Consent 1.A.2.
Regular City Council Meeting
- Meeting Date:
- 09/14/2015
- TITLE
- W.O. 15-38--Solid Waste CNG Short-Term Fueling Station, Procurement Bid Award
- PRESENTED BY:
- David Mumford
- Department:
- Public Works
Presentation:
PROBLEM/ISSUE STATEMENT
The City of Billings Solid Waste Division has begun to replace its fleet of diesel-engine garbage trucks with trucks powered by compressed natural gas (CNG). There are currently two CNG trucks in service, and six more are scheduled for delivery this fall. There is a single CNG fueling station in Billings, operated by MDU, that Solid Waste currently uses. However, MDU has plans to close its fueling station, so the City must construct one to provide fuel for the expanding fleet of CNG trucks. Having a City-owned CNG fueling station will not only be more convenient for drivers, it should also result in lower overall fueling costs.
Due to needing this fueling station operational soon after the delivery of the new vehicles, and that there is no land available for a station that would ultimately service a full fleet of 34-40 trucks, a smaller station will be constructed for the short-term (estimated 3-5 years) on the east side of the Billings Operations Center (BOC) parking lot. The equipment used for the short-term station will be capable of servicing up to 16 vehicles, and will have the ability to be relocated to a permanent site and expanded to service more vehicles in the future.
This contract was intended to procure a CNG packaged fueling system to be used for the short-term fueling station. The installation of the equipment and the site work will be bid under a separate contract.
This contract was advertised July 30, August 6, August 13, and August 20, 2015, in The Billings Times and on the City's website. Bids were opened August 25, 2015, and Council is asked to take action on the bids.
Due to needing this fueling station operational soon after the delivery of the new vehicles, and that there is no land available for a station that would ultimately service a full fleet of 34-40 trucks, a smaller station will be constructed for the short-term (estimated 3-5 years) on the east side of the Billings Operations Center (BOC) parking lot. The equipment used for the short-term station will be capable of servicing up to 16 vehicles, and will have the ability to be relocated to a permanent site and expanded to service more vehicles in the future.
This contract was intended to procure a CNG packaged fueling system to be used for the short-term fueling station. The installation of the equipment and the site work will be bid under a separate contract.
This contract was advertised July 30, August 6, August 13, and August 20, 2015, in The Billings Times and on the City's website. Bids were opened August 25, 2015, and Council is asked to take action on the bids.
ALTERNATIVES ANALYZED
The Council may:
• Award a contract to the low bidder, EFS West, in the amount of $395,055.00, which greatly exceeds the preliminary budget for the CNG equipment; or
• Reject all bids. In lieu of re-bidding this package, Staff will add the equipment procurement to the installation contract that will bid later in September. In discussions with various suppliers after the procurement bid opening, Staff believes much better pricing will be received as part of an installation package.
• Award a contract to the low bidder, EFS West, in the amount of $395,055.00, which greatly exceeds the preliminary budget for the CNG equipment; or
• Reject all bids. In lieu of re-bidding this package, Staff will add the equipment procurement to the installation contract that will bid later in September. In discussions with various suppliers after the procurement bid opening, Staff believes much better pricing will be received as part of an installation package.
FINANCIAL IMPACT
The following bids were received and evaluated.
The project is being funded by Solid Waste funds, as approved in the FY 2016 budget. The amount of this bid greatly exceeds the preliminary budget established for the equipment.
| CNG Equipment Supplier (Bidder) | Lump Sum Base Bid Amount |
| EFS West | $ 395,055.00 |
The project is being funded by Solid Waste funds, as approved in the FY 2016 budget. The amount of this bid greatly exceeds the preliminary budget established for the equipment.
RECOMMENDATION
Staff recommends Council reject the bid received from EFS West for W.O. 15-38--Solid Waste CNG Short-Term Fueling Station Procurement in the amount of $395,055.00.