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Exhibit 1 - Agenda Information SheetCity of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement and Compliance CFO: Antonio Puente, Jr. DATE: July 21, 2020 SUBJECT Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, rejecting any and all competitive proposals under RFP 7310 for warehouse services for the Distribution Center; and providing an effective date (RFP 7310). INFORMATION/BACKGROUND The City solicited proposals for outsourcing the City’s Warehouse Services, currently provided by the Distribution Center. The Distribution Center is responsible for procuring material for the City with focus given to Electric, Water, Wastewater and Traffic departments. Last fiscal year, the Distribution Center helped procure material for Capital Improvement projects and infrastructure repair totaling $8 million. The Distribution Center also manages the disposal of surplus or obsolete goods and the distribution of internal mail. The City is able to provide warehouse services for less cost than outsourcing to an outside vendor. Due to an increased focus on obtaining longer term contracts over the past year, the Distribution Center procures materials for less than the proposals received from outside vendors. The Warehouse currently staffs 6 FTEs between two locations, the main Distribution Center at the Service Center and the Pole Yard at DME. When compared to the proposals, the City’s personnel costs are less expensive. However, the City’s overhead costs including insurance, equipment and internal transfers make the overhead associated with materials handling more expensive than a contracted vendor can provide. The Warehouse also provides value added services including distribution of internal mail, disposal and facilitation of auction services that would continue to be provided internally if warehouse services were contracted out. Overall, the City has greater flexibility, realiability and provides lower costs by providing warehouse services internally. It is for these reasons, staff recommends rejecting all bids. The City of Denton solicited proposals for the update to the comprehensive plan. Requests for Proposals were sent to 173 prospective suppliers of this service, including six (6) Denton Suppliers. Six (6) proposals meeting specifications were received. After reviewing the information, the Purchasing Department has decided to reject all proposals due to continuing to provide warehouse services internally reducing the cost to the City and its citizens. In accordance with the Local Government Code 252.043, the City Council may reject any and all bids. City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com RECOMMENDATION Staff recommends rejection of all proposals for warehouse services. EXHIBITS Exhibit 1: Agenda Information Sheet Exhibit 2: Ordinance Respectfully submitted: Lori Hewell, 940-349-7100 Purchasing Manager For information concerning this acquisition, contact: Cassey Ogden, 940-349-7195. Legal point of contact: Mack Reinwand at 940-349-8333.