Exhibit 1 - Agenda Information SheetCity of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement
CFO: Cassey Ogden
DATE: September 20, 2022
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 Kirby-Smith Machinery, Inc., for Komatsu heavy
equipment repair services for various City of Denton departments; providing for the expenditure of funds
therefor; and providing an effective date (IFB-BV 8026 – awarded to Kirby-Smith Machinery, 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 $1,000,000.00). The Public Utilities Board recommends approval (6 - 0).
INFORMATION/BACKGROUND
The proposed contract is for repair services for Komatsu heavy construction equipment. Various
departments throughout the City have purchased Komatsu brand construction equipment since 2010. There
are currently 12 active Komatsu heavy equipment units in the City of Denton fleet. The Fleet Services
department has limited staffing availability with the expertise necessary to work on Komatsu machinery.
Some maintenance and repair work requires specialized services that can only be performed by an
authorized Komatsu repair facility. These services include all warranty work in which travel time is not
covered, internal engine repairs, and repairs that are not suitable to be done in the field. Due to the City’s
steady growth, Fleet Services staff estimates that outside repairs will increase as more services are required
and much of the equipment is reaching the end of the warranty period. Staff is recommending approval of
a contract for a total amount not-to-exceed of $1,000,000.
The requested not-to-exceed amount is based on historic and anticipated repair spend. The projected spend
could increase or decrease based on any future changes to department-specific program services. The
estimated annual spend is outlined below:
FY 22-23 FY 23-24 FY24-25 FY25-26 FY 26-27 Total
Repairs $145,000 $159,500 $175,450 $210,550 $213,600 $904,100
Contingency $14,500 $15,950 $17,550 $21,055 $26,845 $95,900
$1,000,000
Invitation for Bids for Best Value was sent to 85 prospective suppliers of this item. In addition,
specifications were placed on the Procurement website for prospective suppliers to download and advertised
in the local newspaper. One (1) bid was received, and references were checked to ensure the vendor can
provide the services requested in the Scope of Work. The bid was evaluated based upon published criteria
including price, probable performance, response time, and value-added services. The department is
awarding the contract to Kirby-Smith Machinery, Inc.
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
NIGP Code Used for Solicitation: 929 - (Service Only) - Equipment
Maintenance and Repair Services for
Agricultural, Construction, Heavy
Industrial, Material Handling, and
Road and Highway Equipment
Notifications sent for Solicitation sent in IonWave: 85
Number of Suppliers that viewed Solicitation in IonWave: 6
HUB-Historically Underutilized Business Invitations sent out: 7
SBE-Small Business Enterprise Invitations sent out: 22
Responses from Solicitation: 1
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On September 12, 2022, the Public Utilities Board (PUB) recommended this item to the City Council for
consideration.
RECOMMENDATION
Award a contract with Kirby-Smith Machinery, Inc., for Komatsu heavy equipment repair services for
various City of Denton departments, 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 $1,000,000.
PRINCIPAL PLACE OF BUSINESS
Kirby-Smith Machinery, Inc.
Dallas, 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 services will be funded from Fleet Services contract services account 820100.7879. Requisitions will
be entered on an as-needed basis. The budgeted amount for this item is $1,000,000. 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: Ordinance and Contract
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Ethan Cox, 940-349-7421.
Legal point of contact: Marcella Lunn at 940-349-8333.