Exhibit 1 - Agenda Information SheetCity of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement
ACM: Cassey Ogden
DATE: November 14, 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 Powell Electrical Systems, Inc., for the purchase
of medium voltage switchgear buildings for Denton Municipal Electric; providing for the expenditure of
funds therefor; and providing an effective date (RFP 8156 – awarded to Powell Electrical Systems, 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 $6,525,253.00).
INFORMATION/BACKGROUND
Denton Municipal Electric (DME) has substation projects approved in its five-year Capital Improvement
Plan (CIP) that requires the purchase of medium voltage switchgear buildings. Switchgear buildings are
essential components for substations because they accept the output from the substation power transformer,
provide the bus connection to distribution feeder circuit breakers, and include the hardware to control,
protect, and isolate distribution feeder circuits. Substation switchgear buildings are used to house
switchgear, breakers, relay and control panels, AC and DC systems, meters, SCADA systems, and
communications equipment.
A standardized layout for the buildings has been developed that gives the advantages of reducing time for
detailed engineering design and review and providing a predictable space requirement within substations.
All buildings will be configured with the same basic equipment which will include switchgear, breakers,
protection systems, AC and DC circuit breaker panels, redundant heating and air conditioning, interior
lighting and outlets, emergency interior and exterior egress lighting, and 125Vdc battery systems (batteries
and battery chargers). The buildings are prefabricated at the manufacturer’s facility and shipped as
completed functional units to the sites.
RFP #8156 was prepared to obtain unit pricing for switchgear buildings. The prices quoted in this RFP
include all estimated shipping costs to Denton, Texas and offloading will be provided by the manufacturer.
Two responsive proposals were received. Purchase orders will be issued for each switchgear building when
the project is ready to proceed using the unit pricing in this proposed contract. The proposed contract will
not be exclusive, will not obligate DME to expend any minimum amount, and can be terminated at any time
with written notification.
We estimate that we will need to purchase one building for the Brinker Substation, two for the Underwood
Substation, and one additional building to be used in the future.
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
Project Description Estimated 5-Year Expenditure
Year 1 $815,657
Year 2 $2,446,969
Year 3 $1,631,313
Year 4 $815,657
Year 5 $815,657
Total: $6,525,253
Request for Proposals was sent to 896 prospective suppliers, including 39 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 upon 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, Powell Electrical Systems, Inc. was ranked the highest and determined to be the best value for
the City.
NIGP Code Used for Solicitation: 155, 220, 285, 287, 553, 578, & 691
Notifications sent for Solicitation sent in IonWave: 896
Number of Suppliers that viewed Solicitation in IonWave: 42
HUB-Historically Underutilized Business Invitations sent out: 73
SBE-Small Business Enterprise Invitations sent out: 365
Responses from Solicitation: 2
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On November 13, 2023, this item will be presented to the Public Utilities Board (PUB) for consideration.
RECOMMENDATION
Award a contract with Powell Electrical Systems, Inc., for the purchase of medium voltage switchgear
buildings for Denton Municipal Electric, 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 $6,525,253.
PRINCIPAL PLACE OF BUSINESS
Powell Electrical Systems, 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. Delivery of the items will occur
approximately 52 weeks after receipt of order.
FISCAL INFORMATION
These products will be funded through DME’s CIP budget account 605250500 and 603234500. Requisition
#161554 has been entered into the Purchasing software system in the amount of $1,634,447.00 for the first
year and half of the project.
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: Cody Tenorio, 940-349-7532.
Legal point of contact: Marcella Lunn at 940-349-8333.