STRATEGIC PRIORITY: Government Performance and Financial Management
AGENDA DATE: December 11, 2024
COUNCIL DISTRICT(S): All
DEPARTMENT: Office of Procurement Services
EXECUTIVE: Donzell Gipson
______________________________________________________________________
SUBJECT
Title
Authorize a three-year service contract, with three one-year renewal options, for project underwriting services for the Office of Economic Development - National Council for Community Development, Inc. dba Grow America, most advantageous proposer of two - Not to exceed Estimated amount of $463,635.00 - Financing: General Fund ($139,090.50) and Public Private Partnership Fund ($324,544.50) (subject to annual appropriations)
Body
BACKGROUND
This action does not encumber funds; the purpose of a service contract 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 contract will provide for project underwriting services for the Office of Economic Development (ECO). These services are related to real estate-based economic development and community development projects applying for negotiated incentive assistance from the City through ECO pursuant to the Economic Development Incentive Polity. Underwriting/gap analysis is one of the key determinants of a development incentive, allowing City staff to determine that:
• Project costs are reasonable;
• Sources of non-City funds committed to the project are maximized;
• The project is financially feasible;
• The return on equity investment is reasonable;
• The project development team has sufficient capacity and experience;
• The project has a verified financial gap without City assistance
Pursuant to the Economic Development Incentive Policy, an applicant seeking negotiated incentives for real estate-based economic development projects shall submit a money order or cashier’s check in the amount of the underwriting fee with their completed development incentive application. Applicants seeking development incentives for community development projects are not required to pay an underwriting fee. The Office of Economic Development estimates that 70 percent of total contract costs will be recovered from applicants as underwriting fee revenue.
A six-member committee from the following departments reviewed and evaluated the qualifications:
• Business Enterprise Hub (1)
• Department of Housing and Community Development (1)
• Office of Environmental Quality and Sustainability (1)
• Office of Economic Development (2)
• Office of Procurement Services (1)*
*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:
• Relevant experience and technical expertise 35 points
• Cost 25 points
• Approach 20 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)
On September 26, 2018, the City Council authorized a three-year service contract, with three one-year renewal options, for project underwriting services with The National Council for Community Development, Inc. dba National Development Council, by Resolution No. 18-1436.
The Economic Development Committee was briefed by memorandum regarding this matter on December 2, 2024. <https://cityofdallas.legistar.com/View.ashx?M=F&ID=13585866&GUID=26D4093D-3088-43DE-8AF2-99F6341D4FEA>
FISCAL INFORMATION
|
Fund |
FY 2025 |
FY 2026 |
Future Years |
|
General Fund |
$ 45,000.00 |
$ 46,350.00 |
$ 47,740.50 |
|
Public Private Partnership Fund |
$105,000.00 |
$108,150.00 |
$111,394.50 |
|
Total |
$150,000.00 |
$154,500.00 |
$159,135.00 |
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 |
|
$463,635.00 |
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. |
|
• National Council for Community Development, Inc. dba Grow America - Non-local; Workforce - 0.00% 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 BVZ24-00024974. We opened them on May 16, 2024. We recommend the City Council award this service contract in its entirety to the most advantageous proposer.
*Denotes successful proposer
Proposers Address Score
*National Council for 633 3rd Ave. 59.95
Community Suite 19J
Development, Inc. New York, NY 10017
dba Grow America,
MStreetX 3601 Pickett Rd. 59.60
Unit 2192
Fairfax, VA 22031
OWNER/XECUTIVE
National Council for Community Development, Inc. dba Grow America
Daniel Marsh III, President