AGENDA ITEM REPORT
TITLE:
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A RESOLUTION AUTHORIZING THE CITY MANAGER, OR DESIGNEE, TO EXECUTE AMENDMENT NO. 2 TO THE AGREEMENT WITH DRC EMERGENCY SERVICES, LLC TO PROVIDE EMERGENCY FOOD SERVICES FOR AN EXTENDED NINETY (90) DAY PERIOD PURSUANT TO RFP NO. 06-10-15-11.
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BACKGROUND:
The City issued a Request for Proposals (RFP) to contract with a qualified firm to provide emergency food services to support response and recovery operations for declared emergencies. On August 27, 2015, DRC Emergency Services, LLC (DRC) was awarded the contract for emergency food services. The initial contract period was for three (3) years, with the right to renew the contract for five (5) additional one (1) year periods, providing both parties agree to the renewal; all terms, conditions, and specifications remain the same; and such extension is approved by the City. Such extensions have occurred, providing a current contract expiration date of August 31, 2023. It is the City’s intent to utilize the awarded Contractor’s services as needed for emergency response situations both natural and man-made.
DISCUSSION:
Due to the contract expiration date falling within the Atlantic basin hurricane season, it is the City’s intent to initiate the extension period, which will not extend more than ninety (90) days beyond the expiration date of the existing contract, bringing the new, proposed expiration date to November 30, 2023. The extension period request was sent to DRC to enact the ninety (90) day extension period. They denied the request due to the extraordinarily increased costs associated with materials and services since the original 2015 contract. DRC provided the City with new proposed fees, as provided in Exhibit A, for the ninety (90) day extension period. The new proposed fees exceed the cost escalation parameters of the existing contract yet are consistent with the escalation in the industry, especially given that DRC did not escalate costs during the previous eight (8) contract years even though the contract provided an annual escalation formula for the renewal periods. Based on satisfactory performance, mutual acceptance, and determination that the contract is in the best interest of the City, staff recommends that the new fees proposed by DRC for the ninety (90) day extension period be approved by the City Commission, and the attached Amendment No. 2 to the Agreement with DRC for emergency food services, RFP No. 06-10-15-11, be executed by the City Manager, or designee.
RECOMMENDATION:
Staff recommends approval of this resolution.
FISCAL IMPACT:
REVENUES: N/A
EXPENDITURES: TBD
BUDGETED? No
NOTES: The emergency food services contract is not included as a line item in the annual operating budget. However, the City would seek reimbursement from the Federal Emergency Management Agency (FEMA) and the State of Florida. Additionally, a portion of the City's Fund Balance has been set aside as emergency reserves that can be used to cover the costs associated with this contract.