Exhibit 1 - Agenda Information SheetCity of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement & Compliance
ACM: David Gaines
DATE: October 12, 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 Airgas USA, LLC, for bulk shipments of liquid
oxygen and medical oxygen for the Water Production and Fire Departments; providing for the expenditure
of funds therefor; and providing an effective date (IFB-BV 7806 – awarded to Airgas USA, LLC, 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 $1,300,000.00).
INFORMATION/BACKGROUND
The Water Production and Fire Departments utilize oxygen in varying forms to meet the treatment
requirements for individuals, and water purification for the City of Denton and surrounding communities.
The last chemical contract for Liquid Oxygen was established in 2017, and the previous contract expires
near the end of this fiscal year.
As reviewed by the Water and Fire staff, the highest evaluated vendor was selected. This bid has been
selected based on the vendor’s capability to meet specifications as well as price. This contract will allow
for the chemical vendor to provide quality and logistically reliable products to the Water and Fire Facilities.
Department Amount
Water Production $575,000.00
Fire Department $608,520.00
Contingency - 10% $116,480.00
Total: $1,300,000.00
Invitations for Bids for Best Value were sent to 160 prospective suppliers, including three (3) 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. One (1) bid was received, and references were
checked to ensure the vendor can provide the services requested in the Scope of Work. The proposal was
evaluated based upon published criteria including price, probable performance, and compliance with
specifications. The department is awarding the contract to Airgas USA, LLC.
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
NIGP Code Used for Solicitation: 430 - Gases, Containers, Equipment:
Laboratory, Medical, and Welding &
885 - Water and Wastewater Treating
Chemicals
Notifications sent for Solicitation sent in IonWave: 160
Number of Suppliers that viewed Solicitation in IonWave: 6
HUB-Historically Underutilized Business Invitations sent out: 10
SBE-Small Business Enterprise Invitations sent out: 62
Responses from Solicitation: 1
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On October 11, 2021, this item will be presented to the Public Utilities Board (PUB) for consideration.
RECOMMENDATION
Award a contract with Airgas USA, LLC, for bulk shipments of liquid oxygen and medical oxygen for the
Water Production and Fire 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 $1,300,000.
PRINCIPAL PLACE OF BUSINESS
Airgas USA, LLC
Denton, 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 items will be funded from the using department’s budget. Requisitions will be entered on an as-
needed basis. The budgeted amount for this item is $1,300,000. 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: LLC Members
Exhibit 3: Ordinance and Contract
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Daniel Parish, 940-349-7522.
Legal point of contact: Marcella Lunn at 940-349-8333.