Exhibit 1 - Agenda Information SheetCity of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement & Compliance
ACM: David Gaines
DATE: November 2, 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 Professional Services Agreement with HSI Workplace
Compliance Solutions, Inc., for consulting services related to the North American Electric Reliability
Corporation (“NERC”) compliance for the City of Denton as set forth in the contract; providing for the
expenditure of funds therefor; and providing an effective date (RFQ 7693 – Professional Services
Agreement for Consulting Services awarded to HSI Workplace Compliance Solutions, Inc., in the two (2)
year not-to-exceed amount of $280,000.00). The Public Utilities Board recommends approval (7 - 0).
INFORMATION/BACKGROUND
The City’s Electric Department, Denton Municipal Electric (“DME”), is a North American Electric
Reliability Corporation (NERC) registered entity that must be compliant with NERC’s standards for the
electric power industry. DME must comply with over 350 NERC requirements. These are enforced by the
Federal Energy Regulatory Commission. Violations of these standards could result in Civil Penalties of up
to $1,000,000.00 per violation, per day. NERC audits are conducted on a regular schedule and DME is
scheduled to be audited in 2022. To assist in its audit preparation DME is seeking approval of an agreement
for services to review and analyze DME’s NERC compliance state.
In preparation for an upcoming audit, DME and the City’s Technology Services department will benefit
from having a professional review, analysis, and mitigation plans to prepare for the upcoming audit. The
RFQ solicitation criteria required that firms have experience with NERC compliance programs that cover
both the operational and cyber areas of NERC, experience with audit support, and have a licensed engineer
supporting the project. Of the eight firms that replied to the RFQ, HSI Workplace Compliance Solutions,
Inc. was selected as most qualified.
The NERC Audit is scheduled for Fall 2022. The PSA for NERC Compliance Consulting will provide
process review in early 2022 and provide onsite support through the completion of the NERC audit.
If approved, HSI Workplace Compliance Solutions, Inc. will complete an audit readiness assessment and
assist DME to make recommended changes, if needed. The consultant will provide an extensive review of
the current policies, procedures, controls, and evidence of the existing compliance program governing both
DME and Technology Services. The overall goal is to prepare DME for audit readiness through the
utilization of a third party that has an independent view without the handicap of being too familiar with the
program.
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
Project Description Estimated Expenditure
Year 1 $140,000
Year 2 $140,000
Total $280,000
Request for Qualifications (RFQ) for professional surveying services was sent to 670 prospective firms,
including 26 Denton firms, for these services. In addition, the RFQ was placed on the Materials
Management website for prospective respondents to download and advertised in the local newspaper. Eight
(8) statements of qualifications (SOQ) were received. The SOQs were evaluated based on published criteria
including identification and understanding of the City’s requirements, past performance and experience,
and schedule to complete tasks. Based upon this evaluation, the recommended award is to HSI Workplace
Compliance Solutions, Inc. and is determined to be the most qualified firm for the City.
NIGP Code Used for Solicitation: 918 - (Service Only) - Consulting
Services
Notifications sent for Solicitation sent in IonWave: 670
Number of Suppliers that viewed Solicitation in IonWave: 38
HUB-Historically Underutilized Business Invitations sent out: 69
SBE-Small Business Enterprise Invitations sent out: 310
Responses from Solicitation: 8
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On October 25, 2021, the Public Utilities Board (PUB) recommended this item to the City Council for
consideration.
RECOMMENDATION
Award a contract with HSI Workplace Compliance Solutions, Inc., for consulting services related to the
North American Electric Reliability Corporation (“NERC”) compliance for the City of Denton, in a two (2)
year not-to-exceed amount of $280,000.
PRINCIPAL PLACE OF BUSINESS
HSI Workplace Compliance Solutions, Inc.
Kennewick, WA
ESTIMATED SCHEDULE OF PROJECT
This is a two (2) year contract.
FISCAL INFORMATION
These services will be funded from Electric’s Operating Fund.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Evaluation Sheet
Exhibit 3: Ordinance and Contract
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Smith Day, 940-349-7561.
Legal point of contact: Marcella Lunn at 940-349-8333.