STRATEGIC PRIORITY: Government Performance & Financial Management
AGENDA DATE: November 13, 2024
COUNCIL DISTRICT(S): All
DEPARTMENT: Office of Procurement Services
EXECUTIVE: Donzell Gipson
______________________________________________________________________
SUBJECT
Title
Authorize a three-year master agreement for the purchase of propane and propane cylinders for citywide use - Ferrellgas, LP in the estimated amount of $146,410.37 and Atlantic Petroleum & Mineral Resources, Inc. in the estimated amount of $17,670.00, lowest responsible bidders of three - Total estimated amount of $164,080.37 - Financing: General Fund ($153,978.81) and Dallas Water Utilities Fund ($10,101.56)
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 propane and propane cylinders for citywide use. Propane is used to fuel to vehicles such as forklifts, golf carts, and small utility vehicles for the Park & Recreation Department’s maintenance, golf, aquatic and general stores warehouse divisions. Propane is also used to heat mobile mini offices and to power grounds maintenance equipment such as mowers in addition to concession cooking equipment at the Aquatic Centers. The benefits of utilizing propane fuel include reductions in greenhouse gas emissions, increased productivity due to longer run-times, reduced equipment maintenance due to stale gasoline, and the elimination of fuel spillage and leakage. An estimated amount of 97,859 gallons of propane will be required over the next three-year period.
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 June 12, 2019, the City Council authorized a three-year master agreement for propane and propane cylinders with Ferrellgas, LP and Northwest Butane Gas Co. dba Northwest Propane Gas Co. by Resolution No. 19-0898.
FISCAL INFORMATION
|
Fund |
FY 2025 |
FY 2026 |
Future Years |
|
General Fund |
$50,129.00 |
$60,200.00 |
$43,649.81 |
|
Dallas Water Utilities Fund |
$ 2,801.56 |
$ 3,300.00 |
$ 4,000.00 |
|
Total |
$52,930.56 |
$63,500.00 |
$47,649.81 |
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 |
|
$164,080.37 |
Goods |
32.00% |
|
M/WBE Subcontracting % |
M/WBE Overall % |
M/WBE Overall Participation $ |
|
0.00% |
0.00% |
$0.00 |
|
• This item does not meet the M/WBE subcontracting goal. |
|
• Ferrellgas, LP - Non-local; Workforce - 0.25% Local • Atlantic Petroleum & Mineral Resources, Inc. - Non-local; Workforce - 0.00% 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 BM24-00024966. We opened them on August 16, 2024. We recommend the City Council award this master agreement to the lowest responsive and responsible bidder by group. Information related to this solicitation is available upon request.
*Denotes successful bidders
Bidder Address Amount
*Ferrellgas, LP 7500 College Blvd. Multiple groups
Suite 1000
Overland Park, KS 66210
*Atlantic Petroleum & 1445 North Loop W Multiple groups
Mineral Resources, Inc. Houston, TX 77008
Mitchell Welding Supply 3880 Irving Blvd. Non-responsive
Dallas, TX 75247
OWNERS/EXECUTIVES
Ferrellgas, LP
James E. Ferrell, Executive Chairman
Atlantic Petroleum & Mineral Resources, Inc.
Anthony Ndah, President