Title
Approval of Service Agreement No. AGR 26-834 with B&D Industries, Inc. in an Amount Not to Exceed $4,000,000 plus Applicable Gross Receipts Tax for On-Call HVAC and Plumbing Services for a Two-Year Term
Recommended Motion
I move that Council approve Services Agreement No. AGR 26-834 with B&D Industries, Inc. in an amount not to exceed $4,000,000 plus applicable gross receipts tax for On-Call HVAC and Plumbing Services for a two-year term.
County Manager's Recommendation
The County Manager recommends that Council approve the motion as presented.
Body
The procurement of these services is made per County Procurement Code Section 31-3(b)(4), using prices for labor, materials and equipment found in the State of New Mexico’s General Services Department Purchasing Statewide Price Agreement 30-00000-23-00084 AF. The agreement (Attachment A) was reviewed and approved by the County Attorney’s Office.
The Contractor shall supply on-call HVAC system construction, installation, maintenance, repair, and replacement work to the County on an as-needed basis at the prices listed in Exhibit A. The Contractor shall also supply all labor, materials, and equipment, including specialty rental equipment necessary to complete the work. All work shall be in accordance with applicable local, state, or federal codes and standards.
The agreement is a Task Order-based contract. Task order signature approval is based on the associated compensation limits established in the Procurement Code. If a Task Order exceeds $300,000, Council approval will be required.
The compensation of this sole agreement shall not to exceed the sum of four million dollars, ($4,000,000), excluding New Mexico gross receipts taxes for the term of the contract, unless modified by a duly authorized and executed contract amendment. Although a similar agreement with a different contractor was approved by Council on October 7, 2025, this additional agreement will provide staff with more options for acquiring services based on availability, responsiveness, and performance. HVAC maintenance and repair is a critical need and often times it is crucial to be able to have several HVAC contractors already under an agreement, to be able to respond to heating and cooling emergencies quickly.
Council should note that the contract compensation amount does not represent a promise or commitment to pay any amount but designates a contract limit or ceiling that a cumulative sum of all task order costs cannot exceed. Staff will be responsible for tracking the expenditure of all task orders to ensure that contract limits are not exceeded.
Based on the current Statewide Price Agreement, the contract term will commence October 29, 2025, and shall continue through July 4, 2027, unless sooner terminated or extended by contract amendment.
Alternatives
Council could choose to not approve the Agreement, and staff would then follow alternate procedures of the Procurement Code to seek HVAC and Plumbing Services.
Fiscal and Staff Impact/Planned Item
The County shall pay compensation for performance of the services in accordance with each task order issued through applicable and properly appropriate funding sources for facilities maintenance as detailed in the Fiscal Year 2026 Biennial Budget. The Facilities Maintenance Fund provides for routine maintenance, repair and replacement of mechanical parts and equipment such as boilers and water heaters, while the Major Facilities Maintenance (MFM) Fund provides for a large-scale HVAC system replacement program based on service life expectancy. The five-year MFM Project schedule included in the FY 2026 Biennial Budget is provided as Attachment B.
On Call HVAC and Plumbing Services contracts supplement maintenance staff’s ability to respond to routine, urgent and programmed maintenance needs for the County’s 47 buildings totaling over 620,000 square feet of air-conditioned space.
Compensation shall be paid in accordance with the rate schedule set out in Exhibit "A," of the agreement. The Public Works Department Capital Projects & Facilities Division will manage the agreement.
Attachments
A - AGR 26-834 with B&D Industries, Inc.
B - Major Facilities Maintenance Schedule