REPORT TO THE CITY COUNCIL
FROM: BRIAN BARR, Director
General Services Department
BY: MELISSA PERALES, Purchasing Manager
General Services Department, Purchasing Division
SUBJECT
Title
Approve an increase to the Requirements Contract with American Guard to provide Security Services at the Municipal Service Center, City Hall, and various other city locations in the amount of $500,000 plus annual CPI increases. The total revised contract shall not exceed $7,366,088.38 plus annual CPI adjustments without Council approval. (Bid File 9494)
Body
RECOMMENDATION
Staff recommends Council approve an increase in contract amount for the Requirements Contract for Security Services at the Municipal Service Center, City Hall, and various other city locations in the amount of $500,000 plus annual CPI adjustments.
EXECUTIVE SUMMARY
In accordance with Resolution 2018-075, multiple amendments which aggregate more than 10% of the agreement price shall be subject to prior authorization from the City Council. To date, multiple amendments for additional locations and security services throughout the City have been authorized totaling 9.7% ($607,195.48) of the agreement price. Security services which could not have been anticipated in 2019, at the time of award, are added to the contract via change order. The most recent change order added 24-hour security services to each of the four Storm Relief Centers and continued nightly during the expanded warming center hours.
To account for the additional need, the General Services Department, Purchasing Division is recommending an increase in the amount of $500,000 for the remainder of the contract through January 1, 2025. The total revised contract shall not exceed $7,366,088.38 plus annual CPI adjustments without Council approval. This will provide General Services with the funding authority necessary to quickly respond to Department requests for added security during the remainder of the contract duration.
BACKGROUND
A Notice Inviting Proposals was published in the Business Journal on May 6, 2019, and posted on the City’s website. RFP specifications were distributed to nineteen prospective proposers. Seven sealed proposals were received and opened in a public bid opening on June 4, 2019. Interviews for the proposers were held on August 2019, with the Selection Committee.
The Selection Committee, comprised of representatives from the Public Works, PARCS, and Planning and Development evaluated the proposers on the ability to meet the stated service requirements, cost as shown on the proposal form, past performance and experience with the City or other entities, conformance to the terms and conditions of the RFP, Financial Stability, and other related information provided by proposers. The committee ultimately determined American Guard Services provided the best value to the City and recommended an award.
On December 5, 2019, City Council approved a contract with American Guard Services for $1,251,778.58 per year for three years with two optional one-year extensions totaling $6,258,892.90 over five years to provide Security Services at the Municipal Service Center, City Hall, and various other city locations.
In accordance with Resolution 2018-075, multiple amendments which aggregate more than 10% of the agreement price shall be subject to prior authorization from the City Council. To date, multiple amendments for additional locations and security services throughout the City have been authorized totaling 9.7% ($607,195.48) of the agreement price. Change orders have been processed to provide additional unarmed security services at the Animal Center, senior center, storm relief shelters, warming shelters, DPU Administrative Building (old Fresno Bee Building), community centers, and FAX Manchester Transit Center office.
To account for additional need, the Purchasing Division is recommending an increase in the amount of $500,000 plus annual CPI increases for the remainder of the contract through January 1, 2025. The total revised contract shall not exceed $7,366,088.38 plus annual CPI adjustments without Council approval.
If this item is not approved, General Services will not be able to urgently respond to requests for additional security services without prior authorization from Council. For example, should community centers be reactivated due to imminent adverse weather (i.e. storm relief centers, etc.), General Services will not be able to provide security services.
Original 5-year contract amount: $6,258,892.90
Change orders (9.7%): $607,195.48
Council approved increase: $500,000
Total revised contract amount: $7,366,088.38
ENVIRONMENTAL FINDINGS
By the definition provided in the California Environmental Quality Act (CEQA) Guidelines Section 15378, the award of this contract does not qualify as a “project” as defined by CEQA.
LOCAL PREFERENCE
Local preference is not applicable to this item because this is not the subject of a bid.
FISCAL IMPACT
This item increases the total award of the contract to accommodate future contract change order for additional security services. Funding will be identified within the requesting Department’s FY2023 adopted budget at the time of the request for service.
Attachment: Security Contract Change Order History