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Exhibit 1 - Agenda Information Sheet City of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement & Compliance ACM: David Gaines DATE: January 12, 2021 SUBJECT Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, authorizing the City Manager, or his designee, to execute a contract with vendors for the rental of heavy trucks for various City of Denton departments; providing for the expenditure of funds therefor; and providing an effective date (IFB 7464 – awarded to Big Truck Rental, LLC, Herc Rentals, Inc., Industrial Power, LLC, and Rush Truck Leasing, Inc., for three (3) years, with the option for two (2) additional one (1) year extensions, in the total five (5) year not-to-exceed amount of $450,000.00). INFORMATION/BACKGROUND This request is for awarding a contract to primary and secondary vendors by category section for the short- term rental of Class 6, 7, and 8 heavy vocational trucks for various City departments. Departments occasionally have a need for the rental of heavy trucks to supplement the City fleet. Rental periods range from daily to monthly and longer depending on the project requirements. Rental trucks are typically used to supplement department fleets for specific projects or as temporary replacements for front line trucks when long maintenance downtimes are projected. Truck availability and delivery is a key factor in the efficiency of the rental program. An annual contract will allow staff quick access to trucks without delay. Staff is recommending awarding contracts to primary and secondary vendors by class to assure availability and meet City timelines. This contract will leverage volume and allow for a more competitive price than incidental usage. No guarantee of minimal usage is specified within the contract and each rental will have an individual purchase order. The required bid specifications included examples of the most commonly requested truck classes providing specific vocational bodies for a given project. The list of classes is provided in the attached tabulation sheet. The requested not-to-exceed amount is based on historical and current spending rates. The three-year rental history shows the City spends around $88,650 per year on heavy truck rental services. The projected spend could increase or decrease based on planned construction projects and changes to department-specific program services. Invitation for Bids was sent to 105 prospective suppliers, including 10 Denton firms, of this item. In addition, specifications were placed on the Materials Management website for prospective suppliers to download and advertised in the local newspaper. Four (4) bids meeting specifications were received. Primary and secondary vendors were selected by section based on the lowest bid. City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com NIGP Code Used for Solicitation: 975 - (Service Only)-Rental or Lease Services of Agricultural, Aircraft, Airport, Automotive, Marine, and Heavy Equipment Notifications sent for Solicitation sent in IonWave: 105 Number of Suppliers that viewed Solicitation in IonWave: 11 HUB-Historically Underutilized Business Invitations sent out: 6 SBE-Small Business Enterprise Invitations sent out: 25 Responses from Solicitation: 4 The primary contractor is expected to respond to initial contact* within 4 hours during normal business hours. If no response is received by the City from the primary contractor within 4 hours from initial contact, the City has the right to call the secondary contractor. The secondary contractor will be contacted if the primary contractor fails to respond as requested. The secondary contractor must respond to initial contact* within 4 hours during normal business hours. Normal business hours are Monday – Friday 7 am - 4 pm. *Initial Contact: The first phone call placed, or email sent from the City to the contractor. PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) On January 11, 2021, the Public Utilities Board (PUB) recommended this item to the City Council for consideration. RECOMMENDATION Award a contract with Big Truck Rental, LLC, Herc Rentals, Inc., Industrial Power LLC, and Rush Truck Leasing, Inc., for the rental of heavy trucks for various City of Denton departments, in a three (3) year, with the option for two (2) additional one (1) year extensions, in the total five (5) year not-to-exceed amount of $450,000. Company Awarded Sections Industrial Power LLC Primary - Section C Herc Rentals, Inc. Primary - Section B Big Truck Rental, LLC Secondary - Section A Rush Truck Leasing, Inc. Primary - Section A, Secondary - Section B PRINCIPAL PLACE OF BUSINESS Industrial Power LLC Fort Worth, TX Herc Rentals, Inc Dallas, TX Big Truck Rental, LLC Hutchins, TX Rush Truck Leasing, Inc. Dallas, TX ESTIMATED SCHEDULE OF PROJECT This is an initial three (3) year contract with options to extend the contract for two (2) additional one (1) year periods, with all terms and conditions remaining the same. FISCAL INFORMATION These products and services will be funded through the using department’s budget on an as-needed basis. 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: Bid Tabulation Exhibit 3: LLC Members Exhibit 4: Ordinance and Contracts Respectfully submitted: Lori Hewell, 940-349-7100 Purchasing Manager For information concerning this acquisition, contact: Terry Kader, 940-349-8729. Legal point of contact: Marcella Lunn at 940-349-8333.