STRATEGIC PRIORITY: Government Performance & Financial Management
AGENDA DATE: August 28, 2024
COUNCIL DISTRICT(S): 4, 6, 8, and Outside
DEPARTMENT: Office of Procurement Services
EXECUTIVE: Donzell Gipson
______________________________________________________________________
SUBJECT
Title
Authorize a three-year service price agreement for the purchase of drinking water treatment chemicals, tank cleaning, and inspection services for the Water Utilities Department - PVS DX, Inc. in the estimated amount of $12,025,324.15; Matheson Tri-Gas, Inc. in the estimated amount of $9,571,076.75, and Shrieve Chemical Company LLC in the estimated amount of $1,383,733.91, lowest responsible bidders of three - Total estimated amount of $22,980,134.81 - Financing: Dallas Water Utilities Fund (subject to annual appropriations)
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 purchase of drinking water treatment chemicals, tank cleaning, and inspection services for the Water Utilities Department (DWU). These include bulk anhydrous ammonia and ammonia tank evacuation, cleaning, and inspection services for DWU. Anhydrous ammonia purchased through this agreement is certified in accordance with National Sanitation Foundation/American National Standards Institute/ Standards Council of Canada 60 standards (NSF/ANSI/CAN 60) for drinking water treatment chemicals. Anhydrous ammonia is used in the disinfection process to meet regulatory compliance as required by the U.S. Environmental Protection Agency (EPA) and Texas Commission on Environmental Quality (TCEQ).
This service price agreement will also provide for the purchase of bulk liquid chlorine, tank rental, and hydrostatic testing services for DWU. Chlorine purchased through this agreement is certified in accordance with NSF/ANSI/CAN 60 for drinking water treatment chemicals. Chlorine is used at the purification plants to disinfect drinking water as required by the EPA and TCEQ. Chlorine is also used in the disinfection process at the wastewater treatment plants. To meet the regulatory requirements, sufficient chlorine must be added to maintain a specified residual level.
This service price agreement will provide for the purchase and of bulk liquid oxygen (LOX) for DWU. LOX purchased through this agreement is certified in accordance with NSF/ANSI/CAN 60 for drinking water treatment chemicals. LOX is used to produce ozone which is used in the water treatment process as a primary disinfectant to meet federal and state regulations for drinking water. Ozone also aids in the control of taste and odor in finished water. Additionally, this agreement includes tank inspection and maintenance services.
DWU provides drinking water to over 2.6 million residents in the City and its surrounding communities. Proper disinfection is necessary to ensure the safety and quality of drinking water delivered to our consumers.
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)
This item has no prior action.
FISCAL INFORMATION
|
Fund |
FY 2024 |
FY 2025 |
Future Years |
|
Dallas Water Utilities Fund |
$1,116,437.00 |
$7,660,042.00 |
$14,203,655.81 |
Council District Amount
4 $ 1,490,331.09
6 $ 2,884,228.82
8 $ 7,787,315.03
Outside $10,818,259.87
Total $22,980,134.81
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 |
|
$22,980,134.81 |
Goods |
32.00% |
|
M/WBE Subcontracting % |
M/WBE Overall % |
M/WBE Overall Participation $ |
|
0.00% |
0.00% |
$0.00 |
|
• The Request for Bid method of procurement resulted in the lowest responsive bidders being selected. |
|
• PVS DX, Inc. - Non-local; Workforce - 0.00% Local • Matheson Tri-Gas, Inc - Local; Workforce - 100.00% Local • Shrieve Chemical Company LLC - Non-local; Workforce - 2.13% 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 BN24-00024302. We opened them on March 14, 2024. We recommend the City Council award this service price agreement to the lowest responsive and responsible bidders by group.
*Denotes successful bidders
*PVS DX, Inc. 300 Jackson Hill St. Group A - Non-Responsive
Houston, TX 77007 Group B - No Bid
Group C - $12,025,324.15
*Matheson Tri-Gas, Inc. 909 Lake Carolyn Pkwy. Group A - No Bid
Suite 1300 Group B - $9,571,076.75
Irving, TX 75039 Group C - No Bid
*Shrieve Chemical 1442 Lake Front Cr. Group A - $1,383,733.91
Company, LLC , The Woodlands, TX 77380 Group B - No Bid
Group C - No Bid
OWNERS
PVS DX, Inc.
Kurt Filer, President
Matheson Tri-Gas, Inc.
Scott Kallman, President
Shrieve Chemical Company, LLC
George Fuller, Chief Executive Officer