FROM: Robert Thompson, General Manager
Originator: Riaz Moinuddin, Director of Operations & Maintenance
SUBJECT:
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CONTINGENCY INCREASE FOR JANITORIAL & FLOOR MAINTENANCE SERVICE CONTRACT S-2021-1270BD
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GENERAL MANAGER'S RECOMMENDATION
recommendation
RECOMMENDATION:
A. Approve a one-time contingency increase of $182,724 (19%) to the Service Contract with Gamboa Services Inc. dba Corporate Image Maintenance for Janitorial & Floor Maintenance Services at Plant Nos. 1 and 2, Specification No. S- 2021-1270BD, for the period May 1, 2023 through January 31, 2024, for a total contingency amount not to exceed $278,894 (29%) for this term, resulting in a new annual contract amount of $1,240,599; and
B. Approve an annual contingency increase of 10% for all remaining renewal periods.
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BACKGROUND
In January 2022, the Board of Directors approved a Service Contract with Gamboa Services Inc. dba Corporate Image Maintenance for Janitorial & Floor Maintenance Services at Plant Nos. 1 and 2, Specification No. S-2021-1270BD, for a total amount not to exceed $961,705 for the period February 1, 2022 through January 31, 2023, with four (4) one-year renewal options for cleaning the civil infrastructure at Orange County Sanitation District's (OC San) treatment facilities and pump stations, and an annual contingency amount of $96,170 (10%).
Janitorial services are one of the industries where prevailing wages rates apply when employed by Special Districts. The applicable prevailing wage rate and benefits are determined by the State of California Department of Industrial Relations (DIR) and adjusted periodically.
RELEVANT STANDARDS
* Commitment to safety & reducing risk in all operations
* Provide a safe and collegial workplace
PROBLEM
The State of California DIR recently increased the prevailing wage and benefit levels for these services. The current contract amount and contingency is not enough to cover these increased costs.
PROPOSE...
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