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HomeMy WebLinkAboutExhibit 1 - Agenda Information SheetCity of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement ACM: Christine Taylor DATE: August 18, 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 Kelmar and Associates, Inc., for pre-employment and post-offer background checks for the Human Resources Department; providing for the expenditure of funds therefor; and providing an effective date (RFP 9029 – awarded to Kelmar and Associates, 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 $921,500.00). STRATEGIC ALIGNMENT This action supports Key Focus Area: Pursue Organizational Excellence and Collaborative and Respectful Leadership. INFORMATION/BACKGROUND Human Resources conducts approximately 1,900 pre-employment and post-offer background checks annually as defined in Policy 102.00 Eligibility for Employment. Multiple pre-employment and post-offer screenings are required to complete the hiring process for full-time, part-time, and seasonal employees to ensure the City is hiring the best candidates to serve the community; therefore, total screenings exceed the number of annual new hires. Since 2021, Human Resources has experienced an increase of 400 screenings annually and an increase in employment history verification to third-party vendors, resulting in additional costs. Additionally, the City welcomes the services of approximately 1,700 volunteers, an increase of 400 individuals annually since 2021, in the Parks, Library, other departments, and at city-wide special events. Per Policy 409.07 Volunteer Procedures, volunteers over the age of 18 must pass a criminal history background check as administered by the Human Resources Department. The evaluation committee identified Kelmar and Associates, Inc. as the best-value supplier to the city. Based on supplier rates, providing reasonable delivery, project schedule, compliance with specifications, and rated the highest in probable performance. Kelmar and Associates, Inc. offers account setup within 24 hours, and they provide 24/7 support. They are a licensed private investigation company, and they have extensive experience working with government entities, including other Texas-based municipalities City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com Upon execution of the contract, Human Resources will begin working with the new vendor for pre- employment and post-offer background checks as well as background checks for volunteers serving in various capacities in the City. Proposed Contract Total for Five (5) Years Year 1 Year 2 Year 3 Year 4 Year 5 Total Pre-Employment, Post-Offer, and Volunteer Background Check Services $66,800 $66,800 $66,800 $66,800 $66,800 $334,000 Employment and Educational Checks 90,425 90,425 90,425 90,425 90,425 452,125 Certification/License Checks 8,075 8,075 8,075 8,075 8,075 40,375 Reference Checks 15,000 15,000 15,000 15,000 15,000 75,000 Contingency 4,000 4,000 4,000 4,000 4,000 20,000 Total $184,300 $184,300 $184,300 $184,300 $184,300 $921,500 Request for Proposals was sent to 609 prospective suppliers, including 52 Denton firms. In addition, specifications were placed on the Procurement website for prospective suppliers to download and advertised in the local newspaper. Eleven (11) proposals were received, with ten (10) meeting specifications. 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, Kelmar and Associates, Inc. was ranked the highest and determined to be the best value for the City. NIGP Code Used for Solicitation: 961 - (Service Only) - Miscellaneous Services, No. 1 (Not Otherwise Classified) Notifications sent for Solicitation sent in IonWave: 609 Number of Suppliers that viewed Solicitation in IonWave: 51 HUB-Historically Underutilized Business Invitations sent out: 83 SBE-Small Business Enterprise Invitations sent out: 246 Responses from Solicitation: 11 Responses Meeting Specifications: 10 RECOMMENDATION Award a contract with Kelmar and Associates, Inc., for pre-employment and post-offer background checks for the Human Resources 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 $921,500. PRINCIPAL PLACE OF BUSINESS Kelmar and Associates, Inc San Antonio, 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 services will be funded from Human Resources account 150001.7888. Requisition #176494 has been entered into the Purchasing software system in the amount of $67,743.50. The estimated annual expenditure for a fiscal year is $184,300 and is included in the adopted budget. The remaining will be budgeted in future fiscal years to align with the contract terms and expenditures. These products and services will be utilized on an as-needed basis. The City will only pay for items purchased 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: Charla Warren, 940-349-8070. Legal point of contact: Leah Bush at 940-349-8333.