CITY OF CORTEZ
123 ROGER SMITH AVENUE
CORTEZ, CO 81321
Brian Peckins
Director of Public Works
110 West Progress Circle
Cortez, CO. 81321
bpeckins@cortezco.gov
Memorandum
To:
CORTEZ CITY COUNCIL
From:
Vickie Haddix, General Services Secretary
Date:
05/30/24
RE:
2024 Service Center HVAC Installation Award
DISCUSSION
A request for bids was issued and bids received on May 22, 2024. The bid notice went out to 301 potential bidders, and 17 potential bidders opened and reviewed the project. The City received one bid in the amount of $406,592.00 from Farmington Heating & Metal Company. Farmington Heating & Metal Company has performed work for the City in the past and has done a good job.
BACKGROUND
The Service Center HVAC installation project is a carry-over project from 2023. The project was in two parts originally. Part 1 was the purchase of the HVAC equipment from the manufacturer Trane. That award was for $120,557.00 for the Service Center portion. Part 2 is the installation of the HVAC units, electrical cost for the Variable Air Volume (VAV) units, and controls for the system.
The project was broken down into two parts because of the post-covid lead times at the manufacturer for delivery. At the time the estimated lead times were 9-16 months for the HVAC equipment to arrive, and the City wanted to get the units in the production pipeline as soon as possible.
The City has issued bid requests for the project for installation four times, on March 3, 2023, April 12, 2023, April 24, 2024, and this last time on May 22, 2024. The gap between 2023 and 2024 was to make sure the project got carried over to the new 2024 budget. Attached to the memo is a spreadsheet showing the dates of the bids, number of prospective bidder’s that received the bid notice, bidders that opened the bid request, and the number of responses to the bids at each bid opening.
The industry is still plagued by really long lead times for equipment and more HVAC projects than the contractors' capacity to do installations. During these bid processes, the City engaged consultation from our mechanical engineers ME&E for guidance and insights on ways to get more bids to each of the bid requests. The City also had numerous conversations with potential regional bidders and the manufacturer to increase the number of bidders.
The equipment from part 1 of the project is all delivered on-site and is accumulating warranty days while awaiting installation. The current Service Center HVAC system is 24 years old.
FISCAL IMPACT
The project including both parts is included in the 2024 capital projects budget.
RECOMMENDATION
Council may consider making a motion to award the 2024 Service Center HVAC Installation Project bid to Farmington Heating & Metal at the bid amount of $406,592.00
MOTION
If agreed upon by the City Council, a possible motion would be: I move that City Council
award the 2024 Service Center HVAC Installation Project bid to Farmington Heating & Metal Company for its bid amount of $406,592.00
Attachments
Bid Demographics
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