Exhibit 1 - Agenda Information SheetCity of Denton
_____________________________________________________________________________________
AGENDA INFORMATION SHEET
DEPARTMENT: Procurement & Compliance
ACM: David Gaines
DATE: April 20, 2021
SUBJECT
Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation,
authorizing the City Manager, or their designee, to execute a contract with Wärtsilä North America, Inc.,
for the supply of routine maintenance supplies and services for the Denton Energy Center; providing for
the expenditure of funds therefor; and providing an effective date (IFB 7544 – awarded to Wärtsilä North
America, 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 $3,448,184.00). The Public Utilities Board recommends approval (6
- 0).
INFORMATION/BACKGROUND
The Denton Energy Center (DEC) provides power at times that renewable energy sources are not readily
available. The DEC is a critical component of the City’s future commitment to providing the citizens of
Denton with 100% of electricity from renewable sources of energy.
The DEC’s electric generating equipment (12 Gensets and Auxiliary) requires maintenance as the units
operate. The maintenance activities are performed as preventative, predictive, and corrective maintenance
activities. Preventive and predictive activities are performed as scheduled maintenance based on hours of
operation and corrective maintenance are unplanned component failures that most often cause unit outages.
As equipment operating hours increase the maintenance activities also increase. During these maintenance
activities, critical components require inspection or replacement for premature wear/failure. In order for the
DEC team to manage and maintain high unit availability and reliability for our customers, performing these
routine maintenance activities is critical to ensure reliability and this contract is necessary to purchase the
materials necessary to perform the hour-based, calendar-based and corrective maintenance activities
efficiently.
Thus far, we have been performing routine preventative, predictive, and corrective maintenance using on-
hand inventory purchased initially during the project construction but are now in need of replenishment of
these critical items and to also purchase the needed materials for services on an as-needed basis, based on
our unit operating hours.
In efforts to minimize maintenance costs and identify prospective suppliers, we identified the materials
needed for the coming and future services falling in the next 5 years and went out for formal bids. The bid
information was sent to 95 potential suppliers where (2) two potential suppliers submitted bids. One was
complete meeting all specifications and the second a partial submittal not meeting the specifications.
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
Invitation for Bids was sent to 95 prospective suppliers of this item. In addition, specifications were placed
on the Materials Management website for prospective suppliers to download and advertised in the local
newspaper. Two (2) bids were received with one (1) meeting specifications. The lowest bid was received
by Wärtsilä North America, Inc.
NIGP Code Used for Solicitation: 941-(Service Only)-Equipment Maint,
Repair, & Related Services for Power
Generation & Transmission Equip.
Notifications sent for Solicitation sent in IonWave: 95
Number of Suppliers that viewed Solicitation in IonWave: 27
HUB-Historically Underutilized Business Invitations sent out: 7
SBE-Small Business Enterprise Invitations sent out: 16
Responses from Solicitation: 2
Bids Meeting Specifications: 1
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On April 12, 2021, the Public Utilities Board (PUB) recommended this item to the City Council for
consideration.
RECOMMENDATION
Award a contract with Wärtsilä North America, Inc., for the supply of routine maintenance supplies and
services for the Denton Energy Center, 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 $3,448,184.
PRINCIPAL PLACE OF BUSINESS
Wärtsilä North America, Inc.
Houston, TX
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
These items will be funded from DME Operating Funds. Requisitions will be entered on an as-needed basis.
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: Presentation
Exhibit 3: Ordinance and Contract
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Jason Brown, 940-349-7140.
Legal point of contact: Marcella Lunn at 940-349-8333.