REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
July 26, 2022
FROM
PETE MENDOZA, Interim Director, Purchasing Department
SUBJECT
Title
Amendment to Countywide Emergency Environmental Remediation and Restoration Services Contract
End
RECOMMENDATION(S)
Recommendation
Approve Amendment No. 2, effective July 26, 2022, to Contract No. 20-685 with BELFOR USA Group, Inc. for the provision of emergency environmental remediation and restoration services to update pricing on Attachment C - Pricing Sheet, with no other changes to the contract or the contract term of September 1, 2020, through August 30, 2025.
(Presenter: Pete Mendoza, Interim Director, 387-2073)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
Provide for the Safety, Health and Social Service Needs of County Residents.
FINANCIAL IMPACT
This item will not result in the use of additional Discretionary General Funding (Net County Cost). The cost for emergency remediation and restoration services is based on an hourly rate and may not exceed $60,000 per project. Impact on individual department budgets is based upon the need for services. Departments that require Emergency Environmental Remediation and Restoration Services are responsible for ensuring adequate funding in their current and future budgets. The County’s average annual expenditure for these services is approximately $590,000 per year.
BACKGROUND INFORMATION
Approval of the recommended amendment will update pricing and allow County departments and agencies to continue to access a qualified, California licensed and insured company to provide emergency environmental remediation and restoration services on an as needed basis throughout the County.
On August 25, 2020 (Item No. 47), as the result of a successful competitive procurement, the Board of Supervisors (Board) approved Contract No. 20-685 (Contract) with BELFOR for the provision of emergency environmental remediation and restoration services for the period of September 1, 2020 through August 30, 2025. It was later discovered that the rates listed in Attachment C did not include pricing for projects requiring the payment of prevailing wages as required by the contract. Therefore, the County negotiated a revised pricing sheet with BELFOR, reflecting increased rates applicable to projects requiring the payment of prevailing wages. The revised rates were lower than the rates submitted by other proposers of the original Request for Proposals (RFP). On July 13, 2021 (Item No. 41), the Board approved Amendment No. 1 to the Contract to approve the new rates, with no change to the term of September 1, 2020 through August 30, 2025.
In March 2022, BELFOR notified the County that the company was experiencing unprecedented supply chain issues, exorbitant gas prices, and increased prices for materials. Over the past year, BELFOR has worked diligently to control overhead in an effort to uphold the contracted pricing that was agreed upon. BELFOR informed the County that the company must implement a price increase to be able to continue to offer the level of services the County expects from BELFOR.
After negotiations, BELFOR provided a revised pricing sheet, which reflects increased rates. Purchasing recommends amending the contract and increasing rates as the revised rates are less than the rates submitted by the other vendors of the original RFP.
PROCUREMENT
On June 25, 2019, Request for Proposals (RFP) AGENCY19-PURC-3350 was released to select a vendor to provide emergency environmental remediation and restoration services. Four proposals were received by the submittal deadline and evaluated by a committee comprised of employees from Facilities Management, Real Estate Services, Arrowhead Regional Medical Center, and the Department of Behavioral Health. Proposals were evaluated based on the following: qualifications and experience, technical and functional review, and cost. Among the four proposers, BELFOR USA Group, Inc. (BELFOR), was determined to best meet the needs of the County and was the highest ranked vendor.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Adam Ebright, Supervising Deputy County Counsel, 387-5455) on June 30, 2022; Arrowhead Regional Medical Center (Cory Hall, Maintenance Supervisor, 580-0036) on June 11, 2022; Facilities Management (Bill Ogg, Deputy Director, 387-2244) on June 30, 2022; Risk Management (Victor Tordesillas, Director, 387-5564) on June 30, 2022; Finance (Ivan Ramirez, Administrative Analyst, 387-4020) on July 12, 2022; and County Finance and Administration (Paloma Hernandez-Barker, Deputy Executive Officer, 387-5423) on July 11, 2022.