Agenda Item
i. Contract Spend Limit Increase and Contract Renewal ~ Bid 23-417 ~ Portable Air Condition Unit (A/C) ~ Sun Belt Rentals, Inc. and Spot Coolers, Inc. ~ Contract Renewal #3 of 4 and Spend Limit Increase (Not to exceed $12,000,000 Collectively) ~ Updated 3.3.2025
Summary: Presented by: Mr. Erick Hofstetter, Chief Operating Officer, Division of Operations
Request: It is requested that the DeKalb County Board of Education (“the Board”) approve the following:
An increase in the spend limit of contract Bid 23-417 for Portable Air Condition Unit (A/C) to Sun Belt Rentals, Inc. and Spot Coolers, Inc., through September 21, 2025, in the not to exceed amount of $4,000,000.
The Contract Renewal for Bid 23-417-Portable Air Condition Unit (A/C) to Sun Belt Rentals, Inc. and Spot Coolers, Inc. for a term effective September 22, 2025, through September 21, 2026, not to exceed amount of $8,000,000.
This is the third four (#3 of 4) contract renewals for Bid 23-417.
Why: Approval of the request for Contract Renewal is critical to address the continued operation of the DeKalb County School District (“DCSD”) climate control systems. The ability to continue utilizing this rental contract is critical in addressing the district’s short-term climatization needs while a long-term solution is being pursued.
Approval of the request for Spend Limit Increase will provide the Division of Operations with the necessary financial flexibility to secure rental portable heating/air conditioning units on an as-needed basis.
The current contract has exceeded its authorized spending limit, and as a result, an approval to exceed the initial cap is required. Given the ongoing HVAC system challenges, this temporary solution through portable air conditioning units remains vital to maintaining acceptable temperature levels in district facilities.
Approval of the contract renewal and contract spend limit increase meets Strategic Goal Area 6: Organizational Excellence.
Details: Contract Renewal:
On September 12, 2022, the Board of Education approved the contract with Sun Belt Rentals, Inc. and Spot Coolers, Inc. for the rental of portable air conditioning units. This arrangement provides critical support for DCSD on an as-needed basis, ensuring affordability and efficiency. The contract term is an initial one (1) year term with four (4) one (1) year renewal options. This request is the third of four (#3 of 4) renewal options.
Spend Limit Increase Authorization
On May 13, 2024, the Board approved Contract Renewal #2 (effective September 21, 2024) for the amount of $1,750,000; however, due to prolonged periods of extreme temperatures and significant stress on the DCSD’s HVAC systems, the district has faced unexpected and frequent equipment failures. This has resulted in the need to rent additional portable air conditioning units to maintain indoor temperature standards. These unforeseen circumstances have led to overspending of the approved budget.
To ensure compliance with the Code of Federal Regulations (1910) and the American Society of Heating, Refrigerating, and Air-Conditioning Engineers (ASHRAE) temperature guidelines, and the continued operation and to prevent disruption of DCSD climate systems, we are requesting an additional $4,000,000 to cover costs for the remainder of the contract renewal term to September 2025. This increased authorization is crucial; without it, the district would be forced to return the rented equipment, potentially compromising the comfort and safety of students and staff.
Financial impact: The total increased budget for this service will be allocated from the Facilities Deferred Maintenance Budget, under cost code 100.2600.543013.00011.7520.9990.8013.040.0000, in the amount not to exceed $12,000,000.
Contact: Mr. Erick Hofstetter, Chief Operating Officer; Division of Operations, 678.676.1475
Mr. Keith Singleton, Director; Business Services Department, Division of Operations, 678.676.1422
Effective: Upon Board Approval
Status: Approved by the Office of Legal Affairs
CHRONOLOGY OF THE AGENDA ITEM
Bid 23-417-Portable Air Condition Unit (A/C)
Authorization of Increased Contract Spend Limit and Contract Renewal–
$12,000,000 (collectively)
Scope:
Authorization of Increased Contract Spend Limit for Bid 23-417-Portable Air
Condition Unit (A/C) and approval of the contract renewal to Sunbelt, Rentals,
Inc. and Spot Coolers, Inc. to provide additional funding necessary to support the
demand for the rental equipment throughout the district.
Contract Term:
• September 22, 2022 – September 21, 2023 - Initial Contract Year 1
(Effective Date) - $1,200,000
• September 22, 2023 – September 21, 2024 - Contract Renewal #1 (1 of 4) -
$1,200,000
• September 22, 2024 – September 20, 2025-– Contract Renewal #2 (2 of 4) -
$1,750,000
o This renewal is requesting an immediate Spend Limit Increase
Not to Exceed amount of $4,000,000.
• September 22, 2025 – September 21, 2026 - Contract Renewal #3 (3
of 4) - $8,000,000
o Current Renewal Request for the upcoming year.
Background
The Division of Operations is requesting approval of the contract renewal
and increased spend limit increase. The approvals are essential for the
continued operation of the district’s climate control systems.
The increase in spending authorization will provide the Division of Operations with
the necessary financial flexibility to secure rental portable air conditioning units on
an as-needed basis. The existing HVAC systems across the district are aging and
frequently malfunctioning, requiring urgent intervention. These equipment failures,
which occur regularly, result in the need for immediate supplemental cooling
solutions to maintain a comfortable environment in schools. The ability to continue
utilizing this rental contract is critical in addressing the district’s short-term
climatization needs while a long-term solution is being pursued.
The current contract has exceeded its authorized spending limit, and as a result, an
approval to exceed the initial cap is required. Given the ongoing HVAC system
challenges, this temporary solution through portable air conditioning units remains
vital to maintaining acceptable temperature levels in district facilities.