Consent 1.A.2.
Regular City Council Meeting
- Meeting Date:
- 12/08/2014
- TITLE
- Award of Three Year Airport Elevator/Escalator Maintenance Service Agreement
- PRESENTED BY:
- Tom Binford
- Department:
- Airport
Presentation:
PROBLEM/ISSUE STATEMENT
One of the items included in the Airport's annual operating budget is a maintenance agreement for the Airport's elevators and escalators. The Billings Logan International Airport's Terminal Building has eight elevators and two escalators, the Operations Building has one lift, and the IP-9 office building has one elevator. Due to the specialized nature of this equipment, it is more cost effective for the Airport to contract for the monthly service and repair work. Specifically, this Three Year Maintenance Service Agreement will require the contractor to provide all of the necessary equipment, tools, and personnel to conduct periodic inspections, adjustments, and maintenance for all of the major components of the Airport's elevators/escalators. This Agreement will also ensure compliance with all State of Montana Operating Certificate regulations required for the elevators/escalators.
This invitation for bids was advertised in the Billings Times on November 6 and 13, and was posted on the City's Web Site. The award of this Agreement was delayed from the November 24, 2014 City Council meeting to allow staff additional time to review the bid packets. On November 18, 2014, bids were received from ThyssenKrupp and Kone, Inc. The bid packet submitted from ThyssenKrupp did not include a 10% Bid Bond as required by the bid documents and subsequently, their bid could not be opened. The single bid from Kone, Inc. was $57,564 for the Three Year Agreement. Staff had estimated the cost of this Agreement to be $64,500 for the three year period.
This invitation for bids was advertised in the Billings Times on November 6 and 13, and was posted on the City's Web Site. The award of this Agreement was delayed from the November 24, 2014 City Council meeting to allow staff additional time to review the bid packets. On November 18, 2014, bids were received from ThyssenKrupp and Kone, Inc. The bid packet submitted from ThyssenKrupp did not include a 10% Bid Bond as required by the bid documents and subsequently, their bid could not be opened. The single bid from Kone, Inc. was $57,564 for the Three Year Agreement. Staff had estimated the cost of this Agreement to be $64,500 for the three year period.
ALTERNATIVES ANALYZED
City Council may:
- Approve the award for the Three Year Elevator/Escalator Service Agreement; or
- Disapprove the award of the Service Agreement and provide guidance to staff on how next to proceed.
FINANCIAL IMPACT
The total cost of this Three Year Service Agreement is $57,564, or $1,599 per month. The source of funding for this Agreement is budgeted in the Airport's annual operating budget.
RECOMMENDATION
Staff recommends the City Council award the Three Year Elevator/Escalator Maintenance Service Agreement to Kone, Inc., for the amount of $57,564.
APPROVED BY CITY ADMINISTRATOR
Attachments
No file(s) attached.