Title
Contract No. 1902702
Furniture, Flooring and Space Design Services
CIP: N/A / BCE: N/A
Body
Agenda of: August 28, 2019
Item No: 2019-308
Amount: Two (2) Year Contract $2,000,000.00
First Year Renewal Option 1,000,000.00
Second Year Renewal Option 1,000,000.00
Total $4,000,000.00
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Sue F. McCormick
Chief Executive Officer
Great Lakes Water Authority
DATE: August 12, 2019
RE: Contract No. 1902702
Furniture, Flooring and Space Design Services
Vendor: Interior Environments, LLC
MOTION
Upon recommendation of Cheryl Porter, Chief Operating Officer - Water and Field Services, the Board of Directors (Board) of the Great Lakes Water Authority (GLWA), authorizes the Chief Executive Officer (CEO) to enter into Contract No. 1902702 “Furniture, Flooring and Space Design Services” with Interior Environments, LLC, in the amount of $2,000,000.00 for two (2) years, with two (2) one (1) year renewal options at a cost of $1,000,000.00 per year; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
RFB-1087 for Office Furniture was the initial procurement used to address existing furniture needs at GLWA locations that were heavily soiled and damaged beyond repair. The GLWA Finish and Furniture Standards, which contains Allsteel / Gunlocke products, was developed and approved to standardize the upgrades to the respective areas. The Allsteel / Gunlocke brand was selected because it contains a lifetime warranty and can be reconfigured and relocated as needed for operational changes. The transition to new furniture using the “office standard” started approximately two (2) years ago and should continue to protect the investment in GLWA facilities. The key cylinders are interchangeable with existing furniture being reused in the future. New workspace needs such as, ergonomic and height adjustable tables and desks can be configured into the current workstation and office standards. The furniture systems, space planning, and finishes standard, allows for uniform and cleanable finishes, furniture, flooring and space planning for current business operations.
JUSTIFICATION
This contract will allow GLWA to make facility improvements when needed. Multiple GLWA locations will need upgrades from time to time. Contract No. 1902702 is required to continue this initiative for safety and facility improvements using the GLWA Finish and Furniture Standards at the remaining GWLA locations.
FINANCIAL PLAN IMPACT
Summary: The proposed contract will originate with, and be managed by, Facility Operations; however, the contract will be utilized by multiple cost centers within GLWA. This will be a task order contract with a blanket purchase order created to manage the overall spend of the contract. As areas within GLWA are identified to be upgraded, a formal request for the procurement will be issued which will require approval from the contract manager prior to the purchase being made. The purchase order will be modified to expense the purchase to the cost center in which the upgrade is taking place. In similar fashion, budget amendments will be created to move budget to the appropriate cost centers as plans for the upgrade of the locations are identified. Sufficient funds are provided in the Improvement & Extension (I&E) financial plan for this contract related to the purchase of furniture, flooring, and space planning services. It is anticipated that a minor portion of this contract will not meet the I&E funding requirements (e.g. item purchased cannot be capitalized) and will need to be funded through Operations & Maintenance (O&M). In this event, a budget amendment will be required. A review of any positive O&M variances will be considered prior to drawing from unallocated reserves.
Funding Source: Improvement & Extension (I&E)
Cost Center(s): Facility Operations ……………Centralized Services cost center 882421
Expense Type(s): Capital Outlay (901100)
Estimated Cost by Year and Related Estimating Variance: See table below.
Fiscal Year Amount
FY 2020 Budget $1,000,000
FY 2021 Financial Plan 1,000,000
FY 2022 Financial Plan 1,000,000
FY 2023 Financial Plan 1,000,000
Financial Plan Forecast $4,000,000
Proposed Contract Amount $4,000,000
Variance (positive/ (negative)) $ 0
SAVINGS, COST OPTIMIZATION AND REVENUE ENHANCEMENT IMPACT
Cost savings are not determinable at the time of award.
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on August 14, 2019. The Operations and Resources Committee unanimously recommended to refer this item to the full Board without a recommendation.
SHARED SERVICES IMPACT
This item does not impact the shared services agreement between GLWA and DWSD.