Title Department of Transportation recommending the Board:
1) Find Hymax fuel cell systems and parts are exempt from competitive bidding in accordance with County Procurement Policy C-17 Section 3.4.2 due to Western Systems Inc. being a sole source supplier;
2) Approve and authorize the Purchasing Agent to sign purchase contract 9872 with Western Systems Inc. of Everett, Washington with a three (3) year term and not-to-exceed amount of $300,000; and
3) Authorize the Purchasing Agent to increase the purchase contract for Hymax fuel cell systems and parts during the term as long as funding is available within Transportation's budget.
FUNDING: Master Circulation & Funding Plan Financing (MC&FP) (50%) and TIM Zone 1-7 (50%).
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DISCUSSION / BACKGROUND
Department of Transportation (Transportation) has been purchasing and utilizing Hymax Fuel Cell Systems as a backup energy source for traffic signal locations. Each time a purchase is requested, a sole source is generated and approved. Due to the volume of anticipated purchases over a three (3) year period for both maintenance and Capital Improvement Projects, Transportation has determined a three (3) year purchase contract is necessary.
County Procurement Policy C-17 3.4.2 describes sole source/single source purchases were there is only one vendor capable of providing an item or service, and therefore it is not possible to obtain competitive bids because of (d) a distributor has an exclusive franchise or operating agreement with the supplier of goods to be purchased or maintained and no other person or entity may provide, install, service, or maintain the goods in the County’s jurisdiction. Due to this exemption, Transportation is able to purchase solely from Western Systems, Inc. for Hymax Fuel Cell Systems and parts. Annually, Transportation purchases fuel cell systems or replacement parts, however additional fixed assets were determined to be needed when developing CIP# 36105011, Diamond Springs Parkway Project. Transportation has determined it is more cost effective to purchase the materials and contract out the installation.
The request to purchase two (2) systems for the Diamond Springs Parkway Project is currently included on the Fiscal Year (FY) 2025/26 Fixed Asset list with a budget of $70,000 each.
ALTERNATIVES
The Board could choose not to approve the purchase contract or the purchase of two (2) Hymax Fuel Cell Systems, however this would leave the Diamond Springs Parkway Project short necessary signal equipment to complete the project and staff generating a sole source request each time an item is needed.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
Procurement and Contracts, a division of the Chief Administrative Office
CAO RECOMMENDATION/COMMENTS
Approve as recommended.
FINANCIAL IMPACT
Funding is available within the Department of Transportation, Maintenance and Operations Division FY 2025/26 budget, as well as the CIP budget for project #36105011. Funding will be included in the future budget recommendations.
CLERK OF THE BOARD FOLLOW UP ACTIONS
N/A
STRATEGIC PLAN COMPONENT
N/A
CONTACT
Rafael Martinez, Director
Department of Transportation