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Exhibit 1 - Agenda Information SheetCity of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement & Compliance ACM: David Gaines DATE: June 22, 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 Texas Electric Cooperatives, Inc. for the supply of Electric Utility Station Service Voltage Transformers for Denton Municipal Electric to be stocked in the City of Denton Warehouse; providing for the expenditure of funds therefor; and providing an effective date (IFB 7695 – awarded to Texas Electric Cooperatives, 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 $750,000.00). INFORMATION/BACKGROUND Denton Municipal Electric (DME) uses station service voltage transformers (SSVT) to transform the transmission voltage from 138kV down to 120/240 volts, which will be used to provide power for site electrical needs. Substation sites require 120/240-volt power to operate building lights, exterior lights, receptacles, battery charges, and other electrical hardware and equipment. The Warehouse orders goods in coordination with DME for specific projects under construction. The items are temporarily stored in the Warehouse until they are needed on the job site and then transferred to DME through an inventory management system. The items are ordered as needed, taking into account the contracted lead time and the need-by-date by the using department. The need-by-date is established by ensuring that citizen, customer, and developer timelines all form the basis of when the construction work must be complete by with an operational City of Denton service; furthermore, it factors in City of Denton construction crew schedules and construction sequencing with job site contractors. The contracted amount of $750,000 is based on a five (5) year historical spend, which is about $90,000 per year. The additional amount is to allow for future projections. Invitation for Bids was sent to 275 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. Three (3) bids meeting specifications were received. The lowest bid was received by Texas Electric Cooperatives, Inc. NIGP Code Used for Solicitation: 285 - Electrical Equipment and Supplies (Except Cable and Wire) Notifications sent for Solicitation sent in IonWave: 275 Number of Suppliers that viewed Solicitation in IonWave: 25 HUB-Historically Underutilized Business Invitations sent out: 28 City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com SBE-Small Business Enterprise Invitations sent out: 115 Responses from Solicitation: 3 RECOMMENDATION Award a contract with Texas Electric Cooperatives, Inc. for the supply of Electric Utility Station Service Voltage Transformers for Denton Municipal Electric to be stocked in the City of Denton Warehouse, 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 $750,000. PRINCIPAL PLACE OF BUSINESS Texas Electric Cooperatives, Inc. Georgetown, 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 out of the Warehouse working capital account and charged back to the using department. These products and services will be funded through the using department’s budget 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: Bid Tabulation Exhibit 3: Ordinance and Contract Respectfully submitted: Lori Hewell, 940-349-7100 Purchasing Manager For information concerning this acquisition, contact: Dustin Rolfe, 940-349-8000. Legal point of contact: Marcella Lunn at 940-349-8333.