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REPORT <br />To the Honorable Mayor and City Council <br />From the City Manager <br /> <br />February 13, 2017 <br />SUBJECT <br />Water and Sewer System Material Supplies Purchase Agreement <br /> <br />RECOMMENDATION <br />By motion, approve and authorize the City Manager to execute a one-year Purchase <br />Agreement with R&B Company in an amount not to exceed $397,815.43, including City <br />Manager authority to extend the agreement for three additional one-year terms, for a <br />total not to exceed contract price of $1,714,634.23 <br /> <br />BACKGROUND <br />The Public Works Services (PWS) Department operates and maintains the City’s <br />potable and recycled water distribution systems and sanitary sewer collection system. In <br />order to perform these functions, PWS must be able to readily purchase a wide range of <br />system supplies. <br /> <br />The Department released a notice inviting bids (NIB) in October 2016 for water and <br />sewer utility system supplies. The notice was advertised in the local newspaper and on <br />the City’s website. The Department received two bids, from HD Supply Waterworks and <br />R&B Company, by the bid deadline. A third bid was received after the deadline and <br />rejected. <br /> <br />ANALYSIS <br />A total of 284 items were listed on the bid. R&B submitted the only complete bid, with <br />bid prices filled in for all 284 items listed in the bid. HD Supply Water Works bid on only <br />186 items. A bid comparison is provided below and the bid tabulation is attached. <br /> <br />Criteria R&B Company HD Supply Waterworks <br />Materials Provided 284 of 284 186 of 284 <br />Store Location Redwood City Hayward <br />San Jose <br />Partial Cost <br />(excluding no-bid items) <br />$308,958.88 <br /> <br />$306,723.73 <br />Total Cost <br />(including all items) <br />$397,815.43 Incomplete Bid <br /> <br />Staff has determined that purchasing utility supplies from multiple vendors would not be <br />in the best interest of the City. Potable water supply and sanitary sewer collection are <br />critical public services. In an emergency, staff may lose valuable time because they are <br />required to visit multiple vendors to purchase repair parts. It is also operationally more <br />6.1.D. - Page 1