Patten Energy Solutions Group Inc (PTTN)

[tonyo524]

Unfortunately there not good crumbs. This is a good piece of recent relevant dd posted by Patience back in January.

PatienceisVirtue Tuesday, 01/10/17 02:30:31 PM
Re: dcsteve post# 22250
Post #
22251
of 22775 Go
dcsteve, did you read pages 325 - 327 of the attachment you provided?

DATE: December 7, 2016
TO: Board Chair Sam Spagnolo and Members of the Omnitrans Board of Directors
THROUGH: P. Scott Graham, CEO/General Manager
FROM: Jennifer M. Sims, Director of Procurement
SUBJECT: PUBLIC HEARING – TO DETERMINE THE RESPONSIBILITY OF PATTEN ENERGY ENTERPRISES, INC.
FORM MOTION
1. Open and conduct a Public Hearing on Wednesday, December 7, 2016, at 8:00 a.m., to determine the responsibility of Patten Energy Enterprises, Inc., with regard to IFB-MNT16109R1 and place into record any public comments and evidence received.
2. Close the Public Hearing and make a finding as to whether Patten Energy Enterprises, Inc. is a responsible bidder.
BACKGROUND
On April 6, 2016, Omnitrans Board of Directors authorized release of Invitation for Bids IFBMNT16-109. Notices were published in two local newspapers of general circulation and posted on Omnitrans’ online bidding system.
Omnitrans stated in the Instructions to Bidders, Section V, AWARD/EVALUATION PROCESS, for the above referenced invitation for bids that:
“Any contract awarded as a result of this solicitation will be awarded to the lowest (overall cost), responsive and responsible bidder in accordance with the solicitation. In addition to meeting technical requirements, Omnitrans will consider debarment, suspension, & other responsibility matters (references, www.sam.gov, contract terminations for convenience, contract terminations for cause, etc.) in determining responsibility.”
Eight (8) bids were received by the August 9, 2016 deadline; all eight bids were deemed responsive. Staff conducted a responsibility review and deemed seven bidders to be responsible. Staff determined that Patten Energy Enterprises, Inc. (Patten) is not a responsible bidder. A summary of the relevant information reflecting adversely upon Patten’s responsibility is as follows:

1) STATUS OF PAST AND PRESENT CONTRACTS FORM – Bidder listed two (2) past and present contracts in which the contract has been terminated for convenience or cause or is the subject of or may be involved in litigation with the awarding agency. One of which was Omnitrans contract MNT15-93, Coolant Supply Services, which Omnitrans terminated for cause. Bidder’s explanation of the circumstances was:

“Patten energy disputed this ruling because the delivered batch of coolant which was five (5) points off spec was within market. The standard of 10 points below or above stated specification.”

2) No Dispute: On June 10, 2015, Omnitrans issued Patten a 30-day Notice to Cure for performance under Contract MNT15-93. In accordance with Attachment A, Scope of Work, Page 3.IV., Inspection and Rejection, Omnitrans submitted samples of coolant provided by Patten to Ana Laboratories, Inc. on May 19, 2015. Test results received on June 2, 2015 indicate that levels of ethylene glycol and tin (SN) were not in compliance with the required specifications for the coolant in Contract MNT15-93.

Contrary to the statement Patten made on their STATUS OF PAST AND PRESENT CONTRACTS FORM, Patten did not dispute the independent laboratory evidence. In Patten’s response to the Notice to Cure, dated June 10, 2016, Patten stated that, “Our supplier did us wrong, we were deceived and it will not happen again.”

3) Patten’s proposed cure was to use a new supplier, replace the off specification coolant, provide copies of specifications for coolant delivered, and provide test results of field refractometer tests for each future delivery.

4) Quality - Only one of the next four delivery attempts met specification. As a result, Omnitrans terminated the agreement in accordance with Article 10. Termination for Breach of Agreement for failure to cure and in accordance with Article 9. Termination for Convenience.

5) Contract MTN15-93 contained specifications for the coolant in Attachment A and there was no provision that allowed for coolant to be off specification to a certain degree. Therefore, to the extent that Patten is now raising the argument for the first time that the provision of off specification coolant was allowable under Contract MTN15-93, Omnitrans rejects this interpretation of the contract.

6) On November 16, 2016, the Los Angeles County District Attorney filed seventeen (17) felony charges against Patten Energy Enterprises, Inc., owner Ezekiel Patten Jr., and driver Devell Rozelles Hicklen. Charges include grand theft, counterfeit of a trademark, and grand theft for issuing insufficient funds checks. Omnitrans is listed as a victim along with ten other public agencies and corporations. Arraignment is scheduled for December 29, 2016.

Based on the information presented above and the evidence attached to this staff report, staff recommends that the contract for IFB-MNT16-109R1 Misc. Bulk Oils and Lubricants not be awarded to Patten due to a lack of responsibility. Bidders must successfully demonstrate attributes of trustworthiness, as well as quality, fitness, and experience to satisfactorily perform the contract. Based on the evidence described above, Omnitrans staff recommends that the Omnitrans Board of Directors determine that Patten Energy Enterprises has not successfully demonstrated these attributes.

The Board’s determination shall constitute a final decision for purposes of judicial appeal, but it shall not preclude Omnitrans or any other agency from initiating any other legal proceeding against Patten for actions related to proceedings. The attachments to this item include the documentary evidence supporting the summary above.

Attachments