STRATEGIC PRIORITY: Government Performance and Financial Management
AGENDA DATE: August 11, 2021
COUNCIL DISTRICT(S): All
DEPARTMENT: Office of Procurement Services
EXECUTIVE: Elizabeth Reich
______________________________________________________________________
SUBJECT
Title
Authorize a three-year master agreement for the purchase of industrial, medical, and welding gases - Airgas USA LLC in the estimated amount of $114,234.44 and The Habits Group, LLC in the estimated amount of $13,500.00, lowest responsible bidders of four - Total estimated amount of $127,734.44 - Financing: General Fund ($68,593.38), Dallas Water Utilities Fund ($52,498.85), Sanitation Operation Fund ($3,832.05), and Aviation Fund ($2,810.16)
Body
BACKGROUND
This action does not encumber funds; the purpose of a master agreement is to establish firm pricing for goods, for a specific term, which are ordered on an as needed basis according to annual budgetary appropriations. The estimated amount is intended as guidance rather than a cap on spending under the agreement, so that actual need combined with the amount budgeted will determine the amount spent under this agreement.
We anticipate the following City departments will use this agreement:
• Building Services Department
• Department of Aviation
• Department of Dallas Animal Services
• Department of Equipment and Fleet Management
• Department of Public Works
• Department of Sanitation Services
• Fire-Rescue Department
• Park & Recreation Department
• Police Department
• Water Utilities Department
This master agreement will provide industrial, medical, and welding gases that are utilized citywide. This agreement provides industrial medical gases used by the Fire-Rescue Department to be readily available in Fire-Rescue units and HazMat units for medical emergencies and calibration for HazMat sensors. Gases are used to provide medical grade oxygen for the animal surgery clinics. Gases such as nitrogen, helium, and carbon monoxide are for the operation and calibration of laboratory instrumentation and personnel safety sensors.
Welding gases are utilized by various City departments to cut, weld, and fabricate metal used in the repair of equipment and infrastructure. The work accomplished with these gases includes the repairs to City vehicles, heavy equipment, and metal structures; such as safety hand railing, security fencing, traffic signals, plumbing, heating, ventilation and air conditioning, playground equipment, and electrical boxes at lighted ball diamonds.
As part of the solicitation process and in an effort to increase competition, the Office of Procurement Services used its procurement system to send out email notifications to vendors registered under respective commodities. To further increase competition, the Office of Procurement Services uses historical solicitation information, the internet, and vendor contact information obtained from user departments to contact additional vendors.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On March 25, 2020, City Council authorized a three-year master agreement for industrial, medical, and welding gases with Air Gas USA LLC by Resolution No. 20-0480.
FISCAL INFORMATION
|
Fund |
FY 2021-22 |
FY 2022-23 |
Future Years |
|
General Fund |
$22,864.46 |
$22,864.46 |
$22,864.46 |
|
Dallas Water Utilities Fund |
$17,499.61 |
$17,499.61 |
$17,499.63 |
|
Sanitation Operation Fund |
$1000.00 |
$1000.00 |
$1,832.05 |
|
Aviation Fund |
$936.72 |
$936.72 |
$936.72 |
|
Total |
$42,300.79 |
$42,300.79 |
$43,132.86 |
M/WBE INFORMATION
In accordance with the City’s Business Inclusion and Development Policy adopted on September 23, 2020, by Resolution No. 20-1430, as amended, the M/WBE participation on this contract is as follows:
|
Contract Amount |
Procurement Category |
M/WBE Goal |
M/WBE % |
M/WBE $ |
|
$127,734.44 |
Goods |
32.00% |
0.00% |
$0.00 |
|
• This contract does not meet the M/WBE goal, but complies with good faith efforts. |
|
• AirGas USA LLC - Local; Workforce - 100.00% Local |
PROCUREMENT INFORMATION
Method of Evaluation for Award Type:
|
Low Bid |
• Recommended vendor is based on the lowest competitive quoted price, who is also technically and financially capable of performing and completing the contract, and otherwise meets all material specification requirements |
|
|
• Negotiations are not allowed |
The Office of Procurement Services received the following bids from solicitation number BF20-00013101. We opened them on October 2, 2020. We recommend the City Council award this master agreement to the lowest responsive and responsible bidders by group. Information related to this solicitation is available upon request.
*Denotes successful bidder
Bidder Address Amount
*Airgas USA LLC 801 West Carrier Parkway Multiple Groups
Grand Prairie, TX 75050
*The Habits Group, 701 Tillery Street Multiple Groups
LLC Austin TX 78702
Red Ball Oxygen 2912 Alouette Drive Non-responsive
Co., Inc. Grand Prairie, TX 75052
Hill Country 791 North Highway 77 Non-responsive
Computer Suite 501C #132
Waxahachie, TX 75165
OWNERS
Airgas USA LLC
Chris Ryan, President
Bill Ziots, Vice President
The Habits Group, LLC
Zacharias Johnson, President
Raynor McKinnon, Vice President