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Exhibit 1 - Agenda Information SheetCity of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement ACM: Cassey Ogden DATE: May 21, 2024 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 Sun Coast Resources, LLC, for the purchase of bulk diesel exhaust fluid (DEF) for the Fleet Services Department; providing for the expenditure of funds therefor; and providing an effective date (RFP 8438 – awarded to Sun Coast Resources, LLC, for one (1) year, with the option for four (4) additional one (1) year extensions, in the total five (5) year not-to-exceed amount of $125,000.00). STRATEGIC ALIGNMENT This action supports Key Focus Area: Enhance Infrastructure and Mobility. INFORMATION/BACKGROUND The City of Denton Fleet Services Department purchases, dispenses, and tracks approximately 17,000 gallons of diesel exhaust fluid (DEF) annually. Department usage will fluctuate with City operations and will increase as more diesel-powered vehicles and equipment are added to the City fleet. DEF helps diesel engines reduce the amount of air pollution by lowering exhaust emissions and is necessary to comply with Tier 4 Final Emissions regulations set by the Environmental Protection Agency (EPA). DEF is currently available at the Service Center and the Solid Waste Landfill fuel stations for City vehicle utilization. By moving to a bulk purchase method instead of individual containers, Fleet Services will reduce bottle waste and mitigate costs, thereby lessening the environmental and financial impact on the City while still meeting EPA standards. Estimated Expenses Category Year 1 Year 2 Year 3 Year 4 Year 5 Total Bulk DEF Purchases $20,000 $20,000 $20,000 $20,000 $20,000 $100,000 Department Usage Contingency 5,000 5,000 5,000 5,000 5,000 25,000 Total $25,000 $25,000 $25,000 $25,000 $25,000 $125,000 Request for Proposals was sent to 104 prospective suppliers, including five (5) Denton firms. In addition, specifications were placed on the Procurement website for prospective suppliers to download and advertised in the local newspaper. Six (6) proposals were received, references were checked, and proposals were evaluated based upon published criteria including compliance with specifications, probable performance, City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com safety, and price. Best and Final Offers (BAFO) were requested from the top firm. Based upon this evaluation, Sun Coast Resources, LLC was ranked the highest and determined to be the best value for the City. NIGP Code Used for Solicitation: 405 - Fuel, Oil, Grease & Lubricants Notifications sent for Solicitation sent in IonWave: 104 Number of Suppliers that viewed Solicitation in IonWave: 21 HUB-Historically Underutilized Business Invitations sent out: 4 SBE-Small Business Enterprise Invitations sent out: 36 Responses from Solicitation: 6 RECOMMENDATION Award a contract with Sun Coast Resources, LLC, for the purchase of bulk diesel exhaust fluid (DEF) for the Fleet Services Department, in a one (1) year, with the option for four (4) additional one (1) year extensions, in the total five (5) year not-to-exceed amount of $125,000. PRINCIPAL PLACE OF BUSINESS Sun Coast Resources, LLC Houston, TX ESTIMATED SCHEDULE OF PROJECT This is an initial one (1) year contract with options to extend the contract for four (4) additional one (1) year periods, with all terms and conditions remaining the same. FISCAL INFORMATION These products and services will be funded through the Fleet operating budget and charged back to the utilizing departments through Faster allocations. 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: Dustin Rolfe, 940-349-8438. Legal point of contact: Marcella Lunn at 940-349-8333.