Memorandum

City of Lawrence

Utilities Department

TO:	David Corliss, ACM, Administrative Services Debbie Van Saun, ACM, Community Development Services
FROM:	Chris Stewart, Assistant Utilities Director, Water
CC:	Tim Will, Alan Landis
Date:	November 16, 2005
RE:	Agenda Item

Please include the following item on the City Commission consent agenda for consideration at their November 29, 2005 meeting:

Reject Bid for Access Management System City of Lawrence Department of Utilities

Project Description:

This was a Capital Improvement Plan (CIP) project for security of Kaw & Clinton Water Treatment Facilities.  Project includes computer networking of interior and exterior doors at both Kaw and Clinton Water Treatment Facilities with access control through proximity readers and computer recordings of door access.  This project was included as a recommendation from the Vulnerability Assessment of the Water Treatment plants to improve facility security.  The Vulnerability Assessment was required by regulations from the Environmental Protection Agency. 

Project Status/ Details:

A previous recommendation was provided by Utility Department staff to award the base bid with an upgrade to the apparent low bidder as described below: 

Base Bids were accepted by the purchasing agent on August 30, 2005 and included the following:

Contractor                            Base Bid              Comments

Ted’s Systems, LLC            $68,100 

Overfield Corporation           $130,000            Magnetic locks w/few Electric Strikes

Huxtable & Assoc.              $212,300            Magnetic locks / Electric Strikes

Siemens Building Tech.         $249,658            Electric Strike

Bids were reviewed by Department staff.  The lowest bid from Ted’s Systems did not meet the bidding requirements.  The contractor did not visit the site to determine the scope of work as required in the bid documents.  The second bidder submitted an acceptable bid that met the specifications and bid was based on using Magnetic Locks for the majority of the doors. After reviewing the equipment with the lower bidder, Department staff requested the use of electric strikes for the majority of locks due to increased security and access capabilities. The lowest responsive bidder, Overfield Corporation submitted an increase of $35,000 to enhance/ upgrade the security system to electric strikes.  Total bid price of $165,000.

Additional Bid Review and Analysis:

The specifications were written with conflicting information.  The bid specifications provided a door list for electric strikes on all locks but also made the statement that magnetic locks could be provided if approved by the owner.  The intent of this statement was to recognize that a few doors may require magnetic locks but the majority of doors require electric strikes.  The two apparent low bidders submitted information to staff indicating that their bids were based on magnetic locks and electric strikes for the project.  This was not the intent of the project specifications. 

During the initial review, Utility staff met with the purchasing agent to discuss the bid from the apparent low bidder and a proposed upgrade cost to include all electric strikes. At the time of initial review and recommendation, staff from both Departments believed that the process to upgrade the cost was an acceptable method of negotiation with the low bidder.  However, a second review provides additional information to recognize that there was a misunderstanding of the process to upgrade the bid.  In addition, during the second review, it has become apparent that the conflicting information in the bid specifications did not allow all bidders the same opportunity to bid on the same product and associated quantities. For example, the highest bid was base on the use of electric strikes for the entire project and the other two bids used a combination of magnetic / electric strikes.

Staff Recommendation:

Staff recommends rejection of all bids from August 30, 2005.  The specifications will be updated, corrected to clarify the bid requirements and additional research to ensure the proposed products are up to date with current technology. 

Action Request:

The Utilities Department is seeking approval from the City Commission to reject all bids for the access management system.