title
Underground Electric Distribution Installation Services Contract (NB)
explanation
The City Commission approved the award of a contract to Pike Electric Inc. for installation of the underground electric distribution facilities for a two (2) year term on March 24, 2003. The contract allows for three (3) twelve-month extensions of the contract upon mutual agreement of the parties and negotiation of the contract prices. Pike Electric Inc. has agreed to extend the contract for an additional twelve months with a 2.13 percent increase to labor units, a 1.5 percent increase on equipment units, and a 5.25 percent increase on remaining contract units. Pike Electric Inc.’s requested increases are based on the rise in labor, fuel, equipment and insurance costs.
The contract is required for the installation of underground and underground related distribution assemblies, equipment, foundations, electric cable, transformers, switchgear, and other related equipment within the underground electric distribution system in various locations of GRU’s service area.
Pike Electric Inc. has provided satisfactory service over the two (2) year term and is steadily increasing its productivity. Contract pricing is also satisfactory, remaining competitive for the market. Therefore, staff does not believe there would be any cost benefit by re-bidding the contract at this time.
recommendation
The City Commission: 1) authorize the General Manager or his designee to execute an amendment to extend the contract with Pike Electric Inc. for the installation of underground electric distribution facilities for a period of one (1) year and 2) approve the issuance of a purchase order to Pike Electric Inc. for a one (1) year term, not to exceed budgeted amounts.
fiscal note
Funds for these services are included in the FY 2005 Utilities Budget and will be requested in the Utilities budgets for future fiscal years covered under the contract term.
drafter
Prepared by: John...
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