GATEWAY BUILDING ELEVATOR AND ESCALATOR SERVICES
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1 29 One Gateway Plaza Los Angeles, CA Tel metro.net SYSTEM SAFETY AND OPERATIONS COMMITTEE JANUARY 16, 2014 SUBJECT: ACTION: GATEWAY BUILDING ELEVATOR AND ESCALATOR SERVICES APPROVE CONTRACT AWARD RECOMMENDATION Award a seven-year, firm fixed unit rate contract under RFP No. PS with Mitsubishi Electric & Electronics USA, Inc., Elevator and Escalator Division, the highest rated proposer for the Gateway Headquarters building elevators and escalators services for an amount not-to-exceed $3,852,225. ISSUE The services of an elevator/escalator contractor are required to provide preventive maintenance and repairs to the Gateway building's nineteen elevators and four escalators. The current elevator/escalator maintenance contract is scheduled to expire on March 1J DISCUSSION The recommendation will allow Metro to ensure proper maintenance of elevators and escalators. This is essential for the safety of all staff and visitors to the building and is required by City of Los Angeles building safety codes and the California Code of Regulations. DETERMINATION OF SAFETY IMPACT To insure the safety of all employees and visitors to the building, elevator/escalator maintenance services is required.
2 FINANCIAL IMPACT The funding of $171,860 for this service is included for the first four months of this contract in the FY14 budget in cost center number 6430, Building Services under project , Gateway Building Costs. Since this is a multi-year contract, the cost center manager and Executive Director, Employee and Labor Relations will be accountable for budgeting the cost in future years. Impact to Budget The source of funds for these services are allocated through General Overhead funding which is based on MTA's federally approved indirect-cost-allocation plan which distributes costs agency-wide including eligible bus and rail operating projects. No other funds were considered because these funds are programmed for this use. ALTERNATIVES CONSIDERED An alternative to contracting for elevator/escalator maintenance services would be to perform this service with Metro employees. This alternative is not feasible because state and city law requires that only trained and certified mechanics can provide this service. Currently, staff is not trained and certified for this work. NEXT STEPS If approved, contract will be issued to Mitsubishi Electric & Electronics USA, Inc., Elevator and Escalator Division to perform the Gateway building elevator/escalator maintenance and repair services. ATTACHMENT A. Procurement Summary Prepared by: Phyllis Meng, Deputy Executive Officer, General Services (213) Gateway Building Elevator and Escalator Services Page 2
3 ~ ~ ~efi Chief Administrative Services Officer Don Ott Executive Director, Employee and Labor Relations ArthurT.Leahy Chief Executive Officer Gateway Building Elevator and Escalator Services Page 3
4 ATTACHMENT A PROCUREMENT SUMMARY GATEWAY BUILDING ELEVATORJESCALATOR SERVICE 1. Contract Number: PS Recommended Vendor: Mitsubishi Electric Elevator and Escalator Division 3. Type of Procurement (check one): D IFB [gi RFP D RFP-A&E D Non-Competitive D Modification D Task Order 4. Procurement Dates: A. Issued: August 12, 2013 B. Advertised/Publicized: August 13, 2013 C. Pre-proposal/Pre-Bid Conference: n/a D. Proposals/Bids Due: September 12, 2013 E. Pre-Qualification Completed: December 20, 2013 F. Conflict of Interest Form Submitted to Ethics: December 30,2013 G. Protest Period End Date: January 28, Solicitations Picked Bids/Proposals Received: 2 up/downloaded: Contract Administrator: Telephone Number: Kenneth Takahashi Project Manager: Telephone Number: John Flores A. Procurement Background This Board action is to approve Contract PS to provide Gateway Building elevator and escalator services. The RFP was issued in accordance with Metro's Acquisition Policy and the contract type is a Firm Fixed Unit Price. No amendments were issued during the solicitation phase of this RFP. B. Evaluation of Proposals/Bids A total of two proposers responded to this solicitation. A Selection Committee consisting of staff from General Services, Strategic Transit Asset Management, and Procurement was convened and conducted a comprehensive technical evaluation of the proposals received. Gateway Building Elevator and Escalator Services Page 4
5 The proposals were evaluated based upon the following evaluation criteria and weights: Degree of Firm and Personnel Skill and Experience Understanding of Work and Appropriateness of Approach Cost Proposal 20 percent 30 percent 40 percent The evaluation criteria are appropriate and consistent with criteria developed for other, similar service type contracts. Several factors were considered when developing these weights, giving the greatest importance to the cost. The two firms considered for award are listed below in alphabetical order: 1. Amtech Elevator Services 2. Mitsubishi Electric Elevator and Escalator Division During the week of October 21, 2013, the evaluation committee met and discussed their initial evaluations of the two proposers. The evaluation committee determined that each firm would be invited for an interview. Interviews were scheduled with each firm for November 1, The firms' project managers and key team members had an opportunity to present each team's qualifications and respond to the evaluation committee's questions. In general each team's presentation addressed the requirements of the RFP, experience with all aspects of the required tasks, and stressed each firm's commitment to the success of the project. Staffing plans, work plans, and perceived project issues were also highlighted. Each team was asked questions relative to the firm's proposed alternatives and previous experience on Metro facilities. Best and Final Offers for price only were requested from both proposers and were received and evaluated. Qualifications Summary of Firms Within the Competitive Range: Amtech Elevator Services Amtech Elevator Services is a wholly owned subsidiary of the Otis Elevator Company. They offer maintenance, repair, and modernization services for all types of elevator and escalator systems. Mitsubishi Electric Elevator and Escalator Division Mitsubishi Electric began their business manufacturing, installing, and maintaining elevators and escalators as well as producing electric power generation equipment. The company has emerged as one of the largest diversified electrical equipment manufacturers. Gateway Building Elevator and Escalator Services Page 5
6 The evaluation committee has recommended Mitsubishi Electric Elevator and Escalator Division for the award. The scoring recap is listed in the following table: Weighted Average Factor Average 1 FIRM Score Weight Score Rank 2 Amtech Elevator Services Degree of Firm and Personnel Skill 3 and Experience % Understanding of Work and Appropriateness of Approach for Implementation and Satisfaction of 4 the Statement of Work % Cost Proposal % Total 90.00% Mitsubishi Electric Degree of Firm and Personnel Skill 8 and Experience % Understanding of Work and Appropriateness of Approach for Implementation and Satisfaction of 9 the Statement of Work % Cost Proposal % Total 90.00% C. Cost/Price Analysis The recommended price has been determined to be fair and reasonable based upon price analysis, fact finding, and negotiations. Proposer Name Proposal Amount BAFO/Negotiated 1. Amtech Elevator Services $3,283,042 $3,285, Mitsubishi Electric $3,901,016 $3,852,224 Elevator and Escalator Division D. Background on Recommended Contractor Mitsubishi Electric Elevator and Escalator Division was established in 1931 and has expanded to over sixty-five countries worldwide. Mitsubishi Electric Elevator and Escalator Division has branch offices in San Francisco and Los Angeles. Mitsubishi's National Headquarters is located in the City of Cypress in Orange County, California. Mitsubishi is the current Metro contractor for Gateway elevator and escalator services and has been providing satisfactory service. Gateway Building Elevator and Escalator Services Page 6
7 E. Small Business Participation The Diversity and Economic Opportunity Department (DEOD) established a 5% Race Conscious Disadvantaged Business Enterprise (DBE) goal for this solicitation. Mitsubishi Electric Elevator and Escalator listed a DBE subcontractor for the 5% DBE commitment. Mitsubishi Electric Elevator and Escalator met the DBE goal. SMALL SMALL BUSINESS DBE5% BUSINESS DBE5% GOAL COMMITMENT DBE Subcontractor % Committed 1. Excelsior Elevator Corporation 5.00% Total Commitment 5.00% Gateway Building Elevator and Escalator Services Page 7
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