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Exhibit 1 - Agenda Information SheetCity of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement & Compliance ACM: David Gaines DATE: February 9, 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 Parker Power Systems, Inc., to provide maintenance, inspection, and repair services on generators for various City of Denton departments; providing for the expenditure of funds therefor; and providing an effective date (RFP 7534 - awarded to Parker Power Systems, 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 $750,000.00). INFORMATION/BACKGROUND In the event of power failure, generators provide temporary power to maintain critical City operations without interruption. City operations with generators include Public Safety Dispatch, various servers for Technology Services, lift stations for Wastewater, fuel distribution for Fleet Services, and Denton Municipal Electric. The proposed contract will provide maintenance, inspection, and repair services for approximately thirty (30) generators ranging from 11.5KW to 1500KW in power output. Generators will receive preventative maintenance services including weekly testing to ensure functionality during a random power failure. Based on a historical spend and future projections, the recommended NTE of this contract is $750,000 for the potential five (5) year contract. Requests for Proposals was sent to 353 prospective suppliers of this item. In addition, specifications were placed on the Materials Management website for prospective suppliers to download and advertised in the local newspaper. Six (6) proposals were received, references were checked, and proposals evaluated based upon published criteria including delivery, compliance with specifications, probable performance, and price. Based upon this evaluation, Parker Power System, Inc. was ranked the highest and determined to be the best value for the City. NIGP Code Used for Solicitation: 285 - Electrical Equipment & Supplies (Except Cable & Wire) & 690 - Power Generation Equipment, Accessories, & Supplies Notifications sent for Solicitation in Ion Wave: 353 Number of Suppliers that viewed Solicitation in Ion Wave: 5 HUB-Historically Underutilized Business Invitations sent out: 1 SBE-Small Business Enterprise Invitations sent out: 6 Responses from Solicitation: 6 City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com Below is the information Parker Power provided regarding the wages they pay their employees who will be assigned to the City’s contract. Position Description Number of Assigned Employees Hourly Rate of Assigned Employees Generator Technician 3 assigned technicians $25.00 to $35.00 an hour RECOMMENDATION Award a contract with Parker Power System Inc., to provide maintenance, inspection, and repair services on generators 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 $750,000. PRINCIPAL PLACE OF BUSINESS Parker Power System, Inc. Carrollton, 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 services will be funded through the using department’s operating 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: Pricing Evaluation Exhibit 3: Ordinance and Contract Respectfully submitted: Lori Hewell, 940-349-7100 Purchasing Manager For information concerning this acquisition, contact: Scott Gray, 940-349-7744. Legal point of contact: Marcella Lunn at 940-349-8333.