(26-0009-REQ)_CPM_HVAC_Systems_New_Contract_Fiscal_Review.docx

This is a fiscal review document for a new contract with Johnson Controls, Inc. to provide HVAC Systems and Related Services for Pinellas County, Florida. The procurement establishes a comprehensive preventive maintenance and condition assessment program for water-cooled chillers, air-cooled chillers, pumps, and cooling towers across approximately 4.5 million square feet of facilities spanning more than 150 county locations. The scope encompasses 122 line items including 20 air-cooled chillers, 31 cooling towers, 82 chilled water pumps, 108 condenser water pumps, and 120 water-cooled chillers requiring three annual preventive maintenance services per unit. Deliverables include structured annual preventive maintenance performed during regular business hours with a mandatory three-hour emergency response time, comprehensive documentation submitted within 30 days of service completion, an Annual Reporting Package with formal Condition Assessments and Remaining Useful Life projections, and Eddy Current testing and tube cleaning for water-cooled chillers. The initial contract term is 36 months from the award date of August 12, 2026, with two optional 12-month renewal periods. Proposals were due April 9, 2026, at 3:00 PM EST, with a question submission deadline of March 30, 2026, at 2:00 PM EST.

The total contract amount is $375,079.00 for the three-year initial term with an annual estimated expenditure of $125,026.33, funded through Pinellas County's CPM Department Operating Budget. The Not-To-Exceed budget is established at $220,000 for the three-year contract period, comprising $200,000 for standard preventive maintenance and repairs and $20,000 for services requiring prior written county authorization, with estimated labor costs of 3,200 standard repair hours and 400 overtime/emergency hours across the contract term, and parts billed at cost plus a percentage markup. The fiscal review indicates the procurement was conducted as a sole source award to Johnson Controls, Inc. under Florida Statutes 287.057(3)(c), with costs budgeted in FY26 at $526,873.89 across multiple account strings. Johnson Controls, Inc. was the incumbent vendor, with FY25 expenditures totaling $507,782.29. Contractors must maintain comprehensive insurance coverage including Workers' Compensation at Florida statutory limits, Commercial General Liability of $1,000,000 per occurrence and $2,000,000 aggregate, Business Automobile Liability of $1,000,000 combined single limit, Excess/Umbrella Liability of $5,000,000, and Professional Liability Insurance of $1,000,000, with all policies issued by companies holding an AM Best rating of A-VIII or better. All contractors must comply with E-Verify requirements, register with the Florida Division of Corporations, complete Pinellas County Security Clearance processes including Florida Department of Law Enforcement background checks, and execute mandatory compliance affidavits including Human Trafficking Attestation and Foreign Country of Concern Affidavit.