STRATEGIC PRIORITY: Government Performance and Financial Management
AGENDA DATE: February 26, 2025
COUNCIL DISTRICT(S): All
DEPARTMENT: Office of Procurement Services
EXECUTIVE: Donzell Gipson
______________________________________________________________________
SUBJECT
Title
Authorize a three-year service price agreement for bi-annual preventative maintenance services and repairs for variable frequency drives and soft starters for the Dallas Water Utilities Department - Shermco Industries, Inc., most advantageous proposer of two - Estimated amount of $2,088,850.00 - Financing: Dallas Water Utilities Fund (subject to annual appropriations)
Body
BACKGROUND
This action does not encumber funds; the purpose of a service price agreement is to establish firm pricing for services, 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.
This service price agreement will provide for bi-annual preventative maintenance services and repairs for variable frequency drives and soft starters for the Dallas Water Utilities Department. These bi-annual preventive maintenance services and evaluations are for teardown and repair services for variable drives, and soft starters operating within the City’s water system. Maintenance and repairs are required to ensure the drives and soft starters perform at their peak levels and provide continuous pump and motor operation. This contract will service variable frequency drives of various sizes ranging from 25HP to 3,000HP and soft starters, from 100HP to 5,000HP.
A six-member committee from the following departments reviewed and evaluated the qualifications:
• Dallas Water Utilities Department (2)
• Department of Information and Technology Services (1)
• Parks & Recreation Department (1)
• Office of Procurement Services (2)*
*The Office of Procurement Services evaluated cost and local preference, if applicable.
The committee selected the successful respondents on the basis of demonstrated competence and qualifications under the following criteria:
• Cost and timeframe 30 points
• Experience 25 points
• Approach 25 points
• Business Inclusion and Development 15 points
• Local Preference 5 points
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 relevant commodity codes. 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.
On November 10, 2015, the City Council authorized a living wage policy that requires contractors to pay their employees a “living wage” rate as established annually by the Massachusetts Institute of Technology Living Wage Calculator for Dallas County by Resolution No. 15-2141. The calculated living wage during the solicitation process of this contract is $18.24; the selected vendor meets this requirement.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
This item has no prior action.
FISCAL INFORMATION
|
Fund |
FY 2025 |
FY 2026 |
Future Years |
|
Dallas Water Utilities Fund |
$696,283.33 |
$696,283.33 |
$696,283.34 |
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 |
|
$2,088,850.00 |
Other Services |
N/A |
|
M/WBE Subcontracting % |
M/WBE Overall % |
M/WBE Overall Participation $ |
|
N/A |
N/A |
N/A |
|
• M/WBE goal waived due to no M/WBE availability. |
|
• Shermco Industries, Inc. - Local; Workforce - 25.00% Local |
PROCUREMENT INFORMATION
Method of Evaluation for Award Type:
|
Request for Competitive |
• Utilized for high technology procurements, insurance procurements, and other goods and services |
|
Sealed Proposal |
• Recommended offeror whose proposal is most advantageous to the City, considering the relative importance of price, and other evaluation factors stated in the specifications |
|
|
• Always involves a team evaluation |
|
|
• Allows for negotiation on contract terms, including price |
The Office of Procurement Services received the following proposals from solicitation number BVZ24-00025737. We opened them on August 29, 2024. We recommend the City Council award this service price agreement in its entirety to the most advantageous proposer.
*Denotes successful proposer
Proposers Address Score
*Shermco Industries, Inc. 2425 East Pioneer Drive 71.75
Irving, TX 75061
Flexa Systems 860 Hembry Street 40.66
Suite 401
Lewisville, TX 75022
OWNER/EXECUTIVE
Shermco Industries, Inc.
Phil Petrocelli, Chief Executive Officer