The Public Works Department Facilities Division is responsible for the maintenance of City buildings. Presently, one of the Public Safety Buildings (Police/Fire Station No. 1) has two air conditioning chillers that have exceeded their useful life cycle and are experiencing a systematic failure that is beyond repair and requires replacement.  In addressing the replacement of this vital piece of equipment that impacts operational efficiency, staff completed a formal bidding process, IFB No. S-1195.

In July, specifications were prepared and submitted to prospective bidders.  In response to the prescribed bidding procedures, one (1) bid was received in August by Harbor Point A/C Control Systems Inc.  After opening and reviewing the bid, it was apparent that the price quoted was substantially higher than the manufacturer quote from Trane Commercial Systems and the industry’s competitive market pricing. The analysis is shown below:

Trane Commercial Systems                                 $ 98,160.00

City of Industry

Harbor Point A/C Control Systems Inc.                 $122,468.74

Lake Forest

The manufacturer, Trane Commercial Systems, did not submit a bid due to a distributor conflict prohibiting participation in the bidding process. Under these circumstances, there is an exception for waiving the competitive bid process through utilizing the ability of local governments to purchase directly from a manufacturer. Based on this cost effective option, staff recommends rejecting the bid and awarding the direct manufacturer purchase from Trane Commercial Systems for the procurement of two (2) air conditioning chillers.   

There is no impact to the General Fund. Funds are available in the Fiscal Year 2016/17 Building Maintenance Budget.

It is recommended that the City Council:

• Reject bid received for IFB No. S-1195; and

• Authorize the City Manager to authorize the direct purchase of two (2) air conditioning chillers from the manufacturer, Trane Commercial Systems.

By:    Phillip Carter, Facilities Manager