It is recommended that the Mayor and City Commission approve the award of a contract for the maintenance of street lighting on state roads within the Miami Beach city limits to: R & D Electric, Inc., the lowest responsive, responsible bidder as the primary vendor; AGC Electric Inc., the second-lowest responsive, responsible bidder as the secondary vendor; and AUM Construction, Inc, the third-lowest responsive, responsible bidder as the tertiary vendor.

The City of Miami Beach (“The City”) services, repairs, and maintains all roads in the City limits, including the State Roadway Street Lighting System (hereinafter referred to as the Lighting System), which consists of an approximate minimum of 812 street lighting fixtures located along Florida Department of Transportation (FDOT) arterial roadways. The work shall include: continuous repairs and maintenance to the Lighting System to include light pole assemblies, foundation base, wiring, luminaire assemblies, conductors, grounding system, pole cable distribution system, fuses, ballast assemblies, pull boxes, conduits, load center, transformers, control devices, photocells, service points, and other related miscellaneous subsystems and appurtenance.

On December 22, 2021, the Invitation to Bid (ITB) 2022-094-AY for the maintenance of street lighting on all roads within the Miami Beach limits was issued. A pre-bid conference to provide information to proposers submitting a response was held on January 4, 2022. Two (2) addenda were issued. The Procurement Department issued bid notices to approximately 4,182 companies utilizing the City’s electronic bidding system. 39 prospective bidders accessed the advertised solicitation. ITB responses were due and received on January 13, 2022. The City received proposals from the following five (5) firms: AGC Electric Inc., AUM Construction, Inc, Lighting of Tomorrow, LLC, Metro Contractor, Inc., and R & D Electric, Inc.

The ITB stated that the lowest responsive, responsible bidder meeting all terms, conditions, and specifications of the ITB will be recommended for award. In its due diligence, the Procurement and Public Works Departments found that R & D (the lowest responsive bidder), AGC Electric Inc. (the second-lowest responsive bidder), and AUM Construction, Inc (the third-lowest responsive bidder) met the requirements of the ITB (see Attachment A).

A brief summary of each bidders follows. 

R & D Electric, Inc. (Primary)

For over twelve years, R & D Electric, Inc. has been part of the constant growth and improvement of South Florida by serving various cities, municipalities, highway authorities, and agencies in street lighting, traffic signalization, and utility work. R & D Electric, Inc. has provided electrical services to the Miami Dade Police Department, the City of Coral Gables, and the City of Tamarac.

Since 2014 R & D Electric, Inc. has provided routine electrical services to the City, including emergency repairs and planned repairs or small projects. To date, the City is satisfied with the services provided.

AGC Electric Inc. (Secondary)

Established in 1997, AGC Electric, Inc. is a state-certified electrical firm specializing in all types of electrical work, traffic signal, roadway and parking lot lighting, fire alarms, CCTV, intercom, sound, intrusion detection, stage lighting, and telephone data systems. Through multiple years of experience, the firm has offered its services to clients such as the Florida Department of Transportation. AGC Electric Inc. is also an incumbent providing these services to the City, and the City has been satisfied with its work and offered positive feedback.

AUM Construction, Inc (Tertiary)

Since 2006, AUM Construction has been a state-certified electrical and general contractor registered in Florida, specializing in transportation lighting, signalization, and intelligent transportation systems. Through multiple years of experience, the firm has offered services to clients such as the Florida Department of Transportation for District 6. AUM Construction currently provides the City with traffic signal improvement and repair services, and the City has been satisfied with its work.

Staff performed a cost analysis to determine whether the fiscal impact is in the City's best interest. The lowest responsive bidder, R&D Electric, Inc., provided a cost for services of $153,653 annually (based on the quantities established in the ITB), which is an approximate increase of about 27% compared to the City’s current cost for these services. The Consumer Price Index (CPI) change since the current contract was awarded in March 2017 is 14%. Accordingly, the proposed annual cost is approximately 13% higher than the CPI increase from March 2017; however, it is important to note that many contractors are reporting cost increases above CPI ranges. Therefore, due to the challenges of unpredictable pricing and the market volatility currently being experienced, the Administration believes it is in the City's best interest to award.

The costs of the related services are subject to funds availability approved through the City's budgeting process. Grant funding is not expected to be utilized for this project.

Based on the foregoing, I recommend that the Mayor and City Commission of the City of Miami Beach, Florida approve the award of a contract for the maintenance of street lighting on state roads within the Miami Beach city limits to: R & D Electric, Inc., the lowest responsive, responsible bidder as the primary vendor; and AGC Electric Inc., the second-lowest responsive, responsible bidder as the secondary vendor; and AUM Construction, Inc, the third-lowest responsive, responsible bidder as the tertiary vendor.