Exhibit 1 - Agenda Information SheetCity of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement & Compliance
ACM: David Gaines
DATE: October 27, 2020
SUBJECT
Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation,
authorizing the City Manager to execute a contract with Online Information Services, Inc., to provide fraud
protection, credit risk assessment and debt recovery solutions; providing for the expenditure of funds
therefor; and providing an effective date (RFP 7395 – awarded to Online Information Services, Inc., in the
five (5) year not-to-exceed amount of $320,000).
INFORMATION/BACKGROUND
A ruling known as the Identity Theft Red Flag Regulation was jointly issued by the Federal Trade
Commission, Office of Thrift Supervision and several other governing agencies; implementing section 114
of the Fair and Accurate Credit Transaction Act of 2003 (FACT ACT) that came in to effective May 1,
2009.
As part of compliance with federal guidelines, City of Denton Utilities Customer Service entered into a
contract with Online Information Services, Inc. to provide fraud protection, credit risk assessment, and debt
recovery solutions. Use of the system allows the City to verify the identity of customers via telephone in
order to reduce the opportunity for identity fraud in accordance with federal law. This service is utilized
when a new account is set up and any time a new person is added to an account as an authorized party.
Based on a historical spend and future projections the recommended NTE for this contract is $320,000 for
a total potential five (5) year contract.
Request for Proposals were sent to 103 prospective suppliers. In addition, specifications were placed on the
Materials Management website for prospective suppliers to download and advertised in the local
newspaper. One (1) proposal was received and evaluated based upon published criteria including price,
delivery, compliance with specifications, and probable performance. Best and Final Offers (BAFO) was
requested from the top firm. Based upon this evaluation, Online Information Services, Inc. was ranked the
highest and determined to be the best value for the City.
NIGP Code Used for Solicitation: 946-(Service Only)-Financial Services
Notifications sent for Solicitation sent in IonWave: 103
Number of Suppliers that viewed Solicitation in IonWave: 10
HUB-Historically Underutilized Business Invitations sent out: 5
SBE-Small Business Enterprise Invitations sent out: 25
Responses from Solicitation: 1
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On October 26, 2020, this item will be presented to the Public Utilities Board (PUB) for consideration.
RECOMMENDATION
Award a contract with Online Information Services, Inc., to provide fraud protection, credit risk assessment,
and debt recovery solutions, in a five (5) year not-to-exceed amount of $320,000.
PRINCIPAL PLACE OF BUSINESS
Online Information Services, Inc.
Winterville, NC
ESTIMATED SCHEDULE OF PROJECT
This is a five (5) year contract.
FISCAL INFORMATION
Funding is budgeted in Customer Service Operating Budget. The costs associated with this contract are
collected as a one-time charge on the customer’s account. The City will only pay for services rendered and
is not obligated to pay the full contract amount unless needed.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Ordinance and Contract
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Christa Foster, 940-349-7412.
Legal point of contact: Mack Reinwand at 940-349-8333.