Exhibit 1 - Agenda Information SheetCity of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement and Compliance
CFO: Antonio Puente, Jr.
DATE: July 21, 2020
SUBJECT
Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation,
rejecting any and all competitive proposals under RFP 7310 for warehouse services for the Distribution
Center; and providing an effective date (RFP 7310).
INFORMATION/BACKGROUND
The City solicited proposals for outsourcing the City’s Warehouse Services, currently provided by the
Distribution Center. The Distribution Center is responsible for procuring material for the City with focus
given to Electric, Water, Wastewater and Traffic departments. Last fiscal year, the Distribution Center
helped procure material for Capital Improvement projects and infrastructure repair totaling $8 million. The
Distribution Center also manages the disposal of surplus or obsolete goods and the distribution of internal
mail.
The City is able to provide warehouse services for less cost than outsourcing to an outside vendor. Due to
an increased focus on obtaining longer term contracts over the past year, the Distribution Center procures
materials for less than the proposals received from outside vendors. The Warehouse currently staffs 6 FTEs
between two locations, the main Distribution Center at the Service Center and the Pole Yard at DME. When
compared to the proposals, the City’s personnel costs are less expensive. However, the City’s overhead
costs including insurance, equipment and internal transfers make the overhead associated with materials
handling more expensive than a contracted vendor can provide. The Warehouse also provides value added
services including distribution of internal mail, disposal and facilitation of auction services that would
continue to be provided internally if warehouse services were contracted out. Overall, the City has greater
flexibility, realiability and provides lower costs by providing warehouse services internally. It is for these
reasons, staff recommends rejecting all bids.
The City of Denton solicited proposals for the update to the comprehensive plan. Requests for Proposals
were sent to 173 prospective suppliers of this service, including six (6) Denton Suppliers. Six (6) proposals
meeting specifications were received. After reviewing the information, the Purchasing Department has
decided to reject all proposals due to continuing to provide warehouse services internally reducing the cost
to the City and its citizens.
In accordance with the Local Government Code 252.043, the City Council may reject any and all bids.
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
RECOMMENDATION
Staff recommends rejection of all proposals for warehouse services.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Ordinance
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Cassey Ogden, 940-349-7195.
Legal point of contact: Mack Reinwand at 940-349-8333.