S037_Attach1_Amend3.pdf

PDF 430 KB Posted

Attached to
HVAC Preventative and Repair Maintenance Services (Capitol Complex Only)
Contract number
037-HAT
Issued by
North Dakota

About this file

This document is a contract amendment and correspondence between H. A. Thompson & Sons, a mechanical contracting company based in Bismarck, North Dakota, and the State of North Dakota's Office of Management & Budget, specifically regarding HVAC maintenance services for the North Dakota State Capitol Complex.

The contract involves preventive and repair maintenance services for four buildings: Heritage Center, Department of Transportation (DOT), State Office Building, and Liberty Memorial. H. A. Thompson & Sons is requesting a price increase due to annual wage increases for service technicians and inflationary pressures on materials. The proposed price changes include increases from $98,650 to $102,100 for the Heritage Center, $20,250 to $20,960 for DOT, $11,400 to $11,800 for the State Office Building, and $12,200 to $12,640 for Liberty Memorial. Additionally, the company proposed adjusting their labor rates to $90/hour for normal working hours and $130/hour for overtime, with a new proposed annual agreement amount of $147,500.00, which translates to a monthly rate of $12,291.67.

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Attachment 1 to Amendment 3, Contract #037

H. A. Thompson & Sons

Since 1908 Mechanical Contractors

911 South 9th Street Bismarck, ND 58503

1-800-238-5462

June 23, 2021

Jamie Bostyan State of North Dakota Office of Management & Budget 600 East Boulevard Avenue, Dept. 012 Bismarck, ND 58505-0310

Dear Jamie, I am writing this letter to request a price increase for the HVAC preventive and repair maintenance services we are providing for the ND State Capitol Complex.

We consistently give our HVAC Service Techs annual wage increases, which average 3% - 4% to keep up with market demand. This helps us recruit and retain the very talented professionals that we have working for us. We have also seen inflationary pressures on the materials we use in our PM’s and also the repair parts that we use to keep your equipment running. This inflationary trend looks very likely to continue into the future under the market forces in play today. The requested prices would be held firm from 7/1/2021 through 6/30/2023.

The increases we are requesting are as follows…

• Heritage Center current: $ 98,650.00 o Proposed: $102,100.00

• DOT current: $ 20,250.00 o Proposed: $ 20,960.00

• State Office Bldg. current: $ 11,400.00 o Proposed: $ 11,800.00

• Liberty Memorial current: $ 12,200.00 o Proposed: $ 12,640.00

We look forward to working with you for two more years under our partnership.

If you have any questions, please do not hesitate to contact us at 701-223-3393

Sincerely, H.A. THOMPSON & SONS, INC.

Bradley D. Mann

From: Bradley Mann To: Bostyan, Jamie T.

Subject: RE: State of ND - Capitol HVAC Maintenance - Price Adjustment Date: Friday, June 25, 2021 11:02:35 AM Attachments: image001.jpg image004.jpg image005.png

***** CAUTION: This email originated from an outside source. Do not click links or open attachments unless you know they are safe. *****

Jamie, We would like to move our labor rate on extra charges to $90.00/hour for normal working hours and $130.00/hour for Overtime.

The new proposed annual agreement amount would increase to $147,500.00 per my request, which would make the monthly rate $12,291.67

If you’re ok with it, we could adjust our total agreement number to $147,492.00 annually so we can avoid the .67 charge, which would make the monthly rate $12,291.00

Please let know what you think about this.

Thank you, Brad Mann___________________ 911 S. 9th St Bismarck, ND 58504 + Email: bmann@hatandsons.com ( Phone: (701) 223-3393 ( Toll Free: (800) 238-5462 8 Website: www.hatandsons.com

From: Bostyan, Jamie T. <jbostyan@nd.gov> Sent: Friday, June 25, 2021 10:38 AM To: Bradley Mann <bmann@hatandsons.com> Subject: RE: State of ND - Capitol HVAC Maintenance - Price Adjustment

Good morning Brad, I sent this on to Tom to review. When you bill us for services, are you invoicing us according to the monthly rate and other charges submitted in your cost proposal as shown below? I was wondering because if we were to make an adjustment, the way in which the contract was established included mailto:bmann@hatandsons.com mailto:jbostyan@nd.gov mailto:%20bmann@hatandsons.com https://gcc02.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.hatandsons.com%2F&data=04%7C01%7Cjbostyan%40nd.gov%7C268fc793c02e4e601f5508d937f2a466%7C2dea0464da514a88bae2b3db94bc0c54%7C0%7C0%7C637602337547754286%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C1000&sdata=WzoiyDgtXPTVF7nJLPu4tCJweYghGl03wPvJJDD6t94%3D&reserved=0 a monthly rate of $11,875. Your request has it broken out by building and I was wondering what change this would make to the monthly rate to account for those proposed changes as shown by each building?

Thanks!

Jamie Bostyan Procurement Officer State Procurement Office

701.328.4912 • jbostyan@nd.gov • www.nd.gov/omb

From: Bradley Mann <bmann@hatandsons.com> Sent: Wednesday, June 23, 2021 10:14 AM To: Bostyan, Jamie T. <jbostyan@nd.gov> Subject: State of ND - Capitol HVAC Maintenance - Price Adjustment

***** CAUTION: This email originated from an outside source. Do not click links or open mailto:jbostyan@nd.gov https://gcc02.safelinks.protection.outlook.com/?url=https%3A%2F%2Flinkprotect.cudasvc.com%2Furl%3Fa%3Dhttp%253a%252f%252fwww.nd.gov%252fomb%26c%3DE%2C1%2Ckmy29wmDGJbhrtdk1p7w0m3h0GoA8Woz1JmEmzzGAt5yMBmA2VTS9t--RMDzVaMbi4CHuLzDzE4stQC28nEwjanSR80AILQduvI8vo6MfyTCoNW78wAmaP4D%26typo%3D1&data=04%7C01%7Cjbostyan%40nd.gov%7C268fc793c02e4e601f5508d937f2a466%7C2dea0464da514a88bae2b3db94bc0c54%7C0%7C0%7C637602337547764251%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C1000&sdata=vwY%2Bk1yljeq%2BKpVxIp9h27%2BTRlKUDt%2F8d9W6zOPnE2c%3D&reserved=0 mailto:bmann@hatandsons.com mailto:jbostyan@nd.gov attachments unless you know they are safe. *****

Good morning Jamie, I wrote the attached letter asking for an increase in our Maintenance Agreement due to inflationary pressures as detailed within. We appreciate our partnership and have enjoyed working with your staff to ensure the comfort for the buildings we are servicing.

Please let me know if this is approved, so we can plan to continue providing maintenance services for the four buildings on the ND Capitol Complex.

Thank you, Brad Mann___________________ 911 S. 9th St Bismarck, ND 58504 + Email: bmann@hatandsons.com ( Phone: (701) 223-3393 ( Toll Free: (800) 238-5462 8 Website: www.hatandsons.com mailto:%20bmann@hatandsons.com https://gcc02.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.hatandsons.com%2F&data=04%7C01%7Cjbostyan%40nd.gov%7C268fc793c02e4e601f5508d937f2a466%7C2dea0464da514a88bae2b3db94bc0c54%7C0%7C0%7C637602337547764251%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C1000&sdata=kr1040HTx3o0WpyciUwqNWUapQWEWxQQSkAF2g7%2Fy6w%3D&reserved=0

Mechanical Contractors

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