(25-0363-REQ)_CPM_Thermal_Tech_Inc_New_Contract_Fiscal_Review.docx

This is a fiscal review document for a new contract awarded by Pinellas County, Florida (CPM Department) to Thermal Tech Inc for boiler maintenance and repair services across five county facilities. The contract (No. 190-0288-B) covers comprehensive maintenance services including four scheduled inspections per boiler annually—one major annual inspection and three minor quarterly safety inspections—performed during normal business hours (Monday-Friday, 7:00 A.M. to 3:30 P.M.). The major annual inspections involve opening and cleaning fireside and waterside components, repairing refractory, resealing with new gaskets, servicing burner assemblies, conducting flue gas analysis, and testing operating and safety controls, while minor quarterly inspections focus on burner assembly inspection, stack gas analysis, control verification, and boiler room log reviews. The five-year contract term includes annual price adjustments limited to the lesser of the Consumer Price Index or 5 percent. Proposals were required to be submitted electronically via OpenGov by January 15, 2026 at 3:00 p.m., with a question submission deadline of January 6, 2026. The contractor must provide 24/7 emergency response with a four-hour reaction time and maintain appropriate Florida corporate registration and state licensing for boiler maintenance.

The total contract value is estimated at $506,600 with an annual estimated expenditure of $101,320, representing a year-over-year cost increase of approximately $100,000 to $101,320. Budgeting for FY26 totals $135,041.35, distributed across routine and preventative maintenance ($88,320), projected or as-needed repairs ($43,726), and operating supplies ($2,995.35). The contract is currently budgeted within the CPM Department Operating Budget; however, the fiscal review notes this modification is not consistent with the FY26 Adopted Budget for preventative maintenance but will align with CPM's FY27 Budget pending submission in March 2026. As of September 30, 2025, actual expenditures with the vendor totaled $29,781.38 for boiler inspection services, while FY24 final costs were $68,421.12. Replacement parts are reimbursed at list price minus a contractor-submitted discount, with projected annual parts spend of $50,000. Any budget overages will be absorbed by the department or addressed through budget amendment. The incumbent vendor, Thermal Tech Inc, must maintain comprehensive insurance coverage including Workers' Compensation, Commercial General Liability ($1,000,000 per occurrence), Business Automobile Liability ($1,000,000 per accident), Excess/Umbrella Liability ($2,000,000), and Pollution Legal/Environmental Liability ($2,000,000 per claim).