Approve the Resolution.

The Lower North Bay Road project was issued as a Design-Build project to Central Florida Equipment Rentals, Inc. (CFER) consisting of the design, permitting and construction associated with earthwork, roadway, pavement restoration, sidewalk re-construction, water main and water services installation, sanitary sewer lining, storm drainage infrastructure installation (including a pump station at 23^rd Street) and streetscape improvements. Street lighting was not included in the scope of work.

At the urging of residents the Administration sought funding for street lighting improvements in the areas relating to the streetscape improvements. On January 13, 2016, the City Commission adopted Resolution 2016-29274, which added funding for the lighting improvements. On March 18, 2016, the City retained Wolfberg Alvarez and Partners to commence the street lighting improvements design estimated at $1.5 million for the design and construction of the system.  The design was completed and placed on hold pending the completion of the as-builts for electrical infrastructure installed by CFER.  Following revisions to the City’s street lighting standards in early 2017, the design and permitting of the system was completed and the project issued for bids for the construction of the lighting system for Lower North Bay Road.

The project will include the installation of approximately 134 concrete pole bases, poles, fixtures, pull boxes, wires and electrical service panel (including coordination with the utility companies) associated with delivering a fully functional street lighting system. The existing conduits may need modification, which is considered to be part of this project. All existing adjacent landscape, site improvements and features disturbed during the installation are to be restored to their original condition with in kind material. The existing trees will be protected and preserved.

ITB PROCESS

ITB No. 2017-143-ZD, was issued on April 18, 2017, with a bid opening date of May 18, 2017.  One (1) addendum was issued. The Procurement Department issued bid notices to 209 companies utilizing www.publicpurchase.com website. Forty eight (48) prospective bidders accessed the advertised solicitation. The notices resulted in the receipt of three (3) responses from: AGC Electric, Inc., Horsepower Electric, Inc., and Stone Concept Miami, Inc. See tabulation sheet (Attachment A).

The bid submittal from Stone Concept Miami, Inc. and AGC Electric, Inc. failed to comply with the minimum requirements as stated in the ITB and, accordingly, their bids were deemed non-responsive.

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 Department verified that the sole responsive bid submitted by Horsepower Electric, Inc. met the requirements of the ITB, including:

1. Licensing Requirements: Bidder shall either be State of Florida certified and licensed General Contractor or, a State of Florida Licensed Electrical Contractor, or a Miami-Dade County Licensed Electrical Contractor to be considered for award and submit evidence of licensing with their bid.

    

   Horsepower Electric, Inc. is state certified as an Electrical Contractor and General Contractor. State license numbers are: EC0001153 and CGCB01285, respectively and are set to expire on August 31, 2018.

    

2. Previous Experience: Bidders shall submit at least three (3) individual references exemplifying their experience for projects similar in scope and budget. References must include projects completed and ongoing within the last ten (10) years. Similar projects shall be interpreted to mean construction of a Street Lighting System.

    

   Horsepower Electric submitted the minimum required three (3) projects similar in scope and volume of work detailed within the contract documents. Additionally, they provided various other projects that have been completed and are ongoing which further emphasize their experience with the services required for the construction of street lighting system of North Bay Road.

    

3. Bidder must have the capability to provide a performance and payment bond for the project. The City reserves the right to require performance and payment bonds from the successful bidder. Bidders shall submit a Letter from an A-rated Financial Class V Surety Company, indicating the company’s bonding capacity, in the amount not less than one hundred percent of the total base bid amount.

    

   The bid response from Horsepower Electric was accompanied by a bonding capacity letter from Frank H. Furman, Inc. dated May 18, 2017. The capacity letter indicated that Horsepower Electric has been extended a bonding facility, which has supported individual projects up to $ 25 million and an aggregate work program in the $ 50 million range from QBE Insurance Corp. QBE Insurance is rated A XIV, Excellent by A.M. Best.

    

4. Financial Stability and Strength: The Bidder must be able to demonstrate a good record of performance and have sufficient financial resources to ensure that they can satisfactorily provide the goods and/or services required herein.

    

   Horsepower Electric’s latest Supplier Qualifier Report from Dun & Bradstreet indicates that they have a Supplier Evaluation Risk (SER) rating of 4 out of 9. The lower the score, the lower the risk.

         

According to the information provided by the firm, it is a Florida State Certified Electric Contractor and General Contractor headquartered in South Florida specializing in: Roadway lighting maintenance and construction, traffic signalization, red light camera installations, intelligent transport systems, and energy savings (LED and Solar Solutions). Horsepower Electric has an excellent safety record and strictly adheres to all safety guidelines and standards set by national, state, and city regulatory agencies. Regardless of a project’s scope, Horsepower Electric works to meet its clients’ needs by keeping up with modern technology in the industry and always striving for excellence in workmanship, customer satisfaction, and professional commitment.

Horsepower Electric, Inc. has been deemed the sole responsive and responsible bidder(s) meeting all terms, conditions, and specifications of the ITB. However, its bid price exceeds the City’s cost expectations, as well as the other two bidders that had to be deemed non-responsive for their failure to meet the minimum requirements of the ITB. Therefore, the Administration recommends negotiating with Horsepower Electric to bring its bid price in line with the City's estimated costs.

After considering the bid received and the evaluation of staff, the City Manager recommends that the Mayor and City Commission of the City of Miami Beach, Florida, approve the Resolution authorizing the Administration to enter into negotiations with Horsepower Electric, the sole responsive bidder to the ITB, pursuant to Section 2-367(c) of the City of Miami Beach City Code; and further authorize the Mayor and City Clerk to execute the Agreement upon conclusion of successful negotiations.