| | | | | | | |  | Resolutions - C7 H
COMMISSION MEMORANDUM |
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| | | | | | | | | TO: | Honorable Mayor and Members of the City Commission | | | FROM: | Jimmy L. Morales, City Manager | | | DATE: | April 22, 2020 | | | |
| | SUBJECT: | A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING, IN SUBSTANTIAL FORM, AMENDMENT NO. 1 TO THE PROFESSIONAL SERVICES AGREEMENT, DATED MAY 28, 2019, BETWEEN THE CITY AND SFM SERVICES, INC (SFM) FOR JANITORIAL SERVICES CITYWIDE; SAID AMENDMENT EXPANDING THE SCOPE OF THE AGREEMENT BY: (1) RETROACTIVELY APPROVING A CITY MANAGER, APPROVAL FOR ADDITIONAL SERVICES, DATED MAY 10, 2019, IN THE AMOUNT OF $68,688; (2) RETROACTIVELY APPROVING, EFFECTIVE JANUARY 5, 2020, THE TRANSFER OF JANITORIAL SERVICES FOR THE CITY GARAGES (ZONE 4) AND CITY PARKS (ZONE 6) FROM ABLE BUSINESS SERVICES, INC. (ORIGINAL PRIMARY CONTRACTOR FOR ZONES 4 AND 6) TO SFM, IN THE AMOUNT OF $1,410,309.28 PER YEAR; (3) APPROVING ADDITIONAL SITES AND SERVICES, IN THE AMOUNT OF $117,900.00 PER YEAR, CUMULATIVELY INCREASING THE CONTRACT AMOUNT TO A TOTAL OF $2,649,186.03 PER YEAR, SUBJECT TO ANY ADDITIONS OR DELETIONS APPROVED BY THE CITY MANAGER OR HIS DESIGNEE AS AUTHORIZED HEREIN; AND (4) AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO REDUCE THE SERVICE LEVELS COVERED BY THE AGREEMENT; AND FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE FINAL AMENDMENT. |
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| | | | | | | | RECOMMENDATION
| The Administration recommends adopting the Resolution
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| | | | | | | | BACKGROUND/HISTORY
| On October 17, 2018, the City adopted Resolution No. 2018-30535 accepting the Administration’s recommendation pursuant to Request for Proposal (RFP) No. 2017-070-JC, to simultaneously negotiate with Able Business Services Inc. and with SFM Services, Inc. the first and second ranked proposers respectively, for janitorial services. Said resolution further authorized the City Manager to select a primary contractor and a secondary contractor, based on the determination of the final negotiated proposals that offered the City the best combination of pricing and service. Consequently, on May 16, 2019, the City Mayor and Clerk executed a Professional Services Agreement with Able Business Services Inc. (Able) as the primary contractor for City garages (Zone 4) and City Parks (Zone 6) and serving as the secondary for Zones 2 and Zone 3. Furthermore, on May 28, 2019, the City Mayor and Clerk executed a Professional Services Agreement with SFM Services, Inc. (SFM) as the primary contractor for Zone 2 and Zone 3 and serving as the secondary contractor for Zone 4 and Zone 6 (the Agreement).
The assignment of a secondary contractor to the agreements assured that a contractor would be readily available in the event that either contractor was to default. On September 30, 2019, as a result of failing to remedy several performance deficiencies, including services, terms and meeting the City’s standards of cleanliness, the agreement with Able Services Inc., primary contractor for Zones 4 and 6, was terminated. Accordingly, on October 1, 2019, SFM Services absorbed Zones 4 and 6, where they were awarded as secondary contractors, thus requiring assuming janitorial services for all zones.
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| | | | | | | | ANALYSIS
| Pursuant to Section 4.1 of the Agreement, the Contractor is to be compensated in accordance to the rates referenced in Exhibit B, “BAFO Price Form/Pricing Schedule”. This schedule provides for an award by individual zones and based on the foregoing, the total contract sum for all zones would be $2,780,794.44. However, SFM has proposed that with the transfer of Zones 4 and 6, effective January 5, 2020, a modification to the pricing for a total amount of $2,433,142.88 for all zones. An amendment to the Agreement is necessary in order to expand the scope to include the transfer of said zones and to memorialize the cost modification proposed by SFM. The proposed reduction would result in a $250,247.42 cost savings to the City and is more particularly described in Exhibit B to the proposed Amendment No. 1, attached hereto.
In order to improve and maintain sanitary conditions in the City, additional facilities which were not defined in RFP No. 2017-070-JC needed to be incorporated thus requiring an increase to janitorial personnel, service days and hours. Pursuant to Section 49, (ADDITIONAL SERVICES) of the RFP (Attachment B to the SFM Agreement), some locations were incorporated by the execution of a City Manager Approval, dated May 9, 2019 in the amount of $68,688. Moreover, on January 1, 2020 additional locations, including those which were formerly vacant and now became occupied as City offices, were identified for services thereby also requiring to be included in the scope of the Agreement. The total sum of all additional sites is $117,900 and is more particularly described in Exhibit B to the proposed Amendment No. 1, attached hereto.
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| | | | | | | | CONCLUSION
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The Administration recommends approving, in substantial form, Amendment No. 1 to the Agreement; said amendment expanding the scope of the Agreement by: (1) retroactively approving a City Manager approval for additional services, dated May 10, 2019, in the amount of $68,688; (2) retroactively approving, effective January 5, 2020, the transfer of janitorial services for the City garages (Zone 4) and City parks (Zone 6) from Able Business Services, Inc. (original primary contractor for Zones 4 and 6) to Contractor, increasing the contract amount to $2,531,286.03 per year per year; (3) approving additional sites and services, in the amount of $117,900.00 per year, for a total contract amount of $2,649,186.03 per year; and (4) clarifying that the City Manager may amend the Agreement, including the reduction of sites or services (including the number of personnel or hours of service) covered by the Agreement.
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| | | | | | | | | Is this a "Residents Right to Know" item, pursuant to City Code Section 2-14? | | Does this item utilize G.O. Bond Funds? | | | No | | No | |
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Property Management |
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