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
DATE RECEIVED: ______________
MATTER ASSIGNED TO: ________
Request for Legal Assistance
DCSD Office of Legal Affairs
ATTORNEY – CLIENT COMMUNICATION
PLEASE SUBMIT COMPLETED REQUEST FORM TO
DCSD OFFICE OF LEGAL AFFAIRS.
*** This request is a confidential communication and should be treated as such ***
DESCRIPTION OF REQUEST
Title of Item/Topic: __Legal Review and Approval – Board Agenda Item Only_____________
(e.g., contract review, policy matter, etc.)
Date of request: _2/19/2025__________ Due Date: __2/24/2025_______ (Allow 3 to 5 business days)
Background information/Detail: 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
PROCUREMENT DETAILS (if applicable)
Include details confirming that all applicable DCSD procurement policies and requirements have been
adhered to: _________________________________________________________________________________
____________________________________________________________________________________________
SUPPORTING DOCUMENTATION
Please attach/include any additional supporting documentation that are relevant to your request.
Description of supporting documentation, if any _Chronology, BAI, Contracts, and all applicable
documents______________
REQUIRED AUTHORIZATION
Requested by: ___Darlene Y. Hughes___________________________________________________
Email: __darlene_hughes@dekalbschoolsga.org____________ Telephone: _678-676-1447__________
Department: ______Operations Division__________________________________________________
Cabinet Member authorizing the request: _____Erick Hofstetter_______________________________________
LEGAL APPROVAL
Approved as to form by the DCSD Office of Legal Affairs? ☐ Yes ☐ No
-OR- (check one only)
Approved as to form by Outside Legal Counsel? ☐ Yes ☐ No
*Referrals to Outside Legal Counsel must be coordinated and approved by the DCSD Legal Dept .
Approving Attorney (and law firm if Outside Counsel) _____________________________
Comments: ____________________________________________________________________________
______________________________________________________________________________________