Loading...
Exhibit 1 - Agenda Information SheetCity of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement ACM: Cassey Ogden DATE: October 17, 2023 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 Techline, Inc., for the purchase of insulated and multi-conductor underground distribution cables for Denton Municipal Electric; providing for the expenditure of funds therefor; and providing an effective date (RFP 8284 – awarded to Techline, Inc., for one (1) year, with the option for four (4) additional one (1) year extensions, in the total five (5) year not-to- exceed amount of $20,000,000.00). The Public Utilities Board recommends approval (5 - 0). STRATEGIC ALIGNMENT This action supports Key Focus Areas: Enhance Infrastructure and Mobility and Promote Sustainability and the Environment. INFORMATION/BACKGROUND Request for Proposal (RFP) 8284 was solicited to supply 15KV and 25KV insulated primary, 600V insulated secondary, and multi-conductor substation control cable. Cable is a key component in Denton Municipal Electric’s (DME) installation of distribution level, underground electrical service to its customers. Primary and secondary cable is used to extend service to new residential, commercial, and industrial customers and to replace existing underground cable that has failed. Multi-conductor substation control cable is utilized solely within substations between AC and DC equipment power equipment and system monitoring, metering, and control. The control cable will be used to interconnect devices (i.e., relays, circuit breakers, transformers, switches, etc.) to communicate and retrieve information. The contract will be managed by DME’s Planning & Logistics group with the cable used as needed for DME’s capital project program. Volatility in copper and aluminum prices has made it mandatory and prudent that a procurement method be crafted to recognize the reality of conditions in the marketplace and minimize cost exposure by locking in projected quantities. The unit prices recommended for the award are based on published third-party indices for raw materials provided in the specifications. Throughout the contract, the prices will adjust (increase or decrease) based on the previous month’s basis for raw materials. Contract Year Estimated Expenditure Year 1 $3,600,000 Year 2 $3,600,000 City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com Contract Year Estimated Expenditure Year 3 $3,600,000 Year 4 $3,600,000 Year 5 $3,600,000 Contingency $2,000,000 Total $20,000,000 DME estimated spend based on several large upcoming overhead projects, past years' usage, and a 10% contingency for pricing fluctuations. Request for Proposals was sent to 243 prospective suppliers, including seven (7) Denton firms. In addition, specifications were placed on the Procurement website for prospective suppliers to download and advertised in the local newspaper. Two (2) proposals were received. References were checked, and proposals were evaluated based on published criteria including price, delivery, compliance with specifications, and probable performance. Best and Final Offers (BAFO) were requested from both firms. Based upon this evaluation, Techline, Inc. was ranked the highest and determined to be the best value for the City. NIGP Code Used for Solicitation: 280 - Electrical Cables and Wires (Not Electronic) Notifications sent for Solicitation sent in IonWave: 243 Number of Suppliers that viewed Solicitation in IonWave: 22 HUB-Historically Underutilized Business Invitations sent out: 28 SBE-Small Business Enterprise Invitations sent out: 98 Responses from Solicitation: 2 PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) On October 9, 2023, the Public Utilities Board (PUB) recommended this item to the City Council for consideration. RECOMMENDATION Award a contract with Techline, Inc., for the purchase of insulated and multi-conductor underground distribution cables for Denton Municipal Electric, in a one (1) year, with the option for four (4) additional one (1) year extensions, in the total five (5) year not-to-exceed amount of $20,000,000. PRINCIPAL PLACE OF BUSINESS Techline, Inc. Fort Worth, TX ESTIMATED SCHEDULE OF PROJECT This is an initial one (1) year contract with options to extend the contract for four (4) additional one (1) year periods, with all terms and conditions remaining the same. FISCAL INFORMATION The Warehouse Capital account 800100 will fund these products and services and be charged back to the using department. 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: Pricing Evaluation Exhibit 3: Presentation Exhibit 4: Ordinance and Contract Respectfully submitted: Lori Hewell, 940-349-7100 Purchasing Manager For information concerning this acquisition, contact: Randy Key, 940-349-7665. Legal point of contact: Marcella Lunn at 940-349-8333.