MRO Supplies-5811-Award/Ordinance/PricingORDINANCE NO. 2015-133
AN ORDINANCEACCEPTING COMPETITIVE BIDS BY WAY OF AN INTERLOCAL
AGREEMENT WITH THE COOPERATIVEPURCHASING NETWORK (TCPN) FOR THE
ACQUISITION OF MAINTENANCE, REPAIR, AND OPERATIONS SUPPLIES
INCLUDINGHAND TOOLS, PERSONALSAFETY EQUIPMENT, AND SUPPLIES USED
BY FIELD PERSONNEL, FOR THE CITY OF DENTON DISTRIBUTION CENTER;
PROVIDING FOR THEEXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN
EFFECTIVE DATE (FILE 5811- AWARDED TO FASTENAL COMPANY IN THE THREE
3) YEAR NOT -TO- EXCEED AMOUNT OF $600,000).
THE COUNCIL OF THE CITY OF DENTONHEREBY ORDAINS:
SECTION 1. The City Manager, orhis designee is hereby authorized to purchase
Maintenance, Repair, and Operations Supplies in a three (3) year not -to- exceed amount of
600,000 from Fastenal Company under competitive bids received by The Cooperative
Purchasing Networkin accordance with a CooperativePurchasing Program Participation
Agreement under Section 271.102 of the Local Government Code which is on file in the office
of the Purchasing Agent.
SECTION 2. The City Council of the City of Denton, Texas herebyexpressly delegates
the authority to takeany actions thatmay be required or permitted to be performedby the City of
Denton under File 5811 to the City Manager of the City of Denton, Texas, or his designee.
SECTION 3. The City Manager, or his designee, is authorized to expendfundspursuant
to the agreement for the purchase of various goods and services.
SECTION 4. This Ordinanceshall become effective immediately upon its passage and
approval. .......
PASSED AND APPROVED this the day of
Y ,
c t,w , 2015.
ATTS, MAY
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY. .
Signature on File
Signature on File
Signature on File
CONTRACT BY AND BETWEEN
CITY OF DENTON, TEXAS AND
FASTENAL COMPANY (FILE 5811)
THIS CONTRACT is made and entered into this day of . -/A 2015,
by and between Fastenal Company corporation, whose address is 2001 jbeij er Blvd.
MN 55987 hereinafter referred to as "Supplier," and the CITY OF DENTON, TEXAS, a home
rule municipal corporation, hereinafter referred to as "City," to be effective upon approval of the
Denton City Council and subsequent execution of this Contract by the Denton City Manager or
his duly authorized designee.
For and in consideration of the covenants and agreements contained herein, and for the
mutual benefits to be obtained hereby, the parties agree as follows:
SCOPE OF SERVICES
Supplier shall provide products in accordance with The Cooperative Purchasing Network
TCPN contract R142101. The Contract consists of this written agreement and the following
items which are attached hereto and incorporated herein by reference:
a) TCPN Contract R142101 (Exhibit "A "), on file in the Purchasing Office;
b) Special Terms and Conditions (Exhibit "B ")
c) City of Denton Machine Inventory Price File (Exhibit "C ")
d) Vendor Collected Administrative Fee (VCAF) (Exhibit "D ")
These documents make up the Contract documents and what is called for by one shall be
as binding as if called for by all. In the event of an inconsistency or conflict in any of the
provisions of the Contract documents, the inconsistency or conflict shall be resolved by giving
precedence first to the written agreement then to the contract documents in the order in which
they are listed above. These documents shall be referred to collectively as "Contract
Documents."
IN WITNESS WHEREOF, the parties of these presentshave executed this agreement in
the year and day first above written.
SUPPLIER
BY:
w .
Title:
CITY OF DENTON, TEXAS
BY:
DATE:.
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY: /..
I'I'"I .II D A, "1"00 LEGAL FORM:
ANITA BURGESS, CITY ATTORNEY
BY:
Signature on File
Signature on File
Signature on File
Signature on File
Exhibit B
Special Terms and Conditions
The City, having elected to participate in TCPN Contract # R142101 for Maintenance, Repair
and Operation Supplies; and Fastenal Company (Supplier), has agreed to the following:
Scope:
Supplier agrees to provide Maintenance, Repair, and Operating supplies (MRO) by utilizing
Fastenal Vending Solutions, a Fastenal Storefront located in Denton TX, and a Fastenal
Distribution center located in Denton TX.
Through the utilization of commercial industry best practices, technology, and cooperative
government procurement methodologies the City will experience greater efficiencies and
streamlined procurement.
Fastenal Vending Solutions have been document in case studies, as a proven method for
providing ready access to needed supplies as well as the controls and compliance that
governmental entities require.
Products sold by Fastenal and Fastenal Vending Solutions are available via a Cooperative
Government Contract (Attachment A.), which was awarded by The Cooperative Purchasing
Network, based in Houston, TX.
Authority for such services is granted under Government Code, Title 7, Chapter 791
Interlocal Cooperation Contracts, Subchapter B and Subchapter C, and Local
Government Code, Title 8, Chapter 271, Subchapter F, Section 271.101 and Section
271.102. As such, no further competition or bidding is required.
Pricing:
Cost to the City for products purchased from Supplier shall be administered using the following
methods:
1. Vended product will be sold at the TCPN contracted sell price, unless a lower agreed
upon sell price has been determined, plus an 8% vendor collected administrative fee.
2. Product purchased from Supplier via any other method will be sold at the TCPN
contracted sell price, unless a lower agreed upon sell price has been determined, with no
vendor collected administrative fee added. Methods of purchase include
www.fastenal.com and walk -in /walk -out transactions at Fastenal store locations.
A listing of current machine inventory (Exhibit C) that the Materials Management Service
Center staff has identified will receive net pricing. The net price file will be administered in
addition to discounts provided by TCPN Contract # R142101. The City will allow for price
adjustments of these net prices 6 months after the start of the agreement and twice annually
thereafter. Request for price adjustment must be submitted in writing and agreed to by both
parties before any adjustments take place.
Service:
Supplier will stock and replenish inventory help within the Fastenal Automated Supply vending
machines.
In the event that a machine needs service or repair work, this work will be performed by Supplier
employees at no cost to the customer.
The City is responsible for providing electricity and internet connection at the location where
machines are to be installed.
Supplier employees will monitor usage and inventory levels using agreed upon min /max levels
and a web hosting software program that gives both City staff and Supplier staff real time
visibility of machine status and inventory levels.
Vendor Collected Administrative Fee WCAF):
Supplier will administer and collect and administrative fee on behalf of the City which shall be
paid to the City in the form of a refund check on a quarterly basis. The City will allow a
reasonable period of time after the end of each calendar quarter but not to exceed 30 days, for
Supplier to provide a usage report which shows at a minimum the following attributes which will
aid in the audit or reconciliation of the VCAF:
Fastenal Part Number
City of Denton Part Number (if available)
Product Description
Unit of Measure
Quantity purchased
Unit Price
Extended Price
Supplier will work in good faith with City staff to ensure that needed and valuable information is
provided on an as needed basis, and in the event that further or more detailed information is
needed both parties will work in good faith to create reporting metrics that are mutually
beneficial.
VCAF will apply only to products that are vended or issued from Fastenal Automated Supply
vending machine units.
Supplier will work in good faith to identify products purchased by the City via methods other
than Fastenal Vending Solutions that may be candidates to be stocked and issued using the
Fastenal Vending Solution.
The Quantities
The City reserves the right to increase or decrease the quantities to meet its actual needs without
any adjustments in the contract price. Individual purchase orders will be issued on an as needed
basis.
Product Chances durinc Contract Term
The supplier shall not change specifications during the contract term without prior approval.
Any deviation in the specifications or change in the product must be approved in advance by the
City of Denton. Notice of a change shall be submitted in writing to
dentonpurchasing a,cityofdenton.com, with the above file number in the subject line, for review.
Products found to have changed specifications without notification, and acceptance, will be
returned at the supplier's expense. Products that have been installed will be replaced at the
supplier's expense.
Contract Termination
The City of Denton may terminate the contract with 30 days notice.
Purchases in accordance with this agreement shall not exceed $600,000,
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EXHIBIT D
Vendor Collected Administrative Fee-
The below examples shall serve as an Illustration of the methodology employed to achieve the VCAF:
Items that are part of Attachment C will have 8% added to the agreed upon price in order to achieve the
VCAF.
Contract Sell Price x 1.08 Net Price to Department
1.00 x 1.08 W $1.08
1.00 + 8% _ $1.08
Items that are not listed In Attachment C, and where pricing Is determined using the discount structure
provided by TCPN Contract R142101WIll have the discount reduced by 8% in order to achieve the VCAF.
Fastenpl Wholesale Price - TCPN Discount = Net Price to Department
10.00 - 20% = $8.00
astenal Wholesale Price _ dly tec T Le iii e jn .... h twPricp t _C Oment
10.00 12 'Y" _ $8.80
Reduced Discount to Achieve VCAF
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