Exhibit 1 - Agenda Information SheetCity of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement & Compliance
ACM: David Gaines
DATE: September 14, 2021
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 Nippon Carbide Industries (USA), Inc., for the
supply of Nikkalite Vinyl for the Traffic Department to be stocked in the City of Denton Warehouse;
providing for the expenditure of funds therefor; and providing an effective date (IFB 7749 – awarded to
Nippon Carbide Industries (USA), 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 $336,000.00).
INFORMATION/BACKGROUND
Nikkalite reflective vinyl sheeting is used to fabricate traffic signs. These signs have a ten-year life
expectancy in the field. The Traffic Department cuts the vinyl and adheres it to the appropriate sign before
installing it in the field. Pedestrians utilize these signs to navigate the City safely and effectively.
The Warehouse orders goods in coordination with Traffic for specific projects under construction. The
items are temporarily stored in the Warehouse until they are needed on the job site and then transferred to
Traffic through an inventory management system. The items are ordered as needed, considering the
contracted lead time and the need-by-date by the using department. The need-by-date is established by
ensuring that citizen, customer, and developer timelines all form the basis of when the construction work
must be complete by with an operational City of Denton service; furthermore, it factors the City’s
construction crew schedules and construction sequencing with job site contractors.
Based on historical spend of $64,000 per year the contracted amount of $336,000 includes a 5% contingency
amount of $16,000 for future needs. The costs for material purchased under the proposed agreement will
be funded out of amounts budgeted for specific projects.
Invitation for Bids was sent to 194 prospective suppliers, including 13 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. Three (3) bids meeting specifications were received. The
lowest bid was received by Nippon Carbide Industries (USA), Inc.
NIGP Code Used for Solicitation: 801 - Signs, Sign Materials, Sign
Making Equipment, and Related
Supplies
Notifications sent for Solicitation sent in IonWave: 194
Number of Suppliers that viewed Solicitation in IonWave: 13
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
HUB-Historically Underutilized Business Invitations sent out: 12
SBE-Small Business Enterprise Invitations sent out: 90
Responses from Solicitation: 3
RECOMMENDATION
Award a contract with Nippon Carbide Industries (USA), Inc., for the supply of Nikkalite Vinyl for the
Traffic Department to be stocked in the City of Denton Warehouse, 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 $336,000.
PRINCIPAL PLACE OF BUSINESS
Nippon Carbide Industries (USA), Inc.
Cerritos, CA
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 items will be funded out of the Warehouse’s working capital account and charged back to the using
department. Requisitions will be entered 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: Ordinance and Contract
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Dustin Rolfe, 940-349-8000.
Legal point of contact: Marcella Lunn at 940-349-8333.