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HomeMy WebLinkAboutExhibit 1 - Agenda Information SheetCity of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement ACM: Christine Taylor DATE: April 21, 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 Black & Veatch Corporation and C3 AcquisitionCO, LLC dba POWERx Inc., for relay commissioning services for Denton Municipal Electric; providing for the expenditure of funds therefor; and providing an effective date (RFQ 8901 – awarded to Black & Veatch Corporation and C3 AcquisitionCO, LLC dba POWERx Inc., for three (3) years, with the option for two (2) additional one (1) year extensions, in the total five (5) year not-to-exceed amount of $4,875,000.00). The Public Utilities Board recommends approval (4 - 0). STRATEGIC ALIGNMENT This action supports Key Focus Area: Enhance Infrastructure and Mobility. INFORMATION/BACKGROUND Denton Municipal Electric (DME) developed a Request for Qualifications (RFQ) to establish two (2) contracts with qualified consultants for relay commissioning services. These services encompass a wide range of tasks, including but not limited to testing, commissioning, installation, replacement, repair, and other related activities associated with protection systems, equipment, and devices. The scope of work applies to facilities located within DME and Texas Municipal Power Agency (TMPA) substations, switch stations, and interchanges in the Denton area. The purpose of the proposed services is to ensure the proper operation and reliability of all substation protection systems. This includes verifying functionality, identifying and correcting deficiencies, assisting with installations, performing repairs, and providing technical support as needed. Consultants may also be called upon to conduct periodic testing required by the North American Electric Reliability Corporation (NERC), support Texas Reliability Entity (TRE) audits by verifying and interpreting records and test results, and offer technical consultation in response to system protection events or inquiries. Additional responsibilities may involve reviewing and analyzing relay operations following system events and advising on compliance with NERC standards. CIP Projects: The following are projects within the next five (5) years that will require relay commissioning services. City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com - Underwood Substation - Core Substation - Masch Branch Substation T2 Addition - RD Wells Substation Panel Replacement - Denton West Interchange Panel Replacement - Denton West Interchange Breaker Replacement - Jim Christal Substation T3 Addition - Fort Worth Substation Transformer Replacement - RD Wells Substation Auto Decommissioning - 345kV Switch Station - Two 345kV Interchanges - Arco Substation Modifications - Masch Branch Substation Modifications - Southwest Substations - NERC Substation PRC-005 - Future Large Load Customer Substations - Emergency Assistance The total NTE amount is cumulative and is based on the estimated expenditure of upcoming relay commissioning service projects, as shown in the chart below: Project Description Estimated 5-Year Expenditure Relay Commissioning Year 1 $1,105,000 Relay Commissioning Year 2 420,000 Relay Commissioning Year 3 315,000 Relay Commissioning Year 4 1,790,000 Relay Commissioning Year 5 1,245,000 Total $4,875,000 Each consultant will be provided with the opportunity to submit a cost proposal on packages of work put forth by DME. The consultant offering the lowest bid that meets the project's schedule requirements will be awarded the work. These contracts do not guarantee a minimum amount of work. This process will be repeated for each work package throughout the duration of the contract. Request for Qualifications (RFQ) for professional relay commissioning services was sent to 866 prospective firms for these services, including 23 Denton firms. In addition, the RFQ was placed on the Procurement website for prospective respondents to download, and advertised in the local newspaper. Six (6) statements of qualifications (SOQ) were received. The SOQs were evaluated based on published criteria, including quality, misoperations caused, and safety. Based upon this evaluation, the recommended awards are to Black & Veatch Corporation and C3 AcquisitionCO, LLC dba POWERx Inc., and are determined to be the most qualified firms for the City. NIGP Code Used for Solicitation: 207, 285, 691 Notifications sent for Solicitation sent in IonWave: 866 Number of Suppliers that viewed Solicitation in IonWave: 27 HUB-Historically Underutilized Business Invitations sent out: 120 SBE-Small Business Enterprise Invitations sent out: 336 Responses from Solicitation: 6 PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) On April 13, 2026, the Public Utilities Board (PUB) recommended this item to the City Council for consideration. RECOMMENDATION Award a contract with Black & Veatch Corporation and C3 AcquisitionCO, LLC dba POWERx Inc., for relay commissioning services for Denton Municipal Electric, in a three (3) year, with the option for two (2) additional one (1) year extensions, in the total five (5) year not-to-exceed amount of $4,875,000. PRINCIPAL PLACE OF BUSINESS Black & Veatch Corporation Houston, TX C3 AcquisitionCO, LLC dba POWERx Inc. Phoenix, AZ ESTIMATED SCHEDULE OF PROJECT This is an initial three (3) year contract with options to extend the contract for two (2) additional one (1) year periods, with all terms and conditions remaining the same. FISCAL INFORMATION The costs for materials and services purchased under the proposed agreement will be funded out of amounts budgeted for specific CIP projects. The majority of the work proposed will be in the transmission category. Therefore, these costs for transmission projects will ultimately be recovered through the Public Utility Commission of Texas, Transmission Cost of Service Program (TCOS). 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 Contracts Respectfully submitted: Lori Hewell, 940-349-7100 Purchasing Manager For information concerning this acquisition, contact: Mark Zimmerer, 940-349-7169. Legal point of contact: Leah Bush at 940-349-8333.