City of Palo Alto (ID # 3724) City Council Staff Report Report Type: Consent Calendar Meeting Date: 6/3/2013 Summary Title: Approval of a 5 year contract with G&K Services for Rental and Laundry of Work Uniforms Title: Approval of a Five-year Contract with G&K Services for Rental/Laundry of Work Uniforms for Various City Departments at a Cost Not to Exceed $140,000 per Year of $700,000 for the Five-year Term From: City Manager Lead Department: Administrative Services Recommendation Staff recommends that Council approve, and authorize the City Manager or designees to execute, the attached contract with G&K Services in an amount not to exceed $140,000 per year (total $700,000 for a five-year term) from June 11, 2013 to June 10, 2018 for uniform rental and laundry services. Background The annual not-to-exceed amount of $140,000 per year is $15,000 less budgeted under the prior contract. In addition, this contract has a five-year term compared to the three-year term of the prior contract, which improves contract management efficiency by increasing the contract life-cycle. Staff used a Request for Proposal (RFP) solicitation process to determine the lowest responsible bidder. As part of the selection process, staff developed evaluation criteria, using respective weights for the RFP to include such factors as qualifications of the firm, service, performance, environmental purchasing practices, cost and fitness testing. Discussion The scope of work to be performed under the contract by the vendor includes the rental and laundry of work uniforms for various City departments. Rental services should include laundering and repairs of the uniforms. Options for rented uniforms to be cleaned by individual employees as well as laundering of city-owned uniforms were also included. Please see Exhibit A of the contract for the complete scope of services. City of Palo Alto Page 1
Summary of Solicitation Process Work Uniform Rental/Laundry Service Request for Proposal #147527 Proposed Length of Project Number of Proposals emailed 7 Total Days to Respond to Proposal 5 Years 63 Days Pre-Proposal Meeting Date October 4, 2012 Number of Company Attendees at Pre- Proposal Meeting Number of Proposals Received: 4 Company Name 5 Location (City, State) 1. G& K Services Hayward, CA 2. Cintas East Palo Alto, CA 3. Aramark San Jose, CA 4. Mission Linen Supply Union City, CA Non-responsive Range of Proposal Amounts Submitted* $87,000-$160,000 *The low figure of $87,000 represents only those items that all respondents quoted. The $140,000 per year amount represents the expected use level. An evaluation committee consisting of staff from Utilities, Community Services Department and Public Works reviewed the proposals. G&K Services was selected because they were evaluated and rated as the best at demonstrating the ability to meet the City s requirements for supplying all the various garments requested. G&K Service s written response to the RFP was clear with detailed explanations of their in-house process with state of the art tacking systems. After evaluating each proposal on quality of service, quality of performance, sustainability processes and cost, G&K services was rated the highest in total for all categories. City of Palo Alto Page 2
RESOURCE IMPACT Funding for this contract is included in the individual department budgets. The estimated cost per departmental operational area based on recent use is as follows: Utilities: Water, Gas, Wastewater $29,000.00 Public Works: Facilities-Maintenance and Custodial (General Fund) $5,400.00 Public Works: Equipment Maintenance $6,200.00 Utilities: Electric $39,000.00 Public Works: Operations (General Fund) $24,000.00 Utilities: Engineering $1,900.00 Community Services Department: Parks (General Fund) $5,400.00 Public Works: Water Quality Control Plant $17,000.00 Utilities: Customer Service, Meter Reading $3,420.00 Total $131,300 The General Fund share of these costs is estimated at $34,800, the remaining $96,500 will be paid from other funds. The contract price is set at a not-to-exceed $140,000 per year to allow flexibility if an unexpected increase in use should occur. This contract does not include the laundering of public safety uniforms, which are covered under a separate contract at an average annual cost of $104,000. The separate public safety uniform contract was approved by Council in May (report ID # 3689). Attachments: Attachment A: G & K Services Contract (PDF) City of Palo Alto Page 3