Cost_Proposal.doc

This is a Cost Proposal document for the City of Palo Alto's Compressed Natural Gas (CNG) Compressor Repair and Maintenance contract. The solicitation seeks a qualified contractor to provide comprehensive preventative maintenance and emergency repair services for two CNG fueling stations at the Municipal Services Center over a three-year contract term from April 1, 2026, to March 31, 2029. The scope of work includes three quarterly preventative maintenance services annually, one annual comprehensive maintenance service, and 24-hour emergency call-out services available during normal weekday hours, after-hours on weekdays, and weekends/holidays. Bid items are structured across three annual tables covering Year One, Year Two, and Year Three, with estimated call-out service quantities of 40 hours annually for normal weekday operations. Proposal submissions were due January 13, 2026, at 3:00 p.m., and questions were accepted through December 29, 2025.

The cost proposal structure requires bidders to submit unit prices and total item prices for each service category, with all pricing inclusive of labor, equipment, transportation, miscellaneous overhead, and taxes. Bid Item 6 includes a lump sum allocation of $10,000 annually for parts, materials, and consumables, though actual costs may vary based on operational conditions. Bidders must provide three separate subtotals for each contract year and a grand total for the entire three-year period. The compensation structure incorporates different hourly rates for normal weekday hours, after-hours weekday services, and weekend/holiday services. No specific total contract value ceiling is stated in the cost proposal document; however, contractors must demonstrate financial stability through audited or reviewed financial statements, a letter of good standing, or a Dun & Bradstreet report to be considered for award.