Exhibit 1 - Agenda Information Sheet - MRECity of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement
ACM: Cassey Ogden
DATE: September 17, 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 Professional Services Agreement with MRE Consulting, Ltd.,
for Energy Trading and Risk Management (ETRM) Support Services for Power, Gas, Risk Analytics, and
Environmental Products for Denton Municipal Electric as set forth in the contract; providing for the
expenditure of funds therefor; and providing an effective date (RFP 8496 – awarded to MRE Consulting,
Ltd., in the five (5) year not-to-exceed amount of $365,000.00). The Public Utilities Board recommends
approval (6 - 0).
STRATEGIC ALIGNMENT
This action supports Key Focus Area: Pursue Organizational Excellence and Collaborative and Respectful
Leadership.
INFORMATION/BACKGROUND
Denton Municipal Electric manages a wholesale energy portfolio valued in the hundreds of millions of
dollars. The market risk of this portfolio is assessed daily by DME staff per normal industry practice.
Computer-based applications are the preferred industry standard for this function as recommended by an
outside consultant (Deloitte).
DME acted on this recommendation and purchased an ETRM system from Allegro Development Corp. on
June 23, 2020, and planned and budgeted for this additional consultation assistance in order to create unique
tools and reports tailored to its operation.
On March 2, 2021, City Council approved a contract with MRE Consulting, Ltd., in a three (3) year not-to-
exceed amount of $350,000 (Ordinance 21-324) and MRE Consulting, Ltd. was contracted to ensure DME
had consulting expertise available for this role.
On December 12, 2024, City Council approved an additional First Amendment expenditure amount of not-
to-exceed $87,500 with the total amount not-to-exceed $437,500, and extending the contract to September
4, 2024.
MRE Consulting, Ltd. has provided outstanding general support guidance on the alignment of processes
with leading practices, addressed system issues causes, reviewed procedural user documentation to align
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
with system operability, implemented new system modules, created unique tools and reports, and trained
DME staff across FY 2021-2022, FY 2022-2023, and FY 2023-2024.
However, working with MRE Consulting, Ltd. has shown that their expertise is limited to four
modules/licenses (e.g., Power, Gas, Risk Analytics, and Environmental Products). The existing contract is
ending, and MRE's ETRM Support services are still needed—even more for the licenses/modules, MRE
has limitations (e.g., Options, Derivatives, Credit, and Market Connect). As a result, DME went through
the RFP solicitation process to continue to contract for this service. DME wants to keep MRE Consulting,
Ltd for those modules where they have expertise and for the historical knowledge it possesses on DME's
business activities.
Request for Proposals (RFP) for ETRM support services was sent to 1494 prospective firms for these
services. In addition, the RFP was placed on the Materials Management website for prospective respondents
to download, and advertised in the local newspaper. Six (6) proposals were received. The proposals were
evaluated based on published criteria including identification and understanding of the City’s requirements,
past performance and experience, and availability to complete tasks. Based upon this evaluation, the
recommended awardees are MRE Consulting, Ltd for the Power, Gas, Risk Analytics, and Environmental
Products licenses/modules. MRE was determined to be the most qualified firm for the City in the respective
areas.
The five (5) year not-to-exceed amount of $365,000 will be allocated to MRE Consulting, Ltd's contract
for support services provided towards the Power, Gas, Risk Analytics, and Environmental Products licenses.
Request for Proposals was sent to 1,494 prospective suppliers of this item. including 79 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 delivery, summary of qualifications, probable
performance, and price. Based upon this evaluation, MRE Consulting, Ltd. was ranked the highest and
determined to be the best value for the City.
NIGP Code Used for Solicitation: 290, 918, 961
Notifications sent for Solicitation sent in IonWave: 1,494
Number of Suppliers that viewed Solicitation in IonWave: 36
HUB-Historically Underutilized Business Invitations sent out: 179
SBE-Small Business Enterprise Invitations sent out: 597
Responses from Solicitation: 6
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On August 26, 2024, the Public Utilities Board (PUB) recommended this item to the City Council for
consideration.
RECOMMENDATION
Award a contract to MRE Consulting, Ltd., for Energy Trading and Risk Management (ETRM) Support
Services for Power, Gas, Risk Analytics, and Environmental Products for Denton Municipal Electric, in a
five (5) year not-to-exceed amount of $365,000.
PRINCIPAL PLACE OF BUSINESS
MRE Consulting, Ltd.
Houston, TX
ESTIMATED SCHEDULE OF PROJECT
This is a five (5) year contract.
FISCAL INFORMATION
These services will be funded from Electric Operation Funds. These products and services will be funded
through the using department’s 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: Evaluation Sheet
Exhibit 3: Ordinance and Contract
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Chris Lutrick, 940-349-7152.
Legal point of contact: Marcella Lunn at 940-349-8333.