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Exhibit 1 - Agenda Information SheetCity of Denton _____________________________________________________________________________________ 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.