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HomeMy WebLinkAboutExhibit 1 - Agenda Information SheetCity of Denton _____________________________________________________________________________________ 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 CBS Mechanical Services, Inc. dba CMS Mechanical Services, Inc., for HVAC Services for the Facilities Management Department; providing for the expenditure of funds therefor; and providing an effective date (RFP 8982 – awarded to CBS Mechanical Services, Inc. dba CMS Mechanical Services, 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 $9,075,437.00). STRATEGIC ALIGNMENT This action supports Key Focus Area: Enhance Infrastructure and Mobility. INFORMATION/BACKGROUND The City of Denton requires comprehensive and reliable Heating, Ventilation, and Air Conditioning (HVAC) services to ensure the safe and continuous operation of its entire network of municipal facilities. This contract provides for the comprehensive maintenance and repair of the City’s HVAC infrastructure. The scope covers the entire municipal building portfolio, which consists of over 200 separate facilities encompassing a total of approximately 1,500,000 square feet. The units range from 1.5 tons to 180 tons. These services encompass a range of essential functions, including preventative maintenance, emergency repair, and system replacement and installation. Facilities Management and other departments will utilize this contract to service critical infrastructure, such as the City Halls, Police Stations, Fire Stations, Libraries, Recreation Centers, and Utility Operations buildings. The urgent and ongoing need for these services is driven by the necessity to maintain public health, safety, and operational continuity, particularly given the extreme temperatures common in North Texas. Without functional heating and cooling, the city would risk violating public safety mandates, potentially leading to facility closures and service disruptions during critical periods. Beyond human comfort, HVAC systems are vital for protecting millions of dollars in City assets, including sensitive IT servers, communications gear, and administrative records, all of which require precise climate control to prevent heat or humidity damage. Therefore, securing these services on a year-round basis is an essential, high-priority objective. Regular preventative maintenance minimizes utility costs by ensuring energy efficiency, extends the lifespan of expensive equipment, and dramatically reduces the likelihood of costly emergency breakdowns. By contracting professional HVAC services, the City of Denton proactively addresses its regulatory compliance City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com requirements, safeguards its essential infrastructure, and ensures a stable, safe environment for both its employees and the thousands of citizens who rely on accessible public services every day. Based on the current Capital Improvement Program (CIP), the Facilities Condition Assessment (FCA), and the planned integration of new building assets, we project the contract expenditure as follows. Estimated Contract Expenses Category Year 1 Year 2 Year 3 Year 4 Year 5 Total Service, Repairs $403,000 $415,090 $427,543 $440,369 $453,580 $2,139,582 New Installations 1,225,000 1,261,750 1,299,603 1,338,591 1,378,748 6,503,692 Sub Total $1,628,000 $1,676,840 $1,727,146 $1,778,960 $1,832,328 $8,643,274 Contingency 81,400 83,842 86,357 88,948 91,616 432,163 Total $1,709,400 $1,760,682 $1,813,503 $1,867,908 $1,923,944 $9,075,437 Request for Proposals was sent to 559 prospective suppliers, including 49 Denton firms. In addition, specifications were placed on the Procurement website for prospective suppliers to download and advertised in the local newspaper. Four (4) proposals were received, references were checked, and proposals were evaluated based upon published criteria, including compliance with specifications, probable performance, and price. Best and Final Offers (BAFO) were requested from the top firm. Based upon this evaluation, CMS Mechanical Services, Inc. was ranked the highest and determined to be the best value for the City. NIGP Code Used for Solicitation: 910 - (Service Only) - Building Maintenance, Installation and Repair Services Notifications sent for Solicitation sent in IonWave: 559 Number of Suppliers that viewed Solicitation in IonWave: 24 HUB-Historically Underutilized Business Invitations sent out: 99 SBE-Small Business Enterprise Invitations sent out: 215 Responses from Solicitation: 4 RECOMMENDATION Award a contract with CBS Mechanical Services, Inc. dba CMS Mechanical Services, Inc., for HVAC Services for the Facilities Management 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 $9,075,437. PRINCIPAL PLACE OF BUSINESS CBS Mechanical Services, Inc. dba CMS Mechanical Services, Inc. Denton, 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 Operating and Capital Fund accounts. Requisitions will be entered on an as-needed basis. The budgeted amount for this item is $9,075,437. 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: Presentation Exhibit 4: Ordinance and Contract Respectfully submitted: Lori Hewell, 940-349-7100 Purchasing Manager For information concerning this acquisition, contact: David Moore, 940-349-7247. Legal point of contact: Leah Bush at 940-349-8333.