HomeMy WebLinkAboutExhibit 1 - Agenda Information SheetCity of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement
ACM: Christine Taylor
DATE: March 24, 2026
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 Accelleron US Inc., for turbo replacement, parts,
and service for the Denton Energy Center; providing for the expenditure of funds therefor; and providing
an effective date (RFP 8816 – awarded to Accelleron US Inc., 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 $9,520,000.00). The
Public Utilities Board will consider this item on Monday, March 23, 2026.
STRATEGIC ALIGNMENT
This action supports Key Focus Area: Enhance Infrastructure and Mobility.
INFORMATION/BACKGROUND
To maintain high availability and reliability of the Denton Energy Center (DEC) generating units, all 12
units, equipped with a total of 24 turbochargers, require routine scheduled maintenance and timely repairs
to minimize unplanned downtime and ensure continued operational readiness.
These maintenance activities involve the inspection, servicing, and replacement of critical components that
experience normal or premature wear. Work is performed as preventive, predictive, or corrective
maintenance. Preventive and predictive maintenance is scheduled based on operating hours or calendar
intervals. Corrective maintenance addresses unexpected component failures that often result in forced
outages. Completing both planned and unplanned maintenance is essential to sustaining unit reliability and
performance.
Estimated costs for parts on each turbo for each unit, along with overhaul and service cost are as follows.
There are a total of 24 turbos installed on 12 units. A completely new turbocharger is $400,000. DEC is
expecting to purchase 10 over the term of the contract, totaling $4,000,000. The estimated overhaul and
repair cost is $125,000, and expecting all 24 turbos to be overhauled during the term of the contract, totaling
$3,000,000. Critical components, parts, and services for normal maintenance and hour-based intervals
average a cost of $105,000 on all units, totaling $2,520,000. Total cost estimate of $9,520,000.
Description Cost
Turbo Charger Purchase $4,000,000.00
Overhaul and Repair 3,000,000.00
Maintenance/Parts 2,520,000.00
Total $9,520,000.00
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
Request for Proposals was sent to 41 prospective suppliers. In addition, specifications were placed on the
Procurement website for prospective suppliers to download and advertised in the local newspaper. Two (2)
proposals were received, references were checked, and proposals were evaluated based upon published
criteria, including price, schedule, compliance with specifications, and probable performance. Best and
Final Offers (BAFO) were requested from the top firm. Based upon this evaluation, Accelleron US Inc. was
ranked the highest and determined to be the best value for the City.
NIGP Code Used for Solicitation:
120 - Boats, Motors, and Marine
Equipment
Notifications sent for Solicitation sent in IonWave: 41
Number of Suppliers that viewed Solicitation in IonWave: 11
HUB-Historically Underutilized Business Invitations sent out: 5
SBE-Small Business Enterprise Invitations sent out: 21
Responses from Solicitation: 2
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On March 23, 2026, this item will be presented to the Public Utilities Board (PUB) for consideration.
RECOMMENDATION
Award a contract with Accelleron US Inc., for turbo replacement, parts, and service for the Denton Energy
Center, 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 $9,520,000.
PRINCIPAL PLACE OF BUSINESS
Accelleron US Inc.
Miramar, FL
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. Delivery of the items will occur within 30 days
after receipt of the order.
FISCAL INFORMATION
A total of $2,500,000 to project will be funded from revenue account 605331497, and the remaining in 10-
year bonds. Requisitions will be entered on an as-needed basis. The budgeted amount for this item is
$9,520,000.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Pricing Evaluation
Exhibit 3: Presentation
Exhibit 4: Ordinance and Contract
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Arthur Pando, 940-349-8653.
Legal point of contact: Leah Bush at 940-349-8333.