Title
Contract Recommendation for Permafrost Heating, Ventilation, and Air Conditioning (HVAC) System Treatment (Ordinance S-47385)
Description
Request to authorize the City Manager, or his designee, to enter into an agreement with Permafrost Energy Partners, LLC for installation of Permafrost HVAC system treatment material to various City-owned HVAC systems and equipment. Further request to authorize the City Controller to disburse all funds related to this item. This item will have an aggregate amount of $2.1 million over the life of the contract.
Report
Summary
The Public Works Department is responsible for maintaining the HVAC systems at various City-owned facilities. This treatment service will provide energy savings to HVAC systems, increase equipment longevity, and lower operating expenses through reduced repairs and maintenance. A demonstration of this technology at a City facility indicates this system treatment will provide a return on investment with energy savings within 36 months and will continue to offer savings over the life of the equipment. This contract will allow these services to be performed on equipment maintained by the Public Works and Water Services Departments.
Procurement Information
In accordance with Administrative Regulation 3.10, normal competition was waived as the result of a determination memo citing that Permafrost Energy Partners, LLC is the sole source provider in the State of Arizona.
Contract Term
The initial three-year contract term will begin on or about March 1, 2021, with two one-year options to extend in increments of up to one year, for a total contract term of up to five years.
Financial Impact
The aggregate value of the contract including all option years is $2.1 million, including all applicable taxes, with an estimated annual expenditure of $420,000. Funds are available in the Public Works and Water Services departments' budgets.
Department
Responsible Department
This item is submitted by Deputy City Manager Karen Peters and the Public Works and Water Services departments.