STRATEGIC PRIORITY: Government Performance & Financial Management
AGENDA DATE: October 26, 2022
COUNCIL DISTRICT(S): All
DEPARTMENT: Office of Procurement Services
EXECUTIVE: Jack Ireland
______________________________________________________________________
SUBJECT
Title
Authorize a three-year master agreement for the purchase of certified bulk liquid chlorine by railcar for the Water Utilities Department - Brenntag Southwest, Inc., lowest responsible bidder of two - Estimated amount of $20,035,560 - Financing: Dallas Water Utilities Fund
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.
This master agreement will provide for the purchase of certified bulk liquid chlorine by railcar. Chlorine is used at Water Utilities’ three water purification plants to disinfect drinking water as required by the United States Environmental Protection Agency and the Texas Commission on Environmental Quality (TCEQ). In order to meet regulatory requirements, sufficient chlorine must be added to maintain a specified residual level. Further, chlorine is the common method used to treat wastewater at the City’s two wastewater treatment plants for the disinfection of pathogens before the treated water is discharged into the receiving waterways in accordance with TCEQ regulations.
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.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On November 13, 2019, City Council authorized a three-year master agreement for bulk liquid chlorine for the Water Utilities Department with Brenntag Southwest, Inc. by Resolution No. 19-1781.
FISCAL INFORMATION
|
Fund |
FY 2023 |
FY 2024 |
Future Years |
|
Dallas Water Utilities Fund |
$6,678,520.00 |
$6,678,520.00 |
$6,678,520.00 |
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 |
|
$20,035,560.00 |
Goods |
32.00% |
|
M/WBE Subcontracting % |
M/WBE Overall % |
M/WBE Overall Participation $ |
|
0.00% |
0.00% |
$0.00 |
|
• M/WBE goal waived due to no M/WBE availability. |
|
• Brenntag Southwest, Inc. - Non-local; Workforce - 14.63% 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 BI22-00019878. We opened them on April 12, 2022. We recommend the City Council award this master agreement in its entirety to the lowest responsive and responsible bidder.
*Denotes successful bidder
Bidder Address Amount
*Brenntag Southwest, Inc. 704 East Wintergreen Rd. $20,035,560.00
Lancaster, TX 75134
DPC Industries Company 300 Jackson Hill St. $21,851,080.00
Houston, TX 77007
OWNER
Brenntag Southwest, Inc.
W. Thomas Crain, Jr., President