8.4 Re-award PC Bids
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION
DATE
3/21/2011
TIME
4:00 P.M.
AGENDA SECTION
NO:
ORIGINATING DEPARTMENT:
FISCAL APPROVAL:
BY:
FINAL APPROVAL:
8
ITEM
NO:
Page 1
ITEM:
Re-award of personal computer bids for 2011.
4
BY:
Jack Rolfs
BY:
BACKGROUND:
On February 28, 2011, the City Commission awarded the bid for 50 personal computers at a cost of $624 each,
for a total cost of $31,200. As part of the condition of the bid, the winning bidder was required within seven
calendars after acceptance of the bid to furnish one PC as configured per the winning bid. This would allow it to
be evaluated by city technicians in order to ensure that our bid specifications were met. The winning bidder did
not deliver the required PC within the specific timeframe. Component price changes between the time of the
bid submittal and bid award made it economically infeasible for the vendor to complete the contract.
Another condition of the bid was a remedies clause. It states: In the event of breach of this Purchase
Agreement or default by vendor, City may exercise any or all of the following remedies, which are in addition to,
and not in lieu of, any other remedies available to City under law or equity:
(a) terminate this Agreement, procure the equipment from another source, and hold Vendor liable for
the difference in cost together with incidental and consequential damages, including costs and
reasonable attorney fees,
(b) terminate this Agreement and hold Vendor liable for the difference between market price of the
equipment and agreed price herein, together with incidental and consequential damages, including
costs and reasonable attorney fees, or
(c) obtain specific performance of the Agreement together with costs and attorney fees.
The next qualified bid was at a cost of $658 each, for a total cost of $32,900. This is a $1,700 difference.
Under item (a) above, the bidder that did not perform would owe the City $1,700. The non-performing vendor
does understand this and has provided the City with the attached letter that states they will pay half of the
$1,700 upon request by the City and the other half to be paid within 30 days from the date of the first payment.
The next qualified vendor has been contacted and they are still willing to honor their previous bid.
FISCAL NOTE:
This purchase is part of the 2011 Capital Improvement Program sub-CIP for Computer Technology. We
allocated $37,500 for our PC purchases this year. Individual PCs will be charged to the receiving department's
2011 Computer Technology CIP budget upon installation.
CONFORMANCE WITH THE STRATEGIC PLAN:
This item would apply to Goal #3: The city will provide the highest quality of services, consistent with governing
body direction, available resources and staff commitment to quality.
COMMISSION ACTION OR RECOMMENDED ACTION:
Staff recommends rescinding the previous bid award to Envision Computer Solutions in reliance upon its
commitment to pay the difference between its bid and the next qualified bid in the amount of $1,700, then
awarding the bid for fifty (50) personal computers, with Windows 7 Professional (downgradable to XP Pro)
operating system, to JPK Micro Supply, in the amount of $32,900.00.
3/16/2011
Dear Mr. Rolfs:
As we have discussed, I regret that component price changes between the submission of
our company's bid to the City of Salina for $31,200 (fifty desktop personal computers)
have made it economically infeasible for us to enter into the proposed contract with the
City on the basis of our bid awarded by the Salina City Commission on 2/28/2011. I
must, therefore, respectfully request that the Salina City Commission release us from the
bid award in exchange for our commitment to pay the City the difference between our
total bid and the total bid of the next lowest bidder that did meet your bid specifications.
I understand that difference to be $34 per unit for a total obligation to the City of
$1,700.00. Half of this amount will be paid upon request from the City and the other half
to be paid within 30 days from the date of the first payment.
Thank you.
Very trulYY~.. ours,__==:~ .
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Envision Computer Solutions