BOARD MEETING DATE: September 3, 2004
AGENDA NO. 3

Execute Sole-Source Contract for Three-Year Maintenance and Service Agreement for AQMD Headquarters’ Energy Management System

SYNOPSIS:

The previous service agreement with Siemens to maintain AQMD headquarters’ energy management system, consisting of software and hardware to operate the building’s heating, ventilation, and air conditioning, ended June 30, 2004. This action is to enter into a new three-year agreement. A sole-source contract is needed as Siemens is the original equipment manufacturer, both software and hardware are proprietary, and Siemens maintains control of service. Funding has been included in the FY 2004-05 Budget and will be requested in successive fiscal years.

COMMITTEE:

Administrative, August 13, 2004. Less than a quorum was present for the discussion of this item; those Committee members who were present communicated their concurrence.

RECOMMENDED ACTION:

Approve sole-source three-year contract with Siemens Building Technologies, Inc., for maintenance and service of AQMD headquarters’ energy management system in an amount not to exceed $73,572.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

AQMD headquarters’ energy management system consists of software and hardware to operate the building’s heating, ventilation, and air conditioning. The system requires routine preventive maintenance and periodic service to assure effective and efficient operation. AQMD has contracted with the original equipment manufacturer, Siemens Building Technologies, Inc., for this service since 1991.

Proposal

Siemens labor and expertise is required to maintain, diagnose, troubleshoot, and remedy any software or hardware problems that occur with the building’s energy management system.

Additionally, upgrade of the thirteen-year old system is needed. The hardware has become outdated and compatible spare parts are no longer available. The hardware Siemens currently manufactures is not compatible with AQMD’s existing software. Under the new maintenance agreement, Siemens would upgrade AQMD’s software to permit currently manufactured hardware components to be used as replacement parts when needed.

The agreement also provides for two AQMD employees to be trained to operate the new software.

Sole-Source Justification

Section VIII, B(2) of AQMD’s Procurement Policy and Procedure identifies four major provisions under which a sole-source award may be justified. This request is made under provision B(2)(c): the needed services are available only from the sole source and involve the use of proprietary technology. Both software and hardware are proprietary and Siemens maintains control of sales and service for each.

Resource Impacts

The total three-year contract cost is $73,572, which includes $29,556 for FY 2004-05, $21,468 for FY 2005-06, and $22,548 for FY 2006-07. Funding has been included in the FY 2004-05 Budget and will be requested in successive fiscal years.

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