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Agenda 07/26/2011 Item #16E47/26/2011 Item 16.E.4. EXECUTIVE SUMMARY Recommendation to ratify a sole source repair to the County's Thermal Storage Tanks made by FAFCO, Inc., in the amount of $170,406. OBJECTIVE: To make necessary and timely repairs to the County's HVAC system and avoid interruptions to service. CONSIDERATIONS: In May 2010, The Facilities Management Department discovered an issue with the ice tanks in the chiller farm that services the Government Complex which includes the new Jail; Buildings F, C -1, C -2, D, B, H, and L; and the Courthouse Annex. The solution to fix the issue was to have the manufacturer of the ice tanks (FAFCO, Inc.) make the necessary repairs. The work was performed in several phases over several months to avert the need to take the chillers off -line. Failure to initiate these repairs promptly would have resulted in substantially increased cooling costs during the summer months. Accordingly, the Purchasing Department authorized the Facilities Management Department to proceed with hiring FAFCO, Inc. On July 26, 2010, the Board of County Commissioners approved a Budget Amendment in the amount of $170,406 to affect the necessary repairs. The Executive Summary identified the need for immediate and continuing action to repair the Thermal Storage Tanks, but the Agenda Item failed to explicitly identify the selection of a vendor or include the justification for waiving formal competition. FAFCO, Inc., was selected to perform the work on the basis of their sole source requirements for repair and warranty. FAFCO, Inc:., states that they are the sole manufacturer of the parts which are required for the repair and, as stated, they are the only company that can install the proper parts. If installation was done otherwise, the parts would not be covered under warranty. The acquisition of commodities and services from a sole source may be exempted by the Board from formal competition under Section V.0 of the Purchasing Policy upon certification by the Purchasing Directro where: (1) the item or vendor is the only one available that can properly perform the intended function; and (2) the vendor is the only one ready, willing and able to meet the County's requirements. The work was recently completed and Board approval is required to release the remaining payments. FISCAL IMPACT: There is no additional fiscal impact in the approval of this Executive Summary as the funds for the repairs were previously appropriated by the Board. The value of the pending invoices is $23,067. Packet Page -2276- 7/26/2011 Item 16.E.4. LEGAL CONSIDERATION: This item has been reviewed and approved by the County Attorney's Office, is legally sufficient for Board action and only requires a majority vote for approval —SRT. GROWTH MANAGEMENT IMPACT: There is no growth management impact in approving this Executive Summary. RECOMMENDATION: That the Board of County Commissioners ratifies the staffs selection of FAFCO, Inc, for the expedited repairs to the chiller ice tanks in the amount of $170,406. Prepared by: Dennis Linguidi, Facilities Manager, Facilities Management Department Packet Page -2277- 7/26/2011 Item 16.E.4. COLLIER COUNTY Board of County Commissioners Item Number: 16.11.4. Item Summary: Recommendation to ratify a sole source repair to the County's Thermal Storage Tanks made by FAFCO, Inc., in the amount of $170,406. Meeting Date: 7/26/2011 Prepared By Name: LinguidiDennis Title: Manager - Facilities,Facilities Management 6/27/2011 1:19:48 PM Submitted by Title: Manager - Facilities,Facilities Management Name: LinguidiDennis 6/27/2011 1:19:50 PM Approved By Name: CampSkip Title: Director - Facilities Management,FaciIities Manage Date: 6/27/2011 452:58 PM Name: WoodLyn Title: Contracts Specialist,Purchasing R General Services Date: 6/28/2011 1:05:53 PM Name: CarnellSteve Title: Director - Purchasing /General Services.Purchasing Date: 7/4/2011 7:35:00 AM Name: SmithKristen Title: Administrative Secretar�.Risk !Management Date: 7/5/2011 11:53:58 AM Name: TeachScott Packet Page -2278- Title: Deputy County Attomey,County Attorney Date: 7/8/2011 8:09:28 AM Name: PriceLen Title: Administrator - Administrative Services. Date: 7 /12/2011 2:14:17 PM Name: KlatzkowJeff Title: Countv Attornev. Date: 7/12/2011 3:00:13 PM Name: StanleyTherese Title: Management/Budget Analyst, Senior.Office of Management R Budget Date: 7/18/2011 8:39:27 AM Name: KlatzkowJeff Title: County Attorney. Date: 7/18/2011 9: 25:51 AM Name: SheffieldMichael Title: Manager- Business Operations, CMO Date: 7 /18/2011 11:05:03 AM Packet Page -2279- 7/26/2011 Item 16.E.4. 7/26/2011 Item 16.E.4. A, FAFCC, INC. 435 Otterson Drive • Chico, CA 95928 USA • Telephone: (530) 332 -2100 • Fax: (530) 332 -1109 May 11, 2010 Collier County Government Complex 3301 Tantiami Trail East Naples, FL 34113 Attn: Hemantha Ranatunge, Sr. Plant Operator Ref.: Heat Exchanger Replacement for #4 Fafco Model 510 Tank Dear Hemantha, Fafco has previously submitted a proposal to you for the replacement of the heat exchangers in your #4 Model 510 Thermal Energy Storage Tank. This is a difficult task that also involves the replacement of the tank's internal piping network. The Fafco tanks are specialized pieces of equipment, fabricated by highly trained technicians on our factory floor. These same technicians are used in our Field Service Team for performing Field repairs and installations because of the special expertise needed to do so. The Fafco model 510 tanks are unique among our other tanks in that they are much taller and require an even higher level of attention, and additional personnel to work on. Because of this, Fafco recommends that only Fafco Technicians be used to perform crucial repairs on our tanks. To do so otherwise will void any warranty in place, and could cause major problems. Sincerely, rr r, Dan Scampini Applications Engineer FAFCO Inc. 435 Otterson Dr. Chico, CA 95928 Direct Line: 530-332-2166 Fax: 530-332-2109 dscampini@fafco.com Packet Page -2280-