PILLAR: Fiscally Sound
AGENDA DATE: November 10, 2026
COUNCIL DISTRICT(S): Citywide
DEPARTMENT: Office of Procurement Services
PRIORITY: Infrastructure
______________________________________________________________________
SUBJECT
Title
Authorize a three-year service price agreement for sewer odor and corrosion control services for the Dallas Water Utilities Department - Pencco Inc in the estimated amount of $9,781,500.00 and Redeye Chems LLC in the estimated amount of $326,700.00, lowest responsible bidders of three - Total estimated amount of $10,108,200.00 - Financing: Dallas Water Utilities Fund (subject to annual appropriations)
Body
BACKGROUND
This action does not authorize or encumber funding. The service price agreement establishes pre-negotiated pricing and contract terms for a specified period of time. Actual expenditures will occur only when services are requested and are supported by available departmental appropriations. The estimated amount represents the maximum anticipated value based on all potential usage scenarios during the contract term and is provided for planning purposes only. Actual expenditures may vary significantly and will be driven by operational needs. For reference, the City's average annual expenditure for these services over the past three years has been approximately $2,380,000.00 per year.
This service price agreement will provide for sewer odor and corrosion control services for the Dallas Water Utilities Department. This agreement includes the purchase of chemicals and dispensing system maintenance / repair. The chemical agent will be used in the sanitary sewer system and wastewater treatment plants. Chemicals purchased under this agreement will help to protects the wastewater system infrastructure against corrosion, improve sludge quality for safer disposal, and mitigate nuisance odors which may occur throughout the wastewater system.
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 $23.06; the selected vendor meets this requirement.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On January 10, 2024, the City Council authorized a three-year service price agreement for the purchase, maintenance, and repair of odor control and corrosion inhibitor agents for use in the sanitary sewer system and wastewater treatment process for the Water Utilities Department with Pencco, Inc. and Evoqua Water Technologies LLC by Resolution No. 24-0124.
FISCAL INFORMATION
|
Fund |
FY 2027 |
FY 2028 |
Future Years |
|
Dallas Water Utilities Fund |
$3,369,400.00 |
$3,369,400.00 |
$3,369,400.00 |
BUSINESS PARTICIPATION
|
Prime Contractor Information |
|
Prime Certification |
1. Pencco Inc - None 2. Redeye Chems LLC - None |
|
Headquarters |
1. Non-Local 2. Non-Local |
|
Prime Workforce Residing in Dallas |
1. 0.97% 2. 0.00% |
|
SBE Utilization |
|
DRIVE SBE Participation Goal |
9.12% |
|
Total SBE Commitment |
0.05% |
|
Economic Impact |
|
City of Dallas Spend |
$0.00 (0.00%) |
|
DFW MSA Spend |
$5,196.00 (0.05%) |
|
Non-Local Spend |
$10,103,004.00 (99.95%) |
|
The proposed contract does not meet the SBE goal and retains 0.05% of total spend within the Dallas MSA. Although the prime did not commit sufficient SBE participation to meet the goal, BEH determined they demonstrated a documented Good Faith Effort (GFE) consistent with the DRIVE policy. |
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 BR26-00030262. We opened them on June 26, 2026. We recommend the City Council award this service price agreement to the lowest responsive and responsible bidders by group. Information related to this solicitation is available upon request.
*Denotes successful bidders
Bidders Address Amount
*Pencco Inc 831 Barlett Road Multiple groups
Sealy, TX 77474
*Redeye Chems LLC 409 West Front Street Multiple groups
Suite 100-112
Hutto, TX 78634
Evoqua Water Technologies 2650 Tallevast Road Multiple groups
LLC Sarasota, FL 34243
OWNERS/EXECUTIVES
Pencco Inc
R.L. Horne, Owner
Redeye Chems LLC
Dustin Windham, Chief Executive Officer