BOARD MEETING DATE: July 13, 2007
AGENDA NO. 8

PROPOSAL:

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

SYNOPSIS:

The current 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 on June 30, 2007. 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 2007-08 Budget and will be requested in successive fiscal years.

COMMITTEE:

Administrative, June 8, 2007, Recommended for Approval

RECOMMENDED ACTION:

Approve sole source three-year contract, through June 30, 2010, with Siemens Building Technologies, Inc., for maintenance and service of AQMD headquarters’ energy management system in an amount not to exceed $73,224.

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 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. Therefore staff recommends the Board award a three-year sole-source maintenance and service agreement to Siemens Building Technologies, Inc.

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 maintenance and service agreement cost is $73,224, which includes $23,448 for FY 2007-08, $24,396 for FY 2008-09 and $25,380 for FY 2009-10. The total three-year cost of the previous energy management system contract was $73,500, so the current three-year cost is actually slightly less. Funding has been included in the FY 2007-08 Budget and will be requested in successive fiscal years.