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HomeMy WebLinkAboutLetters - Grounds Maintenance SvcsKENNETH ROBERTSON TONY E. CRAPP, JR. Chief Procurement Officer City Manager April 19, 2011 McIntyre Maintenance, Inc. Attn: Cedric McIntyre 26235 SW 130th Place Homestead, FL 33032 SENT VIA E-MAIL cedricmcintvre abellsouth.net RE: Grounds Maintenance Services Citywide IFB No. 247232 Dear Mr. McIntyre: We are in receipt of your letter dated April 11, 2011, wherein you indicate your inability to honor the prices, terms and conditions of the recently awarded contract to McIntyre Maintenance, Inc., for Grounds Maintenance Services Citywide, IFB No. 247232, citing to the current economic crisis and the period of time it has taken for the City to award this contract. On April 8, 2011, you visited our office and had a discussion with Ms. Maritza Suarez, Procurement Supervisor, whereby you indicated that you had misunderstood the contract specifications regarding the line item frequency (per month), and that your bid prices were based on a per job/cut basis and not on a monthly basis. At that point in time, Ms. Suarez reminded you of the fact that you had previously confirmed your bid prices in writing in response to the City's letter dated November 22, 2010. You acknowledged receipt of the letter and your confirmation of the prices bid; however, you reiterated the fact that you misunderstood the bid specifications. Attached is a copy of the letter for your reference. It should also be noted that pursuant to the General Terms and Conditions of IFB 247232, Section 1.61. Preparation of Responses (Hardcopv Format)_ Subsection F, bid responses are to remain valid for at ]east 180 days. Bids were received for this contract on October 25, 2010, and the City Commission awarded this contract on March 10, 2011. This timeline was well within the 180 days. In your letter, you have asked the City to consider "readjusting service maintenance requirements by eliminating cycles." The bid specifications/scope of work for IFB 247232 were extremely clear and the unit of measure listed for each bid line item was clearly marked "Month". The City may not substantively amend the specifications requirements without requiring a new competitive procurement process. McIntyre Maintenance, Inc. Page 2 of 4 April 19, 2011 In your letter, you also asked the City to consider an equitable adjustment and a Consumer Price Index (CPI) increase for rising fuel costs. An equitable adjustment in the contract pricing may be considered, pursuant to Sections 2.4 and 2.5 of the contract: IFB No. 247232, Section 2.4. Equitable Adiustment reflects the following: The Purchasing Department may, in its sole discretion, make an equitable adjustment in the contract terms and/or pricing if pricing or availability of supply is affected by extreme or unforeseen volatility in the marketplace, that is, by circumstances that satisfy all the following criteria: (I) the volatility is due to circumstances beyond the successful bidder(s) control, (2) the volatility affects the marketplace or industry, not just the particular contract source of supply, (3) the effect on pricing or availability of supply is substantial, and (4) the volatility so affects the successful bidder(s) that continued performance of the contract would result in a substantial loss. Successful bidder(s) might have to supply documentation to justify any requested percentage increase in cost to the City of Miami. Furthermore, Section 2.5. Consumer Price Index -(CPI for Fuel), indicates that market changes will be determined utilizing the Consumer Price Index for All Urban Consumers (CPI-U), U.S. City Average, Miami -Ft. Lauderdale, FL., Gasoline (Unleaded Regular). The statistical data was retrieved by visiting the United States Department of Labor website at http://www.b1s.gov/. The CPI for October 2010 was 248.811 and in February 2011 it was 281.005. File Edit 'View 'Favorites Tools. Help,,-, t if1 Search '- arts ?_.`r http://idata.bl,tiovipdqfSurveyOutput5ervlet J calculators r e Databases,,Databases,,Tablese:� �. I:;�t1::�tc}�'s by��t:1�1 et Gltanie Otrlpltt Options: Fig aria jM :' To: L5iii 3:: El include graph: Gates extracted on: April 14, 2011 (2:36:3G Phi) Consumer Price Index - All Urban Consumers Id: GUM," o 3399413 Noc lvaaa.ally d F cn; 11 Ic G.xael int vnitrdol r molar bu.< Perin, 19.-6,10U download:: 55.57E ; 255.094 240.205 23E.431 1 More Formatting Options... ,r: al, , i " WALF2"; F'' 242200 A/tclnlyre Allaintenance, inc. Page 3 of 4 April 19, 2011 CPI adjustment formula: CPI for cur•ent period (February 2011) 281.005 Less CPI for previous period (October 2010) 248.81 1 Equals index point change 32.194 Divided by previous period CPI 248.811 Equals= 0.12939 Result multiplied by 100 0.12939 x 100 Equals —percent change 12.94% As a result, the CPI for fuel has increased 12.94%. Please be advised that this percentage increase may only be applied to your proportionate share of fuel costs. Taking into account the above mentioned; please provide documentation that illustrates what percentage of your total monthly operating costs are attributable to fuel only (excluding labor, equipment/materials/supplies, etc.). At a minimum, please detail for each awarded group: 1) total labor cost (includes payroll burden, liability insurance); 2) fuel operating expense percentage over labor; 3) other operating expensepercentage over labor; 4) profit percentage over total cost. The calculation of these figures should yield the total monthly rate by group, as illustrated in the below sample table: LABOR COST PER DAY $230.35 PAYROLL BURDEN (%) 20.05% PAYROLL BURDEN ($) $46.19 LIABILITY (%) ' 5.00% LIABILITY ($) $34.55 TOTAL LABOR 3311.09 FUEL OPERATING EXPENSE (%) OVER LABOR 5% OTHER OPERATING EXPENSE (%) OVER LABOR 5% TOTAL OPERATING EXPENSE (%) OVER LABOR 10% OPERATING EXPENSE ($) 523.04 TOTAL OPERATING EXPENSE $23.04 TOTAL COST (TOTAL LABOR + TOTAL OPERATING) $334. 12 PROFIT (%) OVER TOTAL COST 15.00% PROFIT ($) OVER TOTAL COST $50.12 OVERALL COST $384.241monthly Upon receipt of this supporting documentation, the Purchasing Department will review same in order to determine if an CPI increase is warranted. You are reminded that, to date, McIntyre Maintenance has failed to perform under Contract 247232. In accordance with the General Terms and Conditions, Section 1.27. Default/Failure to Perform, your "failure to perform the work or deliver the goods/services required under the Contract and/or within the time required" shall be grounds for default. Furthermore, Section 2.31. Termination, reflects the following: McIntyre Maintenance, Inc. Page 9 of 4 April 19, 2011 0 A. For Default If Contractor defaults in its performmance under this Contract and does not cure the default within 30 days after written notice of default, the City Manager may terminate this Contract, in whole or in part, upon written notice without penalty to the City of Miami. In such event the Contractor shall be liable for damages including the excess cost of procuring similar supplies or services. Additionally, in response to your letter, the City reached out to the next lowest responsive bidders for Groups 1, 2 and 3. Both companies have already confirmed their bid prices in writing and would continue to honor the same beyond the 180-day timeframe should McIntyre Maintenance default under Contract 247232: Group 1: Group 2: Group 3: McIntyre Maintenance Groundkeepers $10,800.00 $11,520.00 $30,000.00 $16,800.00 BCLS Landscaping Group $36,346.92 $26,467 20 A response to this letter is required and must be received via email (msuarezn.miamiaov.com) or fax (305-400-5025), to the attention of Maritza Suarez, Procurement Supervisor, by no later than Friday, April 22, 2011 at 10:90 a.m. In your response, please clarify your intent with regard to your cun-ent and future contractual performance requirements under Contract 247232. Thank you. The City appreciates your continued interest in seeking to do business with the City of Miami. Sincerely yours, Kenneth Robertson Director of Purchasing KR:ms/kr KENNETH ROBERTSON TONY E. CRAPP, JR. Chief Procurement Officer City Manager McIntyre Maintenance, Inc. Attn: Cedric McIntyre 26235 SW 130ir' Place Homestead, FL 33032 April 22, 2011 SENT VIA E-MAIL cedric.mcint+,rreCahbellsouth.net RE: Grounds Maintenance Services Citywide IFB Contract No. 247232 Dear Mr. McIntyre: Please be advised that McIntyre Maintenance, Inc., is hereby found in default of contract, as per the following: McIntyre Maintenance, Inc., has failed to submit a response to the City of Miami's (City) letter dated April 19, 2011, wherein the City requested for clarification of your intent with regard to your current and future contractual performance requirements under Contract 247232. Furthermore, the Purchasing Department has recently learned of your failure to attend a meeting scheduled for April 8, 2011, with staff from the General Services Administration Department to review the scope of services. for .Group i as it relates to the. Miami Riverside Center (MRC) Building. • The Department of Fire -Rescue has also communicated to us your failure to provide services at any of their facilities in Group 3, and your failure to respond to their phone calls. Pursuant to Sections 1.27 and 2.31 of IFB Contract 247232, you are in default of the contract and you have thirty (30) days to cure this default. Failure on your part to correct the default to the City's satisfaction and within the time stipulated shall result in contract termination for default. In the near future, should McIntyre Maintenance, Inc., respond to a soiicitation (IFQ, IFB, RFQ, RFP, RFLI) issued by the City of Miami, pursuant to Section 1.3, Acceptance/Rejection, The City &so reserves the right to reject the response of any bidder/proposer who has previously failed to properly perform under the terms and conditions of a contract, to deliver on time contracts of a similar nature, and who is not in a position to perform the requirements defined in this formal solicitation." Thank you. Sincerely, j,.e/772C1,11? J. Robertson Kenneth Robertson /s/ Director / Chief Procurement Officer KR:ms •Tau KENNETH ROBERTSON TONY E. CRAPP, JR. Chief Procurement Officer City Manager } NOTICE OF AWARD (SHORT TERM CONTRACT) May 11,2011 Mr. Terry Jones BCLS Landscaping Group, Inc. 4055 NW 17ih Avenue Miami, FL 33142 SENT VIA E-MAIL bclsgroupinc@gmail.com RE: IFB 247232 — Grounds Maintenance Services Citywide Dear Mr. Jones: Please be advised that BCLS Landscaping Group, Inc. is the recommended vendor for the provision of Grounds Maintenance Services Citywide (Groups 2 & 3). The award of this contract is on a short term basis for an amount not to exceed S12,500.00, effective immediately until the award of the long term contract takes place, which is scheduled for approval by the City Commission at its next available meeting. In the meantime, you are reminded that, in accordance with the terms and conditions, you are required to furnish to this office, an original/copy certificate of insurance, referencing the Bid number and Bid title, evidencing the City as an Additional insured. For firms who are exempt from workers compensation, a letter of exemption wit be accepted. Please submit as soon as possible, all original/copies of insurance certificates to the Purchasing Department, attention Aimee Gandarilla, fax (305) 400-5338. Should you have any questions regarding this matter, please contact Ms. Maritza -Suarez, Procurement Supervisor, at 305-416-1907. The City of Miami appreciates your participation in servicing our needs. Sincerely yours, Kenneth Robertson Director of Purchasing KR:MS c: Bid File f KENNETH ROBERTSON JOHNNY IVIARTINEZ Chief Procurement Officer City Manager NOTICE OF AWARD (SHORT TERM CONTRACT) July 11, 2011 Mr. Terry Jones BCLS Landscaping Group, Inc. 4055 NW 17th Avenue Miami, FL 33142 SENT VIA E-MAIL bclsgroupinc c©r. gmail.com RE: IFB 247232 — Grounds Maintenance Services Citywide Dear Mr. Jones: Please be advised that BCLS Landscaping Group, Inc. is the recommended vendor for the provision of Grounds Maintenance Services Citywide (Group 1). The award of this contract is on a short term basis for an amount not to exceed $12,500.00, effective August 1, 2011 until the award of the long term contract takes place, which is scheduled for approval by the City Commission at its next available meeting. Should you have any questions regarding this matter, please contact Ms. Maritza Suarez, Procurement Supervisor, at 305-416-1907. The City of Miami appreciates your participation in servicing our needs. Sincerely yours, Kenneth Robertson Director of Purchasing KR:MS c: Bid File ittrLif a KENNETH ROBERTSON JOHNNY MARTINEZ Chief Procurement Officer City Manager NOTICE OF AWARD (SHORT TERM CONTRACT) AMENDED July 22, 2011 Mr. Terry Jones BCLS Landscaping Group, Inc. 4055 NW 17tn Avenue Miami, FL 33142 SENT VIA E-MAIL bclsgroupinc@gmail_com RE: IFB 247232 — Grounds Maintenance Services Citywide Dear Mr. Jones: Please be advised that BCLS Landscaping Group, Inc. is the recommended vendor for the provision of Grounds Maintenance Services Citywide (Group 1). The award of this contract is on a short term basis for an amount not to exceed $12,500.00, effective August 1, 2011 immediately, until the award of the long term contract takes place, • which is scheduled for approval by the City Commission at its next available meeting. Should you have any questions regarding this matter, please contact Ms. Maritza Suarez, Procurement Supervisor, at 305-416-1907. The City of Miami appreciates your participation in servicing our needs. Sincerely yours, Kenneth Robertson Director of Purchasing KR:MS c: Bid File