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HomeMy WebLinkAboutIR 9022INFORMAL REPORT TO CITY COUNCIL MEMBERS To the Mayor and Members of the City Council SUBJECT: Alley Maintenance Services No. 9022 March 10, 2009 Page 1 of 2 This Informal Report provides a response to the City Council's request for information on the recent alley maintenance bid award process. Mr. Bryan Blagg, representing Blagg Building Co., 206 Churchill Court, WeatherFord, Texas, appeared before the City Council on February 24, 2009, relative to being the low bidder for an alley maintenance contract. He expressed appreciation for the opportunity, but advised that he had received some resistance from the Purchasing Division because his bid was too low. He advised City Council that his bid was $0.16 per foot and $85.00 per alley and that he stood by that bid. He requested assistance to determine if his bid would be accepted. The Purchasing Division (Purchasing) along with the Transportation and Public Works Department (TPW) reviewed the process to date and find that despite Mr. Blagg's concerns, the process to award this agreement is moving along in a fair, open and expedient manner. This award process brings the action before City Council in less than one month from the day the bids were opened and saves the City over $300,000.00, which may be retained or used to complete additional alley cleanings or other projects. The awarded agreements are expected to also exceed the five percent M/WBE project goal by at least one percent. Before any bid is awarded, it is the City's responsibility to exercise due diligence to ensure that bidders recommended for awards are capable of perForming the agreements and that their bids meet or exceed the specifications. This confirmation of bids is normally handled by the requesting City departments, in this case TPW, as the subject matter experts on the goods or services requested. Purchasing does not normally contact bidders during an evaluation process unless there are questions about their bids. Purchasing reviews and approves departments' bid confirmation efforts and recommendations before making a recommendation to the City Council. The due diligence process began immediately following the opening of the bids for this agreement. These alley maintenance bids opened February 12, 2009. The low bidder and other bidders met with Purchasing the day after the bid opening. The bidders in attendance were informed that the City would evaluate the bids and staff would try to have an unofficial bid tabulation available by Friday, February 13, 2009. At this time a meeting was scheduled with the low bidder, Blagg Building Co. (Blagg), to review several alleys with TPW representatives on Friday, February 13, 2009. The bid tabulation was generated by Purchasing and posted on the City's webpage that Friday as anticipated. ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS To the Mayor and Members of the City Council SUBJECT: Alley Maintenance Services No. 9022 March 10, 2009 Page 2 of 2 On February 16, 2009, TPW conducted a site visit of the low bidder's facility to verify that the bidder's equipment was adequate to perform the specified work. Following its review of the bidder's equipment and references, TPW recommended Blagg, the low bidder, for award as the lowest bidder meeting or exceeding specifications on February 18, 2009. In order to ensure continuity of performance of this important work, Purchasing recommended that the second low bidder be awarded an agreement as well should additional alleys be added to the scope and exceed Blagg's capacity. Blagg will be responsible for cleaning the 1,039 alleys specified under its agreement, if and when awarded. Purchasing had not had a chance to review the recommendation when Mr. Blagg contacted our office to follow up on his bid. Purchasing had also not yet received confirmation from the M/WBE Office that Blagg's bid was in compliance with the M/WBE goal. These processes may take several days. When Mr. Blagg contacted our office about the award process and status, he was advised that the typical M&C approval timeframe could result in an award in April 2009 and that the current agreement may have to be extended to maintain alley cleaning services for TPW while the award recommendation was routing for approvals. Purchasing advised Mr. Blagg of its concerns about the award due to the large gap between the first and second low bids as well as the consequences that his company could suffer if it was awarded an agreement which it failed to perform. There may have been a misunderstanding at this point as Purchasing intended only to provide full disclosure of possibilities and did not intend to offend Mr. Blagg in any way. Purchasing has been in contact with Mr. Blagg in recent days and has worked to keep him informed of the upcoming award process. We look forward to a successful business relationship with Blagg Building Co. following award of today's action. If you have any questions regarding this information, please contact Jack Dale, Purchasing Manager, at (817) 392-8357 or Lena Ellis, Financial Management Services Director/CFO, at (817) 392-8517. Dale A City Manager ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS