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HomeMy WebLinkAboutCA US Motors Contract Renewal EXECUTIVE SUMMARY AGENDA ITEM: Request Approval of Contract Renewal for US Motors Contract ITB# 20/21-A7 Date: April 28, 2022 BACKGROUND: The US Motors contract with Tom Evans Environmental, Inc. (Tom Evans) expires on May 22, 2022. However, the terms of this contract allow for the renewal of an additional one-year term, contingent upon mutual agreement of both parties. Tom Evans expressed their interest in renewing the contract with a requested rate increase of 14.9%. Per the Contract, if both parties agree to renew the agreement, CCUA may consider a price increase in either of the renewal years based on verifiable changes in the marketplace. Staff compared the rates and have determined the rates to be consistent with the marketplace. The Water Treatment Department currently operates 51 wells with motors critical to supply co drinking water to CCUA's customers. Recently, a lightning strike caused a motor to fail, and staff was able to procure another motor with this contract quickly. The contract is essential to support 0 operations and protect public health and safety. BUDGET IMPACT: Based on purchases under the existing contract, CCUA's expected cost for US Motors would increase by $11,436.21 annually. Staff calculated the increase based on expenditures in the Water Treatment Department in the past fiscal year. RECOMMENDATION: Staff respectfully requests the Board of Supervisors approve the contract renewal for the US Motors, ITB #20/21-A7 to be extended for an additional one-year term with rate increase. ATTACHMENTS: Tom Evans Environmental, Inc., Rate Increase Request Tom Evans Environmental, Inc., 2022-2023 Rates //AW, TS (Author) //AW, TS,AB (Review) //TS (Final) NT\ Clay County Utility Authority Working together to 3176 Old Jennings Rd. protect public health, 1,1 I ( l Middleburg,Florida 32068-3907 conserve our natural G\ >.J Telephone(904)213-2413 resources,and create f� p Facsimile(904)213-2436 long-term value for rY AU Clay ratepayers. April 12, 2022 Mr. Dennis Szczepanek Tom Evans Environmental, Inc. 3200 Flightline Drive Lakeland, FL 33811 Re: Renewal of Contract No. 20/21-A7 Dear Mr. Szczepanek: The above referenced contract is scheduled to expire on May 22,2022. However,the terms of this contract allow for the renewal of an additional year,contingent upon the mutual agreement of both parties.The new contract period will continue from May 27, 2022, through May 26, 2023. If you wish to continue the contract under the current terms,please sign,date, and return this letter to us by April 15,2022,and we will consider this confirmation of acceptance of the current terms as stated above. We appreciate your operation and look forward to continuing doing business with you in the coming year. Sincerely, CLAY COUNTY UTILITY AUTHORITY ACCEPTANCE: YES NO OTHE� Tom Evans Environ 1,Inc. Angeha Wilson N Procurement Manager Dennis Szczepanek,Vice-President TITLE: /aw 4/27/2022 DATE: cc: Jeremy D. Johnston Paul Steinbrecher TOM EVANS ENVIRONMENTAL April 27, 2022 Ms. Angelia C. Wilson, Procurement Manger Clay County Utility Authority 3176 Old Jennings Road Middleburg, Florida 32068 RE: Renewal of Contract No. 20/21-A7 Dear Ms. Wilson, We are receipt of your notice of coming contract expiration on May 22, 2022. The terms of this contract allow renewals for additional years, contingent upon mutual agreement. Also, as part of the terms of the contract, allows for pricing escalation for items we could no longer honor the awarded price. We had hoped not to evoke the need to use those terms; Unfortunately, many factors outside of our control have burdened us for the need for a price increase for the products that we were awarded as part of this contract. I have attached a letter from the manufacturer explaining those factors which are causing this increase. I have also attached the bid spreadsheet with new columns added showing the new unit pricing and the precent increase for each individual line item. to We appreciate your business and look forward to continuing doing business with you in the coming year. Sincerely, l -1 1 Dennis Szczepanek, P.E. Vice-President, Engineering TOM EVANS ENVIRONMENTAL, INC. 3200 Flightline Drive,Ste.302.Lakeland, FL 33811.863-619-3789(Voice).863-619-8098(Fax) WWW.TOMEVANS.COM Tom Evans Environmental,Inc.is Equal Employment Opportunity/Affirmative Action compliant through good faith efforts in employment and business practices. -All for dreams MOTOt1H August 18, 2021 To: Our Valued OEM's Subject: Price Increase Effective 9/20/21 Nidec has made every effort possible to control cost in a very challenging year, however we continue to see increases across all commodities such as steel, copper,aluminum, packaging, plastics, electronics as well as logistics. Effective with all orders shipped on or after September 20, 2021, pricing will increase on all products on average 14.9%. Your local Sales Account Manager will update you on those actions soon. to Sincerely, °Com. WitralCrall 86/22.71ateda") Dan McGrath Cheryl Marcum Senior Vice President,Sales Vice President of Marketing Nidec Commerical Industrial Motors Nidec Commercial Industrial Motors NIDEC MOTOR CORPORATION 8050 W Flnnssant Ave St I ems MCl 83136 Responses Success:All data is valid! Numeric Status Bid/No Bid # Item Name Quantity Unit Price Total Cost New Unit Price Percent Decision Required Increase Product Number H075V2SLG:75hp,1800rmp. Success:All values provided Bid #0-1 3ph,460V,365TP frame,Type RUSI,VFD rated, 4 $5,540.40 $22,161.60 $6,366.12 14.9% Perm.Eff.,Inverter Duty,16.5"BD,WP1,w/NRR VHS Procut Number H060V2SLG:60hp,1800rpm,3ph, Success:All values provided Bid #0-2 230/460V,364TP frame,Type RUSI,Prem.Eff, 2 $4,737.60 $9,475.20 $5,443.67 14.9% 16.5"BD,WP1,wl NRR VHS Product Number H0100V2SLG:100hp,1800rpm, Success:All values provided Bid #0-3 3ph,460V,404TP frame,Type RUSI,Prem.Eff, 4 $7,148.25 $28,593.00 $8,213.59 14.9 16.5"BD,WP1,wl NRR VHS Product Number H0125V2SLG:125hp,1800rpm, Success:All values provided Bid #0-4 3ph,460V,404TP frame,Type RUSI,Prem.Eff, 1 $8,329.05 $8,329.05 $9,570.37 14.9% 16.5"BD,WP1,wl NRR VHS Product Number H0150V2SLG:150hp,1800rpm, Success:All values provided Bid #0-5 3ph,460V,444TP frame,Type RUSI,Prem.Eff, 1 $11,412.90 $11,412.90 $13,113.83 14.9% 16.5"BD,wl NRR VHS Product Number CHT100V2CLG:100hp,TEFC, Success:All values provided Bid #0-6 Corro-Duty,Prem.Eff.,Inverter Duty,460/3, 4 $10,854.90 $43,419.60 $12 472.66 14 9% 405TP,TUCI Product Number CHT125V2CLG:125hp,TEFC, Success:All values provided Bid #0-7 Corro-Duty,Prem.Eff.,Inverter Duty,460/3, 1 $15,119.10 $15,119.10 $17,372.38 14.9% 444TP,TUCI Product Number CHT150V2CLG:150hp,TEFC, Success:All values provided Bid #0-8 Corro-Duty,Pre.Eff.,Inverter Duty,460/3,447TP, 1 $17,844.75 $17,844.75 $20,504.25 14.9% TUCI to Product Number CHT75V2CLG:75hp,TEFC, Success:All values provided Bid #0-0 Corro-Duty,Pre.Eff.,Inverter Duty,460/3,356TP, 4 $8,062.65 $32,250.60 $9,264.27 14.9% TUCI Success:All values provided Bid #0-10 Product Number H015V2BLE:15hp,1800RPM, 1 $2,351.70 $2,351.70 $2,702.19 14.9% 230/460 Voltage,254TP Frame,Type:AUSI Success:All values provided Bid #0-11 Product Number H020V2BLF:20hp,1800RPM, 1 $2,577.60 $2,577.60 $2,961.75 14.9% 230/460 Voltage,256TPH Frame,Type:AUSI Success:All values provided Bid #0-12 Product Number HO30V2BLF:30hp,1800RPM, 1 $3,160.80 $3,160.80 $3,631.87 14.9% 230/460 Voltage,286TPA Frame,Type:AUSI Success:All values provided Bj• #0-13 Product Number HO40V2BLG:40hp,1800RPM, 1 $3,500.55 $3,500.55 $4,022.26 14.9% 230/460 Voltage,324TP Frame,Type:RUSI