TO: Mayor and Commissioners
FROM: Missie Barletto, Public Works Director
THROUGH: Terrence R. Moore, ICMA-CM
DATE: February 18, 2025
Title
APPROVAL OF RESOLUTION NO. 21-25 TO AWARD AN AGREEMENT TO A-EXCELLENT SERVICE, INC. FOR HVAC INSTALLATION AND REPAIR SERVICES PURSUANT TO INVITATION TO BID (ITB) 2025-004 IN THE AMOUNT OF $2,300,000.00
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Recommended Action:
Recommendation
Motion to Approve Resolution No. 21-25 to award an Agreement to A-Excellent Service, Inc. for HVAC Installation and Repair Services pursuant to ITB 2025-004 in the amount of $2,300,000.00.
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Background:
The City of Delray Beach (City) requires HVAC installation, repair, and maintenance services to ensure approximately 250 systems located within City facilities are in optimum working conditions. Systems are placed on a 10-year replacement plan to ensure the best performance, energy efficiency, and cost-effectiveness. Replacements are contingent upon budgetary approval; therefore, prolonged replacements have caused many of the HVAC systems to become outdated and in need of periodic repair to restore the units to operational status. Repair and replacement costs increase the longer an outdated or malfunctioning unit is kept in service rather than replaced.
On November 15, 2024, the City advertised ITB No. 2025-004 for HVAC Installation and Repair Services.
On December 11, 2024, the City received three (3) submittals pursuant to ITB 2025-004. The bid submitted by A-Excellent Service, Inc. was deemed the lowest, responsive and responsible bidder per the solicitation requirements.
HVAC replacements, repairs, and preventative services in FY 2023 - 2024 totaled $430,596.00. To ensure adequate allocations for these services, the Public Works Department is requesting approval to award the agreement to A-Excellent Service, Inc. as follows:
|
Contract Value |
|
Initial Term |
Upon execution - February 18, 2028 |
$1,380,000.00 |
|
Renewal Term 1 |
February 19, 2028 - February 18, 2029 |
$460,000.00 |
|
Final Renewal Term |
February 19, 2029 - February 18, 2030 |
$460,000.00 |
|
TOTAL |
$2,300,000.00 |
The City, at its sole discretion, reserves the right to terminate this agreement with or without cause immediately upon providing written notice to the contractor. Upon receipt of such notice, the contractor shall not incur any additional costs under the agreement. The City shall be liable only for reasonable costs incurred by the contractor prior to the date of the notice of termination. The City shall be the sole judge of “reasonable costs.”
This motion is in accordance with Code of Ordinances Section 36.02, Commission Approval Required.
Attachments:
1. Resolution No. 21-25
2. Agreement ITB 2025-004
3. Exhibits to Agreement
4. Legal Review Checklist
5. Bid Submittal
6. ITB 2025-004 Final Solicitation
City Attorney Review:
Approved as to form and legal sufficiency.
Funding Source:
Funding is available in Public Works from 001-41-350-519.46-15 (Repair and Maintenance Service Equipment Maintenance). Public Works is the primary user for this contract however other departments, such as Parks & Recreation, may contribute funding to this agreement on an as-needed basis. Additionally, this agreement could be utilized for future Capital Improvement Program (CIP) projects for HVAC replacements.
Timing of Request:
Timely approval is requested to ensure continued services.