REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
September 14, 2021
FROM
PATRICK SCALZITTI, Interim Director, Purchasing Department
SUBJECT
Title
Amendment to Contracts for Armored Car Services
End
RECOMMENDATION(S)
Recommendation
1. Approve Amendment No. 2 to Contract No. 16-700 with Brink’s Inc. for armored car services, extending the contract term for one year, from September 25, 2021 to September 25, 2022, for a total contract period of September 26, 2016 to September 25, 2022.
2. Approve Amendment No. 1 to Contract No. 18-808 with Loomis Armored US, LLC. for armored car services, extending the contract term for seven months, from March 8, 2022 to September 25, 2022, for a total contract period of November 6, 2018 to September 25, 2022.
3. Approve Amendment No. 1 to Contract No. 17-121 with Garda CL West, Inc. for armored car services, extending the contract term for seven months, from March 8, 2022 to September 25, 2022, for a total contract period of March 8, 2017 to September 25, 2022.
4. Authorize the Director of Purchasing, based on needs of County departments, to add or delete locations, negotiate corresponding rates for those locations, and approve rate increases as described in the contracts.
(Presenter: Patrick Scalzitti, Interim Director, 387-2074)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Improve County Government Operations.
Operate in a Fiscally-Responsible and Business-Like Manner.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost). The aggregate annual cost for armored car services is approximately $400,000 based on the average of the last three years. Departments that require armored car service are responsible for ensuring adequate funding in their current and future budgets. Impact on individual department budgets is based upon need for service including the number of stops by location and day.
BACKGROUND INFORMATION
The recommended agreements will ensure continuation of armored car service for more than 150 County department locations requiring secure transportation and timely deposits of cash and other monetary instruments. Currently, the contracts for the three armored car services agreements do not have the same termination date. The Purchasing Department recommends amending the contracts to the same termination date in order to allow for a uniformed release of a Request For Proposals (RFP). Purchasing will return to the Board of Supervisors (Board) prior to September 25, 2022 with a recommendation for a contract for armored car services.
On September 9, 2016, the Auditor-Controller/Treasurer/Tax Collector (ATC) signed a new banking services agreement with Wells Fargo Bank, replacing Bank of America as the County’s operational bank. Armored car services were previously provided as part of the Bank of America contract but were no longer offered as part of the banking service agreement with Wells Fargo. Due to this loss of service, the County was required to contract directly with vendors for these services. In anticipation of the transition from Bank of America to Wells Fargo, a competitive solicitation was undertaken to fill the gap in armored car service created by the banking transition.
Following this competitive solicitation process, the Board approved a recommended agreement with Brink’s Inc. (Brink’s) on June 28, 2016 (Item No. 54) that was still under review by company officials and had not yet been signed. Unable to reach an agreement with Brink’s that would serve the County’s best interest, on September 13, 2016 (Item No. 62) the Board rescinded the agreement that was not yet signed by Brink’s. As a result, the County negotiated with the other qualified vendor who submitted a proposal in response to the RFP and awarded the contract to Dunbar Armored Inc. (Dunbar) on September 13, 2016 (Item No. 62) for the period of September 26, 2016 through September 25, 2021. Dunbar was unable to serve the entire County and Bank of America continued to provide services to approximately one-third of the locations.
As the County neared completion of the banking transition, it was necessary for the County to secure a replacement for Bank of America. The County entered into negotiations to establish direct contracts for service with two companies that did not respond to the County’s RFP, Loomis Armored US, LLC (Loomis) and Garda CL West, Inc. (Garda). On March 7, 2017 (Item No. 39), the Board approved Agreement No. 17-121 with Garda for armored car services to approximately 50 locations for the contract term of March 8, 2017 through March 8, 2022. On November 6, 2018 (Item No. 32), the Board approved Contract No. 18-808 with Loomis to provide armored car service to four County library locations for the contract term of November 6, 2018 through March 8, 2022.
On August 13, 2018, Brink’s acquired Dunbar and agreed to honor all contractual terms and conditions in the County’s original agreement with Dunbar. On July 23, 2019 (Item No. 33), the Board approved Amendment No. 1 to Agreement No. 16-700 assigning the contract to Brink’s.
Because of the COVID-19 pandemic, many County facilities were forced to have temporary closures requiring changes in department operations and it was necessary for the contractors to make adjustments to schedules as requested by departments. Currently, the contractors are experiencing labor shortages and have begun conversations with the County to examine ways to streamline operations and incorporate new technology such as using smart safes. These secure safes allow employees to securely deposit cash, track deposit amounts by individual users, and securely hold cash at the location with no access after a deposit has been made. After surveying the needs of each department, recommendations will be made for suitable locations to transition to this service model.
Purchasing recommends extending all three contracts to September 25, 2022. The additional time will allow the County to identify the needs of departments, establish schedules, and update operating procedures integrating modern technology to issue an RFP that meets the needs of departments.
PROCUREMENT
On December 21, 2015, the Purchasing Department released an RFP for armored car service. Proposals were received from two vendors by the submittal deadline: Brink’s Inc. (Coppell, TX) and Dunbar Armored, Inc. (Hunt Valley, MD). Proposals were evaluated by the Purchasing Department based on qualifications and experience, technical and service criteria, references, and cost. Brink’s Inc. was determined to best meet the overall needs of the County.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (John Tubbs, Deputy County Counsel, 387-5436) on August 20, 2021; Finance (Joon Cho, Administrative Analyst, 387-4883) on August 25, 2021; and County Finance and Administration (Valerie Clay, Deputy Executive Officer, 387-3076) on August 25, 2021.