STRATEGIC PRIORITY: Government Performance & Financial Management
AGENDA DATE: March 8, 2023
COUNCIL DISTRICT(S): All
DEPARTMENT: Office of Procurement Services
EXECUTIVE: Jack Ireland
______________________________________________________________________
SUBJECT
Title
Authorize a five-year service price agreement for maintenance and support of the existing field collection reading system software application and meter reading handheld devices for the Water Utilities Department - Itron, Inc., sole source - Estimated amount of $1,131,636.41 - Financing: Dallas Water Utilities Fund ($731,636.41) and Water Construction Fund ($400,000.00)
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 the continued maintenance and support of the existing field collection system (FCS) software application for the Water Utilities Department (DWU). DWU utilizes FCS to record meter readings, electronically audit these readings, and record maintenance issues.
The FCS application is used on smart phones to send and receive interface files to/from the billing system to create customer billing and invoices. DWU reads approximately 330,000 meters on a monthly basis. Maintenance, software, and support services includes technical support, troubleshooting, diagnostics, and upgrades.
Maintenance and support ensure that the software is maintained and updated with necessary upgrades and technical assistance as needed. DWU has contracted with Itron, Inc. since 2002 for the meter reading infrastructure. This contract enhances the reliability and performance of the Meter Services Division to provide timely and accurate reads for billing.
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 current calculated living wage during the solicitation process of this contract is $15.21; the selected vendor meets this requirement.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On November 28, 2018, City Council authorized a three-year service contract for maintenance and support of the existing multiple vendor reading system software application and meter reading handheld computers for the Water Utilities Department with Itron, Inc. by Resolution No. 18-1702.
FISCAL INFORMATION
|
Fund |
FY 2022 |
FY 2023 |
Future Years |
|
Dallas Water Utilities Fund |
$ 98,671.08 |
$85,239.21 |
$547,636.12 |
|
Water Construction |
$400,000.00 |
$ 0.00 |
$ 0.00 |
|
Total |
$498,671.08 |
$85,239.21 |
$547,636.12 |
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 |
|
$1,131,636.41 |
Other Services |
N/A |
|
M/WBE Subcontracting % |
M/WBE Overall % |
M/WBE Overall Participation $ |
|
N/A |
N/A |
N/A |
|
• This item is Other Services which does not have an availability and disparity participation goal. |
|
• Itron, Inc. - Non-local; Workforce - 0.00% Local |
PROCUREMENT INFORMATION
Method of Evaluation for Award Type:
|
Sole Source |
• Utilized for procurements where functional requirements can only be satisfied by one vendor, such as those where patents, copyrights or monopolies exists |
|
|
• Exempted from competitive bidding process |
|
|
• The Office of Procurement Services conducted a sole source review and found no exceptions |
OWNER
Itron, Inc.
2111 North Molter Road
Liberty Lake, WA 99019
Thomas L. Deitrich, Chief Executive Officer
Joel Vach, Vice President
MAP
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