Price agreements establish set prices for services or commodities that remain in effect for a designated period of time. This allows City departments to utilize the agreements in the performance of their operations without requiring a bid process each time a service or commodity is needed.
The Independence Power and Light Department (IPL) periodically needs extra assistance with storm restoration or construction work for which the equipment, tools, or personnel resources are not on hand. Due to these needs, IPL identified the need for service agreements. With these agreements, costs can be reduced, in that these services are not being sought during periods of high demand, and the capabilities to handle restoration conditions will potentially be enhanced.
Storms are common in our area and very unpredictable. For assistance in storm restoration IPL can call on the Missouri Public Utility Alliance and/or the American Public Power Association Mutual Aid programs who can request assistance on our behalf from municipal electric systems in Missouri and across the country. However, when storms are wide spread, the groups who would be called upon to assist the City may be unavailable. When this happens other resources have to be sought out. With these price agreements, contractors have responded to a competitive bid to bring aid to the City. Their pricing has been submitted and will be on file. This proactive measure will assist the City if it were to request FEMA reimbursement.
There are also times when a job may require equipment or associated resources that the City does not normally have on hand. These cases may not be of sufficient size to warrant formal competitive bidding. The non-emergency component of this price agreement will allow IPL to utilize contract resources when and if the need for unusual equipment and resources dictate.
Planning ahead and being prepared is part and parcel to disaster recovery and emergency power restoration. This price agreement will enable IPL to be better prepared for such occasions. Establishing arrangements for resources such as this is an industry best practice.
An Invitation to Bid (ITB) for Emergency and Non-Emergency Utility Services was issued on March 30, 2018. Six responsive bids were received: Black and McDonald, Martin Underground Construction, Michels Power, RS Electric Utility Services, Electrical Corp. of America and Mark One Electric. Bids received from Capital Electric, PAR Electrical, and J.F. Electric were deemed non-responsive because they did not meet the minimum requirements of the ITB, which required documentation to demonstrate a minimum bonding capacity of $100,000.
To provide the best options during all conditions, the bid document stated that multiple awards were planned. Therefore, it is recommended that the six responsive bidders: Black and McDonald, Martin Underground Construction, Michels Power, RS Electric Utility Services, Electrical Corp. of America, and Mark One Electric, be awarded price agreements for the services specified in their bids. See the attached bid tabulation for additional information.
The Invitation to Bid was posted as follows:
1. Posted on the City’s website.
2. Direct notification by Public Purchase, the City’s Internet-based, e-bidding system to 335 providers; 58 accessed the ITB.