Exhibit 1 - Agenda Information SheetCity of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement
ACM: Cassey Ogden
DATE: March 5, 2024
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 RAG of Fort Worth LLC dba Royal Auction Group,
Inc., for managing live online vehicle and equipment auctions for the disposal of City of Denton assets and
Police Department impound vehicles for the Fleet Services Department; providing for the expenditure of
funds therefor; and providing an effective date (RFP 8413 – awarded to RAG of Fort Worth LLC dba
Royal Auction Group, 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 $50,000.00).
STRATEGIC ALIGNMENT
This action supports Key Focus Area: Enhance Infrastructure and Mobility.
INFORMATION/BACKGROUND
This item is for contracted online vehicle and equipment auction services through Royal Auction Group for
the disposal of City fleet assets that have reached the end of their usable lifecycle. The City sells fleet assets
annually with proceeds going back to the general fund and utility department replacement funds, respective
of vehicle ownership. The Fleet Services department tracks service life based on a 15-point scale that takes
into account maintenance cost, age of the vehicle, and life expectancy. When a vehicle reaches its maximum
service life, it is scheduled for replacement. Once the replacement is received, the vehicle being replaced is
taken out of the active fleet and scheduled for auction. The auction is advertised on the City of Denton Fleet
Services webpage for a minimum of 14 days. The Auctioneer oversees facilitating the bidding portion and
provides auction proceeds back to the City.
This is a revenue contract with the total projected revenue for the 5-year term estimated at $7,500,000. A
$50,000 contingency has been added to the contract for any unforeseen expense that might arise over the 5
years.
Request for Proposals was sent to 337 prospective suppliers of this item. including 23 Denton firms. In
addition, specifications were placed on the Procurement website for prospective suppliers to download and
advertised in the local newspaper. Five (5) proposals were received, references were checked, and proposals
were evaluated based upon published criteria including schedule, compliance with specifications, probable
performance, and price. Based upon this evaluation, RAG of Fort Worth LLC dba Royal Auction Group,
Inc. was ranked the highest and determined to be the best value for the City.
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
NIGP Code Used for Solicitation:
962 - (Service Only) - Miscellaneous
Services, No. 2 (Not Otherwise
Classified)
Notifications Sent for Solicitation Sent in IonWave: 337
Number Of Suppliers That Viewed Solicitation in IonWave: 11
HUB-Historically Underutilized Business Invitations Sent Out: 38
SBE-Small Business Enterprise Invitations Sent Out: 135
Responses From Solicitation: 5
RECOMMENDATION
Award a contract with RAG of Fort Worth LLC dba Royal Auction Group, Inc., for managing live online
vehicle and equipment auctions for the disposal of City of Denton assets and Police Department impound
vehicles for the Fleet Services Department, 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 $50,000.
PRINCIPAL PLACE OF BUSINESS
RAG of Fort Worth LLC dba Royal Auction Group, Inc.
Bowie, 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 by the proceeds from the vehicle auction. The City will only pay for services
rendered and is not obligated to pay the full contract amount unless needed. The budgeted amount for this
item is $50,000.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Pricing Evaluation
Exhibit 3: Ordinance and Contract
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Tom Gramer, 940-349-7467.
Legal point of contact: Marcella Lunn at 940-349-8333.