Inter-Office Memo

Inter-Office Memo

To: Anthony J. DesChenes

Commodities Division Director

From: Lymon C. Hunter, CPPB

Commodities Division

Date: November 10, 2010

Subj: Award of RFP – 071I0200218

Elevator Maintenance Services – Statewide

BACKGROUND INFORMATION/GENERAL:

This Request for Proposal (RFP) sought proposals to establish a contract(s) to provide all personnel, furnish and install all parts, provide tools, supervision, equipment, supporting services, and staff and every required service or person, directly or indirectly necessary to provide complete inspection, testing and all preventative, routine, special and emergency maintenance and repair services for all elevators as reflected on the location specification sheet(s).

The RFP package was placed on the Bid4Michigan website on July 29, 2010. Questions were due on August 31, 2010. The deadline for responses was September 15, 2010 @ 3:00 p.m.

Buyer:

All RFP responses were evaluated by a Joint Evaluation Committee(JEC) comprised as follows:

Lymon C. Hunter, CPPB DTMB-Purchasing Operations

Ric Martin DTMB – Facilities Administration

Penny Saites DCH – Budget Division

Brian Stedman DMVA – Facilities Administration

Eames Groenleer DOC – Physical Plant Supervisor

BIDDERS

A total of 6 bidders submitted proposals for this RFP by the published due date. Bidders are as follows:

CRO SDV

Central Elevator Company / 1824 Vanderbilt / Portage, MI
49024 / NO / NO
Otis Elevator Company / 4500 Empire Way Suite 3 / Lansing, MI
48917 / NO / NO
Kone, Inc. / 5300 Clay Avenue SW / Wyoming, MI
49508 / NO / NO
Thyssenkrupp Elevator / 3749 Broadmoor Ave SE, Ste E / Grand Rapids, MI 49512 / NO / NO
Schindler Elevator Corp. / 3135 Pine Tree Rd, Suite B / Lansing, MI
48911 / NO / NO
Elevator Service, Inc. / 817 Ottawa Ave. NW / Grand Rapids, MI 49503 / NO / NO

Technical Proposal Evaluation Criteria

The following chart represents the scoring of the particular factors:

INTRODUCTION & COMPANY INFORMATION / WEIGHT
Company Information and Financial Stability / 15
Company’s Prior Experience / 15
Staff Development & Training / 20
Quality Assurance and Customer Service / 20
SUBTOTAL / 70
WORK PLAN (Submit for each location)
Work Plan
Staffing (supervisors and line-staff)
Equipment
Supplies / 30
SUBTOTAL / 30
TOTAL / 100 points possible
CRITERIA: / Technical Criteria: / Location Plan Criteria: / Total:
Bidder Name: / Company Information (15 pts) / Prior Experience (15 pts) / Staff Development & Training (20 pts) / Quality Assurance (20 pts) / Sub-Total / Transition, Implementation & Contingency (15 pts) / Staffing (5 pts) / Equipment (10 pts) / Supplies (0 pts) / Sub-Total / Final Score / Passed and Region Qualified
Central Elevator Company / 14.0 / 12.0 / 14.0 / 12.0 / 52.0 / 11.0 / 4.0 / 10.0 / 0.0 / 25.0 / 77.0 / No
Otis Elevator Company / 15.0 / 15.0 / 18.0 / 19.0 / 67.0 / 14.0 / 4.0 / 10.0 / 0.0 / 28.0 / 95.0 / Yes
Kone, Inc. / 10.0 / 14.0 / 18.0 / 17.0 / 59.0 / 15.0 / 5.0 / 10.0 / 0.0 / 29.0 / 89.0 / Yes
Thyssenkrupp Elevator / 15.0 / 14.0 / 9.0 / 20.0 / 58.0 / 15.0 / 5.0 / 10.0 / 0.0 / 30.0 / 88.0 / Yes
Schindler Elevator / 15.0 / 13.0 / 16.0 / 16.0 / 60.0 / 14.0 / 3.0 / 10.0 / 0.0 / 27.0 / 87.0 / Yes
Elevator Service, Inc. / 15.0 / 13.0 / 16.0 / 12.0 / 56.0 / 13.0 / 4.0 / 10.0 / 0.0 / 27.0 / 83.0 / Yes

INDIVIDUAL EVALUATION RESULTS

Central Elevator Company, Inc.

Company Information Score 14/15

Established 1986, Michigan Corporation, HQ in Portage, MI. Proposal reflected a100% retention rate over the past three years. Previous five year sales information provided. Names of insurance carriers are provided, but terms of coverage are not.

Prior Experience Score 12 /15

Bidding two sites. Provided three references, inclusive of contact persons, project descriptions, and start/end dates.

The following deficiencies were noted:

Brief on descriptions. Unable to determine if they are comparable units. Cannot determine what service is being provided. Although the references appear to be related, not enough information on the type of work performed was provided. Proposal failed to provide contract values for all three of the accounts, just listed as "ongoing."

Staff Development & Training Score 14 /20

Employees are required to come through International Union of Elevator Contractors (IUEC) Local 85. Drug screening as allowed by union. The National Elevator Industry Educational Program (NEIEP) offers craft training for all employees covered by the NEII Standard, which includes hands-on training utilizing labs, assorted training aids, text materials and video. A detailed list of training is provided through (NEIEP) standard. Training period is 4 years. However, there is a detailed list of safety training through NEIEP. Ongoing safety training is conducted as toolbox safety meetings.

The following deficiencies were noted:

No mention of GED, experience, or background checks. Ongoing training is not mentioned after the 4-year NEIEP training. Material only indicates employees are given a safety manual - not that they are trained.

Quality Assurance & Customer Service Score 12 /20

Per dispatch tickets signed by both employee and customer. Two people are listed for approving and verifying delivery of services; Sue Schultz and Ron Lindsley. Lien clearances are done annually on employees scheduled to work at SOM facilities - why not all employees? Minimal plan for key-control and access. Plan only says they will give customer opportunity to complain and will try to resolve.

The following deficiencies were noted:

Inspections are not mentioned. Also, no description of how this is done. The proposal only lists who decides how corrective actions are implemented, not how. No mention of back ground checks. Does not list plan, or steps for resolution, or seeking customer input.

Work Plan Score 11 /15

The transition plan is not detailed, although it is mentioned. The CCI will be contacted and provided names & numbers for 24/7 service. Good on the 24-hour communications center. There appears to be a call list procedure. Also, a history of never failing to provide service.

The following deficiencies were noted:

No details provided for transition plan. No details provided on implementation plan.

Staffing Score 4 /5

One service person with an additional if needed. Estimated man hours based on type of elevator. Geared 3.5 hrs per unit, gearless 4 hrs per unit; hydraulic 1.5 hrs per unit.

The following deficiencies were noted:

Weekly hours not listed. Inspection and supervision are not detailed.

Equipment______Score 10/10_____

Various hand tools, meters, weights for testing, all owned by firm.

Firm has no criminal or civil litigation pending. Firm has not had any contracts terminated for default in the past three years.

Conclusion: Central Elevator Company, Inc. failed the technical evaluation receiving 77/100 pts. Therefore, the pricing proposal was not reviewed.

Otis Elevator Company

Company Information Score 15/15

Established 1853, Connecticut Corporation, branch in Lansing, MI. 90% Retention Rate. Provided five year sales information ($9.6B - 11.7B). Insurance agency identified w/contact info.

Prior Experience Score 15 /15

References are directly related, inclusive of contact person, phone number, project value and start/end dates. They gave information about the number of units in each contract.

Staff Development & Training Score 18 /20

Employees are hired from the International Union of Elevator Contractors (IUEC) and must pass drug screening. Mechanics must have Class A Elevator Journeyman license. Background checks are not conducted but Otis will agree to employees submitting to them. Two days of safety training. Helpers - 4-5 years of apprenticeship program. IUEC apprenticeship program and working under direct supervision of journeyman mechanic. Quarterly Safety training. Technical training - as needed. Has weekly, monthly, quarterly safety training. Weekly and pre work inspections, daily job site inspections. Inspections conducted by management. Program seems comprehensive. Surprise safety audits.

The following deficiency was noted:

No details on ongoing training listed.

Quality Assurance & Customer Service Score 19 /20

Otis Maintenance Management System (OMMS) requires each mechanic to closeout specified procedures on each elevator upon performing work. This procedure closeout will then automatically trigger an event driven email to respective site facility manager. Facility managers can review work after receiving job-completion emails. Annual audits done by maintenance supervisors, who can also use GPS to track work. If necessary, the maintenance supervisor would write the mechanic up per the guidelines of the IUEC and Otis. Already working in high-profile secured buildings. Employees are badged. Willing to work directly with facility manager or locked boxes. Complaints are to be resolved within 24 hours. Annual customer satisfaction survey, requiring follow-up on issue and verified satisfaction by service center. Job-completion emails for immediate feedback and access to web-base information about performance.

The following deficiency was noted:

Willing to submit employees to background checks, but not already conducted.

Work Plan Score 14 /15

Upon award per Location Specification Sheet (LSS), Otis Account Manager will meet with site Facility Supervisor and review all elevators and their designations within building. Otis will then assign an internal machine number along with any relevant data to each elevator coinciding with the State Identification number. Prior to contract effective date, per LSS awarded, Otis Elevator will have contract numbers, building identification numbers, machine numbers and related data per elevator loaded into State computer system. Assigned route mechanic will get his (OMMS) procedures for each elevator on his route loaded into his schedule (phone) at the beginning of the month. For the Lansing buildings, the Otis Lansing office has three route mechanics and a service team for repairs and safety tests. If the designated route mechanic is tied up, on vacation or sick, the maintenance supervisor will designate another mechanic to respond to the service call.

The following deficiency was noted:

JEC was unsure if substitute mechanic would be fully up to speed on SOM protocols.

Staffing Score 4 /5_____

The staffing plan indicated an understanding of the per unit time needed. Referenced organizational chart did not clearly demonstrate manpower plan. Otis maintenance supervisor will review callback reports and monthly OMMS reports and address as necessary with the route mechanic, Site Facility Supervisor and/or Otis Account Manager. All elevators will receive an annual audit from the Otis Maintenance Supervisor.

The following deficiency was noted:

Failed to provide great detail on the total time it would take and the manpower plan to accomplish the work.

Equipment______Score 10/10_____

Equipment list provided.

Firm has no criminal or civil litigation pending. Firm has not had any contracts terminated for default in the past three years.

Conclusion: Otis Elevator Company passed the technical evaluation receiving 95/100 pts. Therefore, the pricing proposal was reviewed.

ThyssenKrupp Elevator Corp.

Company Information Score 15/15

Established 1926, Delaware Corporation. 90% Retention Rate. Previous five years sales volume provided ($42B-40.6B). Insurance agency identified with contact information.

Prior Experience Score 14 /15

Proposal provided three references, inclusive of contact person, phone number, project value and start/end dates, brief project descriptions.

The following deficiency was noted:

Project descriptions were limited on details.

Staff Development & Training Score 9 /20

Firm selects International Union of Elevator Constructors (IUEC) trained employees. Drug screening is performed. Background checks are conducted. NEIEP standards are adhered to, as information on NEIEP standards and apprenticeship program is included. Information included NEIEP standards and apprenticeship program but it does not say the company uses them. Discussion of Health, Safety & Environmental Programs adequately addressed in the safety manual provided (hard copy only). There are forms for employees to sign in agreement that they have been given and read materials.

The following deficiencies were noted:

Failed to discuss before job placement requirements. Failed to discuss on the job training (OJT) programs. There is no mention of ongoing training.

Quality Assurance & Customer Service Score 20 /20

Daily Maintenance plans. Daily morning calls with mechanics. ThyssenKrupp Elevator verifies that staff adequately performs work for delivery of services by having the field manager and account representative conduct Quality Control Surveys on a monthly basis and by using Basic Elevator and Escalator Procedures (BEEP) manuals for conducting maintenance. Field manager and account representatives do surveys. Field superintendents do morning calls. If TKE representative finds a deficiency during the morning calls or Quality Control Audits firm immediately schedules a one on one meeting with the mechanic and place a verbal warning with him/her and then TKE representative schedules a one on one meeting with the customer to get service back on track before it turns into a major issue. If a problem is shown a second time the mechanic will be given a written warning. ThyssenKrupp Elevator does background checks and detailed reference checks on all employees for the safety and security of our customers. ThyssenKrupp Elevator will use a lock box access plan for all customer buildings. This plan will give immediate access to all buildings in case the building contact person is unavailable during an emergency or standard preventative maintenance. Quarterly meetings with facility supervisors and the ability to report concerns at any time. If there are concerns a one-on-one meeting will be conducted with mechanic to address issues. Final follow up with facility supervisor.

Work Plan Score 15 /15

Once notice of award is received by ThyssenKrupp Elevator (TKE), TKE will contact the building manager to set up a face to face pre-start meeting to review current equipment needs, expectations, and personnel introductions. Once needs have been established and introductions made, TKE will set up an onsite meeting with the building maintenance personnel and the current elevator maintenance provider to discuss any needs that the current elevator maintenance provider is aware of. Once all meetings have taken place and the new contract period has started TKE will visit each machine room to perform a general overview and place all needed examination charts and materials on site. The preventative maintenance implementation plan will commence within the first 30 days of the start of the contract period. TKE currently employs a back-up plan for each route. If a mechanic is out for any reason, back up mechanic steps in to fill the role until the original mechanic returns. Upon any equipment failure TKE mechanic is dispatched to the unit via local office our via SoundNet communications which handles overflow calls and after hours calls.