BOARD MEETING DATE: June 11, 1999 AGENDA NO. 3
PROPOSAL:
Execute Contract for Temporary Engineering Services to Review CENCO Refinery’s Compliance Demonstration
SYNOPSIS:
On March 12, 1999 the Governing Board approved the release of an RFP to select contractors with expertise in refinery operations to assist the Executive Officer and Hearing Board in reviewing and analyzing compliance demonstrations by CENCO Refining Company prior to the start-up of their refinery. A panel has reviewed the proposals submitted in response to the RFP and recommends executing a contract with MD Environmental. Funding of $200,000 has been allocated in the FY 1998-99 Budget for these services. CENCO has entered into a contractual agreement to reimburse AQMD for all costs associated with the engineering services.
COMMITTEE:
Stationary Source, May 21, 1999, Recommended for Approval
RECOMMENDED ACTION:
Authorize the Chairman to execute a contract with MD Environmental for temporary engineering services on an as-needed basis to review compliance demonstrations by CENCO Refining Company for a total amount not to exceed $200,000.
Barry R. Wallerstein, D.Env.
Executive Officer
Background
CENCO Refining Company has recently acquired the refinery formerly operated by Powerine Oil Company, located at 12345 Lakeland Road, Santa Fe Springs, California 90607, and plans to restart the refinery in late 1999. Since the refinery has not been operated since July 1995 when refining operations were suspended, staff wants to ensure that upon restart of the refinery, violations of AQMD rules, particularly those that protect against public nuisance, will not occur. The AQMD Hearing Board issued a Stipulated Order for Abatement (Case No. 5031) to CENCO Refining Company on December 11, 1998, imposing requirements for the refinery to demonstrate compliance to the Executive Officer and the Hearing Board prior to the start-up of the refinery. This Order for Abatement further requires CENCO to execute a contract with the AQMD to reimburse the AQMD for all costs of the AQMD contracting with an engineering consulting firm to assist the Executive Officer and the Hearing Board in reviewing and analyzing such compliance demonstrations. As a result, CENCO has entered into a contract (Contract No. 99075) with AQMD and agreed to reimburse such costs for an amount not to exceed $200,000.
Outreach
In accordance with AQMD's Consultant Selection Policy and Procedure, a public notice inviting proposals was published in the following publications:
1. Antelope Valley Press |
1. Antelope Valley Press |
10. La Opinion |
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2. The Black Voice News |
2. The Black Voice News |
11. La Voz |
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3. Chinese Daily News |
3. Chinese Daily News |
12. Los Angeles Daily News |
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4. Eastern Group Publications |
4. Eastern Group Publications |
13. Los Angeles Sentinel |
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5. El Chicano |
5. El Chicano |
14. Los Angeles Times |
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6. The Excelsior |
6. The Excelsior |
15. M/W/DVBE Source |
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7. Inland Empire Hispanic News |
7. Inland Empire Hispanic News |
16. Orange County Register |
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8. Inland Valley Daily Bulletin |
8. Inland Valley Daily Bulletin |
17. Palm Springs Desert Sun |
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9. Korea Central Daily |
9. Korea Central Daily |
18. Philippine News |
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Notice of the RFPs were also sent to the Black and Latino Legislative Caucuses and interested minority contractors/professional associations and vendors listed in the Los Angeles County, MTA, Cal Trans, and Inland Area MBE/WBE directories. Further, the RFP was placed on the Internet at AQMD’s Web Site (http://www.aqmd.gov) under the Business and Job Opportunities icon and on AQMD’s 24-hour telephone message for bidders (909-396-2724). More than 200 RFPs were mailed in response to direct noticing and advertisement of the proposed RFP.
Bid Evaluation
Three proposals were submitted. One was not accepted because it was submitted after the deadline of 5 p.m. on April 16, 1999.
Of the two proposals that were submitted and accepted, one did not pass the technical level of the selection process. The evaluation results from the remaining bid that passed the technical level are as follows:
| Bidder | Technical RFP | Cost Points | Local Firm | Total Points |
| MD Environmental | 76.3 | 70 | 5 | 78.2 |
The selection criteria used to rank the proposal included: responsiveness to the RFP; technical merit/understanding and expertise in the design, operation and maintenance of petroleum refining processes and applicable air quality rules and regulations; project organization and management; qualifications; references; assigned personnel; cost and time-effectiveness; and local business designation. The RFP criteria was used to select one contractor to provide engineering services on as-needed basis. The only firm that met the criteria was MD Environmental, and staff recommends that the Board execute a contract for MD Environmental to perform this work.
As need arises, AQMD staff will issue a firm, fixed-price task order or time-and-materials task order to the contractor to perform engineering services. This process will ensure that AQMD can quickly obtain engineering services to respond to a temporary workload increase in the most cost-effective manner.
Panel Composition
A three-person panel composed of an AQMD Senior Manager, a Senior Air Quality Engineer and an Air Quality Engineer II reviewed the proposals. Of these three panelists, one was female and two were male; two were Asian/Pacific Islander and one was Caucasian.
Resource Impacts
Sufficient funds for this contract are available in the FY 1998-99 Budget.
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