HomeMy WebLinkAboutExhibit 1 - Agenda Information SheetCity of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement
ACM: Christine Taylor
DATE: October 13, 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 Subnet Solutions Inc., for the purchase of substation
Remote Terminal Unit and Human Machine Interface software for use in substations for Denton Municipal
Electric, which is the sole provider of this software, in accordance with Texas Local Government Code
252.022, which provides that procurement of commodities and services that are available from one source
are exempt from competitive bidding, and if over $100,000, shall be awarded by the governing body;
providing for the expenditure of funds therefor; and providing an effective date (File 9024 – awarded to
Subnet Solutions Inc., in the four (4) year not-to-exceed amount of $386,850.00). The Public Utilities Board
recommends approval ( - ).
STRATEGIC ALIGNMENT
This action supports Key Focus Area: Enhance Infrastructure and Mobility.
INFORMATION/BACKGROUND
Denton Municipal Electric (DME) has substation projects in its approved five (5) year Capital Improvement
Plan (CIP) that will require the purchase of Remote Terminal Unit (RTU) and Human Machine Interface
(HMI) software for use in substations. This software collects and manages data for the Supervisory Control
and Data Acquisition (SCADA) system in substations and will be installed on Schweitzer Engineering Labs
(SEL) 3355 relay panel-mounted substation RTUs.
SCADA is the system for collecting field information such as voltages, currents, megawatts, temperatures,
and statuses of devices such as breaker positions, relay contact positions, alarms, and for remotely
controlling substation equipment. This information is required for reporting system status and performance
data to DME System Operations and to the Electric Reliability Council of Texas (ERCOT). The RTUs
inside each substation consist of a computer and software. Each substation computer serving as an RTU
requires a license for the RTU software to function.
This contract shall cover the costs for new CIP approved substation projects that require RTU software,
replacement of existing RTU equipment with SEL hardware/Subnet software, and license renewals of
existing and future subscriptions over the next four (4) years. The contract includes the purchase of 13 new
Subnet RTU licenses, 13 new HMI licenses, and renewals for 73 new and existing RTU licenses, and 37
new and existing HMI licenses. Quantities of licenses may vary depending on the size and exact designs of
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
substations. DME has a contract in place with Schweitzer Engineering Labs (SEL) for the purchase of the
computers.
Subnet handles marketing of its products directly on a nationwide basis. There is no network of dealers for
this highly technical product. Because of this, there is no mechanism for competitive bidding. Therefore,
DME has gained approval of a sole source designation for Subnet products. The product being from only
one source qualifies it to be purchased without having to go through a competitive bidding process that
would result in only one bid.
Description
Unit
Price Quantity Total
SSNET v2021-Substation License-includes IEC 61850 in add-ons $5,130.00 13 $66,690.00
SUBEX v2021 - Substation License 4,500.00 13 58,500.00
SSNET v2021 - Developer License 2,000.00 2 4,000.00
SUBEX v2021 - Developer License 2,500.00 2 5,000.00
IEC 61850 Protocol - Add-on for SSNET/SUBEX Licenses. 1,500.00 97 145,500.00
SSNET Opt-set 2 - CCE 2 Yrs (2027 and 2028) 560.00 9 5,040.00
SSNET Opt-set 3 - CCE 2 Yrs (2027 and 2028) 840.00 73 61,320.00
SUBEX - CCE 2 Yrs (2027 and 2028) 1,000.00 37 37,000.00
SSNET Developers - CCE 2 Yrs (2027 and 2028) 400.00 7 2,800.00
SUBEX Developers - CCE 2 Yrs (2027 and 2028) 500.00 2 1,000.00
Total Main & Renewal $386,850.00
The proposed contract does not require expenditure of any minimum amount. Purchase orders will be issued
based on timing with project construction schedules or as replacement needs are identified.
Section 252.022 of the Local Government Code provides that procurement of sole source commodities and
services are exempt from competitive bidding, if over $100,000, shall be awarded by the governing body.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On October 5, 2026, the Public Utilities Board (PUB) recommended this item to the City Council for
consideration.
RECOMMENDATION
Award with a contract to Subnet Solutions, Inc., as a sole source supplier, for the purchase of substation
Remote Terminal Unit and Human Machine Interface software for use in substations for Denton Municipal
Electric, in a four (4) year not-to-exceed amount of $386,850.
PRINCIPAL PLACE OF BUSINESS
Subnet Solutions, Inc.
Calgary, Alberta
ESTIMATED SCHEDULE OF PROJECT
This is a four (4) year contract.
FISCAL INFORMATION
The costs for material purchased under the proposed agreement will be funded out of CIP approved budgets
for specific projects. A majority of the proposed software will be in the transmission category. Transmission
costs are ultimately recovered through the Public Utility Commission Transmission Cost of Service
Program (TCOS).
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Ordinance and Contract
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.