI, ki vtufstL Signature Adoption: Pre -selected Style Using IP Address: 12.86.194.210 p Signature Adoption: Drawn on Device Using IP Address: 12.86.194.210 Signature Adoption: Pre -selected Style Using IP Address: 12.86.194.210 Signature Status Status Status: Completed Envelope Originator: Suzette Crayton 5019 Imhoff Place Martinez, CA 94553-4392 scrayton@centralsan.org IP Address: 12.86.194.210 Location: DocuSign Location: DocuSign Timestamp Sent: 1/4/2023 10:56:12 AM Viewed: 1/4/2023 1:48:58 PM Signed: 1/4/2023 1:49:06 PM Sent: 1/4/2023 1:49:08 PM Viewed: 1/4/2023 2:44:25 PM Signed: 1/4/2023 2:44:54 PM Sent: 1/4/2023 2:44:57 PM Viewed: 1/4/2023 3:28:33 PM Signed: 1/4/2023 3:28:41 PM Timestamp Timestamp Timestamp Intermediary Delivery Events Status Timestamp May 23, 2023 Regular FINANCE Committee Meeting Agenda Packet - Page 160 of 166 Page 13 of 16 Certified Delivery Events Status Timestamp Carbon Copy Events Status Timestamp Shari Deutsch Sent: 1/4/2023 3:28:43 PM SDeutsch@centralsan.org ED Risk Mgr Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: Accepted: 1/4/2023 1:48:58 PM ID: b1187861-6a76-4571-ae5f-9bfdafb8cd74 Witness Events Signature Timestamp Notary Events Signature Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 1/4/2023 10:56:12 AM Certified Delivered Security Checked 1/4/2023 3:28:33 PM Signing Complete Security Checked 1/4/2023 3:28:41 PM Completed Security Checked 1/4/2023 3:28:43 PM Payment Events Status Timestamps Electronic Record and Signature Disclosure May 23, 2023 Regular FINANCE Committee Meeting Agenda Packet - Page 161 of 166 Electronic Record and Signature Disclosure created on: 5/23/2018 9:04:18 AM Parties agreed to: Shari Deutsch, Philip R. 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